Let’s dig into the relative performance of AbbVie (NYSE:ABBV) and its peers as we unravel the now-completed Q1 therapeutics earnings season.
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 10 therapeutics stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.2%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11% since the latest earnings results.
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 $13.34 billion, up 8.4% year on year. This print exceeded analysts’ expectations by 3.3%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ EPS estimates.
“AbbVie’s first-quarter results were well ahead of our expectations and reflect an excellent start to the year,” said Robert A. Michael, chief executive officer, AbbVie.
AbbVie Total Revenue
The stock is up 2.2% since reporting and currently trades at $184.50.
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 $745.1 million, up 14.8% year on year, outperforming analysts’ expectations by 1%. The business had a strong quarter with a solid beat of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations.
BioMarin Pharmaceutical Total Revenue
BioMarin Pharmaceutical scored the highest full-year guidance raise among its peers. The market seems unhappy with the results as the stock is down 5.7% since reporting. It currently trades at $59.20.
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 $108 million, down 35.3% year on year, falling short of analysts’ expectations by 8.4%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations.
Moderna delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 16.1% since the results and currently trades at $23.99.
Pioneering treatments for a devastating childhood muscle-wasting disease that primarily affects boys, Sarepta Therapeutics (NASDAQ:SRPT) develops and commercializes RNA-targeted therapies and gene therapies for rare genetic disorders, primarily Duchenne muscular dystrophy.
Sarepta Therapeutics reported revenues of $744.9 million, up 80.2% year on year. This number topped analysts’ expectations by 7.4%. All in all, it was a satisfactory quarter for the company.
Sarepta Therapeutics pulled off the fastest revenue growth among its peers. The stock is down 20.8% since reporting and currently trades at $36.95.
Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ:MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women’s health, and mental health.
Myriad Genetics reported revenues of $195.9 million, down 3.1% year on year. This print lagged analysts’ expectations by 2.3%. Overall, it was a softer quarter as it also logged full-year revenue guidance missing analysts’ expectations.
The stock is down 41.1% since reporting and currently trades at $4.27.
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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