Abbvie Earnings Drive Biotech Stocks Higher With Large Caps Dominant

Biotech stocks soared again today to new highs driven by Abbvie Inc.(ABBV) earnings and overall sector strength. Momentum was strong in the general market with NASDAQ up 1.28% and the S&P up 1.18%. The M&A theme should be the driver in 2017.

Mid-caps were also strong with notable momentum in Intercept Pharmaceuticals (ICPT) up 5.15%, Neurocrine Biosciences (NBIX) and Portola Pharmaceuticals (PTLA) up 4%. One large cap, Regeneron (REGN), a 4.46% hit. Esperion Therapeutics (ESPR) was up 2.48% despite being hit hard on Wednesday.

Technology up 1.7% and healthcare up 1.36%- sectors led the market. The IBB is up 10.56% YTD and the XBI is up 13.34% YTD. The generalist investors have appeared to move into biotech stocks.

Abbvie,Inc. was up 13.77% to $123.21 on EPS growth of 14.6%, an adjusted EPS of $5.60 share with a 10.1% growth in 2017 full year.  Revenues of $28.216B. Full year Global HUMIRA Sales were $18.427B up 14.4% on an operational basis.

Biogen (BIIB) released results yesterday showing full year 2017 revenues of $12.3B a 7% increase over last year. Full year GAAP net  income was $2.5 B with an EPS of $11.92. The restructured Biogen is now focused mainly on neurodegenerative disorders after the successful spin-out of Bioverativ (BIVV).

Disclosure:  long ABBV, FBIOX, GILD

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