As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the therapeutics industry, including Gilead Sciences (NASDAQ: GILD) and its peers.
Over the next few years, therapeutic companies, which develop a wide variety of treatments for diseases and disorders, face strong tailwinds from advancements in precision medicine (including the use of AI to improve hit rates) and growing demand for treatments targeting rare diseases. However, headwinds such as rising scrutiny over drug pricing, regulatory unknowns, and competition from larger, more resourced pharmaceutical companies could weigh on growth.
The 9 therapeutics stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 0.5%.
While some therapeutics stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.5% since the latest earnings results.
Gilead Sciences (NASDAQ: GILD)
From its groundbreaking work in developing the first single-tablet regimens for HIV treatment, Gilead Sciences (NASDAQ: GILD) develops and markets innovative medicines for life-threatening diseases including HIV, viral hepatitis, COVID-19, and cancer.
Gilead Sciences reported revenues of $6.67 billion, flat year on year. This print fell short of analysts’ expectations by 2.1%. Overall, it was a softer quarter for the company with full-year revenue guidance slightly missing analysts’ expectations.
Interestingly, the stock is up 2.4% since reporting and currently trades at $108.59.
Is now the time to buy Gilead Sciences? Access our full analysis of the earnings results here, it’s free.
Best Q1: United Therapeutics (NASDAQ: UTHR)
Founded by a mother seeking treatment for her daughter's pulmonary arterial hypertension, United Therapeutics (NASDAQ: UTHR) develops and commercializes medications for chronic lung diseases and other life-threatening conditions, with a focus on pulmonary hypertension treatments.
United Therapeutics reported revenues of $794.4 million, up 17.2% year on year, outperforming analysts’ expectations by 5.6%. The business had a very strong quarter with a narrow beat of analysts’ EPS estimates.
United Therapeutics delivered the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.5% since reporting. It currently trades at $292.57.
Is now the time to buy United Therapeutics? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Vertex Pharmaceuticals (NASDAQ: VRTX)
Founded in 1989 with a mission to create medicines that treat the underlying causes of disease rather than just symptoms, Vertex Pharmaceuticals (NASDAQ: VRTX) develops and markets transformative medicines for serious diseases, with a focus on cystic fibrosis, sickle cell disease, and pain management.
Vertex Pharmaceuticals reported revenues of $2.77 billion, up 3% year on year, falling short of analysts’ expectations by 2.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates and full-year revenue guidance slightly missing analysts’ expectations.
As expected, the stock is down 7.2% since the results and currently trades at $464.
Read our full analysis of Vertex Pharmaceuticals’s results here.
Myriad Genetics (NASDAQ: MYGN)
Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ: MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women's health, and mental health.
Myriad Genetics reported revenues of $195.9 million, down 3.1% year on year. This number came in 2.3% below analysts' expectations. It was a softer quarter as it also produced full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.
The stock is down 31% since reporting and currently trades at $5.
Read our full, actionable report on Myriad Genetics here, it’s free.
BioMarin Pharmaceutical (NASDAQ: BMRN)
Pioneering treatments for conditions that often had no previous therapeutic options, BioMarin Pharmaceutical (NASDAQ: BMRN) develops and commercializes therapies that address the root causes of rare genetic disorders, particularly those affecting children.
BioMarin Pharmaceutical reported revenues of $745.1 million, up 14.8% year on year. This print surpassed analysts’ expectations by 1%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations.
BioMarin Pharmaceutical achieved the highest full-year guidance raise among its peers. The stock is down 8.8% since reporting and currently trades at $57.26.
Read our full, actionable report on BioMarin Pharmaceutical here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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