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 Biogen (NASDAQ: BIIB).

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 6.1% since the latest earnings results.

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 exceeded analysts’ expectations by 8.6%. Overall, it was a satisfactory quarter for the company with 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 of the whole group. The stock is up 9.1% since reporting and currently trades at $132.

Is now the time to buy Biogen? Access our full analysis of the earnings results here, it’s free.

Best Q1: 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, outperforming analysts’ expectations by 5.6%. The business had a very strong quarter with a narrow beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 6.8% since reporting. It currently trades at $320.37.

Is now the time to buy United Therapeutics? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Vertex Pharmaceuticals (NASDAQ: VRTX)

Founded in 1989 with a mission to create medicines that treat the underlying causes of disease rather than just symptoms, Vertex Pharmaceuticals (NASDAQ: VRTX) develops and markets transformative medicines for serious diseases, with a focus on cystic fibrosis, sickle cell disease, and pain management.

Vertex Pharmaceuticals reported revenues of $2.77 billion, up 3% year on year, falling short of analysts’ expectations by 2.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 10.1% since the results and currently trades at $449.50.

Read our full analysis of Vertex Pharmaceuticals’s results here.

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. This number came in 8.4% below analysts' expectations. Overall, it was a softer quarter as it also produced full-year revenue guidance missing analysts’ expectations.

Moderna had the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update among its peers. The stock is down 6.4% since reporting and currently trades at $26.75.

Read our full, actionable report on Moderna here, it’s free.

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 $8.15 billion, up 9.4% year on year. This print beat analysts’ expectations by 1.5%. Aside from that, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EPS estimates but full-year revenue guidance meeting analysts’ expectations.

The stock is flat since reporting and currently trades at $283.09.

Read our full, actionable report on Amgen here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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