Looking back on branded pharmaceuticals stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Corcept (NASDAQ: CORT) 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 2.3%.
Thankfully, share prices of the companies have been resilient as they are up 7.3% on average since the latest earnings results.
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. This print fell short of analysts’ expectations by 5%. Overall, it was a softer quarter for the company with full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.
“The third quarter marked another period of robust growth in our hypercortisolism business. Once again, we had a record number of new prescriptions written for Korlym® and continued to add to our base of prescribers. Growing recognition among physicians of hypercortisolism’s true prevalence and the necessity of appropriate treatment is driving higher rates of screening and diagnosis. Our financial results don’t fully reflect this surge in demand, given capacity constraints at our previous specialty pharmacy vendor. We have modified our 2025 revenue guidance to $800 – $850 million. We added a new specialty pharmacy on October 1st and will add others in the coming months. We are confident that these additions will allow us to meet the increasing demand that we now see every month,” said Joseph K. Belanoff, M.D., Corcept’s Chief Executive Officer.
Corcept scored the highest full-year guidance raise but had the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is up 8.9% since reporting and currently trades at $77.50.
Read our full report on Corcept 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 9.6%. The business had a stunning quarter with an impressive 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 25.4% since reporting. It currently trades at $1,020.
Is now the time to buy Eli Lilly? Access our full analysis of the earnings results here, it’s free for active Edge members.
Royalty Pharma (NASDAQ: RPRX)
Pioneering a unique business model in the pharmaceutical industry since 1996, Royalty Pharma (NASDAQ: RPRX) acquires rights to receive portions of sales from successful biopharmaceutical products, providing funding to drug developers without conducting research itself.
Royalty Pharma reported revenues of $609.3 million, up 7.9% year on year, falling short of analysts’ expectations by 2.6%. It was a slower quarter as it posted a significant miss of analysts’ revenue estimates.
Interestingly, the stock is up 4.6% since the results and currently trades at $39.59.
Read our full analysis of Royalty Pharma’s results here.
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 9.3% year on year. This number beat analysts’ expectations by 3.5%. Zooming out, it was a mixed quarter as it also recorded 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 21.8% since reporting and currently trades at $44.64.
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 topped analysts’ expectations by 10.7%. It was a stunning quarter as it also logged a solid beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.
Collegium Pharmaceutical scored the biggest analyst estimates beat among its peers. The stock is up 32.4% since reporting and currently trades at $47.47.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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