Several major biotech companies like Amgen AMGN, Vertex VRTX, Alexion and Regeneron REGN reported second quarter results. Meanwhile, Baxalta BXLT, which started trading last month, is in the news with Shire looking to acquire the company in a deal worth approximately $30 billion.
Recap of the Week’s Most Important Stories
1. Companies like Amgen, Vertex, Alexion and Regeneron reported second quarter results over the last week. While it was a beat and raise quarter for Amgen (Read more: Amgen Beats on Q2 Earnings & Revenues, Raises Outlook), Alexion’s second-quarter results were mixed with the company missing earnings estimates but beating on revenues (Read more: Alexion Misses on Earnings in Q2, 2015 Outlook Revised).
Meanwhile, Regeneron had a strong quarter with earnings and revenues surpassing estimates and Eylea doing well enough to allow the company to raise its outlook for the eye drug. Regeneron could well have another blockbuster drug in its portfolio in the form of PCSK9 inhibitor, Praluent, which was launched recently (Read more: Regeneron Beats on Q2 Earnings, Eylea 2015 View Upped).
Vertex also raised its outlook for cystic fibrosis (CF) drug, Kalydeco, and is currently focusing on the launch of its new CF treatment, Orkambi (Read more: Vertex Posts Wider Y/Y Loss but Raises Kalydeco Outlook).
2. Baxalta has generated a lot of interest with the company receiving an acquisition proposal from Shire shortly after it started trading. Baxalta, however, refused the offer (all-stock transaction with an implied value of $45.23 per Baxalta share) saying that it significantly undervalues the company and its growth prospects. Baxalta started trading last month after it was spun-off from Baxter.
3. Pharmacy benefit manger, Express Scripts, has excluded VIVUS’ VVUS obesity treatment, Qsymia, from its 2016 preferred drug list. This is disappointing and VIVUS is already looking at job cuts – the company said that the branded obesity market in the U.S. has grown well below expectations reflecting factors like physician caution and reluctance to prescribe, experiences with prescribing other agents, reimbursement issues and lack of widespread consumer awareness (Read more: VIVUS Q2 Loss Narrower, Restructuring Announced).
4. Lexicon’s LXRX shares shot up 61.1% on positive data from a pivotal phase III study on one of the company’s most advanced pipeline candidates, telotristat etiprate. The candidate is being evaluated for the treatment of cancer patients with carcinoid syndrome that is not sufficiently controlled by the current standard of care. Approval would make telotristat etiprate the first oral treatment to be successfully developed for this rare disease as well as the first addition to standard of care in more than 16 years.
Performance
Over the last five trading days, Celgene CELG recorded a decline of 3.20% while Vertex was the highest gainer (9.35%) among the major biotechs. Biogen lost 15.53% over the last six months with Regeneron being the highest gainer (44.74%) during this period.
| Company | Last Week | Last 6 Months |
| AMGN | 1.19% | 16.60% |
| BIIB | 3.27% | -15.53% |
| GILD | 5.13% | 21.21% |
| CELG | -3.20% | 12.45% |
| REGN | 5.16% | 44.74% |
| ALXN | -3.14% | 10.58% |
| VRTX | 9.35% | 28.40% |
The NASDAQ Biotechnology Index was up slightly (0.33%) over the last five trading days (See the last biotech stock roundup here: Biogen Down on Tecfidera Issues, Regeneron's Praluent Gets FDA Nod).
What's Next in the Biotech World?
While most of the large biotech companies have released their second quarter results, several mid-cap and small-sized companies will be reporting second quarter results later this week.
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