The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Amgen (NASDAQ: AMGN) and the rest of the therapeutics stocks fared in Q1.
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 mixed Q1. As a group, revenues beat analysts’ consensus estimates by 0.5%.
While some therapeutics stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results.
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 exceeded analysts’ expectations by 1.5%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ EPS estimates but full-year revenue guidance meeting analysts’ expectations.
"Demand for our products was strong globally in the first quarter. Ongoing new product launches and successful Phase 3 trial results for several products make us feel confident in our long-term growth prospects," said Robert A. Bradway, chairman and chief executive officer.
Interestingly, the stock is up 5.5% since reporting and currently trades at $299.
Is now the time to buy Amgen? 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.
United Therapeutics scored the fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $298.
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 and full-year revenue guidance slightly missing analysts’ expectations.
As expected, the stock is down 6.1% since the results and currently trades at $469.29.
Read our full analysis of Vertex Pharmaceuticals’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 $195.9 million, down 3.1% year on year. This result missed analysts’ expectations by 2.3%. Overall, it was a softer quarter as it also logged full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.
The stock is down 30.2% since reporting and currently trades at $5.06.
Read our full, actionable report on Myriad Genetics here, it’s free.
Gilead Sciences (NASDAQ: GILD)
From its groundbreaking work in developing the first single-tablet regimens for HIV treatment, Gilead Sciences (NASDAQ: GILD) develops and markets innovative medicines for life-threatening diseases including HIV, viral hepatitis, COVID-19, and cancer.
Gilead Sciences reported revenues of $6.67 billion, flat year on year. This number came in 2.1% below analysts' expectations. It was a softer quarter as it also recorded full-year revenue guidance slightly missing analysts’ expectations and a slight miss of analysts’ full-year EPS guidance estimates.
The stock is up 2.8% since reporting and currently trades at $109.01.
Read our full, actionable report on Gilead Sciences here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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