At least five biotechs and pharmas reported earnings last week. Shire plc (LSE:SHP; NASDAQ:SHPG) reported 2Q14 EPS and revenues that beat the Street's estimates and also announced it reached an agreement to be acquired by AbbVie Inc. (NASDAQ:ABBV) for about £31.4 billion ($53.8 billion) (see Cover Story). Shire was up 3% last week and added $1.6 billion in market cap.

Johnson & Johnson (NYSE:JNJ) fell 3% and lost over $9 billion in market cap despite beating consensus EPS and revenue estimates. On its conference call, J&J said it is expecting HCV drug Olysio simeprevir "will face significant competition from new [HCV] products later this year." Sales of Olysio, which the pharma launched in the U.S., Canada and Japan in December, were $831 million. Last week, FDA accepted and granted Priority Review to an sNDA from J&J's Janssen Research & Development LLC unit to expand Olysio's label to include use in combination with Sovaldi sofosbuvir from Gilead Sciences Inc. (NASDAQ:GILD). The combination has a Nov. 6