With three pieces of M&A news on Thursday morning, and a mixed bag of earnings from large bio/pharma companies so far this week, investors will see what they want to see for the bio/pharma sectors.
- Sanofi (SNY) went public with a $52.50/share ($9.3 billion) bid for Medivation (MDVN).
- Sanofi approached the company in March and says the price represents a premium more than 50% to MDVN’s 2-month VWAP, prior to takeover rumors swirling.
- Abbott (ABT) is buying St. Jude Medical (STJ) for $25 billion.
- Abbvie (ABBV) will acquire privately held Stemcentrx for $5.8 billion in cash and stock.
Meanwhile:
- Abbvie beat on the bottom line but lowered its full-year earnings expectations.
- Celgene (CELG) missed slightly on the top-line, beat earnings expectations, but lowered its full-year earnings guidance.
- Bristol–Myers (BMY) beat expectations on both the top- and bottom-lines and increased 2016 earnings guidance.
- Vertex (VRTX) on Wednesday night said sales of Orkambi were lower than the street hoped in the first quarter, and offered guidance for the year that was slightly lower than consensus.
Gilead (GILD), BioMarin (BMRN) and Amgen (AMGN) all report after the close on Thursday. Numbers to know:
- Consensus revenue expectations for Gilead stand at $8.06 billion, with non-GAAP EPS of $3.15 in the first quarter. Analysts expect global Harvoni sales of $3.25 billion and global Sovaldi sales of $1.4 billion.
- Consensus revenue expectations for BioMarin are $240 million (the company guides for profitability next year), and guidance for 2016 full-year revenue is $1.05 to $1.1 billion.
- Amgen has said to expect revenue of $5.3 billion in the first quarter, and EPS of $2.60.
