The data: The pharma industry’s intangible value declined 8% this year, from $7.14 trillion down to $6.5 trillion—the biggest decline among the business sectors that Brand Finance tracks in its annual assessment. Pharma’s intangible valuation includes brand strength, reputation, patents, R&D pipelines, and partner relationships.

Six of the top 10 Big Pharmas lost value this year—Novo Nordisk saw the sharpest decline (down 67%).

• Novo’s drop, from $588 billion to $196 billion, was attributed in part to sudden executive turnover, a drug pipeline that failed to impress investors, and the brand strength of Ozempic showing cracks against aggressive GLP-1 competition, per Brand Finance.
• Merck had the second-largest decline, down 34%, followed by Thermo Fisher (down 26%), Eli Lilly (down 20%), and AstraZeneca and Amgen (both down 11%)
• Despite Lilly’s drop, it remained at the top of the pharma industry intangible list with a value of $667 billion, although down from $840 billion.
• No. 2 on the intangible value list, Johnson & Johnson, notched the biggest intangible value increase, up 10%, from $383 billion to $421 billion.

Why it matters: Pharma’s intangibility decline stands out against a 23% surge in intangible value across industries, reaching its highest total value ($97.6 trillion) since Brand Finance began tracking intangibility 30 years ago as a way to bridge the gap between marketing and finance.

Beyond individual company setbacks, Brand Finance said the pharma sector was dragged down by policy pressure from the Trump administration, particularly its efforts to reduce drug prices that dampened expectations across the industry.

Intangible assets make up 83% of total asset value for public companies globally, and 78% in the US, underscoring the effect even small shifts can have.

Implications for pharma: While the pharma industry is accustomed to receiving low public reputation scores from consumers, investor skepticism is newer and potentially more consequential.

With intangible value tied to expectations around innovation, stability, and brand power, companies that lost ground will need to shore up drug R&D pipelines and rebuild brand equity—especially in competitive areas like metabolic therapies and oncology drugs.

Protecting patents and strengthening value messaging will be important as pricing pressure from the Trump administration and Congress continues to shape market expectations. This year’s declines underscore the need for leadership stability and consistent strategic communication to reassure investors that long-term R&D investments and momentum are continuing.