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Fast Money DisclaimerFast Money BiosAbout Fast MoneyRapid RecapFast Money Home
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Oct.21
5:37 PM ET
Wednesday, 21 Oct 2009
Big BioPharma Earnings Opportunities

2009 is turning out to be a better year for Big Pharma than initially feared. Oh sure, there’s the ongoing threat of generics coming onto the market, but, you can easily make the argument that this year wasn’t half bad.

The industry dodged a bullet over the summer on health care reform, leaving company executives relatively upbeat on how their firms will emerge from the changes.

A report by IMS Health says prescription drug revenue will likely climb about 5% in the US next year with worldwide sales growing as high as 7% though 2013.

Also swine flu sparked a surge of new sales.

Considering, over the past 3 months the Health Care SPDR is up only 7% while the S&P is up almost twice that, is the space about to catch up?

Quite possibly. And we could see big moves in the space as soon as Thursday. Just take a look at the firms reporting!

Thursday's Pharma Earnings

-Celgene [CELG  Loading...      ()   ]
-Bristol-Myers [BMY  Loading...      ()   ]
-Merck [MRK  Loading...      ()   ]
-Schering-Plough [SGP  Loading...      ()   ]
-Novartis [NVS  Loading...      ()   ]

Meanwhile on a related note -- after hours Amgen [AMGN  Loading...      ()   ] reported a better-than-expected profit as cost cuts and lower taxes helped offset a steep decline in sales of its Aranesp anemia drug, but regulatory concerns about its osteoporosis drug sent shares lower.

What’s the trade?


I’m a buyer of Amgen on weakness, adds Guy Adami.

I like Amgen too, says Pete Najarian. Personally, I thought the numbers they put up were astounding.
For me the best name in the space is Abbott Labs [ABT  Loading...      ()   ], says Joe Terranova.





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Got something to to say? Send us an e-mail at and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .

Trader disclosure: On October 21st, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Seymour Owns (DIG), (MSFT), (AAPL), (BAC), (EWZ), (INTC); Najarian Owns (DE) Call Spread; Najarian Owns (STX) Call Spread; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO), (YHOO) Puts; Terranova Owns December Crude Oil Futures

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (CAL)
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of  (DLR)
Virtus Investment Partners Owns More Than 1% Of  (EXR)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of  (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (DBA)
Virtus Investment Partners Owns More Than 1% Of  (DBV)
Virtus Investment Partners Owns More Than 1% Of  (UA)

For Peter Schiff
Schiff Owns Yen & Foreign Currencies
Schiff Owns Gold

For Moshe Orenbuch
(AXP), (COF), (DFS), (MA), (JPM), (C), (BAC) Is Or In Past 12 Months Was A Client Of Credit Suisse
Credit Suisse Provided Investment Banking Services To (AXP), (COF), (DFS), (MA), (JPM), (C), (BAC) In Past 12 Months
Credit Suisse Provided Non-Investment Banking Services To (AXP), (COF), (DFS), (JPM), (C), (BAC) In Past 12 Months
Credit Suisse Has Managed Or Co-Managed A Public Offering Of Securities For (AXP), (COF), (DFS), (JPM), (C), (BAC) In Past 12 Months
Credit Suisse Expects To Receive/Seek Investment Banking Compensation From (AXP), (COF), (DFS), (V), (MA), (JPM), (C), (BAC) In Next 3 Months
Credit Suisse Has Received Non-Investment Banking Compensation From (AXP), (COF), (DFS), (JPM), (C), (BAC) In Past 12 Months
Credit Suisse Is A Market Maker In (MA)
Credit Suisse Owned 1% Or More Of (V) As Of End Of Last Month

For Jim Cramer
Cramer's Charitable Trust Owns (V)
Cramer's Charitable Trust Owns (WFC)
Cramer's Charitable Trust Owns (PPG)
Cramer's Charitable Trust Owns (CVX)


CNBC.com with wires

© 2009 CNBC.com

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