Genentech sees 48% rise in 1st-qtr profits on strong cancer drug sales

US biotechnology major Genentech, which is majority-owned by Swiss drugmaker Roche, presented a stompingly-good set of first quarter 2006 results, boosted by strong sales of its anticancer drugs Avastin (bevacizumab) and Herceptin (trastuzumab) but still failed to please all investors. The firm's shares slipped 1.3% in late-session trading after the figures were released. However, it should be noted that, during 2005, the company's share price saw a significant 70% hike. athough so far this year it is down 12%, as analysts have warned that the stock is getting too expensive.

Total product sales were $1.64 billion, a 39% increase over the first quarter of 2005. With the addition of royalties and contract earnings, total revenues for the reporting period were L1.99 billion, a rise of 36%. Operating revenues of $1.99 billion also saw a 36% rise.

Genentech recorded a massive non-Generally-Accepted Accounting Practices net income leap of 57% to $491.0 million from $312 million in the first quarter of 2005, while GAAP net income increased 48% to $421.0 million, including employee stock-based compensation expense. Non-GAAP earnings per share rose 59% to $0.46; GAAP EPS was up 44% to $0.39.