As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the immuno-oncology industry, including Exact Sciences (NASDAQ:EXAS) and its peers.
Over the next few years, immuno-oncology companies, which harness the immune system to fight illnesses such as cancer, faces 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 4 immuno-oncology stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.9%.
Thankfully, share prices of the companies have been resilient as they are up 5.6% on average since the latest earnings results.
Exact Sciences (NASDAQ:EXAS)
With a mission to detect cancer earlier when it's more treatable, Exact Sciences (NASDAQ:EXAS) develops and markets cancer screening and diagnostic tests, including its flagship Cologuard stool-based colorectal cancer screening test.
Exact Sciences reported revenues of $706.8 million, up 10.9% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a satisfactory quarter for the company with full-year revenue guidance slightly topping analysts’ expectations but a significant miss of analysts’ EPS estimates.
Exact Sciences delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 18% since reporting and currently trades at $55.66.
Is now the time to buy Exact Sciences? Access our full analysis of the earnings results here, it’s free.
Best Q1: Natera (NASDAQ:NTRA)
Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ:NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology.
Natera reported revenues of $501.8 million, up 36.5% year on year, outperforming analysts’ expectations by 12.5%. The business had an exceptional quarter with full-year revenue guidance exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.
Natera delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 1.5% since reporting. It currently trades at $165.26.
Is now the time to buy Natera? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Regeneron (NASDAQ:REGN)
Founded by scientists who wanted to build a company where science could thrive, Regeneron Pharmaceuticals (NASDAQ:REGN) develops and commercializes medicines for serious diseases, with key products treating eye conditions, allergic diseases, cancer, and other disorders.
Regeneron reported revenues of $3.03 billion, down 3.7% year on year, falling short of analysts’ expectations by 6.1%. It was a disappointing quarter as it posted a miss of analysts’ EPS estimates.
Regeneron delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 14.8% since the results and currently trades at $519.99.
Read our full analysis of Regeneron’s results here.
Incyte (NASDAQ:INCY)
Founded in 1991 and evolving from a genomics research firm to a commercial-stage drug developer, Incyte (NASDAQ:INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics for cancer and inflammatory diseases.
Incyte reported revenues of $1.05 billion, up 19.5% year on year. This number surpassed analysts’ expectations by 6.4%. Overall, it was an exceptional quarter as it also recorded an impressive beat of analysts’ EPS estimates.
The stock is up 17.7% since reporting and currently trades at $70.01.
Read our full, actionable report on Incyte here, it’s free.
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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