The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how therapeutics stocks fared in Q2, starting with Vertex Pharmaceuticals (NASDAQ: VRTX).

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 14.7% on average since the latest earnings results.

Vertex Pharmaceuticals (NASDAQ: VRTX)

Founded in 1989 with a mission to create medicines that treat the underlying causes of disease rather than just symptoms, Vertex Pharmaceuticals (NASDAQ: VRTX) develops and markets transformative medicines for serious diseases, with a focus on cystic fibrosis, sickle cell disease, and pain management.

Vertex Pharmaceuticals reported revenues of $2.96 billion, up 12.1% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates but full-year revenue guidance meeting analysts’ expectations.

“Vertex delivered a strong quarter of revenue growth with each of our three product launches — ALYFTREK, JOURNAVX, and CASGEVY — contributing, as well as continued advancement of our clinical programs,” said Reshma Kewalramani, M.D., Chief Executive Officer and President of Vertex."

Unsurprisingly, the stock is down 18.6% since reporting and currently trades at $383.

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

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 estimates and a solid beat of analysts’ full-year EPS guidance estimates.

Biogen delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 10.3% since reporting. It currently trades at $140.10.

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

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 estimates.

United Therapeutics delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 39.3% since the results and currently trades at $414.

Read our full analysis of United Therapeutics’s results here.

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 $142 million, down 41.1% year on year. This result surpassed analysts’ expectations by 10.7%. Taking a step back, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations.

Moderna had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is down 9.9% since reporting and currently trades at $26.63.

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

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 print beat analysts’ expectations by 2.6%. It was a strong quarter as it also recorded an impressive beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.

The stock is up 17.6% since reporting and currently trades at $222.68.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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