Q1 2025 Therapeutics Earnings: Novavax, Moderna Lead Surprises as Precision Medicine Tailwinds Shape Sector
Key Insights
Novavax reported Q1 revenues of $139.5 million, beating analyst estimates by 96.3% despite a 79.1% year-on-year decline, and announced a new Matrix-M license with Pfizer for up to two vaccine candidates.
Moderna posted $389 million in Q1 revenue, up 260% year-on-year and exceeding expectations by 55.8%, marking the fastest revenue growth among its therapeutic peers.
The 11 tracked therapeutics stocks collectively beat consensus revenue estimates by 15.6%, with share prices rising an average of 3.3% since reporting.
The first-quarter 2025 earnings season for the therapeutics and pharmaceuticals sectors revealed a landscape shaped by diverging fortunes, as companies navigated tailwinds from precision medicine advances alongside persistent headwinds from drug pricing scrutiny and competitive pressures. Among the standout performers, Novavax and Moderna delivered significant analyst beats, while Eli Lilly posted the strongest revenue growth across the broader pharmaceuticals peer group.
The 11 therapeutics stocks tracked by analysts reported a satisfactory Q1 overall, with aggregate revenues surpassing consensus estimates by 15.6%. Share prices across the group have held relatively steady, rising an average of 3.3% since the latest earnings results.
Novavax: Strategic Partnerships Offset Revenue Decline
Novavax (NASDAQ: NVAX), which pioneered nanoparticle technology that mimics the molecular structure of disease pathogens, reported revenues of $139.5 million for the quarter — a 79.1% decline year on year. Despite this contraction, the figure exceeded analyst expectations by 96.3%, making it the biggest estimate beat in the therapeutics group.
John C. Jacobs, President and Chief Executive Officer of Novavax, highlighted the company's strategic progress: "Novavax continued to make significant progress executing our corporate strategy, which is comprised of partnering our technology, capital-efficient R&D innovation and a lean operating platform. In 2026, we signed a new, Matrix-M license with Pfizer for up to two vaccine candidates and secured four additional MTAs with a growing list of large pharmaceutical and innovative biotech companies."
The company's stock has risen 13.1% since reporting and currently trades at $9.16. However, Novavax also recorded the slowest revenue growth among its peer group, underscoring the transitional nature of its post-pandemic business model.
Moderna: mRNA Platform Drives Fastest Growth
Moderna (NASDAQ: MRNA), which rose to global prominence during the COVID-19 pandemic with one of the first effective mRNA vaccines, reported revenues of $389 million — a 260% increase year on year. The result outperformed analyst expectations by 55.8%, with the company delivering beats on both EPS and revenue estimates.
Moderna achieved the fastest revenue growth among its therapeutic peers. The market has responded favorably, with the stock up 13.4% since reporting, currently trading at $52.09.
Vertex Pharmaceuticals and AbbVie (search): Steady Performers
Vertex Pharmaceuticals (NASDAQ: VRTX), founded in 1989 with a mission to create medicines targeting the underlying causes of disease, reported revenues of $2.99 billion, up 8.2% year on year. The result topped analyst expectations by 1.2%, though the quarter was described as mixed, with full-year revenue guidance merely meeting expectations. The stock is up 4.1% since reporting, trading at $447.52.
AbbVie (search) (NYSE: ABBV), born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, reported revenues of $15 billion, representing 12.4% year-on-year growth and surpassing analyst expectations by 1.7%. The quarter was mixed, with a revenue beat offset by a miss on EPS estimates. AbbVie's stock has risen 12.2% since reporting to $221.72.
United Therapeutics (search): Weakest Performance in Therapeutics
United Therapeutics (search) (NASDAQ: UTHR), founded by a mother seeking treatment for her daughter's pulmonary arterial hypertension (search), reported revenues of $781.5 million, down 1.6% year on year. The result fell short of analyst expectations by 1.9%, marking a significant miss on both EPS and revenue estimates. The stock has declined 4% since the results, currently trading at $549.21.
Eli Lilly Leads Pharmaceuticals Sector
Across the broader 17-stock pharmaceuticals group, revenues beat consensus estimates by 1.5%, with share prices rising an average of 1.7% since reporting. Eli Lilly (NYSE: LLY) delivered the standout performance with revenues of $19.8 billion, up 55.5% year on year and exceeding analyst expectations by 13.7%. The stock has surged 33.4% since reporting to $1,136.
Jazz Pharmaceuticals (NASDAQ: JAZZ) reported revenues of $1.07 billion, up 19.1% year on year and beating estimates by 9.4%. Renee Gala, president and chief executive officer, stated: "Our first-quarter results reflect disciplined execution across the business, delivering 19% year-over-year growth alongside key pipeline advancements and positioning the company for an outstanding 2026." The stock is up 9.5% since reporting to $232.44.
Bristol-Myers Squibb (NYSE: BMY) reported revenues of $11.49 billion, up 2.6% year on year and topping expectations by 7.4%, though full-year EPS guidance slightly missed estimates. The stock has remained flat at $57.15.
Sector Headwinds and Tailwinds
The therapeutics and pharmaceuticals sectors continue to benefit from strong tailwinds including advancements in precision medicine — notably the use of AI to improve drug discovery hit rates — and growing demand for treatments targeting rare diseases. However, companies face considerable challenges from rising scrutiny over drug pricing, regulatory uncertainty, and competition from larger, more resourced pharmaceutical organizations, as well as growing biosimilar competition that could particularly affect smaller companies or those facing key patent expirations.