Biotech Earnings Kicks Off on Tuesday
On Tuesday biotech earnings kick off with Biogen reporting pre-market.
Biotech has been an exciting space to watch with the sector outperforming the major indices.
The Nasdaq Biotech Index up better than 25 percent just this year fueled by major acquisitions and upbeat clinical data, while the Nasdaq Composite is up roughly 10 percent.
UBS remains bullish on biotech, writing that “With biotech business models defensive and intra-quarter trends solid, we see biotech as a potential bright spot for second quarter results, especially with no large cap company at high risk of lowering guidance.”
In terms of which biotech firms are being watched by the street, UBS writes that “potential strategy announcements from Amgen and Gilead Sciences and clinical data from Celgene, Alexion Pharmaceuticals, and Vertex Pharmaceuticals could overshadow financial results.
For Gilead Sciences, the street wants to get a better handle on the biotech’s Hepatitis C game plan. “We think Gilead’s HCV development strategy, if available, will determine its stock performance,” says UBS biotech analyst, Matthew Roden.
Key themes for the second half of the year for biotech? Pipeline. Roden writing that “we believe that outside of Celgene and Amgen, the other large cap biotech’s are less sensitive to near-term earnings, and instead trade on pipeline news-flow.”
— By CNBC's Seema Mody
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