Wrapping up Q1 earnings, we look at the numbers and key takeaways for the branded pharmaceuticals stocks, including Zoetis (NYSE: ZTS) and its peers.

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 Q1. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

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 $2.22 billion, up 1.4% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ full-year EPS guidance estimates.

Unsurprisingly, the stock is down 3.1% since reporting and currently trades at $153.32.

Is now the time to buy Zoetis? Access our full analysis of the earnings results here, it’s free.

Best Q1: 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 $11.2 billion, down 5.6% year on year, outperforming analysts’ expectations by 3.9%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.

Bristol-Myers Squibb delivered the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $48.92.

Is now the time to buy Bristol-Myers Squibb? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: 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 $12.73 billion, up 45.2% year on year, exceeding analysts’ expectations by 0.9%. Still, it was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and a miss of analysts’ EPS estimates.

As expected, the stock is down 11% since the results and currently trades at $797.40.

Read our full analysis of Eli Lilly’s results here.

Royalty Pharma (NASDAQ: RPRX)

Pioneering a unique business model in the pharmaceutical industry since 1996, Royalty Pharma (NASDAQ: RPRX) acquires rights to receive portions of sales from successful biopharmaceutical products, providing funding to drug developers without conducting research itself.

Royalty Pharma reported revenues of $568.2 million, flat year on year. This number was in line with analysts’ expectations. Overall, it was a satisfactory quarter as it also produced a solid beat of analysts’ EPS estimates.

The stock is up 9.8% since reporting and currently trades at $36.03.

Read our full, actionable report on Royalty Pharma here, it’s free.

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 $149.8 million, up 4.3% year on year. This result surpassed analysts’ expectations by 1.3%. Aside from that, it was a slower quarter as it recorded full-year operating income guidance missing analysts’ expectations and full-year revenue guidance missing analysts’ expectations.

Supernus Pharmaceuticals had the weakest full-year guidance update among its peers. The stock is up 1.6% since reporting and currently trades at $32.97.

Read our full, actionable report on Supernus Pharmaceuticals 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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