GlobalData, a data and analytics company, on Monday said that expanding generic drug competition and a decline in the demand for COVID-19 vaccines and therapies have brought down the aggregate market capitalisation of the global top 20 biopharmaceutical companies by 9.1% from $3.45 trillion in Q2 2022 to $3.14 trillion in Q3 2022.
“Regeneron Pharmaceuticals and Daiichi Sankyo witnessed the biggest growth in market capitalization over Q3 2022 with 15.6% and 10% respectively,” Sharon Cartic, Associate Director for Business Fundamentals Databases at GlobalData, said in a statement.
An analysis of GlobalData’s Pharmaceutical Intelligence Center Drugs Database reveals that despite a drop in sales of COVID-19 antibody, REGEN-COV, due to ineffectiveness against Omicron variant, Regeneron experienced record US sales of $1.63 billion in Q3 from its blockbuster eye-disease drug Eylea.
“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,” Cartic added.
According to GlobalData, Vertex is another biopharmaceutical company in the top 20 list that went against the tide and indicated upward trajectory in Q3 2022 by recording 3% market capitalisation growth, thanks to its franchise of therapies to treat cystic fibrosis (CF).
Out of the 20 top biopharmaceutical companies, 16 reported a drop in quarter-on-quarter (QoQ) market capitalization where eight companies saw a greater than 10 percent decline.
Meanwhile, 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.
“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,” Cartic said.
Reportedly, 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.
Moreover, 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.
Meanwhile, other major players indicated negative market capitalization growth of more than 10% include AbbVie (-12.3%) and Novo Nordisk (10%).
“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,” Cartic said on Monday.