The biopharmaceutical sector is showing signs of recovery in the third quarter of 2024, spurred by increased investor optimism after the U.S. Federal Reserve's interest rate cuts in September. According to GlobalData, the top 20 global biopharmaceutical companies saw a 2% rise in their combined market capitalization, reaching $4.3 trillion by the end of September, up from $4.2 trillion in June. This rebound highlights the industry’s potential for growth despite earlier challenges this year.
Market Leaders
Bristol-Myers Squibb led the market recovery with a 24.6% surge in capitalization, reaching $105 billion. This growth was largely driven by advancements in its pipeline, notably the FDA’s approval of Cobenfy for treating schizophrenia in September 2024. Gilead Sciences also posted impressive growth, rising 22.1% in market value, thanks to the accelerated FDA approval of Livdelzi, a treatment for primary biliary cholangitis, and the approval of its antibody-drug conjugate, Trodelvy, for HR-/HER2- breast cancer in Japan.
Sanofi experienced a 19.2% jump in market capitalization, largely fueled by its flagship drug Dupixent. The drug’s strong performance in treating conditions such as asthma and atopic dermatitis, coupled with its recent EMA and FDA approvals for chronic obstructive pulmonary disease (COPD), further boosted Sanofi’s standing. AbbVie saw a 15.2% increase in its market cap, driven by the continued success of its immunology drugs—Humira, Skyrizi, and Rinvoq—which together generated nearly $7 billion in Q2 2024 sales. Alnylam Pharmaceuticals joined the top 20 biopharmaceutical companies with a 14.9% rise in its market value, following its RNAi drug vutrisiran's positive results in treating ATTR amyloidosis with cardiomyopathy. Roche Holdings' market capitalization grew by 13.8%, spurred by the FDA’s approval of two key products, Ocrevus Zunovo for multiple sclerosis and Tecentriq Hybreza for oncology indications, the latter being the only approved subcutaneous PD-L1 inhibitor available.
Market Declines
On the downside, Wegovy maker Novo Nordisk saw an 18.2% drop in its market cap after the FDA rejected its BLA filing for the once-weekly insulin icodec. Similarly, Eli Lilly reported a slight decline of 2.1%, though both companies retained their leadership in diabetes and weight loss drugs. Merck & Co faced an 8.2% fall in market value, largely due to disappointing sales of its HPV vaccine, Gardasil, in China.
Industry Outlook
"The biopharmaceutical industry is poised for a recovery, fueled by multiple FDA approvals leading to a rebound in companies that have seen declines in market capitalization in previous quarters, such as Gilead Sciences and Bristol-Myers Squibb," says GlobalData analyst.
