Your Cheat Sheet For Q1 Biotech Earnings

Previewing first-quarter results of biotech companies, Jefferies said it sees some modest misses across the board, going by its deduction that the first quarter tends to be soft and its Rx analysis. However, the firm said this perspective would not dampen its enthusiasm, given a recent string of positive data points/product approvals.

Signs Of Encouragement Seen

Analyst Brian Abrahams sees continued signs of encouragement for the sector as 2017 progresses, based on a few premises. Given the leadership groundwork set for an FDA that is workable and industry-friendly, the analyst believes any drastic healthcare reform measures in 2017 will be delayed, if not altogether off the table near term.

Positive Investor Sentiment

Additionally, Jeffries gets winds of the biotech stock performance building on its early momentum, based on its recent investor survey. The firm noted the 10 percent, plus, gains of the iShares NASDAQ Biotechnology Index (ETF) IBB. The firm expects the positivity to be propelled by increasing M&A activity. However, the firm cautioned of long-term competitive/pricing pressures.

Q1 Statistics

Highlighting key first-quarter statistics, the firm noted that the quarter had 62 selling days versus 63 days in fourth quarter of 2016. The quarter saw modest dollar strength. Among the potential beats are Gilead Sciences, Inc. GILD's Odefsey, Descovy and Epclusa, while Gilead Sciences' Truvada, Atripala and Complera Biogen Inc BIIB's Plegridy are among the potential misses.

Peek Into Individual Biotech Stocks (Earnings Date/Rating/Price Target

• Bioverativ Inc. BIVV: Buy.
• AMGN: April 26, 2017, 5 p.m. ET/Hold.
• Alexion Pharmaceuticals, Inc. ALXN: April 27, 2017 (projected)/Hold.
• BioMarin Pharmaceutical Inc. BMRN: April 27, 2017 (projected)/Buy.
• Celgene Corporation CELG: April 27, 2017, 9 a.m. ET/Buy/$154.
• United Therapeutics Corporation UTHR: April 27, 2017 (projected)/Underperform.
• Swedish Orphan Biovitrum AB (SOBI.ST): April 28, 2017/Buy.
• AMAG Pharmaceuticals, Inc. AMAG: May 2, 2017 (projected)/Buy.
• Gilead Sciences: May 2, 2017, 4:30 p.m. ET/Buy/Lowered to $82.
• Vertex Pharmaceuticals Incorporated VRTX: May 3, 2017 (projected)/Buy/$126.
• Alkermes Plc ALKS: May 4, 2017 (projected)/Buy.
• Incyte Corporation INCY: May 4, 2017 (projected)/Buy/Upped to $165.
• Spectrum Pharmaceuticals, Inc. SPPI: May 4, 2017, 4:30 p.m. ET/Buy/Raised to $8.50.
• Vanda Pharmaceuticals Inc. VNDA: May 4, 2017, 4:30 p.m. ET/Buy/$21.
• Regeneron Pharmaceuticals Inc REGN: May 5, 2017 (projected)/Hold.
• Heron Therapeutics Inc HRTX: May 11, 2017 (projected)/Buy.

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