It was a busy week for the biotech sector, as the fourth-quarter earnings season is in full swing. While Gilead Sciences, Inc. GILD gained following the earnings beat and upbeat guidance for 2025, Biogen BIIB was in the red as the annual guidance disappointed investors. Meanwhile, other pipeline and regulatory updates were also in focus.
Recap of the Week’s Most Important Stories:
GILD Stock Up on Q4 Results & ’25 Guidance
Gilead Sciences reported better-than-expected fourth-quarter results and provided an upbeat guidance for 2025. Shares of the company gained 7.5% following the same. Adjusted earnings per share (EPS) of $1.90 beat the Zacks Consensus Estimate of $1.67. In the year-ago quarter, the company reported EPS of $1.72.
Total revenues of $7.6 billion comfortably beat the Zacks Consensus Estimate of $7.1 billion. Revenues also increased 6% year over year, primarily due to higher HIV, oncology and liver disease drug sales. Flagship HIV therapy Biktarvy’s sales increased 21% year over year to $3.8 billion, driven by higher demand, favorable inventory dynamics and higher average realized price.
Gilead’s guidance for 2025 was above estimates as well which cheered the investors. Product sales are projected to be between $28.2 billion and $28.6 billion. Adjusted EPS is anticipated to be in the range of $7.70-$8.10. The Zacks Consensus Estimate for the same is pegged at $7.59.
Gilead also announced that its board has declared an increase of 2.6% in its quarterly cash dividend, beginning the first quarter of 2025. The increase will result in a quarterly dividend of $0.79 per share of common stock.
Gilead currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BIIB Stock Declines on Outlook for 2025
Shares of Biogen were down 4% after the company reported fourth-quarter results and provided 2025 guidance. Biogen reported fourth-quarter 2024 adjusted EPS of $3.44, which beat the Zacks Consensus Estimate of $3.42. Earnings rose 17% year over year on a reported basis, boosted by the company’s cost-cutting efforts.
Total revenues were $2.46 billion, up 3% year over year on a reported basis and 2% at cc. Lower sales of Biogen’s key multiple sclerosis (MS) drugs like Tecfidera and Tysabri were partially offset by higher revenues from new drugs. Sales of spinal muscular atrophy (SMA) drug, Spinraza, improved slightly in the quarter. Sales beat the Zacks Consensus Estimate of $2.42 billion.
However, investors were disappointed by the company’s guidance for 2025.Total revenues are expected to decline a mid-single-digit percentage in constant currency terms in 2025 from the 2024 level. A further decline in MS revenues is expected to be partially offset by higher revenues from new products.
Adjusted earnings per share are expected to be in the range of $15.25-$16.25, indicating a decline from the 2024 levels. The guidance fell short of the Zacks Consensus Estimate of $16.48 per share.
SWTX Drug Approval
SpringWorks Therapeutics, Inc. SWTX obtained FDA approval of MEK inhibitor mirdametinib for the treatment of adult and pediatric patients 2 years of age and older with neurofibromatosis type 1 (NF1) who have symptomatic plexiform neurofibromas (PN) not amenable to complete resection. The candidate was approved under the brand name Gomekli. Along with the FDA approval, SpringWorks obtained a rare pediatric disease priority review voucher (PRV) from the FDA.
The approval is based on positive data from phase IIb ReNeu trial, which showed Gomekli treatment resulted in robust objective response rate (ORR), deep and durable reductions in tumor volume and a manageable safety profile.
SpringWorks already has an approved drug, Ogsiveo (nirogacestat), in its portfolio, for the treatment of adult patients with progressing desmoid tumors who require systemic treatment.
Meanwhile, the company’s shares have surged this week on rumors of its potential acquisition by Germany-based Merck KGaA.
BMY Stock Down on 2025 View
Bristol Myers BMY reported better-than-expected results for the fourth quarter. Adjusted earnings per share (EPS) of $1.67 beat the Zacks Consensus Estimate of $1.46. In the year-ago quarter, BMY posted an adjusted EPS of $1.70.
Total revenues of $12.3 billion surpassed the Zacks Consensus Estimate of $11.6 billion. The top line also increased 8% from the year-ago period’s level, primarily driven by the Growth portfolio and an increase in Eliquis sales.
However, the outlook for 2025 was a dampener. BMY expects revenues of approximately $45.5 billion in 2025, down from $48.3 billion reported in 2024.
Generic competition for Revlimid, Pomalyst, Sprycel and Abraxane is expected to result in a revenue decline of approximately 18-20% of the Legacy Portfolio. The guidance also reflects an approximate $500-million negative impact on revenues due to foreign exchange.
Shares of the company declined on the disappointing guidance.
Bristol-Myers expects adjusted EPS to be in the range of $6.55-$6.85 in 2025.
It also announced that the phase II study, TRANSCEND FL, evaluating Breyanzi (lisocabtagene maraleucel) in adult patients with relapsed or refractory indolent B-cell non-Hodgkin lymphoma met its primary endpoint in the marginal zone lymphoma (MZL) cohort. Results showed Breyanzi demonstrated a statistically significant and clinically meaningful ORR in these patients.
Performance
The Nasdaq Biotechnology Index has lost 4.06% in the past five trading sessions and MRNA’s shares have lost 12.72%. In the past six months, shares of MRNA have plunged 62.44%. (See the last biotech stock roundup here: Biotech Stock Roundup: REGN Up on Q4 Results, VRTX, AXSM Gain on Drug Approval)
Image Source: Zacks Investment Research
What's Next in Biotech?
Stay tuned for more pipeline updates.
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Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report
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SpringWorks Therapeutics (SWTX) : Free Stock Analysis Report
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