Upcoming Earnings Period in Q2 2025: Notable Biotech Companies to Keep an Eye On
Sarepta Therapeutics, a biopharmaceutical company, is bracing for a potentially tough Q2 2025, facing significant challenges due to recent negative developments. The company's earnings per share (EPS) estimates have been revised down sharply, and revenue projections indicate growth but possibly below prior optimism.
In a dramatic turn of events, Sarepta announced a corporate overhaul involving 500 layoffs and a pipeline pivot away from gene therapies. This restructuring, however, has not been without its own set of issues. A third patient who had been treated with one of Sarepta's AAV-based gene therapies died, leading to the FDA requesting Sarepta to voluntarily halt all Elevidys shipments. Sarepta subsequently announced a black box warning for Elevidys, its Duchenne muscular dystrophy therapy.
Despite these challenges, Sarepta's BTK inhibitor Brukinsa continues to surge, accounting for the bulk of the company's $1.1 billion product revenue in Q1 2025. Total Brukinsa prescriptions have grown 33% year-on-year, outpacing other BTK inhibitors like AstraZeneca’s Calquence and AbbVie’s Imbruvica.
Elsewhere in the industry, Biogen will face investors and analysts during its Q1 call on July 31, most likely fielding questions about Leqembi's rough launch. Guggenheim expects Biogen to miss the consensus for multiple sclerosis sales in the second quarter, putting it at $948 million. On the other hand, Guggenheim expects Brukinsa sales to continue its strong momentum into the second quarter, forecasting sales of $924 million.
BeOne, the company that owns Brukinsa, also owns the anti-PD-1 therapy Tevimbra. Guggenheim forecasts Q2 sales of $177 million for this product. However, Tevimbra faced a setback in April, losing against Summit and Akeso's bispecific antibody ivonescimab in patients with non-small cell lung cancer.
Meanwhile, Johnson & Johnson reported over $23.7 billion in revenue for Q2, while Novartis sales grew 11% year-on-year to exceed $14 billion in Q2. Vertex's Casgevy for sickle cell disease, the first-ever CRISPR-based gene therapy to win FDA approval, is unlikely to contribute strongly to Vertex's topline in the second quarter, with revenue forecast to hit $35 million.
Ultragenyx is struggling after back-to-back hurdles, including a CRL from the FDA and a crashing stock price. The exact date for Sarepta's Q2 call has not been announced, only revealing that it will occur in early August 2025.
Market analysts remain divided but generally reflect a cautious to pessimistic stance grounded in Sarepta's recent adverse events and structural adjustments. Earnings per share (EPS) estimates for Q2 2025 hover around $0.71 to $0.72, a significant drop from earlier projections. The ongoing operational challenges potentially drag full-year earnings into negative territory for 2025, with some forecasts showing FY2025 EPS around ($2.50).
[1] Leerink Partners analyst J. Schwartz reduced the Q2 2025 EPS forecast from $2.25 to $0.72. [2] Zacks Research raised its EPS forecast slightly to $0.71. [3] Revenue projections for Q2 2025 hover around $513 million to $531 million. [4] Sarepta recently reported a Q1 2025 EPS loss of ($3.42). [5] These forecasts are based on multiple sources, including Leerink Partners and Zacks Research.
- The ongoing challenges at Sarepta Therapeutics have led some market analysts to revise their earnings per share (EPS) projections for Q2 2025, with J. Schwartz from Leerink Partners reducing his forecast from $2.25 to $0.72.
- Despite the recent adverse events and structural adjustments at Sarepta, the future of BeOne's anti-PD-1 therapy Tevimbra remains promising, with Q2 sales forecast to reach $177 million.
- In the realm of health-and-wellness, the financial outlook for medical-conditions treatments is a topic of interest. For instance, Guggenheim expects Brukinsa sales to continue its strong momentum into Q2 2025, forecasting sales of $924 million, while expecting Biogen to miss the consensus for multiple sclerosis sales, putting it at $948 million. Meanwhile, analysts project Vertex's Casgevy for sickle cell disease to generate $35 million in revenue for Q2 2025, but not significantly contribute to the company's topline due to its recent FDA approval. However, it's important to note that these forecasts can also influence the investing landscape, as financial health is a crucial factor for any business.
