The Largest Pharmaceutical Stock Changes of the Year to Date

The most significant upward movements in share prices among leading pharmaceutical companies this year tell fascinating tales of successful drug sales, noteworthy drug approvals, and competitor setbacks. Conversely, companies experiencing substantial declines in share prices are grappling with clinical disappointments, market challenges, and impending patent expirations.

Eli Lilly ranks first among the top 20 pharmaceutical companies by market capitalization, boasting an increase of over 39% in its share price year-to-date. This surge follows the FDA approval of its blockbuster drug, Zepbound, for weight loss at the end of 2023. Interestingly, Lilly has managed to operate under Congress’s attention while rival Novo Nordisk was targeted by Senator Bernie Sanders due to drug pricing discussions.

In contrast, Pfizer has encountered a decrease of over 10% this year, driven primarily by pressures from an activist investor. Similarly, Merck faces challenges, with its shares down more than 7% as it approaches a patent cliff for its successful cancer drug, Keytruda.

Here’s a summary of six pharmaceutical companies that highlight their share price movements this year.

All market capitalization and share price fluctuations reported here are as of Tuesday afternoon at 1:30 p.m. ET, based on the previous day’s closing price.

Eli Lilly

YTD Share Change: 37%
Market Cap: 6.2 billion
Share Price: 5

Lilly’s market capitalization has surged by 2.8 billion since the end of 2023. Having reached a high of about 0 per share in September, it’s certainly a noteworthy year for the company. Shareholders have benefitted from over .6 billion in dividends and share repurchases, as reported by CEO David Ricks during a third-quarter earnings call.

The driving force behind Lilly’s share increase is its expanding obesity treatment portfolio, starting with Zepbound’s FDA approval in November 2023. By the end of September, Zepbound had already secured approval in 10 countries, with additional launches expected. The company views China as a critical market, with potential launches in 2025.

Despite Lilly’s success, it is still catching up to Novo Nordisk, which recently launched its obesity solution Wegovy in China. Wegovy gained early market traction in the U.S. after being approved by the FDA in June 2021, though Lilly is quickly gaining momentum.

Looking ahead, Lilly has a promising pipeline of obesity treatments and is committed to expanding its assets through various licensing deals and acquisitions.

In the Alzheimer’s space, Lilly recently received FDA approval for its disease-modifying treatment, Kisunla, which pits it against established competitors like Biogen and Eisai.

Although Lilly has a positive outlook, threats from pricing concerns, declining demand, and new competitors loom on the horizon.

Pfizer

YTD Share Change: -10.77%
Market Cap: 5.6 billion
Share Price: .17

Pfizer is currently experiencing a “normalization” in its COVID-related business, having seen a decline since the “honeymoon phase” following its successful launch of the Comirnaty vaccine and Paxlovid therapy. Share prices peaked around in December 2021 but have since decreased to approximately due to the waning pandemic.

Amid this decline, activist investor Starboard Value has emerged, calling for changes under CEO Albert Bourla. However, this campaign lost steam following a third-quarter earnings report that exceeded expectations.

Pfizer strives to transition Paxlovid sales from a government market to a commercial model, facing pressures from expiring patents and competitor developments. The company is also engaged in a competitive landscape, particularly in the respiratory syncytial virus vaccine market.

The narrative surrounding Pfizer remains tense with potential pivotal results expected from an oral obesity treatment slated for early 2025.

Amgen

YTD Share Change: -5.92%
Market Cap: 5.6 billion
Share Price: 4

Amgen faced a significant decline in share value after disappointing results from the Phase II trial of the MariTide drug, which showed weight loss on the lower end of expectations. Analysts had anticipated a more substantial performance, leading to an 8% drop in stock value.

Despite the setback, some analysts advocate for maintaining a long-term view on Amgen’s potential as the market reacts to the trial data.

Vertex

YTD Share Change: 13.35%
Market Cap: 8.6 billion
Share Price: 1

Vertex remains the frontrunner in the cystic fibrosis sector, with notable products like Trikafta and the newly approved Casgevy. Analysts view this sector as having significant growth potential, as Vertex increases its guidance for sales.

Upcoming regulatory decisions are also pivotal for Vertex, with two key drug approvals expected in January 2025.

Merck

YTD Share Change: -7.46%
Market Cap: 5.5 billion
Share Price: 1

Merck’s fortunes have shifted amid challenges surrounding Keytruda, facing several trial failures. The company is also dealing with delays in its HPV vaccine shipments in China, impacting overall revenue from this high-value product.

Despite these hurdles, analysts see potential in Merck’s pipeline and its strategic partnerships for future growth.

Novo Nordisk

YTD Share Change: 2.76%
Market Cap: 5.5 billion
Share Price: 4

Novo Nordisk’s market capitalization has seen significant volatility, largely influenced by its performance in the GLP-1 space. The approval of Wegovy boosted its profile, yet ongoing developments continue to shape its trajectory.

Recent news, including the American administration’s support for weight loss drug coverage, has positively impacted Novo’s position in the market.