Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Moderna (NASDAQ: MRNA) 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 Q3. As a group, revenues beat analysts’ consensus estimates by 5.7%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Moderna (NASDAQ: MRNA)
Rising to global prominence during the COVID-19 pandemic with one of the first effective vaccines, Moderna (NASDAQ: MRNA) develops messenger RNA (mRNA) medicines that direct the body's cells to produce proteins with therapeutic or preventive benefits for various diseases.
Moderna reported revenues of $1.02 billion, down 45.4% year on year. This print exceeded analysts’ expectations by 32%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations.
Moderna achieved the biggest analyst estimates beat but had the slowest revenue growth and slowest revenue growth of the whole group. Unsurprisingly, the stock is up 4.2% since reporting and currently trades at $24.52.
Is now the time to buy Moderna? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: 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 $9.56 billion, up 12.4% year on year, outperforming analysts’ expectations by 6.7%. The business had a very strong quarter with an impressive beat of analysts’ revenue estimates and full-year revenue guidance beating analysts’ expectations.
Amgen pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 9.3% since reporting. It currently trades at $324.63.
Is now the time to buy Amgen? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 $799.5 million, up 6.8% year on year, falling short of analysts’ expectations by 1.6%. It was a softer quarter as it posted a miss of analysts’ revenue and EPS estimates.
United Therapeutics delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 9.7% since the results and currently trades at $455.
Read our full analysis of United Therapeutics’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 $205.7 million, down 3.6% year on year. This result met analysts’ expectations. Taking a step back, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but a significant miss of analysts’ full-year EPS guidance estimates.
The stock is down 20.4% since reporting and currently trades at $6.48.
Read our full, actionable report on Myriad Genetics here, it’s free for active Edge members.
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 $15.78 billion, up 9.1% year on year. This number beat analysts’ expectations by 1.2%. More broadly, it was a mixed quarter as it also produced a narrow beat of analysts’ constant currency revenue estimates but a miss of analysts’ full-year EPS guidance estimates.
The stock is down 4.3% since reporting and currently trades at $218.26.
Read our full, actionable report on AbbVie 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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