Biogen is the big loser in an annual review of biopharma brand values. After a year in which lawmakers accused Biogen of “inappropriately” collaborating with the FDA and setting an “unjustifiably high price,” the biotech’s brand value slumped 39%, sending it down a leader board topped by Johnson & Johnson.
The analysis comes from Brand Finance, a consultancy that values brands by researching factors such as customer perceptions. In its 2023 healthcare report, the consultancy lists the brand value winners and losers from the past 12 months. Multiple leading drugmakers suffered declines in the value and strength of their brands as the pandemic sheen came off, but none fell quite as dramatically as Biogen.
Biogen’s 39% decline was the biggest fall in brand value from 2022 to 2023. The Big Biotech actually gained ground in last year’s report, rising to 10th on the list of strongest pharma brands, but imploded against the backdrop of a House investigation of the approval of its controversial Alzheimer’s disease drug Aduhelm.
AbbVie, GSK and Astellas are the other big losers in the latest report, with each suffering a 19% to 23% reduction in their brand values. Brand Finance cited GSK’s decision to spin off its consumer health unit as a driver of its decline. The change, which contributed to a $1 billion decline in brand value, means less revenue is generated under the GSK name—and may have further effects on the company’s standing.
“What is yet to be seen is whether the loss of the more public facing consumer health unit will decrease the exposure and relevance of GSK or allow it to focus its brand attributes better for the less diverse business,” the consultancy wrote.
The situation at the top of the value leader board is unchanged. After receiving big boosts to their brand values in 2022, J&J, Roche and Pfizer all saw their values slip this year but still held on to the top three spots. J&J rose to the top of the list of the strongest brands, replacing Pfizer, despite suffering a dip in its strength. With Pfizer and AstraZeneca taking big hits, companies that held steady climbed the rankings.
Among the Big Pharma companies, Merck & Co., up 25%, and Eli Lilly, up 15%, experienced the largest increases in brand value. The two biggest gainers overall were CSL, up 32%, and Novo Nordisk, up 31%.
Brand Finance attributed the gains at CSL to the growth of its immunoglobulin portfolio. For Novo, the key driver is the fevered interest in its weight loss drug Ozempic. “As consumer awareness increases, the Novo Nordisk brand is likely to benefit in coming years,” the consultancy wrote. The forecast suggests the brand value of Lilly, which is emerging as a major rival to Novo in obesity, may continue to rise, too.