The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how pharmaceuticals stocks fared in Q4, starting with Elanco (NYSE: ELAN).
The pharmaceuticals sector is pivotal in the development, manufacturing, and distribution of drugs and treatments across a wide range of therapeutic areas. These companies benefit from diversified portfolios, including blockbuster drugs, vaccines, and specialty treatments, along with the ability to generate substantial revenue from both branded and generic medications. Advantages include large-scale manufacturing capabilities, significant resources for research and development, and the ability to generate revenue from multiple channels. However, challenges include patent expirations leading to generic competition, high regulatory hurdles, and the inherent risk of drug development failure in clinical trials. Looking ahead, the pharmaceuticals sector is poised to benefit from several strong tailwinds. Innovations in precision medicine, including genetic therapies and advanced biologics, should drive growth, particularly in oncology, rare diseases, and chronic conditions. The increasing role of artificial intelligence in drug discovery and patient care is another key to better, more efficient drug development. However, the sector also faces potential headwinds like regulatory pressure on drug pricing, with patients and the government on both sides of the political divide in the US agreeing that consumers are spending too much on healthcare. There is also the growing scrutiny of patent practices to protect consumers as well as evolving competition from biosimilars.
The 17 pharmaceuticals stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.6%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Elanco (NYSE: ELAN)
Originally established as a division of pharmaceutical giant Eli Lilly before becoming independent in 2018, Elanco Animal Health (NYSE: ELAN) develops and sells medications, vaccines, and other health products for pets and farm animals across more than 90 countries.
Elanco reported revenues of $1.02 billion, down 1.4% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ full-year EPS guidance estimates.
"Elanco delivered a strong finish to 2024, achieving our sixth consecutive quarter of organic constant currency revenue growth — with the fourth quarter up 4% — and building momentum as we head into 2025," said Jeff Simmons, President and CEO of Elanco Animal Health.
The stock is down 4.4% since reporting and currently trades at $10.64.
Read our full report on Elanco here, it’s free.
Best Q4: ANI Pharmaceuticals (NASDAQ: ANIP)
With a diverse portfolio of 116 pharmaceutical products and a growing rare disease platform, ANI Pharmaceuticals (NASDAQ: ANIP) develops, manufactures, and markets branded and generic prescription pharmaceuticals, with a focus on rare disease treatments.
ANI Pharmaceuticals reported revenues of $190.6 million, up 44.8% year on year, outperforming analysts’ expectations by 8.5%. The business had a stunning quarter with an impressive beat of analysts’ full-year EPS guidance estimates and full-year revenue guidance exceeding analysts’ expectations.
ANI Pharmaceuticals achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 16.9% since reporting. It currently trades at $63.81.
Is now the time to buy ANI Pharmaceuticals? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Viatris (NASDAQ: VTRS)
Created through the 2020 merger of Mylan and Pfizer's Upjohn division, Viatris (NASDAQ: VTRS) is a healthcare company that develops, manufactures, and distributes branded and generic medicines across more than 165 countries worldwide.
Viatris reported revenues of $3.53 billion, down 8.1% year on year, falling short of analysts’ expectations by 1.8%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ full-year EPS guidance estimates.
Viatris delivered the slowest revenue growth in the group. As expected, the stock is down 17.4% since the results and currently trades at $9.28.
Read our full analysis of Viatris’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 $2.32 billion, up 4.7% year on year. This print was in line with analysts’ expectations. Aside from that, it was a softer quarter as it recorded a significant miss of analysts’ full-year EPS guidance estimates.
The stock is down 5.5% since reporting and currently trades at $164.28.
Read our full, actionable report on Zoetis here, it’s free.
Jazz Pharmaceuticals (NASDAQ: JAZZ)
Originally founded in 2003 and now headquartered in Ireland following a 2012 tax inversion merger, Jazz Pharmaceuticals (NASDAQGS:JAZZ) develops and markets medicines for sleep disorders, epilepsy, and cancer, with a focus on treatments for patients with limited therapeutic options.
Jazz Pharmaceuticals reported revenues of $1.09 billion, up 7.5% year on year. This number topped analysts’ expectations by 2.8%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ full-year EPS guidance estimates and an impressive beat of analysts’ EPS estimates.
The stock is flat since reporting and currently trades at $139.38.
Read our full, actionable report on Jazz Pharmaceuticals here, it’s free.
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