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$73.00 -5.75 (-7.30%)
10/10/2008 4:02 PM

Genentech, Inc. (DNA)

CAPS Rating:
****

The Company is a biotechnology company that discovers, develops, manufactures, and commercializes biotherapeutics for unmet medical needs.

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Avatar NetscribeBiotech (78.13) Submitted: 2/02/07 4:23 AM : Outperform Start Price: $87.24 DNA Score: 22.53

Genentech, a pronounced biotechnology company which has been making it a habit of beating street consensus, is involved in the discovery, development and marketing of various drugs for the treatment of cancer, allergic asthma, plaque psoriasis, hormone deficiency, heart attack, blood clots in the brain and lungs, and cystic fibrosis.

Another strong performance in the fourth quarter of 2006 has taken the company to new heights. The top line recorded an astounding growth of 40% in the quarter primarily driven by strong sales of blockbuster drugs like Avastin and Herceptin. Prospects of Avastin look bright as it is set to further penetrate into the oncology market following its approval by FDA for Non-small cell lung cancer. Approval of Avastin for Metastatic Breast Cancer is also very crucial for the future growth of the drug. However, Avastin’s approval for Metastatic Breast Cancer would be delayed until the end of 2007 as FDA has requested re-summarization of data from its recent pivotal E2100 trial.

Another important drug Herceptin has recently been approved for the adjuvant treatment of HER2 positive breast cancer. This label expansion will help the drug to further strengthen its market presence. Moreover, Genentech has a rich product pipeline and has a couple of important FDA submissions lined up for 2007. It is expected to submit to FDA for approval of Avastin in multiple indications like first line metastatic breast cancer and first-line metastatic renal cell carcinoma and Rituxan for Rheumatoid arthritis. The continued strong performance of the existing drugs, with no imminent treat of patent expiries and positive phase result of its several investigational drugs are expected to drive the company in 2007.

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Avatar NetscribeBiotech (78.13) Submitted: 5/23/07 8:37 AM

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Biotechnology, the combination of technological applications with biological systems was a by-product of scientific innovation to tackle complex diseases plaguing humankind. Genentech is pursuing its goal to become the number one oncology player in the U.S by 2010 as part of its project Horizon and thus has aligned its growth strategies by planning to bring out at least 15 new products into the market during the time period.

The share of oncology compounds in the product portfolio of Genentech is growing, led by Avastin. This compound exhibited a 34 percent quarter on quarter increase from 2006 solely fueled by the increased usage in metastatic non-small cell lung cancer. During the same time the company carried out a study along with Hoffmann-La-Roche, which might lead to an increase in the number of physicians using the drug.

Recognizing the market potential of drugs related to the areas of cancer and cardiovascular diseases, Genentech entered into three new collaborative agreements in 2007. All three agreements deal in the area of monoclonal antibody clinical trials, which incidentally is the most opportune segment in biotechnology sector. Genentech will also be completing the acquisition of Tanox within the third quarter of 2007.

Demand for drugs in the U.S market has been rising and so is competition. This is leading to various cost cutting measures as more and more drug firms are feeling the pinch. This has affected Genentech too as its past six months of stock price indicates. The only way out is to promote new drugs at regular intervals, as and when the patent for the old ones’ expires. Genentech with its strong product line of 50 projects is perfectly positioned to position itself as a strong player. Along with this, if all the recent collaborative agreements are taken into account, then the company scrip looks well set to regain its lost ground in the coming period.

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Avatar PuddinHead42 (98.00) Submitted: 12/28/07 12:46 PM

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A number of analysts are sanguine on DNA for 2008. Several think the FDA will even approve avastin for breast cancer, overriding the "boards" opinion that it is not beneficial enough. I will be adding shares at these enticing levels in the high $60s.

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