At least seven biotechs and pharmas reported earnings last week. Cubist Pharmaceuticals Inc. (NASDAQ:CBST) added 5% in market cap, or $165 million, after 2Q13 revenues beat the Street's estimate. Despite a strong top line, the acute care drug developer posted EPS that missed the consensus estimate as it recorded a 71% increase in R&D expenditures. Cubist attributed the rise in part to a $15 million payment to Hydra Biosciences Inc. following an amendment to a 2009 deal for transient receptor potential A1 (TrpA1) ion channel modulators.Novartis AG (NYSE:NVS; SIX:NOVN) was off 1%, losing $2.6 billion in market value, despite reporting 2Q13 EPS and revenues that beat the Street's estimate. The pharma disclosed that dovitinib lactate (TKI258) failed in a Phase III trial to treat metastatic renal cell carcinoma (RCC) (see B17). Johnson & Johnson (NYSE:JNJ) tacked on $6.3 billion after beating the consensus EPS and revenue estimates. Mcap in $M

Company

2Q13

EPS

est

2Q13

EPS

actual

Outcome

Growth

from

2Q12

7/19

cls

Wk

chg

%

chg

Mcap

chg

7/19

Mcap

Abbott Laboratories (NYSE:ABT)

$0.44

$0.46

Beat by $0.02

7%

$35.87

$0.55

2%

$858.0

$55,957.2

2Q13 worldwide sales were up 4% to $5.4B. The Street was expecting $5.5B. Abbott said austerity measures negatively affected sales. 2Q13 sales from established pharmaceuticals came in at $1.2B, up 0.2% from 2Q12. Medical device sales in the quarter were up 0.2% to $1.4B, while diagnostics sales were up 8% to $1.1B. Sales in emerging markets were $2.3B. Percentage changes are for continuing operations and exclude the impact from currency exchange rates. The pharma spun out its research-based pharmaceutical business AbbVie Inc. (NYSE:ABBV) at the start of this year. Abbott confirmed its 2013 EPS guidance of $1.98-$2.04.