Genentech net income rises 30% for 2000

23 January 2001

Genentech has posted a 22% increase in revenues for 2000 to $1.74billion, driven by its oncology drugs Rituxan (rituximab) and Herceptin (trastuzumab), while net income for the year, excluding the impact of the 1999 redemption of Genentech's stock and other charges, rose 30% to $319.8 million. Including the charges, the company's net loss was $68.2 million, compared to a net loss of $1.14 billion in 1999.

Rituxan sales increased 58.9% to $444.1 million, while those of Herceptin rose 46.4% to $275.9 million. However, turnover from the cardiovascular drugs Activase (alteplase) and TNKase (tenecteplase), were down to $206.2 million compared with $236 million in 1999, which the firm said was due to increased competition and an overall decline in the size of the thrombolytic market. Sales of Genentech's hormone products increased slightly to $226.6 million from $221.2 million, while its Pulmozyme Inhalation Solution (dornase alfa) climbed 9.3% to $121.8 million.

Genentech's results were in line with analysts' estimates, but its share price took a tumble after chief financial officer Louis Lavigne said that earnings per share growth this year would slow to 20%-25% compared with 28% (to $0.47, excluding charges) in 2000. Genentech is planning to increase its R&D spending in 2001 and is preparing to launch Xolair (omalizumab) for the treatment of allergic asthma and seasonal allergic rhinitis in the near future. In 2000, the company's R&D costs rose 33.4% to $489.9 million.

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