QUOTE AND NEWS
FierceBiotech  Jul 22  Comment 
The Genentech vets behind South San Francisco-based Denali Therapeutics have recruited one of their former colleagues to join them as CMO and head of research.
FierceBiotech  Jul 16  Comment 
AC Immune has picked up a milestone payment in its CHF 400 million ($421 million) anti-tau collaboration with Genentech. The Roche subsidiary handed over the cash after selecting a tau-targeting antibody developed in the collaboration to advance...
newratings.com  Jul 13  Comment 
SOUTH SAN FRANCISCO (dpa-AFX) - Genentech, a member of the Roche Group (RHHBY), Monday said that in the IMvigor 210 study, the investigational cancer immunotherapy atezolizumab shrank tumors in people with locally advanced or metastatic...
FierceBiotech  Jul 6  Comment 
23andMe has filed documents with the SEC stating that it has raised $79 million of a $150 million round. The fundraising comes soon after the company revealed plans to dive into the drug development world, recruiting Genentech's Richard Scheller...
FierceBiotech  Jul 1  Comment 
The FDA has opted to delay its review of cobimetinib in order to give regulators more time to consider additional Phase III data provided by Genentech.
newratings.com  Jun 30  Comment 
SOUTH SAN FRANCISCO (dpa-AFX) - Genentech, a member of the Roche Group (RHHBY.PK), announced positive results from two pivotal studies evaluating the investigational medicine ocrelizumab compared with interferon beta-1a (Rebif),...
TechCrunch  Jun 26  Comment 
 One in five Americans suffers from a diagnosable mental health or substance disorder, but 70 percent are undiagnosed. This fact prompted David Ebersman, former CFO of Facebook and Genentech, to launch Lyra Health earlier this year. Read More
FiercePharma  Jun 15  Comment 
PatientsLikeMe has been on a roll as of late, inking deals with biopharma giants such as AstraZeneca, Genentech and Biogen to provide its patient-reported data for the companies' R&D initiatives. Now the company is shifting gears, planning to work...
newratings.com  May 31  Comment 
SOUTH SAN FRANCISCO (dpa-AFX) - AbbVie (ABBV) reported that the results from a Phase 1b trial of investigational venetoclax, an inhibitor of the B-cell lymphoma-2 protein that is being developed in partnership with Genentech and Roche, in...
newratings.com  May 31  Comment 
SOUTH SAN FRANCISCO (dpa-AFX) - Genentech, a member of Swiss drug maker Roche Group (RHHBY.PK, ROG.SW, RO.SW), said that results from the Phase III GADOLIN study showed the Gazyva (obinutuzumab) plus bendamustine followed by Gazyva alone provided...




 
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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