Several major biotech companies reported their third quarter results over the last week. While investors remained focused on earnings, the sector also saw an acquisition deal being announced as well some regulatory updates.
Recap of the Week’s Most Important Stories
1. First a look at earnings results. It was a “beat and raise” quarter for AbbVie ABBV which continues to see strong sales from its flagship drug, Humira. The company reported that Humira’s momentum has not been adversely impacted by the Remicade biosimilar. With approval for additional indications, Humira should continue growing (Read more: AbbVie Tops on 3Q Earnings & Revenues, Ups 2015 View).
Vertex also posted a narrower-than-expected loss with revenues coming in well above expectations. Importantly, Kalydeco continued to improve and Vertex raised its Kalydeco sales outlook yet again. (Read more: Vertex Posts Narrower Q3 Loss, Ups Kalydeco View) Amgen AMGN also reported a “beat and raise” quarter. (Read more: Amgen Ups 2015 Outlook with Q3 Earnings & Revenue Beat) Meanwhile, Alexion’s third-quarter results were mixed with the company missing on revenues but surpassing earnings estimates. (Read more: Alexion Beats on Earnings in Q3 but Misses on Revenues)
2. Dyax Corp.’s DYAX shares shot up on news that the company has entered into an acquisition agreement with Shire. Shire will be acquiring Dyax for about $5.9 billion plus a non-tradable contingent value right (CVR) worth $4.00 in cash representing an additional $646 million. (Read more: Shire to Buy Dyax for $5.9B Plus CVR, Boost HAE Portfolio)
3. Repros RPRX suffered a big setback with the FDA cancelling the advisory panel meeting for the company’s enclomiphene product candidate. (Read more: Repros Hits 52-Week Low, FDA Delays Enclomiphene Meeting)
4. Gilead GILD continues to progress with its HCV portfolio with the company submitting an NDA for a once-daily fixed-dose combination of Sovaldi (a nucleotide analog polymerase inhibitor) and velpatasvir (VEL – a pan-genotypic NS5A inhibitor). The filing is for the treatment of chronic genotype 1-6 HCV infection. Approval would make this the first all-oral, pan-genotypic single-tablet regimen for chronic HCV infection.
Performance
Most major biotech stocks performed well over the last five trading days with Vertex recording a gain of 6.07%. Gilead, however, declined 1.68% during this period, Meanwhile, Biogen BIIB lost 22.55% over the last six months with Regeneron being the highest gainer (22.68%) during this period.
The NASDAQ Biotechnology Index gained 3.57% over the last five trading days. (See the last biotech stock roundup here: Biogen Tops Estimates, FDA Approves Alexion's Strensiq)
| Company | Last Week | Last 6 Months |
| AMGN | 0.30% | 2.29% |
| BIIB | 2.93% | -22.55% |
| GILD | -1.68% | 4.68% |
| CELG | 0.58% | 14.45% |
| REGN | 1.80% | 22.68% |
| ALXN | 0.61% | 3.00% |
| VRTX | 6.07% | 2.20% |
What's Next in the Biotech World?
Companies like Celgene CELG, will be reporting third quarter results this week. The FDA is also expected to respond on the approval status of Gilead’s experimental HIV treatment, Genvoya, this week.
Meanwhile, quite a few companies will present abstracts at the American Heart Association (AHA) Scientific Sessions 2015.
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