Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Organon (NYSE: OGN) and the best and worst performers in the branded pharmaceuticals industry.

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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.1%.

Thankfully, share prices of the companies have been resilient as they are up 10% on average since the latest earnings results.

Organon (NYSE: OGN)

Spun off from Merck in 2021 to create a company dedicated to addressing unmet needs in women's health, Organon (NYSE: OGN) is a global healthcare company focused on improving women's health through prescription therapies, medical devices, biosimilars, and established medicines.

Organon reported revenues of $1.59 billion, flat year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ revenue and EPS estimates.

“During the quarter we paid down principal on our long-term debt and began implementing meaningful cost savings, which together set us on a path to achieve net leverage below 4.0x by the end of this year. We will aim to drive further improvement, with the goal of achieving net leverage of 3.5x or below by the end of 2026,” said Kevin Ali, Organon’s Chief Executive Officer.

Interestingly, the stock is up 6.7% since reporting and currently trades at $10.32.

Is now the time to buy Organon? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q2: 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 $165.5 million, down 1.7% year on year, outperforming analysts’ expectations by 7.4%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

The market seems happy with the results as the stock is up 29% since reporting. It currently trades at $48.40.

Is now the time to buy Supernus Pharmaceuticals? Access our full analysis of the earnings results here, it’s free for active Edge members.

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 $194.4 million, up 18.7% year on year, falling short of analysts’ expectations by 3.5%. It was a softer quarter as it posted 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 35.2% since the results and currently trades at $90.56.

Read our full analysis of Corcept’s results here.

Zoetis (NYSE: ZTS)

Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE: ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.

Zoetis reported revenues of $2.46 billion, up 4.2% year on year. This number beat analysts’ expectations by 1.9%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ revenue estimates.

The stock is down 5.6% since reporting and currently trades at $143.50.

Read our full, actionable report on Zoetis here, it’s free for active Edge members.

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 $12.27 billion, flat year on year. This result surpassed analysts’ expectations by 7.8%. It was an exceptional quarter as it also produced a beat of analysts’ EPS and revenue estimates.

The stock is down 3.1% since reporting and currently trades at $44.60.

Read our full, actionable report on Bristol-Myers Squibb here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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