QUOTE AND NEWS
FierceBiotech  Jul 16  Comment 
An Alzheimer's treatment from AC Immune and Genentech posted mixed results in a midstage study, missing its coprimary endpoints but performing well in patients with milder symptoms. That leaves Roche, Genentech's parent company, with a big...
DailyFinance  Jul 15  Comment 
Genentech, a member of the Roche Group (SIX: RO, ROG; OTCQX: RHHBY), today announced that the U.S. Food and Drug Administration (FDA) has accepted the company's supplemental Biologics License Application (sBLA) and granted...
newratings.com  Jul 14  Comment 
SOUTH SAN FRANCISCO (dpa-AFX) - Genentech, a member of Swiss pharmaceutical giant Roche Holding AG (RHHBY.PK, ROG.SW, RO.SW), Monday announced that the Phase III coBRIM study met its primary endpoint of progression-free survival. Genentech plans...
DailyFinance  Jul 14  Comment 
Genentech, a member of the Roche Group (SIX: RO, ROG; OTCQX: RHHBY), today announced that the Phase III coBRIM study met its primary endpoint. The study demonstrated that the investigational MEK inhibitor cobimetinib, used in...
Forbes  Jul 7  Comment 
UCSF’s Mission Bay campus is synonymous with genetic engineering, with buildings named in honor of bio-behemoth Genetech and its investors. Here, researchers and graduate students push evolution toward purpose-built organisms and probe the...
Motley Fool  Jul 2  Comment 
VenBio Scores AGain as Genentech Pays $1.7B+ for Seragon Pharma. Check out the story below.
FierceBiotech  Jul 2  Comment 
Just a year after J&J swooped in to buy up Aragon's game-changing work on prostate cancer in a billion-dollar deal, Roche's Genentech has followed up to buy what remained: a closely-related breast cancer program that promises to change the way...
DailyFinance  May 14  Comment 
Genentech, a member of the Roche Group (SIX: RO, ROG; OTCQX: RHHBY), today announced that new data on nine approved and 18 investigational medicines will be presented during the 50th American Society of Clinical Oncology...
MedPage Today  Mar 21  Comment 
(MedPage Today) -- The FDA has approved omalizumab (Xolair) for treatment of chronic idiopathic urticaria, drugmaker Genentech announced.
FiercePharma  Mar 4  Comment 
Roche's debt from its 2009 buyout of Genentech is winding down--and less money to pay means more money to play with, outgoing chairman Franz Humer says.




 
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  
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