Lehman analyst expects "blow-out" results from Genentech

Lehman US biotechnology analyst Craig Parker believes that Genentech should report "blow-out" numbers for all of its products in the second quarter (due to be released July 11), although the extent to which demand trends contribute to the results is hard to estimate at this point. "We expect a 5%-10% sequential growth - or about $80.0-160.0 million - contribution from Genentech's shift in its revenue recognition that we think will amount to an additional two selling days in quarter two (and two fewer in quarter three) and a from a shift in its distribution strategy that we think has led to inventory builds at certain customers," he said.