Winners And Losers Of Q4: IQVIA (NYSE:IQV) Vs The Rest Of The Drug Development Inputs & Services Stocks

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 IQVIA (NYSE:IQV) and the rest of the drug development inputs & services stocks fared in Q4.

Companies specializing in drug development inputs and services play a crucial role in the pharmaceutical and biotechnology value chain. Essential support for drug discovery, preclinical testing, and manufacturing means stable demand, as pharmaceutical companies often outsource non-core functions with medium to long-term contracts. However, the business model faces high capital requirements, customer concentration, and vulnerability to shifts in biopharma R&D budgets or regulatory frameworks. Looking ahead, the industry will likely enjoy tailwinds such as increasing investment in biologics, cell and gene therapies, and advancements in precision medicine, which drive demand for sophisticated tools and services. There is a growing trend of outsourcing in drug development for nimbleness and cost efficiency, which benefits the industry. On the flip side, potential headwinds include pricing pressures as efforts to contain healthcare costs are always top of mind. An evolving regulatory backdrop could also slow innovation or client activity.

The 8 drug development inputs & services stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.8%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 16.7% since the latest earnings results.

IQVIA (NYSE:IQV)

Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE:IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.

IQVIA reported revenues of $3.96 billion, up 2.3% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ constant currency revenue estimates but full-year revenue guidance slightly missing analysts’ expectations.

"IQVIA delivered excellent fourth quarter performance, closing out a strong 2024," said Ari Bousbib, chairman and CEO of IQVIA.IQVIA Total Revenue

The stock is down 11.2% since reporting and currently trades at $182.27.

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

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Best Q4: Azenta (NASDAQ:AZTA)

Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ:AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials.

Azenta reported revenues of $147.5 million, up 4.1% year on year, outperforming analysts’ expectations by 1.1%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates.Azenta Total Revenue

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 29.4% since reporting. It currently trades at $36.69.

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

Weakest Q4: Fortrea (NASDAQ:FTRE)

Spun off from Labcorp in 2023 to focus exclusively on clinical research services, Fortrea (NASDAQ:FTRE) is a contract research organization that helps pharmaceutical, biotech, and medical device companies develop and bring their products to market through clinical trials and support services.

Fortrea reported revenues of $697 million, down 1.8% year on year, falling short of analysts’ expectations by 0.9%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.

Fortrea delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 39.4% since the results and currently trades at $8.40.

Read our full analysis of Fortrea’s results here.

UFP Technologies (NASDAQ:UFPT)

With expertise dating back to 1963 in specialized materials and precision manufacturing, UFP Technologies (NASDAQ:UFPT) designs and manufactures custom solutions for medical devices, sterile packaging, and other highly engineered products for healthcare and industrial applications.

UFP Technologies reported revenues of $144.1 million, up 41.9% year on year. This result beat analysts’ expectations by 1.7%. It was a strong quarter as it also recorded a decent beat of analysts’ EPS estimates.

UFP Technologies achieved the fastest revenue growth among its peers. The stock is down 13.2% since reporting and currently trades at $208.83.

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

Repligen (NASDAQ:RGEN)

With over 13 strategic acquisitions since 2012 to build its comprehensive bioprocessing portfolio, Repligen (NASDAQ:RGEN) develops and manufactures specialized technologies that improve the efficiency and flexibility of biological drug manufacturing processes.

Repligen reported revenues of $167.5 million, flat year on year. This number was in line with analysts’ expectations. It was a satisfactory quarter as it also put up a solid beat of analysts’ organic revenue estimates.

Repligen pulled off the highest full-year guidance raise among its peers. The stock is down 6.9% since reporting and currently trades at $140.39.

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

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