Biotech Earnings Preview: A Place to Hide?

Based on IMS sales data, Barclays' biotech team projects better than expected Truvada sales, and weaker than expected Atripla sales in the U.S. Although, analysts point out that negative data on GlaxoSmithKline's Abacavir could be aiding the European launch of Atripla.

Consensus targets are $91 million for Hepsera, $70 million for Ambisome, and $30 million for Letairis.

Gilead previously upped total 2008 sales guidance by about $200 million to a range of $4.9 billion to $5 billion.

The company raised its forecast for operating expenses by about $50 million for the remainder of the year, primarily in research and development and selling general and administrative expenses, noting spending on R&D as a percentage of revenue is likely to increase in the future. That caused some analysts to adjust their models and added to recent pressure on the stock.

For 2008, analysts expect $1.98 a share, on revenue of $5.25 billion.

Biogen Idec, Oct. 21

Biogen made some analysts' likely-to-beat list this for the third quarter. It would be a repeat performance after a strong second-quarter bolstered by better than expected sales of Rituxan and Tysabri.

On average, analysts expect 89 cents a share on revenue of roughly $1 billion. They expect $652 million in total U.S. sales of Biogen and Genentech's Rituxan, with $273 million of that going to Biogen.

The consensus is for $308 million in U.S. sales and $532 million worldwide sales from Avonex. And analysts, on average, expect $111 million U.S. and $223 million worldwide sales of Biogen and Elan's Tysabri with $147 million of that going to Biogen.