Thirteen of 18 biotechs and pharmas were down last week after reporting earnings. Notably, Alexion Pharmaceuticals Inc. (NASDAQ:ALXN) fell 11%, losing $2.4 billion in market value, despite beating the Street's EPS estimate. Analysts noted a lack of near-term milestones and profit taking as rationale for the decline. Big pharmas - AstraZeneca plc (LSE:AZN; NYSE:AZN), Bristol-Myers Squibb Co. (NYSE:BMY), Eli Lilly and Co. (NYSE:LLY), Merck & Co. Inc. (NYSE:MRK), Novartis AG (NYSE:NVS; SIX:NOVN) and Sanofi (Euronext:SAN; NYSE:SNY) - lost more than $13 billion in aggregate market value as generics continue to erode sales. Lilly and Novartis missed the Street's revenue and earnings estimates and closed the week down 4-5%. The BioCentury 100 and the NASDAQ Biotechnology indices were down 3% on the week. (A) Fiscal 1Q earnings; Mcap in $M

Company

3Q12 EPS est

3Q12 EPS actual

Outcome

Growth from 3Q11

10/26 cls

Wk chg

% chg

Mcap chg

10/26 Mcap

Alexion Pharmaceuticals Inc. (NASDAQ:ALXN)

$0.47

$0.60

Beat by $0.13

62%

$95.26

-$12.36

-11%

-$2,389.8

$18,418.8

3Q12 sales of Soliris eculizumab, which accounted for all of Alexion's revenues, rose 44% to $294.1M from $204M in 3Q11. The Street was expecting sales of $293.2M. The company raised its 2012 non-GAAP EPS guidance to $1.99-$2.04 from $1.78-$1.88 and its 2012 revenue guidance to $1.12-$1.13B from $1.11B-$1.125B. Soliris is marketed for paroxysmal nocturnal hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS).

Amgen Inc. (NASDAQ:AMGN)

$1.47

$1.67

Beat by $0.20

19%

$87.63

$0.47

1%

$362.4

$67,562.7

3Q12 revenues grew 10% to $4.3B, slightly above the Street's estimate of $4.25B. 3Q12 sales of Xgeva denosumab to prevent skeletal-related events increased to $201M from $102M in 3Q11, while sales for Prolia denosumab for osteoporosis increased to $110M from $51M. 3Q12 sales of neutropenia products Neulasta pegfilgrastim and Neupogen filgrastim increased 1% to $1.4B. Sales of autoimmune drug Enbrel etanercept grew 17% to $1.1B. Amgen repurchased $797M in shares in 3Q12 and has $1.6B remaining under its buyback program. The company raised its 2012 revenue guidance to $17.2-$17.3B from $16.9-$17.2B and its adjusted EPS guidance to $6.50-$6.60 from $6.20-$6.35.

AstraZeneca plc (LSE:AZN; NYSE:AZN)

$1.47

$1.51

Beat by $0.04

-8%

$46.61

-$0.44

-1%

-$547.8

$58,029.5

AstraZeneca said its core 3Q12 EPS benefited from the lower number of shares outstanding as a result of its share repurchase program, which the company suspended on Oct. 1. But 3Q12 sales fell 15% to $6.7B from $8.2B in 3Q11. The pharma attributed the decline to the loss of exclusivity on "several key brands" including schizophrenia drug Seroquel quetiapine IR. Sales of Seroquel, which lost exclusivity in March, were down 83% to $169M. Sales in emerging markets were up 6% to $1.4B, while U.S. sales fell 19% to $2.6B. The effect of U.S. healthcare reform on 3Q12 revenues and costs was approximately $150M. Percent changes, including change in EPS from 3Q11, assume constant currency. The company reiterated its core 2012 EPS guidance of $6-$6.30.