Update-2 2/10…Rally has expanded to mid-caps:ALNY ACAD GWPH ICPT SRPT Etc.


Update-1 2/7. 2p …Abbvie (ABBV) Another one of our top large cap picks ABBV is up 6% o the $92 handle as of mid-day trading on earnings and Allergan acquisition.

Full year EPS was $5.28 on GAAP basis on Revenues of $33.266B.Full year revenues grew 9.9% excluding Humira which declined 31.1% due to biosimilar competition .New product launches are going well with Full year SKIRIZI net revenues $355M.

Provides Standalone 2020 GAAP Diluted EPS Guidance Range of $7.66 to $7.76 , Representing Growth of 46.0 Percent at the Midpoint; Provides Standalone 2020 Adjusted Diluted EPS Guidance Range of $9.61 to $9.71 , Representing Growth of 8.1 Percent at the Midpoint; Expects Standalone 2020 Revenue Growth Approaching 8.0 Percent on an Operational Basis


Biotech Reversal- Earnings Boosts Biotech Stocks Over 5 Trading Days

Large Cap Earnings Are Good Enough: All Three Stocks Were Laggards in 2019: BMY,GILD,REGN

Biotech stocks reversed from a bearish trend last week from a 1/31/20 short-term bottom. Overwhelming bad news caused by coronavirus fears, weak earnings from Anthem (ANTM) and another brief redux of drug pricing criticism. But the focus was on large cap earnings and a shift to positive thinking about biopharmaceutical innovation. Earnings reported this week beat forecasts:

  • Bristol-Myers (BMY) up 6% over 5 days  to $67.15, Post Celgene merger boosts results with Q4 Revenues of $7.9B and $26.1 B for 2019 and earnings beat,  non -GAAP EPS was $1.22. Eliquis revenues for Q4 were up 19% to $2.04B, Opdivo $1.763B down 2%, Revlimid $1.299B, Orencia %799M.
  • Gilead Sciences (GILD) was up 7.25% over 5 days to the $68 level. Revenues beat but earnings missed nevertheless the Company is a leader in antiviral therapy with a strong pipeline .Revenues for 2019 Q4 were $5.8B with diluted EPS of $4.22. There was a 5X average call volume today for the April 80s.
  • Regeneron Pharmaceuticals (REGN) soared 18% over 5 days to $390, beating on sales and Q4 revenues up 13% to $2.17B.U.S. sales in ophthalmology with Eyelea $1.22B;  and Dupixent global net sales for asthma by Sanofi were $752M.
  • The IBB was up 6.5% over 5 days and the XBI up 7.2%.
  • The XLV also recovered from lows of $99 to $103.78.
  • Biotech ETFS beat the Nasdaq-100 (QQQ) up 3.3%

We will publish financial metrics of all large caps over the weekend. Here is the large cap biopharma performance metrics and valuations from April 2019. The IBB was $107 now $122.

Our top picks for large caps are : ABBV BMY GILD  RHHBY MRK

Disclosure long ABBV, BMY, GILD RHHBY, MRK. Trading QQQ.

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