It's a tough day to be an investor in big pharma or big biotech as deluge of negative earnings dragged down some of the bigggest players in the industry.
On the back of disappointing earnings from a number of companies most notably, Celgene Corp. (CELG) .
Is It Time To Panic With Celgene?
Celgene reported third-quarter adjusted diluted EPS of $1.91, up 21% from the year-ago period. Revenue rose 10% to $3.29 billion.
The Summit, N.J.-based firm adjusted its full-year 2017 revenue guidance to about $13 billion, compared with previously issued guidance of $13 billion to $13.4 billion. It now expects GAAP diluted EPS of $4.78 to $5.19, compared with $5.36 to $5.62, and adjusted diluted EPS of $7.30 to $7.35, compared with $7.25 to $7.35.
"In consideration of certain market dynamics and recent pipeline events, we are updating our 2020 outlook, and remain confident in our ability to deliver industry leading growth," said Celgene CEO Mark J. Alles in a statement. "Over the coming months, we look forward to sharing data supporting our innovative, next generation pipeline products and significant growth drivers."
For 2020, the company now targets total net product sales of $19 billion to $20 billion, compared with the previous target of above $21 billion. It is targeting adjusted diluted EPS above $12.50. The previous target was north of $13.
"I am in shock," Jim Cramer said, as Celgene is now down more than 33.5% since October 1. Celgene is considered "consistent of consistence" in biotech, he added, "and people have turned." Investors are ignoring the company's other positives, like its assets and investments, he said, adding that they're not giving management any credit.
Shares of Celgene closed at $99.99, down 16.4%.
Alexion Down After Lowering Guidance Range
Alexion Pharmaceuticals Inc. (ALXN) on Thursday, Oct. 26, reported third-quarter non-GAAP diluted EPS of $1.44 per share, compared to $1.23 in the year-ago period. Revenue totaled $859 million, representing an 8% rise from the same period in 2016.
The New Haven, Conn.-based company said second-quarter revenue "benefited from approximately $35 million in favorable timing of orders, which directly impacted quarter-over-quarter and year-over-year growth in the third quarter of 2017." It added that the negative impact of foreign currency on revenue year-over-year was less than 1%, net of hedging activities.
Also on Thursday, Alexion updated its full-year 2017 revenue guidance to a range of $3.48 billion to $3.53 billion, compared with previously issued guidance of $3.45 billion to $3.53 billion. For GAAP EPS, the company now expects $2.00 to $2.35, compared with $2.82 to $3.12. It expects Non-GAAP EPS of $5.50 to $5.65, versus previous guidance of $5.40 to $5.55.
Shares of the company ended Thursday's trading session at $126.07, down 4.5%.
Just a few days ago: Alexion Pharmaceuticals Stock Jumps on FDA Approval of Soliris
Boston Scientific Slumps Despite Raising Guidance
Boston Scientific Corp. (BSX) reported third-quarter adjusted EPS of $0.31, compared to $0.27 in the same period in 2016. The Marlborough, Mass.-based firm had sales of $2.22 billion, up 5.6% on a reported basis and 5.7% on an operational basis compared to the year-ago period.
Boston now expects full-year 2017 revenue to be in the $8.99 billion to $9.02 billion range, versus previous guidance of $8.89 billion to $8.99 billion. It estimates GAAP income of $0.71 to $0.75 per share, versus prior guidance of $0.70 to $0.74 per share, and adjusted earnings of $1.24 to $1.27 per share, compared with $1.23 to $1.27 per share.
Shares of the company closed at $28.82, down 2.7%.
"While investors could view this quarter's performance as less compelling than that of recent quarters, we do think BSX absorbed some weather-related headwinds, delivering a sales beat and in-line EPS despite this," wrote Leerink Partners' Danielle Antalffy in a note Thursday.
BMY Earnings Lag
Bristol-Myers Squibb Co. (BMY) posted third-quarter non-GAAP diluted EPS of $0.75, down 3% year-over-year. Revenue increased 7%, to $5.25 billion.
New York-based Bristol-Myers lowered its 2017 GAAP EPS guidance range to $2.36 to $2.46, compared with previous guidance of $2.66 to $2.76. The company upped its non-GAAP EPS outlook to $2.95 to $3.05, from $2.90 to $3.00.
Shares of the company closed at $60.95, down 4.8%.
Device a Bit Different, McKesson Pops Then Falls
McKesson Corp. (MCK) reported fiscal 2018 second-quarter adjusted earnings per diluted share of $3.28, up 11% from the same period a year ago. Revenue went up 4% to $52.1 billion.
The San Francisco firm reiterated its fiscal 2018 adjusted earnings guidance of $11.80 to $12.50 per diluted share.
Shares of the company closed at $143.54, down 5.2%, after rising as much as 7.4% earlier in the day.
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