The current macroeconomic environment has become more challenging due to high inflation and increasing capital costs. As a result, the top 20 global biopharmaceutical companies have reported a decline in their combined market capitalization by 3.4% from $3.61 trillion in Q4 2022 to $3.49 trillion in Q1 2023, according to GlobalData, the leading data and analytics company.

A negative growth in their market capitalization was indicated for 12 of the top 20 players from Q4 2022 to Q1 2023. However, eight companies registered positive growth in market capitalization, with Bayer (23.1%), Novo Nordisk (18.2%), Regeneron (14.3%), Daiichi Sankyo (13.8%) and Sanofi (12.4%) reporting double-digit growth.

Ophelia Chan, MSc, Analyst of Business Fundamentals at GlobalData, comments: “Bayer and Novo Nordisk witnessed the biggest growth in market capitalization over Q1 2023 by 23.1% and 18.2%, respectively. Meanwhile, reduced demand for Pfizer and Moderna‘s COVID-19 vaccines resulted in a decline of 19.9% and 14.2%, respectively, over the same time period.”

As a result, Pfizer lost its position in the top three players in Q1 2023, with Moderna narrowly making last place in the top 20 list.

Chan adds: “Johnson & Johnson and Lily retained their top two spots, while AbbVie climbed to the third position despite experiencing a slight 1.6% decrease in market capitalization.”

Novo Nordisk moved up three places to fourth position in Q1 2023, which can be attributed to its diabetes and obesity portfolio, particularly with its line of glucagon-like peptide 1 receptor agonist (GLP-1) type 2 diabetes drugs: Ozempic, Rybelsus, and Victoza.

According to GlobalData’s Drugs Database Pharma Intelligence Center, Ozempic for Type 2 diabetes continues to remain their leading drug with analyst consensus global forecast sales to reach $17.4m by 2029. While the company’s obesity treatment, Wegovy, has an analyst consensus global forecast sales to reach $9.4m by 2029 where the company announced plans to increase production to meet supply demands this year.

Bayer reported the highest market capitalization growth of 23.1% during Q1 2023, fueled by the advancement of a pair of Phase 3 trials (Oceanic-AF and Oceanic-Stroke) for its blood-thinning drug, Asundexian. The oral coagulation factor XI inhibitor is, according to Bayer, one of the largest Phase 3 programs in its history and therefore has the potential as the next blockbuster drug to prevent strokes and thrombosis.

Both Sanofi and Regeneron saw a market capitalization growth and maintained their positions in the top 20 list due to their successful collaboration to jointly develop Dupixent, which recently saw a surge in sales.  According to GlobalData’s Drugs Database Pharma Intelligence Center, Dupixent has an analyst consensus global forecast sales of $12.4 billion this year. Additionally, the approvals and launches of Dupixent for the treatment of pediatric atopic dermatitis, eosinophilic esophagitis and prurigo nodularis contributed to their growth over Q1 2023.

Johnson & Johnson maintained its leading position, despite a decline of 12.8% in its QoQ market capitalization. This dip is largely attributed to the discontinuation of respiratory syncytial virus (RSV) at phase III development and the ongoing concerns over lawsuits involving baby powder products impacting the company’s market performance.

Chan concludes: “Pfizer faced a significant decrease in market capitalization in Q1 2023, primarily attributed to an anticipated decrease in sales of its COVID-19 vaccine and antiviral treatment, Paxlovid. Nonetheless, the company has made noteworthy progress in its pipeline development and is presently awaiting FDA's approval for its RSV vaccine, designed to combat respiratory syncytial virus, by May 2023.”