DNA: Genentech’s Approval Lull
Genentech 2Q profit rises 41 percent:
In a pattern now long familiar to investors in one of the world’s largest biotechnology companies, Genentech Inc. again reported a surge in profit, crediting its best-selling cancer drug for its continued hot streak.
Yet the stock is down on the news. As I noted in my earnings preview:
Genentech (DNA - Annual Report), which I own in my personal account, reports on Wednesday. They should beat the $0.71 consensus number, but the cancer treatment approvals aren’t coming as fast and furiously as they used to.
But the story is far from over. The good news: During the quarter, the company began eight Phase III clinical trials. Those studies include Lucentis as a possible treatment for eye problems caused by diabetes and Avastin for a specific form of lung cancer and as a second-line treatment for colon cancer.
Hopefully some of those will set the approval train rolling again.
Disclosure: Author is long Genentech at time of publication.
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