TAKING THE PULSE: The biotech sector is in turmoil, as the credit crisis makes it harder to raise cash needed for drug-development. As such, some smaller companies are being eyed as possible acquisition targets by major drug maker seeking new drugs with near-term revenue potential. Dutch vaccine maker Crucell (CRXL) is in acquisition talks with Wyeth (WYE), on the heels of Johnson & Johnson's purchase of Omrix Biopharmaceuticals Inc. and Eli Lilly & Co.'s (LLY) acquisition of ImClone Systems Inc. (IMCL).

The latest quarter is expected to see the major biotechs report generally higher earnings and revenue - thanks to high prices and shelter from generic competition. But the stronger dollar may not give international sales the boost they received earlier in 2008.

COMPANIES TO WATCH:

Genentech Inc. (DNA) - reporting Jan. 15

Wall Street Expectations: Analysts surveyed by Thomson Reuters anticipate earnings of 96 cents a share on revenue of $3.67 billion. A year earlier, it earned 69 cents a share on revenue of $2.97 billion, excluding stock-based compensation and other items.

Key Issues: The biotechnology giant, which rejected an offer from majority owner Roche Holding AG (RHHBY) to buy the 44% stake it doesn't hold for nearly $44 billion, continues to benefit from strong sales of cancer drugs Avastin and Herceptin. Genentech's appeal as a new source of drugs for Roche's pipeline has some analysts expecting the company to eventually succeed in its bid, even despite financing concerns, the credit crunch and economic woes.

Amgen Inc. (AMGN) - reporting Jan. 26

Wall Street Expectations: Analysts project earnings of $1.07 a share on revenue of $3.81 billion, compared with prior-year profits, excluding stock-compensation and merger-related costs, of $1 a share on revenue of $3.75 billion.

Key Issues: Sales of Amgen's anti-anemia drugs, which accounted for 38% of third-quarter sales, have been hurt since 2007 studies showed the drugs were overused, increased cardiovascular risks and fueled certain kinds of cancer. Amgen is looking to its experimental denosumab bone drug, for treating post-menopausal osteoporosis, as a key future growth driver that could take some of the pressure off the anemia franchise. Its U.S. approval application was filed last month.

Celgene Corp. (CELG) - reporting Jan. 29

Wall Street Expectations: Analysts are looking for earnings of 43 cents a share on revenue of $627 million. Celgene had year-earlier earnings of 31 cents a share excluding stock-compensation costs on revenue of $415 million.

Key Issues: Celgene's sales have received a boost from continued European marketing expansion of its Revlimid cancer drug and the addition of blood-disorder treatment Vidaza from last year's acquisition of Pharmion. The company, when it announced in October that it would top full-year expectations, unveiled a deal with Pfizer Inc. (PFE) to keep all revenue from the drug.

Biogen Idec Inc. (BIIB) - reporting Feb. 2

Wall Street Expectations: The company is forecast to post earnings of 92 cents a share on revenue of $1.08 billion, compared with 89 cents and $893 million, respectively, a year earlier.

Key Issues: Biogen has benefited from growing sales of its multiple-sclerosis drugs and rheumatoid-arthritis treatment Rituxan, co-promoted with Genentech. A key peg for future growth driver, MS drug Tysabri, co-marketed with Ireland's Elan Corp. (ELN), was linked in mid-December to a new case of a serious brain infection - the seventh for the potent medicine, which was earlier withdrawn because of the same side effect.

Genzyme Corp. (GENZ) - reporting Feb. 11

Wall Street Expectations: Analysts predict earnings of $1.01 a share on revenue of $1.2 billion. The company had a prior-year profit, excluding items, of 91 cents on revenue of $1.04 billion.

Key Issues: Acquisitions have helped broaden Genzyme's portfolio, which mostly focuses on rare genetic disorders. Despite projected competition in that space, the chief executive on Wednesday backed the company's projection for 20% annual earnings growth through 2011. The rare-genetic-diseases group a majority of revenue and includes treatments for disorders ranging from enzyme deficiency to the buildup of fats in blood vessels and complex sugar glycogen in cells.

(The Thomson Reuters financial estimates and year-ago net may not be comparable due to one-time items and other adjustments.)

-By Mike Barris, Dow Jones Newswires; 201-938-5658; mike.barris@dowjones.com

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