Unpacking Q1 Earnings: BioMarin Pharmaceutical (NASDAQ:BMRN) In The Context Of Other Therapeutics Stocks

As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the therapeutics industry, including BioMarin Pharmaceutical (NASDAQ:BMRN) 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 9 therapeutics stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 0.5%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

BioMarin Pharmaceutical (NASDAQ:BMRN)

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 print exceeded analysts’ expectations by 1%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations.

"During the first quarter, we saw continued high demand for our innovative medicines resulting in strong revenue growth and profitability," said Alexander Hardy, President and Chief Executive Officer of BioMarin.

BioMarin Pharmaceutical achieved the highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 6.5% since reporting and currently trades at $58.70.

Is now the time to buy BioMarin Pharmaceutical? 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 achieved the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.3% since reporting. It currently trades at $296.

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 4.9% since the results and currently trades at $475.27.

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

AbbVie (NYSE:ABBV)

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 result beat analysts’ expectations by 3.3%. 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 6.1% since reporting and currently trades at $191.52.

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

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 surpassed analysts’ expectations by 8.6%. Aside from that, it was a satisfactory quarter as it also recorded a decent beat of analysts’ EPS estimates.

Biogen pulled off the biggest analyst estimates beat among its peers. The stock is up 9.3% since reporting and currently trades at $132.30.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.