Failed Biotech Rally: Latest Biotech Earnings Don’t Help…ALXN AMGN CELG GILD…Update-1

Update-1 May 2  Biotechs Stop Slide…IBB up 1.12%…Green Screen Day

Healthcare Stocks Regain Footing… XLV up 0.57%

Biotech stocks moved up after a five day swoon but are still flat after one month. Most large caps were green with decent gains in Celgene (CELG) and Regeneron (REGN). A good time to average down in Gilead Sciences (GILD) at $89. Mid-caps were more robust with ALNY, INCY and SGEN all up more than 2%. bluebird bio (BLUE) was up 3.43% to $45.87.

Biotech and Healthcare Stocks Big Losers of the Day-XLV down 1.97%, IBB down 3% at 2:45P EDT

Growth Prospects Disappoint

Biotech stocks remain in a downward trend off 7.4% (IBB) for the week  as of midday trading on Friday. Unlike yesterday when both Abbvie (ABBV) and Bristol-Myers Squibb (BMY) rallied on earnings reports biotech stocks took a big hit today with no help from either Celgene (CELG) or Gilead Sciences (GILD). Here are today’s reports:

Alexion Pharmaceuticals (ALXN) reported revenues of $701M an increase of 17% year -on-year wit a 5% negative currency impact. GAAP EPS was $0.41 down from $0.45 in 2015. The Company guided revenues at $3.05-$3.1B. Stock is off 2%.

Amgen, Inc. (AMGN) beat forecasts with GAAP EPS of $2.50 on Q1 2016 Revenues of $5.5B  a 10% increase. A 7% product sales growth to $4.874B was driven by a strong product portfolio led by Enbrel, Neulasta, Aranesp and XGEVA. Operating income and margins improved. Free cash flow was $1.8B compared to $1.4B in 2015 Q1. EPS guidance was increased. Good results but stock down over 1% to $158.

Celgene (CELG) reported a 21% increase in product sales to $2.495B driven by REVLIMID with sales of $1.574B. Pomalyst sales grew 38% to $274M. Abraxane sales were flat at $225M. EPS increased 23% to $1.32 from $1.07. The Company ended the quarter with Cash of $5.7B. Revenue guidance was decreased slightly to $12.7-$13B from $13-$14B. Stock was down 4.4%.

Gilead Sciences (GILD) reported product sales of $7.7B and GAAP diluted EPS of $2.53. Full year guidance for 2016 was re-iterated at $30-$31B in sales. Total revenues showed little growth from $7.6B in 2015 to $7.8B in 2016. Antiviral sales for HIV and HCV were down due to product discounts and increased competition from Merck (MRK) and Abbvie (ABBV). The second quarter cash dividend will be $ 0.47 per share or 1.7%. Cash flow for Q1 was $3.9B. The Company has $21.3B in cash and marketable securities prompting some analysts to push for M&A. The stock was down 8.6% to the $88 level.

Hmmm, I have three winners on my screen in a sea of red: GLYC MDVN RXDX

Risk Off

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