Skip to main content

Enter earnings. Health stocks outperformed the broader markets Tuesday after getting the first second-quarter rehashes from a couple of big names.

Post market-close Monday

Genentech

( DNA) missed on earnings per share but posted

impressive sales numbers

. The company reported adjusted profit of 82 cents a share on revenue of $3.2 billion. Wall Street expected of 86 cents a share on revenue of $3.23 billion, according to Thomson Reuters.

The company reported U.S. sales of $650 million and $651 million for lead drugs Avastin and Rituxan, surpassing consensus targets of $645 million and $634 million, respectively. Genentech also upped its full-year 2008 non-GAAP earnings guidance to a range of $3.40 to $3.50 a share, up from a previous range of $3.35 to $3.45.

Genentech shares were traded up 5.2%, or $3.91, to $79.30. The company's Rituxan partner,

Biogen Idec

(BIIB) - Get Biogen Inc. Report

, saw its shares rise $2.48, or 4.1%, to $63.50.

Genentech and Biogen Idec are both components of the Amex biotechnology index, which was up an impressive 2.9% at 781.62.

Meanwhile,

Johnson & Johnson

(JNJ) - Get Johnson & Johnson Report

aired its earnings

Scroll to Continue

TheStreet Recommends

Tuesday morning. During the quarter, currency benefit and growth in medical device and consumer sales helped to offset falling pharmaceutical sales.

Factoring out an R&D charge of $40 million tied to its Amic acquisition, the company said it earned $3.4 billion, or $1.18 a share. Sales increased 8.7% year over year to $16.5 billion. Analysts, on average, were looking for earnings of $1.12 a share on revenue of $16 billion, according to Thomson Reuters.

Looking ahead, J&J upped its earnings guidance for the full year to $4.45 to $4.50 a share, factoring out one-time charges. Shares were up $1.41, or 2.1%, at $67.82.

In news unrelated to earnings,

ViroPharma

(VPHM)

said Tuesday that it will

buy Lev Pharmaceuticals

(LEVP)

for $442.9 million upfront, or $2.75 a share ($2.25 in cash and 50 cents in ViroPharma common stock). The company could pay an additional $1 a share based on certain regulatory and commercial milestones -- bringing the deal's potential value to $617.5 million. Both boards have approved the transaction, which is expected to close by the end of 2008. ViroPharma shares fell $1.93, or 15.4%, to $10.61.

In analyst actions, Lehman Brothers boosted its rating for

Schering-Plough

( SGP) to overweight from equal weight and raised its price target to $27 from $22. Shares were traded up 95 cents, or 4.4%, to $22.33.

On Wednesday, look for earnings from

Abbott Laboratories

(ABT) - Get Abbott Laboratories Report

and

St. Jude Medical

(STJ)

. Wall Street is looking for earnings of 79 cents a share on revenue of $7.2 billion from Abbott, and profit of 55 cents a share on revenue of roughly $1.06 billion from St. Jude.