The biopharmaceutical sector showed signs of recovery in the third quarter of 2024, fueled by increased investor optimism following 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 challenges earlier in the year.
Bristol-Myers Squibb & Co (NYSE:BMY) led the market with the largest increase in capitalization, which surged by 24.6% to $105 billion. This was largely driven by advancements in its pipeline, notably the FDA's approval of its antipsychotic drug, Cobenfy, for treating schizophrenia in September 2024.
Gilead Sciences Inc (NASDAQ:GILD) also posted impressive growth, rising 22.1% in market value, thanks to the accelerated FDA approval of Livdelzi, a treatment for primary biliary cholangitis, as well as the approval of its antibody-drug conjugate, Trodelvy, for HR-/HER2- breast cancer in Japan.
Sanofi SA (NASDAQ:SNY) experienced a 19.2% jump in market capitalization, largely fueled by its flagship drug Dupixent. The drug's strong performance in the treatment of 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.
Similarly, AbbVie Inc (NYSE:ABBV) 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 Inc (NASDAQ:ALNY) 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 AG's (OTC:RHHBY) 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.
On the downside, Wegovy maker Novo Nordisk A/S (NYSE:NVO) 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 & Co (NYSE:LLY) reported a slight decline of 2.1%, though both companies retained their leadership in diabetes and weight loss drugs.
Merck & Co Inc (NYSE:MRK) also faced a 8.2% fall in market value, largely 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," says GlobalData analyst.
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