QUOTE AND NEWS
GenEng News  Oct 20  Comment 
NewLink Genetics said today it has agreed to license its IDO pathway inhibitor NLG919 to Genentech and launch a research collaboration with the Roche subsidiary to discover next generation combination IDO-TDO therapy compounds, in a deal that...
FierceBiotech  Oct 20  Comment 
Biotech powerhouse Genentech is going all in with Ames, IA-based NewLink Genetics, partnering on an early-stage cancer program which has been billed as an important example of a new class of checkpoint inhibitor. And Genentech says that it plans...
Benzinga  Oct 20  Comment 
NewLink Genetics Corporation (Nasdaq: NLNK), a biopharmaceutical company focused on discovering, developing, and commercializing novel immunotherapeutics to improve treatment options for patients with cancer, announced today that they have entered...
StreetInsider.com  Oct 17  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Regeneron+%28REGN%29+Reports+Significant+Data+for+EYLEA+vs.+Genentech%27s+Avastin%2C+Lucentis+in+BCVA/9919067.html for the full story.
newratings.com  Oct 16  Comment 
SOUTH SAN FRANCISCO (dpa-AFX) - Genentech, a part of the Roche Group (RHHBY.PK), said Wednesday the U.S. Food and Drug Administration approved Esbriet (pirfenidone) as a treatment for idiopathic pulmonary fibrosis (IPF) in the U.S. The company...
StreetInsider.com  Oct 15  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Genentech+%28RHHBY%29+Receivs+FDA+Approval+of+Esbriet+as+IPF+Treatment/9914198.html for the full story.
StreetInsider.com  Oct 8  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Genentech+%28RHHBY%29+Granted+Priority+Review+by+FDA+for+Lucentis/9896536.html for the full story.
FiercePharma  Oct 3  Comment 
One hospital chain has struck back at Roche's Genentech unit for switching its top 3 cancer treatments to specialty distributors. Ascension Health, a Roman Catholic-based group of more than 130 hospitals, is barring Genentech sales reps at the door.
FiercePharma  Oct 2  Comment 
Roche's Genentech unit is getting some high-profile blowback from a change to its distribution model on three top cancer meds. Hospital and pharmacy executives claim the new regime--which restricts Avastin, Rituxan and Herceptin to a half-dozen...
DailyFinance  Sep 29  Comment 
Genentech, a member of the Roche Group (SIX: RO, ROG; OTCQX: RHHBY), today announced positive data from the coBRIM Phase III study. The results showed that people with previously untreated BRAF V600 mutation-positive advanced...




 
TOP CONTRIBUTORS


Genentech (NYSE: DNA) is a biotech company focused on cancer treatments. Auto-immune drug Rituxan and cancer drugs Avastin and Herceptin are the company's best-selling drugs and account for more than half of revenue. The company has been number one in U.S. oncology sales since 2006.[1]

On July 21, 2008, Swiss pharmaceutical company Roche offered to buy Genentech completely for $43.7 billion, or $89 per share. Roche already owns a 55 percent stake in the company.[2] Genentech had rejected the first offer as too low, but on January 30, 2009, Roche submitted another bid, this time hostile. Roche offered shareholders $86.50 a share, down from the previous $89. [3]

Company Overview

Annual revenue has grown by 77 percent in two years, from $6.6 billion in 2005 to $11.7 billion in 2007. [4] FDA approval of new uses of the major drugs Avastin, Rituxan, and Herceptin has boosted sales -- in 2007, sales of Avastin increased by 31%, Rituxan by 10%, and Herceptin by 4%, compared to the previous year.[5] Net income and profit margins have steadily grown as the company's core products transitioned from development to the market.

82% of total revenue comes from product sales and the rest from licensing agreements.


Product name 2007 Product sales ($M)[5] Medical application
Avastin 2,296 Colorectal and lung cancer
Rituxan 2,285 Lymphomas
Herceptin 1,287 Breast cancer
Lucentis 815 Age-related macular degeneration
Xolair 472 Second-line asthma treatment for patients who do not respond well to inhaled corticosteroids
Total sales 9,442

Trends and Forces

Drug Development Costs and Risks

Developing a new biotherapeutic product is a time-consuming, costly, and inherently risky endeavor. Hundreds of thousands of candidate compounds must be screened to identify a handful of potential drugs. Even fewer of these candidate drugs are found to be effective at treating a disease. The drug must then pass strict safety standards in several series of clinical trials. According to the Pharmaceutical Research and Manufacturers of America's 2006 Pharmaceutical Industry Profile, developing a new drug and bringing it to the market takes up to 10 to 15 years and on average costs $800 million.

As of the end of 2007, Genentech's product pipeline included 20 new molecules in development.[6]

Off-Label and Newly-Approved Drug Prescriptions

Even after a drug has been approved and on the market for some time, physicans and pharmaceutical companies continue to observe and understand its properties. Physicians often discover new uses for the drug, and even though the drug may not be approved by the FDA to treat a certain disease, doctors may write off-label prescriptions. Pharmaceutical companies may follow up with clinical studies and seek formal FDA approval. Genentech has benefited greatly from this effect. For example, Avastin, originally a colorectal cancer drug, is also used by lung, breast, and ocular cancer patients. A recent study suggests that Avastin may also be effective in treating a common and aggressive form of brain cancer.

Incidence of Cancer

As vaccines and cures have eliminated many fatal diseases of the past, cancer has emerged as the second-largest cause of death in developed countries and the third-largest cause of death worldwide. As two of Genentech's most successful products are the cancer drugs Avastin and Herceptin, the company will benefit from this growing trend.

Competition

Competitors to Genentech's major drugs include:

  • Xolair -- numerous inhaled corticosteroids on the market


References

  1. DNA Annual Report pg. 5  
  2. Roche Offers to Buy 45% Stake in Genentech.
  3. http://www.nytimes.com/2009/01/31/business/31gene.html?hp
  4. DNA Annual Report pg. 20  
  5. 5.0 5.1 DNA Annual Report pg. 23  
  6. DNA Annual Report pg. 2  
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki