The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Eli Lilly (NYSE: LLY) and the rest of the branded pharmaceuticals stocks fared in Q3.
Looking ahead, the branded pharmaceutical industry is positioned for tailwinds from advancements in precision medicine, increasing adoption of AI to enhance drug development efficiency, and growing global demand for treatments addressing chronic and rare diseases. However, headwinds include heightened regulatory scrutiny, pricing pressures from governments and insurers, and the looming patent cliffs for key blockbuster drugs. Patent cliffs bring about competition from generics, forcing branded pharmaceutical companies back to the drawing board to find the next big thing.
The 10 branded pharmaceuticals stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2.3%.
Thankfully, share prices of the companies have been resilient as they are up 6.3% on average since the latest earnings results.
Best Q3: Eli Lilly (NYSE: LLY)
Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE: LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.
Eli Lilly reported revenues of $17.6 billion, up 53.9% year on year. This print exceeded analysts’ expectations by 9.6%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.
"Lilly delivered another strong quarter, with 54% revenue growth year-over-year driven by continued demand for our incretin portfolio," said David A. Ricks, Lilly chair and CEO.
Eli Lilly achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 25.8% since reporting and currently trades at $1,021.
Collegium Pharmaceutical (NASDAQ: COLL)
Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ: COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations.
Collegium Pharmaceutical reported revenues of $209.4 million, up 31.4% year on year, outperforming analysts’ expectations by 10.7%. The business had a stunning quarter with an impressive beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.
Collegium Pharmaceutical delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 26.5% since reporting. It currently trades at $45.35.
Is now the time to buy Collegium Pharmaceutical? Access our full analysis of the earnings results here, it’s free for active Edge members.
Slowest Q3: Corcept (NASDAQ: CORT)
Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ: CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.
Corcept reported revenues of $207.6 million, up 13.7% year on year, falling short of analysts’ expectations by 5%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ revenue estimates.
Corcept delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 14% since the results and currently trades at $81.05.
Read our full analysis of Corcept’s results here.
Supernus Pharmaceuticals (NASDAQ: SUPN)
With a diverse portfolio of eight FDA-approved medications targeting neurological conditions, Supernus Pharmaceuticals (NASDAQ: SUPN) develops and markets treatments for central nervous system disorders including epilepsy, ADHD, Parkinson's disease, and migraine.
Supernus Pharmaceuticals reported revenues of $192.1 million, up 9.3% year on year. This number surpassed analysts’ expectations by 3.5%. Taking a step back, it was a mixed quarter as it also produced a solid beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.
Supernus Pharmaceuticals had the weakest full-year guidance update among its peers. The stock is down 21% since reporting and currently trades at $45.02.
Bristol-Myers Squibb (NYSE: BMY)
With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE: BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.
Bristol-Myers Squibb reported revenues of $12.22 billion, up 2.9% year on year. This result beat analysts’ expectations by 3.7%. It was a very strong quarter as it also recorded a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ full-year EPS guidance estimates.
The stock is up 9.9% since reporting and currently trades at $46.84.
Read our full, actionable report on Bristol-Myers Squibb here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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