As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at therapeutics stocks, starting with Moderna (NASDAQ: MRNA).
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 4.4% on average since the latest earnings results.
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 print exceeded analysts’ expectations by 10.7%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates.
Moderna delivered the slowest revenue growth and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 15.6% since reporting and currently trades at $24.94.
Is now the time to buy Moderna? 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 and 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 7.4% since reporting. It currently trades at $136.35.
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 2.8% since the results and currently trades at $305.34.
Read our full analysis of United Therapeutics’s results here.
Myriad Genetics (NASDAQ: MYGN)
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 $213.1 million, flat year on year. This print beat analysts’ expectations by 5.5%. It was a stunning quarter as it also logged a beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Myriad Genetics delivered the highest full-year guidance raise among its peers. The stock is up 56.5% since reporting and currently trades at $6.04.
Read our full, actionable report on Myriad Genetics here, it’s free.
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 number surpassed analysts’ expectations by 2.6%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.
The stock is up 10% since reporting and currently trades at $208.26.
Read our full, actionable report on AbbVie here, it’s free.
Market Update
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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