Biotech companies will likely be one of the few bright spots for investors this earnings season, says CNBC’s Pharmaceuticals Reporter Mike Huckman, with demand for their drugs unchanged by the economy, credit crunch or mortgage meltdown.
Large-cap biotechnology companies, whose shares have outperformed an overall weak market during the second quarter, are poised to meet or beat Wall Street profit forecasts, according to most analysts. And right now all eyes are on Genentech the world's biggest biotech by market cap.
Is the trade ahead of this biotech bellwether's earnings already done? As always, it's not the EPS number that moves the stock, explains Huckman, it's sales of Genentech's top four products especially the cancer drug Avastin.
So write down this number, he counsels. As of Thursday the Street is looking for $645 million in Avastin sales. Only time will tell.
I think a lot of the expectations are built into the stock, muses Pete Najarian. I’d wait and buy DNA on a pull back. Don’t get ahead of yourself. Also in the space Elan is worth watching for it’s Alzheimer’s drug.
