Cancer, RA drugs boost Genentech

Helped by the strong performance of its anti-cancer and rheumatoid arthritis/non-Hodgkin's lymphoma drugs - Avastin(bevacizumab) and Rituxan (rituximab), US biotechnology giant Genentech posted another set of stompingly good results for the second quarter ended June 30, 2007, and has upped its forecast for the full year.

Genentech, which is majority-owned by Swiss pharmaceutical major Roche, posted total operating revenues of $3.0 billion, up 36.6% on the like, year-earlier period. with product sales rising 35.0% to $2.44 billion. Non-generally-accepted accounting principle net income increased 39.0% to $834.0 million for the quarter, or $0.78 per share. This was slightly up on consensus forecasts of $0.72. On account of the positive performance, the company has raised its earnings per share forecast for the full year to $2.85-$2.95, f rom $2.78-$2.89. However, having risen prior to the release of the results after the close of trading on July 11, the firm's stock dipped $0.30 to $75.63 in after-hours activity .

Fuelling the sales growth was the group's best-selling drug, Rituxan, which increased 11% to $582.0 million, and Avastin, which saw revenues leap 33% to $564.0 million. The latter, previously indicated only for colon cancer, was boosted by its increased use in the treatment of lung cancer, said Genentech vice president for commercial operations Ian Clark, quoted by the Wall Street Journal. The lung cancer indication was approved last year and some doctors are reportedly also using Avastin to treat breast cancer patients and eye diseases.