As the Q2 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 Regeneron (NASDAQ: REGN) 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 an exceptional Q2. As a group, revenues beat analysts’ consensus estimates by 9.1%.
Luckily, immuno-oncology stocks have performed well with share prices up 11.9% on average since the latest earnings results.
Best Q2: 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 $3.68 billion, up 3.6% year on year. This print exceeded analysts’ expectations by 11.3%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates.
"Regeneron had a strong quarter, marked by significant growth in U.S. sales of EYLEA HD and global sales of Dupixent and Libtayo along with multiple regulatory approvals," said Leonard S. Schleifer, M.D., Ph.D., Board co-Chair, President and Chief Executive Officer of Regeneron.
Regeneron delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 3.6% since reporting and currently trades at $565.
Is now the time to buy Regeneron? Access our full analysis of the earnings results here, it’s free.
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 $811.1 million, up 16% year on year, outperforming analysts’ expectations by 4.9%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and full-year EBITDA guidance beating analysts’ expectations.
The market seems content with the results as the stock is up 4.5% since reporting. It currently trades at $49.30.
Is now the time to buy Exact Sciences? Access our full analysis of the earnings results here, it’s free.
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 $546.6 million, up 32.2% year on year, exceeding analysts’ expectations by 14.7%. It may have had the worst quarter among its peers, but its results were still good as it also locked in full-year revenue guidance exceeding analysts’ expectations and an impressive beat of analysts’ sales volume estimates.
Interestingly, the stock is up 17% since the results and currently trades at $165.55.
Read our full analysis of Natera’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 $1.22 billion, up 16.5% year on year. This result topped analysts’ expectations by 5.5%. It was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates.
The stock is up 22.3% since reporting and currently trades at $85.85.
Read our full, actionable report on Incyte here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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