The biopharmaceutical industry faces headwinds from Trump administration’s ongoing tariffs and drug pricing pressures in the US. As a result, 20 global biopharmaceutical companies have reported a 5.7 percent Quarter-on-Quarter (QoQ) downturn in their combined market capitalisation from USD 3.9 trillion on 31 March, 2025 to USD 3.7 trillion on 30 June, 2025, reveals GlobalData.

A decrease in market capitalisation was seen for 16 of the top 20 players. However, Alnylam Pharmaceuticals (21.8 per cent), Novartis (7.7 percent), Takeda (3.4 percent) and Novo Nordisk (0.5 per cent) registered growth in market capitalisation.

Alison Labya, MSc, Senior Business Fundamentals Pharma Analyst, GlobalData, commented, “Alnylam witnessed the largest market capitalisation growth of 21.8 percent to USD 42.5 billion, and secured a spot as a new entrant in the top 20 players. The company’s growth was largely driven by the strong performance of its RNA interference (RNAi) therapeutic Amvuttra for transthyretin amyloidosis cardiomyopathy (ATTR-CM), which saw a 59 percent Year-over-Year (YoY) increase in global sales to USD 310 million in Q1 2025.”  

Novartis reported a 7.7 percent increase in market capitalisation in Q2 2025 due to its strong financial performance, with growth in sales seen across its blockbuster drugs in 2024, including Entresto, Cosentyx, Kesimpta and Kisqali. Novartis’s market capitalisation growth was further fueled by the completion of its acquisition of Regulus Therapeutics in June 2025, valued at USD 1.7 billion, representing a strategic move to strengthen its renal disease portfolio.

Meanwhile, Bristol Myers Squibb (-22.9 percent), Regeneron (-18.7 percent), Sanofi (13.8 percent), and Merck and Co (11.8 percent) recorded negative growth of over 10 percent in Q2 2025.

Bristol Myers Squibb’s market capitalisation fell 22.9 per cent over Q2 2024, following the announcement of its mixed Q1 2025 financial performance and disappointing trial results. The company’s phase-III ARISE trial investigating Cobenfy as an adjunctive therapy to atypical antipsychotics for schizophrenia did not meet its primary endpoint of change in the Positive and Negative Syndrome Scale (PANSS).

Regeneron (-18.7 per cent) and Sanofi (-13.8 per cent) experienced drops in their market capitalisation due to the failure of Itepekimab—their partnered IL-33-targeting monoclonal antibody— to meet its primary endpoint in the phase-III AERIFY-2 trial for Chronic Obstructive Pulmonary Disease (COPD). The AERIFY-2 trial is one of a pair of phase-III trials (AERIFY-1 and AERIFY-2) that aimed to achieve a reduction in moderate or severe exacerbations of COPD.

Labya added, “The failure of the AERIFY-2 trial represents a setback for Itepekimab, for which Sanofi had planned to file for regulatory approval in the US and EU in H2 2025. However, other trials evaluating Itepekimab in COPD remain ongoing, including the phase-II AERIFY-3 and phase-III AERIFY-4 trials. Despite the setback, Itepekimab is forecasted to achieve analyst consensus global sales exceeding USD 1 billion by 2031, according to GlobalData’s Sales and Forecast database.”

Merck and Co witnessed a 11.8 per cent decline in market capitalisation during Q2 2025, primarily driven by concerns over the performance of its Gardasil vaccine in China, which contributed to a 40 per cent decline in global sales to USD 1.3 billion in Q1 2025.

Labya concluded, “Investor sentiment has been impacted by the US tariff announcements and mounting drug pricing pressures in the US, leading to significant declines in market capitalisation among the top biopharmaceutical companies in Q2 2025. Moreover, the US’s plan to impose 250 per cent tariffs on pharmaceutical imports is expected to further impact share prices over Q3 2025. Nonetheless, some companies, such as Alnylam and Novartis have shown resilience amid these challenges by demonstrating strong financial performance.”