Reflecting On Immuno-Oncology Stocks’ Q4 Earnings: Regeneron (NASDAQ:REGN)
Looking back on immuno-oncology stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Regeneron (NASDAQ:REGN) and its peers.
Over the next few years, immuno-oncology companies, which harness the immune system to fight illnesses such as cancer, faces 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 4 immuno-oncology stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 3.5%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 15% since the latest earnings results.
Founded by scientists who wanted to build a company where science could thrive, Regeneron Pharmaceuticals (NASDAQ:REGN) develops and commercializes medicines for serious diseases, with key products treating eye conditions, allergic diseases, cancer, and other disorders.
Regeneron reported revenues of $3.79 billion, up 10.3% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was a strong quarter for the company with a decent beat of analysts’ EPS estimates.
“Regeneron’s financial and commercial strength allows for continued investment in our industry-leading R&D pipeline, while simultaneously returning capital to our shareholders through our newly initiated dividend program and increased share repurchase capacity,” said Leonard S. Schleifer, M.D., Ph.D., Board co-Chair, President and Chief Executive Officer of Regeneron.
Regeneron Total Revenue
Regeneron delivered the weakest performance against analyst estimates of the whole group. The stock is down 16.3% since reporting and currently trades at $557.21.
Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ:NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology.
Natera reported revenues of $476.1 million, up 53% year on year, outperforming analysts’ expectations by 8.6%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and full-year revenue guidance exceeding analysts’ expectations.
Natera Total Revenue
Natera delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.6% since reporting. It currently trades at $149.50.
Founded in 1991 and evolving from a genomics research firm to a commercial-stage drug developer, Incyte (NASDAQ:INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics for cancer and inflammatory diseases.
Incyte reported revenues of $1.18 billion, up 16.3% year on year, exceeding analysts’ expectations by 3%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
As expected, the stock is down 24.5% since the results and currently trades at $56.01.
With a mission to detect cancer earlier when it’s more treatable, Exact Sciences (NASDAQ:EXAS) develops and markets cancer screening and diagnostic tests, including its flagship Cologuard stool-based colorectal cancer screening test.
Exact Sciences reported revenues of $713.4 million, up 10.3% year on year. This print topped analysts’ expectations by 1.6%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ constant currency revenue estimates and an impressive beat of analysts’ EPS estimates.
Exact Sciences had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is down 14.6% since reporting and currently trades at $43.11.
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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