At least seven biotechs and pharmas reported earnings last week. Among them was Abbott Laboratories (NYSE:ABT), which lost almost $5 billion after a busy week. Last Wednesday, the company announced revenues that missed the Street's projection, and also disclosed that the tax rate for its AbbVie pharmaceutical spinout, which is slated to start operations on Jan. 1, will be about 22%, higher than what some analysts were expecting. Moreover, Abbott partner Reata Pharmaceuticals Inc. announced on Thursday that it was terminating the Phase III BEACON trial in Type II diabetics with chronic kidney disease (CKD) after seeing "excess serious adverse events and mortality" in patients receiving bardoxolone methyl. Earlier in the week, Abbott reported positive data from the Phase IIb Aviator trial of an interferon-free regimen that includes three of its antivirals to treat HCV genotype 1 infection (see Cover Story & Abbott's Wild Ride," A16). (A) Fiscal 2Q earnings; Mcap in $M

Company

3Q12 EPS est

3Q12 EPS actual

Outcome

Growth from 3Q11

10/19 cls

Wk chg

% chg

Mcap chg

Mcap 10/19

Abbott Laboratories (NYSE:ABT)

$1.28

$1.30

Beat by $0.02

10%

$66.15

-$3.13

-5%

-$4,914.1

$103,855.5