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 Q4, starting with AbbVie (NYSE: ABBV).
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 satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 2.6%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.2% since the latest earnings results.
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 $15.1 billion, up 5.6% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a strong quarter for the company with a solid beat of analysts’ constant currency revenue estimates and a narrow beat of analysts’ full-year EPS guidance estimates.
"2024 was a year of significant progress for AbbVie. Our growth platform delivered outstanding results, we advanced our pipeline with key regulatory approvals and promising data, and we strengthened our business through strategic transactions," said Robert A. Michael, chief executive officer, AbbVie.
The stock is up 1.5% since reporting and currently trades at $178.19.
Is now the time to buy AbbVie? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $747.3 million, up 15.6% year on year, outperforming analysts’ expectations by 4.8%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.
BioMarin Pharmaceutical delivered the highest full-year guidance raise among its peers. The stock is down 9.4% since reporting. It currently trades at $59.50.
Is now the time to buy BioMarin Pharmaceutical? Access our full analysis of the earnings results here, it’s free.
Slowest Q4: 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 $966 million, down 65.6% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations.
Moderna delivered the slowest revenue growth and weakest full-year guidance update in the group. As expected, the stock is down 18.7% since the results and currently trades at $25.99.
Read our full analysis of Moderna’s results here.
Amgen (NASDAQ: AMGN)
Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ: AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.
Amgen reported revenues of $9.09 billion, up 10.9% year on year. This result beat analysts’ expectations by 2.6%. More broadly, it was a satisfactory quarter as it also recorded full-year revenue guidance slightly topping analysts’ expectations.
The stock is up 2.2% since reporting and currently trades at $295.41.
Read our full, actionable report on Amgen here, it’s free.
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 $658.4 million, up 65.9% year on year. This number topped analysts’ expectations by 4.3%. However, it was a mixed quarter as it recorded a significant miss of analysts’ EPS estimates.
Sarepta Therapeutics achieved the fastest revenue growth among its peers. The stock is down 49.9% since reporting and currently trades at $53.66.
Read our full, actionable report on Sarepta Therapeutics here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
