Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at AbbVie (NYSE: ABBV) 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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 5.1%.
Thankfully, share prices of the companies have been resilient as they are up 5.2% on average since the latest earnings results.
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 exceeded analysts’ expectations by 2.6%. Overall, it was a strong quarter for the company with a solid beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.
Interestingly, the stock is up 9.2% since reporting and currently trades at $206.79.
Is now the time to buy AbbVie? 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 an impressive beat of analysts’ full-year EPS guidance estimates.
Biogen pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 9.3% since reporting. It currently trades at $138.75.
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 5.4% since the results and currently trades at $313.22.
Read our full analysis of United Therapeutics’s results here.
BioMarin Pharmaceutical (NASDAQ: BMRN)
Pioneering treatments for conditions that often had no previous therapeutic options, BioMarin Pharmaceutical (NASDAQ: BMRN) develops and commercializes therapies that address the root causes of rare genetic disorders, particularly those affecting children.
BioMarin Pharmaceutical reported revenues of $825.4 million, up 15.9% year on year. This number beat analysts’ expectations by 8.4%. Overall, it was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.
BioMarin Pharmaceutical delivered the fastest revenue growth among its peers. The stock is down 5.6% since reporting and currently trades at $57.
Read our full, actionable report on BioMarin Pharmaceutical here, it’s free.
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 significantly.
Moderna had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is down 6% since reporting and currently trades at $27.80.
Read our full, actionable report on Moderna 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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