Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Gilead Sciences (NASDAQ:GILD) 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%.
In light of this news, share prices of the companies have held steady as they are up 4.9% on average since the latest earnings results.
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 $7.08 billion, up 1.8% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ full-year EPS guidance estimates but full-year revenue guidance slightly missing analysts’ expectations.
Interestingly, the stock is up 8.9% since reporting and currently trades at $120.22.
Is now the time to buy Gilead Sciences? 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 achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 6.5% since reporting. It currently trades at $135.24.
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 3.9% since the results and currently trades at $308.73.
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 print beat analysts’ expectations by 8.4%. It was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.
BioMarin Pharmaceutical pulled off the fastest revenue growth among its peers. The stock is down 3.4% since reporting and currently trades at $58.30.
Read our full, actionable report on BioMarin Pharmaceutical here, it’s free.
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 $9.18 billion, up 9.4% year on year. This number surpassed analysts’ expectations by 2.7%. Overall, it was a strong quarter as it also recorded a beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.
The stock is down 3.7% since reporting and currently trades at $289.24.
Read our full, actionable report on Amgen 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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