Genentech Raises Quarterly Profits With Increased Sales of Anti-Cancer Drugs

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Researched by Industrial Info Resources (Sugar Land, Texas)--Genentech Incorporated (NYSE:DNA) (South San Francisco, California), one of the world's leading biotechnology companies, released its third quarter profits for 2008 on Tuesday, October 14. Genentech's net income was $731 million, an increase of 7% from last year's third quarter, which brought a net income of $685 million. Sales of the company's flagship oncology drug Avastin, used to inhibit the growth of tumors in colon, lung and breast cancers, were up 18% from 3Q07, bringing in total U.S. sales of $704 million for the quarter. Sales of the company's Rituxan and Herceptin, also anti-cancer drugs, were both up 15% from last year, bringing in sales of $655 million and $368 million respectively.

Swiss-based pharmaceutical giant Roche Holdings Limited (OTC:RHHBY) (Basel) currently holds about 56% of Genentech's shares and has had a majority stake in the company for almost 20 years. In July, Roche made a proposal to purchase the remaining shares in Genentech for $89 per share, which would have resulted in a payout of approximately $43.7 billion. In a conference call regarding the quarterly earnings, Genentech's CEO, Dr. Arthur Levinson, repeated the conclusion announced in August that Roche's unsolicited proposal "significantly undervalues Genentech," adding that no further discussion of the subject would be made regarding the merger.

Industrial Info's Pharmaceutical and Biotech Database is currently tracking more than $1 billion of Genentech's active projects in the U.S. and Singapore. The company is currently constructing a fill and finish plant in Hillsboro, Oregon, about 20 miles from Portland. Hoffman Construction Company (Portland) was selected as the design-build team for the facility. Construction is scheduled to be complete by the end of 2009, with the plant going into operation in 2010. The total investment value of the project is about $250 million. Genentech also has major projects occurring in California, as well as a $140 million biologics plant addition under way in Singapore.

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