QUOTE AND NEWS
FierceBiotech  Sep 15  Comment 
Following up on a successful mid-stage study for the AMD eye drug lampalizumab, Genentech has triggered a pair of Phase III studies to see if it can extend its blockbuster-making R&D rep beyond the cancer drug sphere.
FierceBiotech  Sep 10  Comment 
Xenon Pharmaceuticals has gone 8 long years since its last equity raise, relying on a slate of partnerships with some of the biggest names in the business to fund its work. And now it's set out to test the fall biotech IPO market with a $52...
FiercePharma  Sep 4  Comment 
Roche wanted to hang on to former Genentech CEO Art Levinson after buying out his company in 2009. But after a 5-year board stint, Levinson--now the chief exec at Google's Calico--is saying his goodbyes.
DailyFinance  Aug 14  Comment 
Genentech, a member of the Roche Group (SIX: RO, ROG; OTCQX: RHHBY), today announced that the U.S. Food and Drug Administration (FDA) approved Avastin® (bevacizumab) in combination with paclitaxel and cisplatin or paclitaxel...
StreetInsider.com  Aug 8  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Genentech+%28RHHBY%29+Submits+sBLA+for+Lucentis+to+U.S.+FDA/9735981.html for the full story.
SeekingAlpha  Aug 8  Comment 
This week’s patent expirations are related to UCB’s (OTCPK:UCBJF) Vimpat, a seizure medication, and Genentech’s [now owned by Roche (OTCQX:RHHBY)] Nutropin Depot. Vimpat Vimpat launched in 2009 as an...
FierceBiotech  Jul 30  Comment 
Demonstrating yet again that AstraZeneca sees a big future for itself in the hot immuno-oncology field, the pharma giant today unveiled another collaboration on a combo for MEDI-4736, its anti-PD-L1 therapy looking to suit up for some blockbuster...
Benzinga  Jul 30  Comment 
Incyte Corporation (Nasdaq: INCY) announced today that it has entered into a clinical trial agreement with Genentech to evaluate the safety, tolerability and preliminary efficacy of Incyte's oral indoleamine dioxygenase-1 (IDO1) inhibitor,...
StreetInsider.com  Jul 30  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Incyte+%28INCY%29%2C+Genentech+Enter+INCB24360+%2B+PD-L1+Study+Collaboration/9702167.html for the full story.
newratings.com  Jul 22  Comment 
SOUTH SAN FRANCISCO (dpa-AFX) - Genentech, a member of the Roche Group (RHHBY), Tuesday said the U.S. Food and Drug Administration has accepted the company's supplemental Biologics License Application and granted Priority Review for Avastin...




 
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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