According to data analytics firm GlobalData, the top 20 global biopharmaceutical companies reported a 2.3% market cap growth in Q2 2023.
Despite continued inflationary pressures, the second quarter "yielded promising outcomes for the leading 20 biopharmaceutical giants," said the firm.
GlobalData analysts said Eli Lilly & Company (NYSE:LLY) witnessed the largest market capitalization growth of 36.1% over Q2 2023. It moved up to first position in the list, "displacing Johnson & Johnson from its top spot for the first time even though it reported a 6.8% increase in market capitalization."
LLY's strong market capitalization growth was said to have been driven by its diabetes drug Mounjaro.
Meanwhile, Merck (NYSE:MRK) rose to third position with an 8.4% market capitalization increase due to its $10.8 billion acquisition of Prometheus Biosciences.
"This strengthens Merck & Co’s immunology pipeline with the addition of PRA023 – a monoclonal antibody drug currently being evaluated in ulcerative colitis, Crohn’s disease, and systemic sclerosis – which is forecasted to achieve global sales of $2.1 billion by 2029," GlobalData stated.
Despite the rise in some names, more than half of the top 20 reported a decline in their market capitalization over Q2 2023. For example, AbbVie (NYSE:ABBV) declined by -15.5%, while Pfizer's (NYSE:PFE) fell by -10.1%.
The analysts added that biopharmaceutical companies such as AbbVie are "starting to experience the consequences of biosimilar competition."