Biotech Notebook: Vertex, Medarex

(Editor's note: Come see Adam Feuerstein at the Money Show in San Francisco. Adam will be speaking to attendees on Friday, Aug. 8, at 2:15 p.m. ("Biotech Investing for Individuals: How to Turn Geeky Science Into Fat Profits"); on a lunch panel on Saturday, Aug. 9, at 12:35 p.m. ("Tech and Biotech: Picks and Pans for 2008 and Beyond"); and on Sunday, Aug. 10, at 8 a.m. ("Biotech Investing for Individuals: How to Turn Geeky Science Into Fat Profits").

Second-quarter earnings are right around the corner. My colleague Elizabeth Trotta is compiling a complete second-quarter earnings preview, so please read it for all the details, including consensus expectations.

Generally, big-cap biotech earnings should be strong this quarter. As always, investors want to see strong top- and bottom-line growth. This is also the time of year when fast-growing biotech companies are expected to raise financial guidance, so look for that, too.

Here's a quick take on the key issues facing each of the big-cap biotechs heading into earnings season:

• Genentech (DNA Quote): Investors will be watching Avastin sales for the quarter for signs of strong uptake with metastatic breast cancer patients.
• Amgen (AMGN Quote): With denosumab osteoporosis data expected later in the quarter, the focus now will be on the anemia drug franchise. Have Aranesp sales stabilized? What is the risk that further restrictions will hit sales once again? Also pay attention to any discussion about strategic plans to market denosumab. Will Amgen partner the drug to reach general practice doctors?
• Biogen Idec (BIIB Quote): We're right on top of the two-year anniversary of the Tysabri re-launch in multiple sclerosis, so a safety update on the drug will be key. Have there been any new, confirmed cases of the deadly brain infection PML?
• Gilead Sciences (GILD Quote): Prescription-tracking data have suggested a flattish quarter for the company's HIV drug franchise, so a lot of attention will be paid to the final top-line sales figures. Consensus top-line estimates for the year are already well above the company's guidance, so a boost to that guidance by management would be well received, if not expected.
• Celgene (CELG Quote): Revlimid, Revlimid, Revlimid, especially the cancer drug's performance in Europe. What will management say about Vidaza sales for the rest of the year given the setback with its chief competitor, Dacogen?
• Genzyme (GENZ Quote): The company previously reduced earnings guidance for the year, due to the delay in approval for the new Myozyme manufacturing plant. The focus will be on stronger-than-expected top-line growth for the key enzyme replacement therapies.