Biotech Earnings Review: Celgene, Biogen

On Thursday, Celgene CELG aired its quarterly results, marking the last report of the big biotech companies previewed before Genentech DNA kicked off earnings season for the sector.

In review, these companies didn't disappoint on profit -- all seven beat consensus targets (which typically factor out one time charges) with their adjusted earnings-per-share results. Revenue came in close to estimates for most of the biotechs, with Biogen Idec BIIB and Celgene providing the largest surprise.

Among other things, the quarter included the Food and Drug Administration's decision against the recommendation of its advisory panel to approve Genentech's Avastin for the breast cancer indication.

Recent guidance adjustments include Celgene accounting for its Pharmion aqusition -- a 5- to 10-cent dilution on EPS and a $300 million addition to revenue for 2008. Also, Genzyme GENZ scaled back its guidance to account for regulatory delays for the manufacturing of a larger-scale ver%sion of Pompe disease drug Myozyme.

Meanwhile, Biogen Idec increased sales and revenue guidance while Cephalon CEPH nudged its sales guidance a bit higher for 2008.

Here's a summation of last quarter's results:

Biotech Earnings Review A quick take of how the big biotech names fared in the January-March 2008 quarter.
Company	Adj. EPS/ consensus*	Revenue vs. consensus	2008 Guidance Adjustments	Stock YTD % change**
Genentech (DNA)	84 cents/ 82 cents	$3.06B/ $3.1B	Maintained $3.35 to $3.45/share	+1.9%
Gilead (GILD)	54 cents/ 48 cents	$1.26B/ $1.2B	Maintained sales of $4.7B to $4.8B	+17.6%
Genzyme (GENZ)	95 cents/ 93 cents	$1.1B/ $1.085B	Decreased two days prior to $3.90/share (Adj.)	-6.9%
Biogen (BIIB)	83 cents/ 79 cents	$942M/ $890M	Increased EPS to $3.25-$3.45 (Adj.) Rev of $3.8B (20% growth)	+10.2%
Amgen (AMGN)	$1.12/$1.05	$3.613B/ $3.624B	Maintained EPS $4 to $4.30 (Adj.) Rev of $14.2B to $14.6B	-9.5%
Cephalon (CEPH)	$1.12/96 cents	$443.2M/ $444.6M	Maintained EPS of $5.10 to $5.20 (Adj.) Raised sales to $1.83B-$1.88B from $1.8B-$1.85B	-9.4%
Celgene (CELG)	36 cents/ 34 cents	$462.5M/ $444M	Updated for Pharmion buy: $1.45/share (Adj.) Rev of $2.1B	+35.2%
*Consensus estimates typically factor out one time charges and special items. ** Change in stock price from the close on Dec. 31, 2007, to the close on May 8, 2008

Genentech: April 10

Genentech delivered a per-share earnings beat of 2 cents but missed on expected sales of lead product, cancer drug Avastin.

The company earned $895 million, or 84 cents a share, on an adjusted basis, vs. $792 million, or 74 cents a share, on the same basis, the year prior. Revenue increased 8% to $3.06 billion, while Wall Street was looking for earnings of 82 cents a share on $3.1 billion in revenue.