The coronavirus Pandemic isn’t over yet, but the pharmaceutical industry’s second-quarter earnings don’t reflect that. After a shaky start to 2021, attributable to the epidemic and a change of guard in Washington, D.C., there are signs of recovery. As firms have announced their quarterly results over the last few weeks, most have told a different version of the same narrative. Sales of pharmaceuticals are increasing, with some therapeutic areas recovering faster than others.
While the recovery is starting, the industry still has a long way to go before returning to its pre-Pandemic state. Even market analysts have been shocked by the rebound’s tenacity. Many corporations outperformed Wall Street’s sales projections in this batch of earnings reports. More than half of Big Pharma companies reported revenue growth of more than 15% compared to the same quarter in 2020, which was hampered by lockdowns and the economic shock that accompanied the outbreak.
Vaccine sales aided AstraZeneca’s and Johnson & Johnson’s top-line rises, while Eli Lilly and Gilead also saw gains thanks to their therapies. Moderna, whose vaccine sales accounted for nearly all of its revenue gain from $67 million in the second quarter of 2020 to $4.4 billion this year, was in a different league entirely. Analysts such as Geoffrey Porges of SVB Leerink predicted the expansion. They simply did not go far enough. Surprisingly, the only pharma business that saw a significant drop in revenue is on track to make a large profit in the future.
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