Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Bristol-Myers Squibb (NYSE:BMY) and the best and worst performers in the branded pharmaceuticals industry.
The branded pharmaceutical industry relies on a high-cost, high-reward business model, driven by substantial investments in research and development to create innovative, patent-protected drugs. Successful products can generate significant revenue streams over their patent life, and the larger a roster of drugs, the stronger a moat a company enjoys. However, the business model is inherently risky, with high failure rates during clinical trials, lengthy regulatory approval processes, and intense competition from generic and biosimilar manufacturers once patents expire. These challenges, combined with scrutiny over drug pricing, create a complex operating environment.
Looking ahead, the industry is positioned for tailwinds from advancements in precision medicine, increasing adoption of AI to enhance drug development efficiency, and growing global demand for treatments addressing chronic and rare diseases. However, headwinds include heightened regulatory scrutiny, pricing pressures from governments and insurers, and the looming patent cliffs for key blockbuster drugs. Patent cliffs bring about competition from generics, forcing branded pharmaceutical companies back to the drawing board to find the next big thing.
The 11 branded pharmaceuticals stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.3%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Bristol-Myers Squibb (NYSE:BMY)
Founded in 1887, Bristol-Myers Squibb (NYSE:BMY) is a global biopharmaceutical company that develops medicines to treat cancer, immune disorders, and cardiovascular conditions.Bristol-Myers Squibb reported revenues of $12.34 billion, up 7.5% year on year. This print exceeded analysts’ expectations by 6.6%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EPS estimates but a significant miss of analysts’ full-year EPS guidance estimates.
“We made good progress in 2024, which was capped by a fourth quarter of strong topline growth driven by key products and important pipeline advancements. We also achieved the landmark U.S. approval of Cobenfy last year for the treatment of schizophrenia in adults, and we expect this medicine to have a meaningful impact on patients and the company as a new growth driver,” said Christopher Boerner, Ph.D., board chair and chief executive officer, Bristol Myers Squibb.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $59.11.
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Best Q4: Supernus Pharmaceuticals (NASDAQ:SUPN)
Founded in 2005, Supernus Pharmaceuticals (NASDAQ:SUPN) develops and commercializes treatments for central nervous system (CNS) disorders, focusing on epilepsy, ADHD, and Parkinson’s disease.Supernus Pharmaceuticals reported revenues of $174.2 million, up 6% year on year, outperforming analysts’ expectations by 12.2%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and full-year operating income guidance topping analysts’ expectations.
Supernus Pharmaceuticals pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3.3% since reporting. It currently trades at $31.74.
Weakest Q4: Zoetis (NYSE:ZTS)
Originally a subsidiary of Pfizer (NYSE:PFE), Zoetis (NYSE:ZTS) is an animal health company that develops and distributes medicines, vaccines, and diagnostic products for livestock and pets.Zoetis reported revenues of $2.32 billion, up 4.7% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.
As expected, the stock is down 2.8% since the results and currently trades at $169.01.
Corcept (NASDAQ:CORT)
Founded in 1998, Corcept Therapeutics (NASDAQ:CORT) develops and commercializes medications for the treatment of severe metabolic, oncologic, and psychiatric disorders associated with cortisol dysregulation.Corcept reported revenues of $181.9 million, up 34.3% year on year. This result missed analysts’ expectations by 8.5%. It was a slower quarter as it also recorded a significant miss of analysts’ EPS estimates.
Corcept delivered the highest full-year guidance raise but had the weakest performance against analyst estimates among its peers. The stock is down 3.1% since reporting and currently trades at $61.46.
Merck (NYSE:MRK)
Founded in 1891, Merck (NYSE:MRK) is a global pharmaceutical company that develops prescription medicines, vaccines, biologic therapies, and animal health products.Merck reported revenues of $15.62 billion, up 6.8% year on year. This number topped analysts’ expectations by 1.3%. Aside from that, it was a slower quarter as it recorded full-year revenue guidance missing analysts’ expectations.
Merck had the weakest full-year guidance update among its peers. The stock is down 6.8% since reporting and currently trades at $93.05.
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This content was originally published on Stock Story
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