European drugmakers AstraZeneca (AZN) and Roche (RHHBY) early Thursday delivered better-than-expected earnings, but AstraZeneca shares plummeted more than 15% after a key lung cancer drug trial failed.
X Biotechs Celgene (CELG) and Alexion Pharmaceuticals (ALXN) also reported before the market open.
AstraZeneca
AstraZeneca reported adjusted income of 87 cents a share on $5.05 billion in sales, compared with 83 cents a share on $5.6 billion in sales in the year-earlier period. Analysts polled by Zacks Investment Research forecast adjusted earnings of 41 cents per share on $5.05 billion in sales.
But AstraZeneca said a combination of two immuno-oncology drugs failed to shrink lung cancer tumors in its so-called Mystic drug trial. AstraZeneca had pinned its hopes on the trial and immuno-oncology generally. The Mystic trial will continue, looking to hit a different, longer-term goal.
That caused shares to plunge 15.8% to 28.59 in early trading on the stock market today.
In related news, AstraZeneca's Tagrisso met its goal in a late-stage lung cancer trial. Tagrisso is approved to treat a certain population of lung cancer patients with a specific mutation. The trial tested Tagrisso against erlotinib or gefitinib, the current standards of care as a first treatment.
AstraZeneca also announced a team-up with Dow's Merck (MRK).
Roche
Roche reported core earnings for the first six months of 2017 that came in at $8.56 per share, up 6% at a constant currency exchange rate, and topping forecasts. Sales grew 5% regardless the exchange rate to $27.4 billion, and were largely in line.
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The drugmaker raised its full-year sales forecast to mid-single-digit growth at constant currencies, with core earnings rising a similar amount.
Roche shares ticked up slightly to 31.76 in morning trades Thursday.
Celgene
Celgene diped 1.1% to 136.25 after beating second-quarter expectations. Sales came in at $3.27 billion, up 19%, and topping the consensus for $3.23 billion. Adjusted income of $1.82 per share rose 26% and topped the $1.77 view.
Alexion
Alexion surged 4.8% to 137.33 after easily topping Wall Street expectations for the second quarter. Sales rose 21% to $912 million and topped analysts' $848 million view. Adjusted profits increased 38% to $1.56 per share, beating by 30 cents.
Bristol-Myers Squibb
Bristol-Myers Squibb (BMY) stock tanked 5.6%, to 52.90, in reaction to AstraZeneca's trial, which could have read-throughs for similar immuno-oncology programs at Bristol. But the drug giant reported adjusted income of 74 cents per share on $5.1 billion in sales, meeting expectations.
On a year-over-year basis, revenue rose 6% and adjusted profits increased 7%. Growth was driven by anticoagulant Eliquis and immuno-oncology drug Opdivo which saw sales up 51% and 42%, Bristol said in a news release. Fellow immuno-oncology med Yervoy grew 34%.
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