Pharma and Biotech earning season is in full swing with many companies reporting topline and EPS beats. Inelastic demand for innovative medicines is expected to sustain this favorable earnings trajectory regardless of the direction of travel for the broader economy. The 10-year yield fell in parallel with the S&P Select Biotech Index, breaking the longer-term trend. It appears only a matter of time before lower cost of capital returns to be a tailwind for the sector.
Corporate Earnings & Updates:
BioMarin Pharmaceutical Inc. (BMRN) reported topline and EPS beats and raised 2024 revenue guidance by ~2.5% and EPS by >10%
BioCryst Pharmaceuticals (BCRX) reported topline and EPS beats and raised 2024 Orladeyo guidance to $420-435 million from $390-400 million
Moderna (MRNA) reported 2Q beats, but slashed 2024 guidance from ~$4 billion to $3-3.5 billion due to "highly competitive markets" for COVID and RSV
Biogen (BIIB) reported topline and EPS ahead of the street with closely watched Alzheimer's drug Leqembi posting sales of $40 million
Aurinia Pharmaceuticals (AUPH) reported revenue ahead of estimates (+4%) and raised the lower end of the 2024 guidance by $10 million
Neurocrine Biosciences (NBIX) reported topline (+8%) and EPS (+2.7%) beats and raised Ingrezza 2024 guidance to $2.25-2.3 billion
Jazz Pharmaceuticals (JAZZ) reported topline and EPS beats while slightly narrowing 2024 revenue guidance and announcing a new $500 million share buyback
Exact Sciences (EXAS) reported topline and EPS beats while reaffirming 2024 revenue guidance and raising aEBITDA to $335-355 million from $325-350 million
United Therapeutics (UTHR) reported a 2Q revenue beat with EPS light in higher share based compensation expense
Pfizer (PFE) reported topline and EPS beats and raised 2024 guidance by $1 billion at the midpoint. PFE is projecting $4B of cost savings by year end and EPS guidance for 2024 was raised to $2.45-$2.65 from $2.15-$2.35
Merck (MRK) reported topline and EPS beats with most products ahead. Revenue grew 11% vs 2Q 2023 ex-Fx. Closely watched launch of Winrevair came in at $70 million, ahead of the street at $61.7 million. Full year revenue guidance raised to $63.4-$64.4 billion (vs street $$64.2 billion), but EPS lowered by ~$0.51 to account for recent acquisitions and $0.30 for negative Fx
GSK (GSK) announced topline and EPS beats and raised 2024 guidance on both by ~2%. Weaker than expected vaccine sales led to debate amongst analysts
Regeneron (REGN) reported topline (+4.5%) and EPS (+9%) beats despite Eylea missing consensus
Vertex Pharmaceuticals (VRTX) reported topline and EPS misses and the CEO sold $15 million of stock at the end of July
Bio-Rad Labs (BIO) reported reduced 2024 revenue guidance to -2.5% to -4.0% from prior +1.0%-2.5%, following mixed 2Q (revenue miss, bottom-line beat). An additional $500 million share repurchase was authorized
Comentarios