Biotech Companies Spent 5 percent More On R&D Last Year – (QCOR, GILD, ARNA, ACHN)

The biotechnology industry’s spending on Research and development (R&D) moved up five percent last year, rebounding after a fall the prior year. BDO USA, LLP, an accounting and consulting organization, provided a new study showing that, on average, biotech companies spent $50 million on R&D in 2011, higher from just over $47 million invested in 2010.


The 2012 BDO Biotech Briefing disclosed that the rise in R&D spending matched with a 24 percent boost in average revenues for the industry. Companies included in the BDO Study displayed average revenues of $76 million in 2011, higher as compared to $62 million a year earlier. Large biotech firms, those with sales of more than $50 million, posted a 33 percent growth versus the previous year. Smaller biotech companies, however, generated average revenues of $20 million, representing a 12 percent fall from 2010.


Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR) was among the worst stocks in the market after Aetna restricted coverage of Drug. Shares of this company traded down -47.84% during trading yesterday, hitting $50.90. The stock has a 52 week low of $22.26 and a 52 week high of $58.91. The company has a market cap of $1.57 billion and a P/E ratio of 12.85. The P/S ratio is 4.57 and P/B ratio 12.31. The beta value is 0.27. QCOR’s RSI amounts to 21.00.


Gilead Sciences Inc. (NASDAQ:GILD) edged up after Deutsche Bank raised its price target on the stock to $75.00. The company has a market value of $50.85 billion. It employs 4,500 people, over the last 12 months has generated revenue of $9.01 billion and has a net income of $2.56 billion. The firm’s operating margin is 41.32 percent and net profit margin 28.22 percent. The latest closing price of its shares moved up 58.34% from the 50-day moving average.


Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) gained slightly after Vivus declared the commercial launch of its weight-loss pill. For this company, a return on equity of -116.62 percent was realized due to the financial situation. Last twelve months’ earnings per share reached a value of -$0.61. Earnings are projected to move up 25.00 percent for the coming five years. The stock closed at $9.30, up 0.04 points or 9.30% from previous close and at a distance of +6.44% from 20-day simple moving average.


Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) gained about 16% after Deutsche Bank initiated coverage on the stock with a buy rating and set price target at $12. In the last trading session, the stock’s price moved 7.52% above their 200 day moving average, changing hands as low as $9.01 per share. The stock is currently trading 39.82% up their SMA 50. The worst hit in its 52 week range is $3.81 per share, with $12.95 being the 52 week best price, which compares with a latest closing price of $9.39. The Beta of this stock is 0.67.

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