In many ways, the economic landscape of 2023 has been turbulent. High inflation? Talent shortages? Rising costs of doing business? Volatile currency markets? New regulatory hurdles? Check, check, check. To navigate the choppy waters, a significant number of companies have turned to strategic M&A to drive growth and strengthen product pipelines. Despite these challenges, a handful of pharma companies have managed to thrive, while others have seen steep drops in sales. Here’s an analysis of the leaders and laggards among top Big Pharma pharma companies in the first half of 2023.

The analysis centers on the companies with the highest overall revenue. We looked at companies with the largest percentage change in stock prices from the start of the year to June 27, 2023. ​For context, the NASDAQ Composite Index is up about 30% so far this year.

Pharma 2023 half-year review: Top 5 winners

1. Robust sales and positive clinical trials propel Lilly’s stock

Lilly’s shares were up 26.80% YTD on the afternoon of June 27, translating to a jump of $97.81 per share to $462.80. Multiple factors have driven Lilly’s share price surge recently. Lilly earned Breakthrough Therapy designation from the FDA for its experimental Alzheimer’s disease drug, donanemab. Although the FDA chose not to grant the drug accelerated approval, the company announced upbeat results in May for the phase 3 TRAILBLAZER-ALZ 2 study of the drug.

Lilly has developed a comprehensive pipeline that promises to expand its product portfolio, which includes promising candidates for various diseases. One of these is retatrutide, an experimental weight management drug that showed promising results in a mid-stage trial, reducing weight by as much as 24% after 48 weeks in people with obesity. Lilly is also making progress in the treatment of chronic kidney disease, having recently submitted an FDA application for empagliflozin.

2. Vertex Pharmaceuticals stock up 20% so far this year

Vertex Pharmaceuticals, leading the cystic fibrosis market with its blockbuster drug Trikafta, has shown strong performance this year. On the afternoon of June 27, the company’s stock price traded at $345.02, marking a significant YTD gain of 20.63%. This equates to an increase of $59.00 per share, underlining Vertex’s sustained market dominance in the field of cystic fibrosisVertex has a promising drug pipeline, including an experimental pain drug called VX-548. Vertex’s sales are driven by Trikafta, its triple CF therapy. New deals and label expansions are expected to boost sales this year. Its pipeline includes drugs for other diseases like sickle cell, beta thalassemia, pain and diabetes. Vertex is testing drugs in younger patients and developing an mRNA treatment with Moderna. Two late-stage studies are evaluating a new triple combo for CF patients 12 and up. This may benefit patients more than Trikafta. With AbbVie exiting CF, Vertex’s position strengthens.

3. Novo Nordisk sees 13% growth YTD

Strengthening its position in the global diabetes care market, Novo Nordisk A/S has seen a significant YTD growth in its share price. As of market close on June 27, shares of Novo Nordisk stood at $155.75, reflecting a significant YTD increase of 13.72%. This represents a rise of $18.79 per share. Novo Nordisk’s latest drug Wegovy (semaglutide), an FDA-approved weight loss medication, has rapidly become a commercial success, as is the injectable version of the drug, Ozempic. The drug, along with Lilly’s tirzapatide, are among the most promising novel obesity therapies to emerge in years. Novo Nordisk has a strong Growth Score and holds a top Zacks Rank, indicating continued stock growth.

4. Otsuka shares up 12.25% YTD

Tokyo-headquartered Otsuka Holdings has posted a substantial increase in its share price for the year to date. As of market close on June 27, Otsuka’s shares were trading at ¥5,284.00 on the Tokyo Stock Exchange, reflecting a YTD increase of 12.25%. The company won FDA approval for REXULTI in May, a treatment for Alzheimer’s disease-related agitation developed in collaboration with Lundbeck. That same month, Otsuka Pharmaceutical Factory, a subsidiary of Otsuka Holdings, acquired additional equity in Otsuka Pharmaceutical India Private Limited, a joint venture, signaling a strategic expansion into India.

5. Sanofi stock up 9% in first half of 2023

Sanofi SA has strong growth of late. On June 27, Sanofi’s shares on the NASDAQ stood at $53.64, reflecting a 9.48% lift from the beginning of the year. At the same time, its shares were trading at €97.89 on the Euronext Paris exchange, reflecting a YTD growth of 6.77%. Additionally, Sanofi has a favorable Zacks Rank and Valuation Score.

Pharma 2023 half-year review: Top 5 losers

1. Moderna stock down one-third YTD

In spite of its pivotal role in COVID-19 vaccine production, Moderna has encountered a significant dip in its share price this year. So far this year, Moderna’s shares were trading at $120.45, reflecting a dip of 32.71%, or $58.55 drop per share, highlighting. Despite these headwinds, UBS upgraded Moderna from neutral to buy, as it believes the broader applications of Moderna’s mRNA vaccines are not fully recognized by investors.

2. BioNTech shares drop –29% YTD

Similar to Moderna, BioNTech has encountered falling demand for its COVID-19 vaccine. Shares of BioNTech are now trading at $106.18, reflecting a YTD decrease of 28.57%. This translates into a decline of $42.48 per share. Their COVID-19 vaccine, developed with Pfizer, had been a core revenue driver. BioNTech is also diversifying its pipeline with a focus on cancer therapies, but these are still in early stages of development​.

3. Pfizer also struggling to maintain COVID-19 stamina

Despite its significant role in global COVID-19 vaccination efforts, Pfizer has experienced a considerable decrease in its share price this year. As of market close on June 27, Pfizer’s shares were trading at $36.42, which signifies a pronounced YTD decline of 28.96%. This amounts to a drop of $14.85 per share. In 2022, Pfizer sold more doses of both Comirnaty and Paxlovid than were actually used, resulting in inventory stockpiles. Additionally, Pfizer projected that the volume of Comirnaty doses administered this year will fall by almost one-third.

4. Organon performance wavers in 2023

Organon has encountered a significant decrease in its share price this year. As of the market close, shares of Organon & Co were trading at $20.67, reflecting a YTD decrease of 26.36%. This represents a decline of $7.40 per share. Organon, which became an independent company after spinning off from Merck in 2021, also reported lower-than-expected fourth-quarter and full-year financial results. In the fourth quarter 2022, Organon’s revenue of $1.48 billion was down 7% year over year.

5. Incyte stock down 23% YTD

Incyte’s stock has faced a decline, trading at $61.65 on June 27. That reflects a 22.50% dip — or $17.90 decline — from the beginning of the year. The falling price is partly a s result of the failure of its GRAVITAS-309 study evaluating itacitinib for the treatment of chronic graft-versus-host disease. In Q1, the company’s adjusted EPS were $0.37, missing analysts’ estimates. Although total revenues were up 11% year over year, they did not match consensus estimates. Revenues from Jakafi, one of Incyte’s key drugs, were up but missed estimates. In Q1, Incyte discontinued some programs to focus on higher-potential ones. Investors are watching the launches of Vonjo and momelotinib.

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Filed Under: Drug Discovery, Drug Discovery and Development, Pharma 50, Regulatory affairs
Tagged With: 2023 half-year review, biopharma winners, biotech losers, pharma industry trends, pharmaceutical R&D, stock performance
 

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