Genentech kicks off biotech earnings season Monday after the bell. Will higher sales of Avastin and Herceptin drive shares?
CNBC Pharmaceuticals reporter Mike Huckman joins the panel for this conversation. Following is a summary of his main points.
Analysts expect Genentech to report sales of $616 million says Huckman, and it’s widely believed the stock will move on sales and not earnings, he says.
Also, it’s worth noting that Genentech has shared its cancer drug Rituxan with Biogen Idec .
Meanwhile, Biogen Idec is awaiting a big decision that may come as soon as Friday or Monday from the FDA on Tysabri, a drug for Crohn's disease. It could move the stock. It’s worth noting, Tysabri is shared with Elan , as well as PDL BioPharma which receives a small royalty.
Also, it’s worth noting that, historically at the end of the JPMorgan Conference some stocks roll over. In other words, a sell-off occurs. Investors buy into these companies and then realize the drugs won’t hit the market for 6-18 months.
I think it will be an eventful year adds Pete Najarian. I expect to see M&A in this space.
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