Ten of 14 biotechs and pharmas reporting earnings were down last week, as the BioCentury 100 and the NYSE Arca Pharmaceutical indexes both fell 1%. Notably, Elan Corp. plc (NYSE:ELN) lost over $450 million in market value despite reporting 4Q12 EPS and revenues that beat the Street's estimates. Elan announced that it sold its interest in multiple sclerosis drug Tysabri natalizumab to partner Biogen Idec Inc. (NASDAQ:BIIB). Under the new deal, Biogen will pay $3.3 billion in cash up front to acquire full rights and IP for the drug, while Elan will be eligible for 12% royalties on worldwide sales for the first 12 months, after which it is eligible for 18% royalties on sales up to $2 billion and 25% royalties on sales over $2 billion (see "Rethinking Elan, Again," A13).

Sanofi (Euronext:SAN; NYSE:SNY) shed $7.3 billion in market value after saying it expects 2013 business EPS to be flat to 5% lower vs. 2012. The implied EPS for the year was lower than analysts expectations. RTI Biologics Inc. (NASDAQ:RTI), which sells sterile biological implants, fell 19% after announcing 2013 revenue and earnings guidance lower than the Street's expectations. (A) Fiscal 2Q earnings; (B) Fiscal 3Q earnings; Mcap in $M