QUOTE AND NEWS
FiercePharma  Jul 5  Comment 
Here’s a patent gambit for you: Roche’s Genentech unit sued Eli Lilly for infringement Tuesday, claiming the two-year-old psoriasis drug Taltz steps on one of its patents. Thing is, Genentech just won that patent this week.
FierceBiotech  Jun 28  Comment 
An executive shakeup at Johnson & Johnson leaves Duato with the largest portfolio; Genentech's Sabry will take on global partnering for Roche; Neos poaches AgeneBio chief as its CEO abruptly resigns; and Portola hires a former Genentech executive...
FierceBiotech  Jun 12  Comment 
Like just about all its peers in the pharma sector, Roche has been trying to find ways to reduce the costs of R&D—but CEO Severin Schwann won’t contemplate doing so by consolidating its Swiss-led research operations with those of subsidiary...
GenEng News  Jun 6  Comment 
Genentech, a member of the Roche Group, will partner with Microbiotica to discover, develop, and commercialize microbiome-based biomarkers and therapies for inflammatory bowel disease (IBD), through a collaboration that the Wellcome Trust Sanger...
FierceBiotech  Jun 6  Comment 
Genentech has signed a multiyear contract to pan the diverse bacteria living in the digestive tract for biomarker signatures of drug response, new live bacterial therapeutics and novel targets for inflammatory bowel disease.
GenEng News  May 15  Comment 
Genentech, a member of the Roche Group, has terminated its four-year-old collaboration with NewLink Genetics to discover next-generation combination IDO-TDO (indoleamine-pyrrole 2,3-dioxygenase–tryptophan-2,3-dioxygenase) therapy compounds,...
Clusterstock  Apr 25  Comment 
Genentech, part of pharma giant Roche, has been developing a pipeline of neuroscience drugs at a time when other pharmaceutical companies have largely left the space.  Among those drugs are two treatments for Alzheimer's disease, a condition...
GenEng News  Apr 16  Comment 
Genentech, a member of the Roche Group, has agreed to exclusively license and develop Kineta's α9/α10 nicotinic acetylcholine receptor (nAChR) antagonists as targets for a non-opioid treatment for chronic pain, through a collaboration that...
FierceBiotech  Mar 22  Comment 
Antibiotic-resistant bugs are on the rise, but gram-negative bacteria are a particularly tricky foe. Genentech scientists are pursuing a new approach, using an antibody to kill E. coli bacteria by blocking the enzyme BamA.
FierceBiotech  Mar 9  Comment 
Rosana Kapeller, M.D., Ph.D., has left Nimbus Therapeutics after eight years in the CSO post. Kapeller departs having helped put virtual drug discovery on the map and land deals with Celgene, Genentech and Gilead.




 
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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