Fly Intel: What to watch in large cap biotech earnings reports

The earnings season for large-cap biotech companies is in full swing with Biogen (BIIB) having already reported quarterly results earlier this week, Amgen (AMGN) slated to report early next week, and Celgene (CELG) and Gilead Sciences (GILD) both due out on May 2. 1. BIOTECH STOCKS NEAR 2019 LOWS: The iShares Nasdaq Biotechnology Index, an ETF that tracks the stocks of biotech group, is trading relatively unchanged since early January of 2019. Looking further back, the sector performed well for most of 2018 but did not recover from a sell-off that started in October of 2018. 2. POLITICAL SCRUTINY: As possible candidates for the 2020 presidential elections vie for publicity, drug and healthcare prices will be a huge issue in the mind of American voters. U.S. Senator from Massachusetts Elizabeth Warren introduced legislation in 2018 that would curtail profits for health insurance companies and offer additional financial assistance to those buying insurance on the Obamacare marketplace. She also introduced a bill that would establish a government-run pharmaceutical manufacturer to normalize drug prices. 3. MEDICARE FOR ALL?: Backers for Medicare for All, including Vermont Senator Bernie Sanders, are advocating for Medicare to cover all citizens and lawful permanent residents. Michigan Senator Debbie Stabenow is pushing to lower the age requirement. 4. HEDGE FUNDS BUYING: According to Bloomberg, during the recent sell-off in biotech and healthcare stocks last week, hedge funds bought shares in companies from drugmakers to providers of health-care equipment and services. According to Bloomberg, Scott Kay, founder and Chief Investment Officer of Asymmetry Capital Management, said "We think the odds of Medicare for All are zero, but the behavior of the stocks was the antithesis of that."