The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Collegium Pharmaceutical (NASDAQ: COLL) and the rest of the branded pharmaceuticals stocks fared in Q2.
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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.1%.
Thankfully, share prices of the companies have been resilient as they are up 6.1% on average since the latest earnings results.
Collegium Pharmaceutical (NASDAQ: COLL)
Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ: COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations.
Collegium Pharmaceutical reported revenues of $188 million, up 29.4% year on year. This print exceeded analysts’ expectations by 4.2%. Overall, it was a satisfactory quarter for the company with full-year revenue guidance slightly topping analysts’ expectations but a significant miss of analysts’ EPS estimates.
“We continued to generate strong momentum in the second quarter, driven by sustained execution across our three strategic priorities, including record revenue from Jornay PM, maximizing our pain portfolio, and strategically deploying capital to enhance shareholder value,” said Vikram Karnani, President and Chief Executive Officer.
Interestingly, the stock is up 18.3% since reporting and currently trades at $35.16.
Is now the time to buy Collegium Pharmaceutical? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $165.5 million, down 1.7% year on year, outperforming analysts’ expectations by 7.4%. The business had an incredible quarter with a beat of analysts’ EPS estimates and full-year operating income guidance exceeding analysts’ expectations.
Supernus Pharmaceuticals scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 25.5% since reporting. It currently trades at $47.10.
Is now the time to buy Supernus Pharmaceuticals? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: Corcept (NASDAQ: CORT)
Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ: CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.
Corcept reported revenues of $194.4 million, up 18.7% year on year, falling short of analysts’ expectations by 3.5%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations.
Corcept delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 27.6% since the results and currently trades at $85.51.
Read our full analysis of Corcept’s results here.
Merck (NYSE: MRK)
With roots dating back to 1891 and a portfolio that includes the blockbuster cancer immunotherapy Keytruda, Merck (NYSE: MRK) develops and sells prescription medicines, vaccines, and animal health products across oncology, infectious diseases, cardiovascular, and other therapeutic areas.
Merck reported revenues of $15.81 billion, down 1.9% year on year. This print missed analysts’ expectations by 1.1%. Taking a step back, it was a mixed quarter as it also logged a solid beat of analysts’ constant currency revenue estimates but full-year revenue guidance meeting analysts’ expectations.
Merck had the slowest revenue growth among its peers. The stock is down 5.2% since reporting and currently trades at $79.74.
Read our full, actionable report on Merck here, it’s free.
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 $12.27 billion, flat year on year. This result surpassed analysts’ expectations by 7.8%. It was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.
The stock is down 3.9% since reporting and currently trades at $44.23.
Read our full, actionable report on Bristol-Myers Squibb here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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