As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the branded pharmaceuticals industry, including Collegium Pharmaceutical (NASDAQ:COLL) and its peers.
Looking ahead, the branded pharmaceutical 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 10 branded pharmaceuticals stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2.5%.
Luckily, branded pharmaceuticals stocks have performed well with share prices up 10.5% on average since the latest earnings results.
Collegium Pharmaceutical (NASDAQ:COLL)
Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ:COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations.
Collegium Pharmaceutical reported revenues of $209.4 million, up 31.4% year on year. This print exceeded analysts’ expectations by 10.7%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.
“We delivered another strong quarter of results driven by our portfolio of differentiated medicines and unwavering commitment to patients,” said Vikram Karnani, President and Chief Executive Officer.
Collegium Pharmaceutical scored the biggest analyst estimates beat of the whole group. The stock is up 37% since reporting and currently trades at $49.11.
Is now the time to buy Collegium Pharmaceutical? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: Eli Lilly (NYSE:LLY)
Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE:LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.
Eli Lilly reported revenues of $17.6 billion, up 53.9% year on year, outperforming analysts’ expectations by 9.7%. The business had a stunning quarter with a solid beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.
Eli Lilly pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 26.8% since reporting. It currently trades at $1,029.
Is now the time to buy Eli Lilly? Access our full analysis of the earnings results here, it’s free for active Edge members.
Slowest Q3: Corcept (NASDAQ:CORT)
Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ:CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.
Corcept reported revenues of $207.6 million, up 13.7% year on year, falling short of analysts’ expectations by 4%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.
Corcept delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 23.8% since the results and currently trades at $88.01.
Read our full analysis of Corcept’s results here.
Zoetis (NYSE:ZTS)
Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE:ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.
Zoetis reported revenues of $2.4 billion, flat year on year. This result met analysts’ expectations. Aside from that, it was a slower quarter as it produced full-year revenue guidance slightly missing analysts’ expectations and revenue in line with analysts’ estimates.
The stock is down 17.1% since reporting and currently trades at $119.62.
Read our full, actionable report on Zoetis here, it’s free for active Edge members.
Supernus Pharmaceuticals (NASDAQ:SUPN)
With a diverse portfolio of eight FDA-approved medications targeting neurological conditions, Supernus Pharmaceuticals (NASDAQ:SUPN) develops and markets treatments for central nervous system disorders including epilepsy, ADHD, Parkinson's disease, and migraine.
Supernus Pharmaceuticals reported revenues of $192.1 million, up 16.8% year on year. This number beat analysts’ expectations by 3.4%. Zooming out, it was a mixed quarter as it also logged an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.
Supernus Pharmaceuticals had the weakest full-year guidance update among its peers. The stock is down 17.3% since reporting and currently trades at $47.16.
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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