Most of these companies are getting ready to launch very exciting products,'' said Matt Geller, an analyst at CIBC World Markets. As of Friday, the American Stock Exchange Biotech Index , comprised of 16 large and small firms, had fallen 29 percent to 448 from 634 as of the end of last year. But, like some high-flying tech stocks, earnings are often not the story in biotechnology, where scientific breakthroughs take years to translate into revenue.
Drug pipelines can be a double-edged sword.
Shares of Immunex Inc. were pummeled last month after its popular arthritis drug Enbrel failed to prove effective as a treatment for chronic heart failure. The company also reported disappointing trial results for Nuvance, its experimental asthma drug. Immunex, which has also said it will not be able to make enough Enbrel to meet demand for the drug this year, is expected to see flat first-quarter earnings. It's about getting Aranesp on the market,'' said Craig West, an analyst at A.G. Edwards. Aranesp was given preliminary approval in Europe last month.