The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how therapeutics stocks fared in Q1, starting with Sarepta Therapeutics (NASDAQ: SRPT).
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.
Sarepta Therapeutics (NASDAQ: SRPT)
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 print exceeded analysts’ expectations by 7.4%. Overall, it was a satisfactory quarter for the company.
“In the first quarter, we achieved net product revenue of $611.5 million, a 70% increase over the same quarter prior year; our PMO franchise performed well at $236.5 million; and ELEVIDYS achieved $375.0 million, growing at 180% over the same quarter prior year. However, we also faced headwinds in the quarter. While we are taking a variety of actions to address and resolve these challenges, we have adjusted our guidance for 2025 to $2.3 billion to $2.6 billion,” said Doug Ingram, president and chief executive officer, Sarepta Therapeutics.
Sarepta Therapeutics scored the fastest revenue growth of the whole group. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 5.7% since reporting and currently trades at $36.95.
Is now the time to buy Sarepta Therapeutics? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $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 achieved the highest full-year. The stock is down 5.7% since reporting. It currently trades at $59.20.
Is now the time to buy BioMarin Pharmaceutical? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $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.
Read our full analysis of Moderna’s results here.
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 $2.43 billion, up 6.1% year on year. This print topped analysts’ expectations by 8.6%. Aside from that, it was a satisfactory quarter as it also produced a decent beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates.
Biogen scored the biggest analyst estimates beat among its peers. The stock is down 3.6% since reporting and currently trades at $116.63.
Read our full, actionable report on Biogen here, it’s free.
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 $794.4 million, up 17.2% year on year. This result surpassed analysts’ expectations by 5.6%. It was an exceptional quarter as it also produced an impressive beat of analysts’ EPS estimates.
The stock is up 2% since reporting and currently trades at $305.79.
Read our full, actionable report on United Therapeutics 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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