Top 20 biopharma cos report fall in market capitalization

9.1% QoQ decline during Q3 2022, says GlobalData

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Out of the 20 top bio-pharmaceutical companies, 16 reported a drop in quarter-on-quarter (QoQ) market capitalization where eight companies saw a greater than 10% decline. Photo Unsplash

Expanding competition in the generic drugs segment and a decline in the demand for Covid-19 vaccines and therapies have brought down the aggregate market capitalization of the global top 20 bio-pharmaceutical companies by 9.1% from $3.45 trillion in Q2 2022 to $3.14 trillion in Q3 2022, says GlobalData, a leading data, and analytics company.

Sharon Cartic, associate director for Business Fundamentals Databases at GlobalData said, “Regeneron Pharmaceuticals and Daiichi Sankyo witnessed the biggest growth in market capitalization over Q3 2022 with 15.6% and 10%, respectively.”

An analysis of GlobalData’s Pharmaceutical Intelligence Center Drugs Database says that despite a drop in sales of Covid-19 antibody, Regen-Cov, due to ineffectiveness against Omicron variant, Regeneron experienced a record US sales of $1.63 billion in Q3 from its eye-disease drug Eylea.

Cartic continues: “Daiichi Sankyo experienced boosted sales with its partner AstraZeneca for cancer drug Enhertu after receiving FDA approval in Q3 for HER2-low metastatic breast cancer and HER2-mutant metastatic non-small lung cancer.”

Vertex is another biopharmaceutical company in the top 20 list that went against the tide and indicated an upward trajectory in Q3 2022 by recording a 3% market capitalization growth, thanks to its franchise of therapies to treat cystic fibrosis (CF).

Out of the 20 top bio-pharmaceutical companies, 16 reported a drop in quarter-on-quarter (QoQ) market capitalization where eight companies saw a greater than 10% decline. Johnson & Johnson continued its dominance by maintaining its top position, although suffering market capitalization loss of 8%, followed by Eli Lilly, Roche, and Pfizer, according to GlobalData’s Pharmaceutical Intelligence Center Companies Database.

Cartic said: “GSK and Sanofi’s share prices dropped sharply by 46.4% and 24.2%, respectively, due to the increasing number of Zantac cancer lawsuits with GSK slipping down four places to 17th place. However, this recovery is anticipated as the company awaits FDA approval in May 2023, after receiving priority review for its respiratory syncytial virus (RSV) vaccine.”

Bayer recorded a negative market capitalization growth of 22.3% in Q3 due to its announcement regarding the $706 million provision for the environmental damage caused by some legacy Monsanto chemicals. Moderna’s market capitalization tumbled by 18.6% with Pfizer and AstraZeneca reporting a drop of 16.5% and 16.2%, respectively, as concerns that sales of their Covid-19 vaccines may start to decline soon.

Other major players indicated negative market capitalization growth of more than 10%, including AbbVie (-12.3%) and Novo Nordisk (10%).

Cartic concludes: “Although AbbVie’s Humira is set to face biosimilar competition next year, the blockbuster drug reported strong US sales of $4.96 billion in Q3 according to GlobalData’s Drugs Database and is expected to continue positive growth from its new immunology drugs, Skyrizi and Rinvoq.”

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