Genentech, Inc. (DNA)

Sanjiv523 (< 20) Submitted: 8/18/06 2:49 AM : Start Price: $82.30 DNA Score: -20.72

This company is waaaaayyy overvalued. They have a decent pipeline. However, it is certainly not that great for a drug company, which is basically their peer group at this point. It's OK to give a biotech a high P/E when they have small profits because they have relatively few products but have a great pipeline promising exceptional future growth. These folks have a good pipeline, but they already have big profits. I find it hard to believe they will grow at a faster rate than much of the drug industry- certainly you are paying a large premium and taking on much more risk.

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