Many European pharma executives have one thing in widespread with Olympic athletes. As this summer season’s Paris video games will show, being an “also-ran” may be brutal. Sponsors love winners, even when different rivals have compelling tales. Within the pharma sector, buyers’ strategy is not any totally different.
The market’s obsession with weight reduction therapies has reached such heights that pharmaceutical teams centered on different therapeutic areas — or that are late to the weight problems recreation — are struggling for consideration. There’s a close to 60 per cent valuation hole between Danish weight reduction medication group Novo Nordisk and the opposite principal European prescribed drugs corporations, based mostly on 2025 earnings estimates.
“We’re in a little bit of [an obesity drugs] fad in the mean time,” mentioned Stuart Harris, analysis director at Cavendish. The “also-rans” haven’t all the time helped themselves. Firms corresponding to Sanofi and Roche have to impress with progress on their drug pipelines if they’re to draw even a slither of consideration.
There have been encouraging indicators from second-quarter outcomes. Sanofi mentioned final week it was not anticipating a decline in earnings per share this yr, following robust gross sales of its blockbuster bronchial asthma and eczema drug Dupixent. Crucially, although, the outcomes have been additionally promising for more moderen launches together with Altuviiio, a drug used to handle bleeding in haemophilia A sufferers.
Chief government Paul Hudson has ready the marketplace for decrease earnings as he boosts analysis and growth to handle considerations the group is just too depending on Dupixent. Traders are inspired: Sanofi is anticipating 12 section late-stage knowledge readouts in 2024-25. The shares have gained 6 per cent yr so far however extra constructive trial outcomes shall be wanted to drive additional enchancment.
Roche additionally raised its annual gross sales and earnings forecast after newer medicines corresponding to eye therapy Vabysmo helped carry first-half group gross sales 5 per cent, excluding forex results. However Roche has suffered high-profile, late-stage failures lately, notably in Alzheimer’s therapies. Boss Thomas Schinecker will showcase its wares in September. One simpler win may be a concentrate on cost-cutting: Citi expects “vital” cost-efficiencies to be introduced.
Schinecker is, although, pursuing weight problems medicines after buying early-stage property by means of a $3.1bn deal for California’s Carmot Therapeutics. The Swiss group’s market worth rose greater than $16.5bn in someday in July when it launched encouraging prime line outcomes from a trial into its anti-obesity capsule — despite the fact that it was solely early stage. Nonetheless, Roche has solely gained 5.5 per cent previously 12 months.
The also-rans nonetheless must dash tougher to be worthy of a podium place.
