Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Myriad Genetics (NASDAQ:MYGN) and its peers.
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 9% since the latest earnings results.
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 print fell short of analysts’ expectations by 2.3%. Overall, it was a softer quarter for the company with full-year revenue guidance missing analysts’ expectations.
“We had a challenging first quarter of 2025 with strength in our prenatal and oncology MyRisk tests offset by softness in GeneSight and unaffected hereditary cancer tests. While we are actively working on initiatives to re-accelerate testing volumes, this will take time; therefore we are lowering our 2025 financial guidance. We are taking immediate steps to reduce overall expenditures while prioritizing investment in new product development and programs intended to drive revenue growth,” said Sam Raha, President and CEO, of Myriad Genetics.
Myriad Genetics Total Revenue
Unsurprisingly, the stock is down 45% since reporting and currently trades at $3.99.
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 Total Revenue
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $302.50.
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 13.1% since the results and currently trades at $434.31.
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 $13.34 billion, up 8.4% year on year. This number beat analysts’ expectations by 3.3%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ EPS estimates.
The stock is up 1.5% since reporting and currently trades at $183.25.
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. This result topped analysts’ expectations by 1%. It was a strong quarter as it also put up a solid beat of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations.
BioMarin Pharmaceutical delivered the highest full-year guidance raise among its peers. The stock is down 8.3% since reporting and currently trades at $57.56.
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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