The biopharmaceutical sector signaled a strong recovery in the third quarter of 2024, fueled by a surge in investor optimism following the U.S. Federal Reserve’s interest rate cuts in September. According to GlobalData, the top 20 global biopharmaceutical companies collectively saw a 2% increase in their market capitalization, reaching $4.3 trillion by the end of September, a notable climb from $4.2 trillion in June. This rebound highlights the industry’s promising growth trajectory despite facing headwinds earlier in the year.
Leading the charge was Bristol-Myers Squibb & Co (BMY), experiencing a remarkable 24.6% surge in its market capitalization to $105 billion. This impressive growth was largely attributed to advancements in its drug development pipeline, notably the FDA’s approval of its antipsychotic drug, Cobenfy, for treating schizophrenia in September 2024. Gilead Sciences Inc (GILD) also reported impressive growth, witnessing a 22.1% rise in market value, driven by 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 SA (SNY) recorded a significant 19.2% jump in market capitalization, primarily propelled by the strong performance of its flagship drug Dupixent. The drug’s remarkable efficacy in treating conditions such as asthma and atopic dermatitis, combined with its recent EMA and FDA approvals for chronic obstructive pulmonary disease (COPD), further solidified Sanofi’s position in the market. Similarly, AbbVie Inc (ABBV) saw a substantial 15.2% increase in its market cap, driven by the continued success of its immunology drugs—Humira, Skyrizi, and Rinvoq—which collectively generated nearly $7 billion in sales during Q2 2024.
Alnylam Pharmaceuticals Inc (ALNY) made its debut among the top 20 biopharmaceutical companies, experiencing a 14.9% rise in its market value, following the positive results of its RNAi drug vutrisiran in treating ATTR amyloidosis with cardiomyopathy. Roche Holdings AG’s (RHHBY) market capitalization expanded by 13.8%, driven by the FDA’s approval of two key products, Ocrevus Zunovo for multiple sclerosis and Tecentriq Hybreza for oncology indications, the latter becoming the only approved subcutaneous PD-L1 inhibitor available.
While the majority of companies showcased positive growth, some experienced setbacks. Wegovy maker Novo Nordisk A/S (NVO) saw an 18.2% drop in its market cap following the FDA’s rejection of its BLA filing for the once-weekly insulin icodec. Similarly, Eli Lilly & Co (LLY) reported a slight decline of 2.1%, although both companies retained their leadership in diabetes and weight loss drugs. Merck & Co Inc (MRK) faced an 8.2% fall in market value, primarily due to disappointing sales of its HPV vaccine, Gardasil, in China.
“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,” states a GlobalData analyst. The sector’s resurgence, driven by a renewed focus on innovation and regulatory approvals, paints a promising picture for the future of biopharma.