The global biopharmaceutical sector has suffered a significant slowdown, with the combined market capitalisation of the top 20 companies falling 5.7%, from $3.92 trillion on March 31, 2025, to $3.70 trillion by June 30, 2025, according to new data from GlobalData.
Industry analysts attribute the decline to a combination of drug pricing pressures in the U.S., ongoing tariff uncertainties under the Trump administration, and a series of late-stage clinical trial failures that rattled investor confidence.
While most players struggled, Alnylam Pharmaceuticals emerged as the fastest-growing company in Q2 2025, soaring 21.8% to a market cap of $42.5 billion and securing a new spot in the global top 20.
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The surge was driven by strong sales of Amvuttra, its RNA interference (RNAi) therapy for transthyretin amyloidosis cardiomyopathy (ATTR-CM), which recorded a 59% year-on-year (YoY) increase to $310 million in Q1 2025.
Similarly, Novartis posted a 7.7% rise in market value in Q2, bolstered by blockbuster sales of Entresto, Cosentyx, Kesimpta, and Kisqali.
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The company’s $1.7 billion acquisition of Regulus Therapeutics in June 2025 further strengthened its renal disease portfolio.
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Regulus’ experimental therapy farabursen, an miRNA17-targeting antisense oligonucleotide, is set to enter Phase III pivotal trials in Q3 2025 after promising Phase Ib results in polycystic kidney disease.
Despite isolated gains, 16 of the top 20 biopharma companies saw their valuations drop.
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Bristol Myers Squibb (BMS) suffered the steepest decline, with its market cap plunging 22.9% after mixed Q1 earnings and disappointing results from the Phase III ARISE trial for Cobenfy, an adjunctive therapy for schizophrenia.
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Regeneron (-18.7%) and Sanofi (-13.8%) were also hit hard after their co-developed drug itepekimab failed to meet its primary endpoint in the Phase III AERIFY-2 trial for chronic obstructive pulmonary disease (COPD).
Despite the trial setback, GlobalData forecasts itepekimab could still achieve over $1 billion in global sales by 2031, keeping investor interest alive in the long term.
Analysts warn that pricing reforms, regulatory scrutiny, and pipeline failures will continue to weigh on biopharma valuations in the near term. However, breakthroughs in RNAi therapies, precision medicine, and AI-driven drug discovery are expected to cushion the industry against prolonged declines.
With the industry’s R&D productivity under the microscope, companies doubling down on innovative therapies and strategic acquisitions could emerge as the next growth leaders.
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