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Pharmaceutical Earnings: Wall Street Not Feeling So Great

With a couple of exceptions the pharma earnings season has failed to impress Wall Street, so far. Take a look at the one week performance of the Amex Pharmaceutical Index versus the Dow.

Next week there's no let-up. Right out of the gate on Monday morning Merck and Schering-Plough report. They typically come out on the same day because they're so intertwined on the Vytorin joint venture--the cholesterol pill combining Merck's Zocor and Schering-Plough's Zetia. On Tuesday, we've got Eli Lilly. On Wednesday, GlaxoSmithKline (tune in for a "First On CNBC" live interview with CEO JP Garnier on "Squawk Box" that morning). This will be GSK's first earnings report since the Avandia scare, so we'll get a clearer picture of just how much sales of the drug have plummeted in the wake of that study identifying potential heart risks with that blockbuster diabetes drug.

An FDA Advisory Committee takes up Avandia safety on July 30th. On the plus side for GSK, two days later, August 1st, the FDA is expected to approve a new drug for migraines called Trexima from GSK and Pozen . Thursday, Bristol-Myers Squibb reports. Here, too, we should see evidence that the generic Plavix impact should be wearing off or possibly disappearing.

But it's not just about earnings next week. On Tuesday, another FDA panel meets to consider recommending full agency approval of a new prostate cancer chemotherapy drug called satraplatin from GPC Biotech, Spectrum Pharmaceuticalsand Pharmion . They're in a unique three-way partnership. BMYused to own this drug, but gave it up. But it's chances don't look promising.

Today the FDA posted the documents for that meeting on its Web site and the agency has concerns that investors obviously fear could result in a delay. Check out the move in GPCB, SPPI and PHRM. Typically panel documents are put on the web two days before a meeting. It used to be a day ahead, but was recently pushed out. You can see them for yourself at www.fda.gov. click on Advisory Committees, then Drugs, then click on the "Go" button under Oncologic Drugs.

It's deja vu in the wake of the recent negative FDA decision on another prostate cancer treatment, Provenge, from Dendreon .

Questions? Comments? Pharma@cnbc.com

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