Market Overview

Citi Sees Plenty Of Q2 Earnings Beats Ahead In Biotech Sector

Related ALXN
Baird Says Alexion Pharmaceuticals Guidance Is Conservative
Earnings Scheduled For January 29, 2015
Biogen, Alexion Soar On EPS (Investor's Business Daily)

Large-cap biotech stocks should see healthy second-quarter results driven by strong demand and new products, a Citi analyst said Thursday.

Performance of the sector will look especially attractive in light of a weak first quarter, when the sector was held back by poor weather, health-care reform and a draw-down of drug inventories, according to Citi's Yaron Werber.

Companies likely to beat Wall Street's estimates in the upcoming reporting period in Werber's view include a half-dozen of the biggest names in the sector.

Alexion Pharmaceuticals (NASDAQ: ALXN) should exceed consensus views calling for sales of $508 million. Werber's sees sales of $510 million. Results are getting driven by strong sales of its Soliris drug for atypical hemolytic uremic syndrome, a rare and often fatal disease. Werber said sales of the drug outside the U.S. are strong. Soliris is approved in nearly 40 countries.

Werber forecast Alexion's second-quarter earnings of $1.08 per share, versus the Street's $1.06.

Amgen (NASDAQ: AMGN) may see a strong rebound from a weak first quarter, with upcoming results driven by its self-injected Enbrel drug for rheumatoid arthritis and psoriasis, as well as its Prolia drug for male osteoporosis and Kyprolis, a multiple myeloma drug.

The Wall Street consensus for Amgen is $2.05 on sales of $4.9 billion: Werber expects $2.08 and $5 billion in sales.

Biogen Idec (NASDAQ: BIIB) might beat the Wall Street consensus with results based particularly on strong sales of its Tecfidra drug for relapsing multiple sclerosis. Werber sees total second-quarter sales of $2.2 billion versus a $2.1 billion consensus. For earnings, Werber expects $1.83 per share, compared with the $1.81 Street view.

Gilead Sciences' (NASDAQ: GILD) Chronic Hepatitis C drug Sovaldi is performing well above Street views according to Werber, who forecast second-quarter earnings of $0.90 per share on revenue of $1.8 billion. Consensus calls for$0.89 per share, also on $1.8 billion in revenue.

Medivation's (NASDAQ: MDVN) Xtandi prostate cancer drug may help the company exceed Street views because of increased market share and expanded use following its approval for pre-chemotherapy. Werber sees earnings of $.025 per share on revenue of $120 million. Wall Street expects $0.21 per share, also on revenue of $120 million.

Regeneron Pharmaceutical's (NASDAQ: REGN) Eylea drug for macular degeneration has performed better than expected because of higher user demand due to improved weather and a slight increase in inventory days, Werber said. He expects Regeneron earnings of $2.39 per share compared with the consensus $2.26 a share for the second quarter.

Latest Ratings for ALXN

Jan 2015JefferiesMaintainsHold
Jan 2015BTIG ResearchInitiates Coverage onBuy
Jan 2015BarclaysInitiates Coverage onOverweight

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Posted-In: Citi Yaron WerberAnalyst Color Health Care Analyst Ratings General


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