Over the past three months, some of the world’s biggest pharmaceutical companies, including Pfizer (NYSE: PFE), Moderna (NASDAQ: MRNA), and AstraZeneca (NASDAQ: AZN), have seen double-digit declines in their stock prices.
Indeed, since April 3, these companies have collectively lost more than $67 billion from their market value as of July 3, 2023.
Pfizer (NYSE: PFE)
Pfizer, the world’s largest drugmaker, has had a tough time in the stock market this year, amid waning demand for Covid-19 vaccines, which triggered a sharp decline in the company’s sales and profits.
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Over the past 3 months, the pharma giant lost more than $26 billion in market valuation, from $233.4 billion to $206.6 billion.
Year-to-date, PFE’s share price plunged more than 28% to $36.65 at the time of writing.
Despite these headwinds, Pfizer continues to go on an acquisition spree. After buying Biohaven Pharmaceuticals, the company acquired biotech firm Seagen for $43 billion.
AstraZeneca (NASDAQ: AZN)
The US-listed shares of the UK drugmaker AstraZeneca saw a steep drop on July 3 after the company posted disappointing results from the Phase 3 trial of its lung cancer treatment.
Its drug, called datopotamab deruxtecan, performed well in comparison to the popular competitor docetaxel in terms of its ability to hinder the progression of lung cancer. On the other hand, “for the dual primary endpoint of overall survival (OS), the data were not mature,” AstraZeneca wrote.
Shares fell more than 8.8% on the Nasdaq stock exchange.
This, coupled with the broader market downturn, erased more than $25 billion off AZN’s market cap since April 3.
At press time, the company’s stock valuation stands at $190.05 billion.
Since the start of the year, AstraZeneca’s shares in the US fell around 5%.
Moderna (NASDAQ: MRNA)
After experiencing unprecedented growth during the coronavirus pandemic, Moderna’s sales embarked on a downward trajectory in 2022 as demand for vaccines plummets.
This trend appears to be continuing in 2023, with analysts projecting a loss per share of $3.97 for Moderna’s Q2 report.
Amidst the challenges, MRNA’s market cap fell from $62.8 billion on April 3 to $46.5 billion on July 3, marking a drop of over $16 billion.
Still, the stock received a much-needed boost from UBS analysts last week, who upgraded MRNA shares to ‘Buy’ from ‘Neutral’, while trimming the price target from $221 to $191.
The upgrade comes as the financial experts highlighted the “underappreciated” potential for the company’s mRNA vaccines beyond Covid.
Summary
In conclusion, pharmaceutical giants Pfizer, Moderna, and AstraZeneca have collectively lost almost $70 billion in market valuation, with waning demand for COVID-19 vaccines, disappointing trial results, and changing market conditions contributing to the decline.
Despite the challenges, these companies continue to pursue growth opportunities through acquisitions and the exploration of the potential of new drugs and vaccines.
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