The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Ocular Therapeutix (NASDAQ: OCUL) and the rest of the pharmaceuticals stocks fared in Q3.

The pharmaceuticals sector develops, manufactures, and distributes drugs, benefiting from diversified portfolios of branded and generic medications. Looking ahead, growth will be driven by innovations in precision medicine, such as genetic therapies and advanced biologics, and the increasing use of AI to speed and increase the efficiency of drug discovery. These could specifically magnify the advantages of the most scaled players. Conversely, the sector faces considerable headwinds from intense, bipartisan political pressure on drug pricing, scrutiny of patent practices, and growing competition from biosimilars. These could specifically stymie the growth of smaller companies or ones facing patent expirations on key drugs.

The 17 pharmaceuticals stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was in line.

Luckily, pharmaceuticals stocks have performed well with share prices up 10.2% on average since the latest earnings results.

Ocular Therapeutix (NASDAQ: OCUL)

Pioneering a drug delivery platform that can eliminate the need for monthly eye injections, Ocular Therapeutix (NASDAQ: OCUL) develops sustained-release treatments for eye diseases using its proprietary ELUTYX bioresorbable hydrogel technology that gradually releases medication.

Ocular Therapeutix reported revenues of $14.54 million, down 5.7% year on year. This print exceeded analysts’ expectations by 3.8%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

Unsurprisingly, the stock is down 4.7% since reporting and currently trades at $10.88.

Read our full report on Ocular Therapeutix here, it’s free.

Best Q3: Eli Lilly (NYSE: LLY)

Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE: LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.

Eli Lilly reported revenues of $17.6 billion, up 53.9% year on year, outperforming analysts’ expectations by 9.7%. The business had a stunning quarter with a solid beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

Eli Lilly scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 30.5% since reporting. It currently trades at $1,061.

Is now the time to buy Eli Lilly? Access our full analysis of the earnings results here, it’s free.

Corcept (NASDAQ: CORT)

Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ: CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.

Corcept reported revenues of $207.6 million, up 13.7% year on year, falling short of analysts’ expectations by 4%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

Corcept delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 36.5% since the results and currently trades at $45.16.

Read our full analysis of Corcept’s results here.

Jazz Pharmaceuticals (NASDAQ: JAZZ)

Originally founded in 2003 and now headquartered in Ireland following a 2012 tax inversion merger, Jazz Pharmaceuticals (NASDAQGS:JAZZ) develops and markets medicines for sleep disorders, epilepsy, and cancer, with a focus on treatments for patients with limited therapeutic options.

Jazz Pharmaceuticals reported revenues of $1.13 billion, up 6.7% year on year. This print topped analysts’ expectations by 1.1%. It was a very strong quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.

The stock is up 22.1% since reporting and currently trades at $167.50.

Read our full, actionable report on Jazz Pharmaceuticals here, it’s free.

Organon (NYSE: OGN)

Spun off from Merck in 2021 to create a company dedicated to addressing unmet needs in women's health, Organon (NYSE: OGN) is a global healthcare company focused on improving women's health through prescription therapies, medical devices, biosimilars, and established medicines.

Organon reported revenues of $1.60 billion, up 1.3% year on year. This result beat analysts’ expectations by 2%. More broadly, it was a mixed quarter as it also logged a decent beat of analysts’ revenue estimates but full-year revenue guidance slightly missing analysts’ expectations.

The stock is up 35.4% since reporting and currently trades at $9.18.

Read our full, actionable report on Organon here, it’s free.

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