QUOTE AND NEWS
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.
GenEng News  Jan 12  Comment 
Forty Seven Inc., a developer of immuno-oncology treatments spun out of Stanford University, has launched a pair of collaborations with pharma giants Merck KGaA and Genentech, a member of the Roche Group, to develop its lead candidate as part of...
FierceBiotech  Jan 12  Comment 
Forty Seven has added Roche to its partner list for CD47-targeted immuno-oncology candidate, with Roche’s Genentech unit agreeing to sponsor two trials of the antibody in combination with its PD-L1 inhibitor Tecentriq.
FierceBiotech  Jan 10  Comment 
Genentech and Syndax have expanded their exploration of the effects of combining HDAC and PD-L1 inhibitors. The new agreement clears the Roche subsidiary to test its Tecentriq in combination with Syndax’s entinostat in a subset of breast cancer...
FierceBiotech  Dec 19  Comment 
Genentech has entered into a multitarget drug discovery deal with DiCE Molecules. The Roche unit is handing over an upfront fee and committing to milestones to apply DiCE’s small molecule platform to targets of interest.
Reuters  Dec 19  Comment 
Roche is touting prospective new drugs from its long-underperforming Swiss-led research unit after years of leaning on its California-based Genentech arm to restock its medicine cabinet.




 
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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