As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the therapeutics industry, including Biogen (NASDAQ: BIIB) 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%.

Luckily, therapeutics stocks have performed well with share prices up 11.6% on average since the latest earnings results.

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 $2.53 billion, up 2.8% year on year. This print exceeded analysts’ expectations by 8.6%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Interestingly, the stock is up 18.2% since reporting and currently trades at $174.72.

Is now the time to buy Biogen? 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 6.6%. The business had a very strong quarter with an impressive beat of analysts’ revenue estimates and full-year revenue guidance beating analysts’ expectations.

Amgen delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 10.8% since reporting. It currently trades at $328.80.

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 estimates and a significant miss of analysts’ EPS estimates.

United Therapeutics delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 24.5% since the results and currently trades at $517.15.

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

Gilead Sciences (NASDAQ: GILD)

From its groundbreaking work in developing the first single-tablet regimens for HIV treatment, Gilead Sciences (NASDAQ: GILD) develops and markets innovative medicines for life-threatening diseases including HIV, viral hepatitis, COVID-19, and cancer.

Gilead Sciences reported revenues of $7.77 billion, up 3% year on year. This number topped analysts’ expectations by 3.7%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is up 5.3% since reporting and currently trades at $124.78.

Read our full, actionable report on Gilead Sciences 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 print surpassed analysts’ expectations by 1.2%. Zooming out, it was a mixed quarter as it also recorded a narrow beat of analysts’ constant currency revenue estimates but a miss of analysts’ full-year EPS guidance estimates.

The stock is flat since reporting and currently trades at $226.53.

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

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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