More than half of the top 20 biopharmaceutical companies reported an year-on-year (YoY) market capitalization growth over 2021, reveals GlobalData. The leading data and analytics company found that these companies recorded a growth of 5.4%* in aggregate market capitalization—from $3.43 trillion on 31 December 2021 to $3.61 trillion on 31 December 2022.

Ophelia Chan, MSc, Analyst of Business Fundamentals at GlobalData, comments: “Despite the fall in demand for COVID-19 vaccines and therapeutics, and the impact of global economic uncertainty raising concerns on drug pricing as a result of the Inflation Reduction Act (IRA) in the US, 13 of the top 20 global biopharmaceutical companies increased their market capitalization over the last year.”

Of the top 20 players, 11 companies indicated double-digit growth, with four companies—Merck & Co (45.3%), Vertex Pharmaceuticals (32.8%), Lilly (31.6%), and AstraZeneca (21.5%)—reporting more than 20% YoY growth in market capitalization.

Chan continues: “Johnson & Johnson maintained its top position over 2022, with Lilly moving up two places to second place and Pfizer retaining its third position. Pfizer and BioNTech’s COVID-19 vaccine, Comirnaty, is forecast to reach drug analyst consensus global forecast sales of $33 billion for 2022, according to GlobalData’s Drugs Database Pharma Intelligence Center.”

Merck & Co’s market capitalization grew from $193.6 billion to $281.3 billion over 2022, fueled by the increased sales revenue of its vaccines and oncology divisions in Q1, Q2, and Q3, along with the positive reviews of its pipeline drugs.

Chan notes: “Merck & Co has managed to move up by three places, thanks to the positive performance of its top-selling immunotherapy oncology drug, Keytruda. The monoclonal antibody that targets PD-1 continued to reach record sales, with a drug analyst consensus global forecast of $20.8 billion for 2022, according to GlobalData’s Drugs Database Pharma Intelligence Center.”

Vertex recorded 33% market capitalization growth over 2022 thanks to the favorable performance of its franchise of therapies to treat cystic fibrosis. Growth is expected to remain strong with analyst consensus global forecast sales for its triple combination cystic fibrosis therapy, Trikafta/Kaftrio, expected to increase by 35.3% for 2022, as reported by GlobalData’s Drugs Database Pharma Intelligence Center.

Lilly continued its strong run in 2022 as its share price grew 32%—from $276.22 on 31 December 2021 to $365.84 on 31 December 2022. This growth was supported by its blockbuster Trulicity – type 2 diabetes drug, along with other successful products in its portfolio.

Seven biopharmaceutical companies suffered a market capitalization decline over 2022, with Moderna (-33%), GSK (-31.6%), Roche (-25.7%), and Pfizer (-13.2%) registering a more than 10% YoY decline in their market capitalization.

Moderna, amid its post-COVID-19 efforts to expand its portfolio of therapeutic vaccines, witnessed the largest decline of -33% over the past year. Moderna fell from fourteenth to eighteenth position due to increasing concerns vis-a-vis the sustainability of vaccine demand. Similarly, Roche (-25.7%) and Pfizer (-13,2%) suffered a market capitalization decline over 2022 due to the rattled investor confidence towards COVID-19 pandemic products. Roche’s diagnostics business is expected to see a decline in sales in the near term due to declining demand for COVID-19 testing products.

Chan concludes: “Despite the global economic uncertainty and the recent passing of the IRA, the pharmaceutical sector remains resilient. In light of the pressures on drug pricing, top players in the industry are shifting their focus to non-COVID-19 products, as they navigate patent expirations and aim to improve their research and development (R&D) efforts in order to replenish their pipelines.”

*Based on top 20 global pharmaceutical companies on 31 Dec 2021 (includes BioNTech) vs top 20 global pharmaceutical companies on 31 Dec 2022 (includes Daiichi Sankyo).