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 BioMarin Pharmaceutical (NASDAQ: BMRN) and the rest of the therapeutics stocks fared in Q2.
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%.
Luckily, therapeutics stocks have performed well with share prices up 11% on average since the latest earnings results.
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 exceeded analysts’ expectations by 8.4%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.
"We were very pleased with our second quarter performance across all aspects of the business, including strong growth, exciting pipeline progress, and delivery of our business development strategy," said Alexander Hardy, President and Chief Executive Officer of BioMarin.
BioMarin Pharmaceutical achieved the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 11.9% since reporting and currently trades at $53.15.
Is now the time to buy BioMarin Pharmaceutical? 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 delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 13.2% since reporting. It currently trades at $143.70.
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 36.3% since the results and currently trades at $404.90.
Read our full analysis of United Therapeutics’s results here.
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 topped analysts’ expectations by 2.6%. It was a strong quarter as it also produced a solid beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.
The stock is up 14.9% since reporting and currently trades at $217.61.
Read our full, actionable report on AbbVie here, it’s free.
Vertex Pharmaceuticals (NASDAQ: VRTX)
Founded in 1989 with a mission to create medicines that treat the underlying causes of disease rather than just symptoms, Vertex Pharmaceuticals (NASDAQ: VRTX) develops and markets transformative medicines for serious diseases, with a focus on cystic fibrosis, sickle cell disease, and pain management.
Vertex Pharmaceuticals reported revenues of $2.96 billion, up 12.1% year on year. This number beat analysts’ expectations by 2.1%. Zooming out, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates.
The stock is down 16.6% since reporting and currently trades at $392.50.
Read our full, actionable report on Vertex Pharmaceuticals here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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