Stockwatch: Biotech results indicate sector trajectory
This article was originally published in Scrip
Executive Summary
As the full year, and last quarter 2010 earnings season starts to draw to a close, we can discern current common themes – sales and earnings misses were as a result of US healthcare reform, European cost containment measures and company restructurings, and there will be more of the same in 2011. The positive earnings surprise, that investors had hoped for has largely been absent but in its place, this week, we saw a much more fundamental sign of where profitable biotechnology companies may be headed.