At least 20 biotechs and pharmas reported earnings last week. Five Japanese pharmas - Astellas Pharma Inc. (Tokyo:4503), Eisai Co. Ltd. (Tokyo:4523), Mitsubishi Tanabe Pharma Corp. (Tokyo:4508), Ono Pharmaceutical Co. Ltd. (Tokyo:4528) and Takeda Pharmaceutical Co. Ltd. (Tokyo:4502) - lost a combined $3.2 billion in market value after reporting declines in net income. The Nikkei 225 fell 3% on the week, and was off 9% in January (see A15). Microarray company Affymetrix Inc. (NASDAQ:AFFX) lost nearly a quarter of its valuation after missing the Street's EPS estimate. Genomic Health Inc. (NASDAQ:GHDX) also had a double-digit fall after missing the Street's revenue estimate but beating on EPS. The cancer diagnostic company expects 2014 sales and marketing expenses to grow $25 million over 2013 as it expands its prostate cancer and international sales efforts. Gilead Sciences Inc. (NASDAQ:GILD) gained 4% last Tuesday ahead of its post-market earnings announcement. The big biotech reported EPS and revenues that beat consensus estimates and the first official sales figures for Sovaldi sofosbuvir. The HCV drug, which was launched in December, had $139.4M in 4Q13 sales. Gilead ended the week off 2%. Myriad Genetics Inc. (NASDAQ:MYGN) was up 17% on the week. Last Tuesday, the company put out fiscal 2Q sales and earnings figures that handily beat expectations. On Friday, the company said it settled a patent infringement suit with Gene by Gene Ltd. under which Gene by Gene agreed to cease marketing in North America tests that analyze breast cancer 1 early onset (BRCA1) and BRCA2 genes alone or in conjunction with gene panels (see B10). (A) Fiscal 3Q; (B) Fiscal 1Q; (C) Fiscal 2Q; Mcap in $M

Company

4Q13 EPS est

4Q13 EPS actual

Outcome

Growth from 4Q12

2/7 cls

Wk chg

% chg

Mcap chg

2/7 Mcap

Affymetrix Inc. (NASDAQ:AFFX)

$0.07

$0.02

Missed by $0.05

NA

$7.21

-$2.18

-23%

-$157.1

$519.7

The 4Q13 EPS gain compares with a $0.02 loss in the prior year. 4Q13 revenues were $92.6M, up from $84.3M in 4Q13. In January, Affymetrix said it expected 4Q13 revenues to be about $91 million. 4Q13 core consumable revenues were up to $57.6M from $53.1M, but instrument revenues fell to $4M from $5.2M. Revenues from Affymetrix's eBioscience segment, which was acquired in June 2012, were $20.5M in 4Q13, up from $18.1M in 4Q12. eBioscience markets flow cytometry and immunodetection reagents. Mizuho analyst Peter Lawson said the EPS miss was due to a higher share count from the inclusion of convertible shares.

Allergan Inc. (NYSE:AGN)

$1.34

$1.35

Beat by $0.01

21%

$118.84

$4.24

4%

$1,258.4

$35,271.7

4Q13 revenues were $1.68B, up 16% from $1.5B in 4Q12 and ahead of the Street's $1.65B. Net sales for specialty pharmaceuticals were up 15% to $1.4B, with neuromodulator products, including Botox onabotulinumtoxin A, bringing in $525.6M. Percentage changes assume constant currency. The company provided 2014 net sales guidance of $6.65-$6.95B and diluted non-GAAP EPS guidance of $5.36-$5.48.

Astellas Pharma Inc. (Tokyo:4503) (A)

NA

NA

NA

NA

¥6,178

-¥220

-3%

-$985.2

$27,666.4