Biopharma Industry Sees Strong Q4 2024 Revenue Growth, Led by Eli Lilly and Novo Nordisk

The biopharmaceutical industry witnessed a remarkable surge in revenues during the fourth quarter of 2024, with the majority of major companies reporting significant year-over-year growth. This trend, observed throughout the year, reached its peak in Q4, with industry giants Eli Lilly and Novo Nordisk leading the charge.

Double-Digit Growth Dominates Q4 Earnings

Of the 22 biopharma companies that reported quarterly revenues of at least $2 billion by February 24, 2025, an impressive 18 posted year-over-year increases. Nine of these companies achieved double-digit growth, while nine others reported single-digit increases of 5% or more.

Eli Lilly stood out with a staggering 45% revenue increase, its highest for any quarter in 2024. This marks Lilly's seventh consecutive quarter with at least a 20% increase. Novo Nordisk followed closely with a 30% growth, continuing its streak of 12 consecutive quarters exceeding the 20% growth mark.

Other notable performers included AstraZeneca (24% increase), Pfizer (23% increase), and Astellas (22% increase). Vertex and Novartis both achieved 15% revenue growth, their highest quarterly increases for 2024.

GLP-1 Drugs and Diversified Portfolios Drive Growth

The remarkable performance of Eli Lilly and Novo Nordisk can be largely attributed to the success of their diabetes and obesity drugs, particularly those in the GLP-1 class. However, Lilly's growth wasn't solely dependent on these products. The company reported a 20% year-over-year increase in sales of its non-incretin drugs, with breast cancer therapy Verzenio and heart failure treatment Jardiance generating $1.6 billion and $1.2 billion in quarterly sales, respectively.

AstraZeneca's strong showing was fueled by 27% increases in both its oncology drugs and respiratory and immunologic treatments. Pfizer's acquisition of Seagen contributed significantly to its growth, along with a surprising spike in sales of its COVID-19 products, Comirnaty and Paxlovid.

Industry Outlook and Challenges

While the overall industry trend is positive, some companies are projecting a slowdown in growth for 2025. Novo Nordisk estimates its revenue will increase between 16% and 24% in the coming year, while AstraZeneca projects high single-digit growth.

The appointment of Robert F. Kennedy Jr. as secretary of the Department of Health and Human Services has raised concerns among vaccine manufacturers about the future of the U.S. market. Companies like Merck, Sanofi, Pfizer, and Moderna may face challenges in vaccine development and approval processes.

Despite these potential hurdles, the biopharma industry appears to be in a strong position, with many companies successfully navigating the post-pandemic landscape and capitalizing on innovative therapies across various therapeutic areas.