Looking back on therapeutics stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Amgen (NASDAQ: AMGN) 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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 5.1%.
Luckily, therapeutics stocks have performed well with share prices up 16.3% on average since the latest earnings results.
Amgen (NASDAQ: AMGN)
Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ: AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.
Amgen reported revenues of $9.18 billion, up 9.4% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS and revenue estimates.
"We're delivering strong performance and reaching more patients with innovative medicines and biosimilars that address serious diseases. We continue to invest in science that enables longer, healthier lives and supports sustainable, long-term growth," said Robert A. Bradway, chairman and chief executive officer.
Unsurprisingly, the stock is down 2.5% since reporting and currently trades at $292.75.
Is now the time to buy Amgen? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: Biogen (NASDAQ: BIIB)
Founded in 1978 and pioneering treatments for some of medicine's most complex challenges, Biogen (NASDAQ: BIIB) develops and markets therapies for neurological conditions, including multiple sclerosis, Alzheimer's disease, spinal muscular atrophy, and rare diseases.
Biogen reported revenues of $2.65 billion, up 7.3% year on year, outperforming analysts’ expectations by 13.7%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.
Biogen delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 13.4% since reporting. It currently trades at $144.
Is now the time to buy Biogen? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: 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 $798.6 million, up 11.7% year on year, falling short of analysts’ expectations by 0.5%. It was a softer quarter as it posted a significant miss of analysts’ EPS and revenue estimates.
United Therapeutics delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 46% since the results and currently trades at $434.
Read our full analysis of United Therapeutics’s results here.
AbbVie (NYSE: ABBV)
Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE: ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.
AbbVie reported revenues of $15.42 billion, up 6.6% year on year. This result surpassed analysts’ expectations by 2.6%. It was a strong quarter as it also logged a solid beat of analysts’ constant currency revenue estimates.
The stock is up 22.1% since reporting and currently trades at $231.20.
Read our full, actionable report on AbbVie here, it’s free for active Edge members.
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 $825.4 million, up 15.9% year on year. This number topped analysts’ expectations by 8.4%. Overall, it was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.
BioMarin Pharmaceutical scored the fastest revenue growth among its peers. The stock is down 13.1% since reporting and currently trades at $52.45.
Read our full, actionable report on BioMarin Pharmaceutical here, it’s free for active Edge members.
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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