Wrapping up Q3 earnings, we look at the numbers and key takeaways for the branded pharmaceuticals stocks, including Organon (NYSE: OGN) 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 Q3. As a group, revenues beat analysts’ consensus estimates by 2.3%.

Luckily, branded pharmaceuticals stocks have performed well with share prices up 10.2% on average since the latest earnings results.

Organon (NYSE: OGN)

Spun off from Merck in 2021 to create a company dedicated to addressing unmet needs in women's health, Organon (NYSE: OGN) is a global healthcare company focused on improving women's health through prescription therapies, medical devices, biosimilars, and established medicines.

Organon reported revenues of $1.60 billion, up 1.3% year on year. This print exceeded analysts’ expectations by 2%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ revenue estimates but full-year revenue guidance slightly missing analysts’ expectations.

“I am humbled to be working alongside our talented team during this pivotal time for Organon,” said Joe Morrissey, Organon’s Interim Chief Executive Officer.

Interestingly, the stock is up 9.9% since reporting and currently trades at $7.45.

Is now the time to buy Organon? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: 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 $17.6 billion, up 53.9% year on year, outperforming analysts’ expectations by 9.6%. The business had a stunning quarter with a solid beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

Eli Lilly pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 36.7% since reporting. It currently trades at $1,110.

Is now the time to buy Eli Lilly? Access our full analysis of the earnings results here, it’s free for active Edge members.

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 $207.6 million, up 13.7% year on year, falling short of analysts’ expectations by 5%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

Corcept delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 12.2% since the results and currently trades at $79.74.

Read our full analysis of Corcept’s results here.

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 $2.4 billion, flat year on year. This number met analysts’ expectations. Aside from that, it was a slower quarter as it produced full-year revenue guidance slightly missing analysts’ expectations and revenue in line with analysts’ estimates.

The stock is down 11% since reporting and currently trades at $128.43.

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

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 $12.22 billion, up 2.9% year on year. This print surpassed analysts’ expectations by 3.7%. It was a very strong quarter as it also recorded a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ full-year EPS guidance estimates.

The stock is up 15.4% since reporting and currently trades at $49.18.

Read our full, actionable report on Bristol-Myers Squibb 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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