Wall Street has so far dealt with a mixed second-quarter report card for biotechnology companies, but shares continue outpacing the broader market on a mix of positive sales results and a bright outlook for buyout potential within the sector.

A New York law firm has sued Roche Holding AG claiming the Swiss pharmaceutical company is offering too little in its takeover bid for Genentech Inc.

A Genentech Inc <DNA.N> investor filed a lawsuit on Wednesday over the proposed $43.7 billion buyout by majority shareholder Roche Holding AG <ROG.VX>, saying the bid is unfair and inadequate.

By Martha Graybow

Fitch Ratings Services said Wednesday it is likely to reduce its ratings for Roche Holding AG due to the large amount of debt the Swiss drugmaker would have to take on to buy U.S. biotech giant Genentech Inc.

The world's two biggest drugmakers, Pfizer Inc <PFE.N> and GlaxoSmithKline Plc <GSK.L>, both beat expectations for quarterly earnings on Wednesday, as did Wyeth <WYE.N>, indicating the sector's resilience.

By Ben Hirschler

Pharmaceutical giant Roche Holding on Wednesday announced plans to buy Arius Research Inc. of Canada for $190.4 million as the latest in a series of purchases of North American biotechnology companies.

Top officials of Swiss pharmaceutical giant Roche Holding and Genentech Inc. are meeting Tuesday to discuss Roche's proposed $43.7 billion takeover bid for the U.S. biotechnology pioneer.

A surge in multiple-sclerosis drug sales drove an 11 percent boost in Biogen Idec Inc.'s second-quarter profit, prompting the biotechnology company to boost its full-year outlook and aim for record revenue of $4 billion.

Moody's Investors Service said it is considering downgrading Genentech Inc.'s long-term credit ratings, citing this week's $43.7 billion buyout proposal from majority owner Roche.

Biogen Idec Inc <BIIB.O>, which this month fended off activist investor Carl Icahn's attempt to place three hand-picked candidates on the board, on Tuesday said second-quarter profit rose 11 percent on strong sales of its multiple sclerosis and cancer drugs.

NEW YORK (Reuters) - Biogen Idec Inc <BIIB.O>, which this month fended off activist investor Carl Icahn's attempt to place three hand-picked candidates on the board, on Tuesday said second-quarter profit rose 11 percent on strong sales of its multiple sclerosis and cancer drugs.

Pharmaceutical company Roche Holding said Tuesday it will buy U.S. gene therapy company Mirus Bio Corp. for $125 million.

By Kristina Cooke