Genentech Second-Quarter Earnings Soar 79 Percent to $531M, Topping Wall Street Expectations
SAN FRANCISCO -- Genentech Inc., the nation's largest biotechnology company in terms of market capitalization, blew past Wall Street expectations on Tuesday with a 79 percent jump in second quarter earnings, driven largely by the continued popularity of its cancer fighting drugs.
For the quarter ended June 30, the company, which is based in South San Francisco, Calif., earned $531 million, or 49 cents per share, up from the previous year's $296.2 million, or 27 cents per share.
Excluding special expenses, Genentech said it would have earned $602 million, or 56 cents a share. On that basis, the results exceeded the per-share estimate among Wall Street analysts by 9 cents, according to research firm Thomson Financial.
Revenue increased 44 percent to $2.2 billion from $1.5 billion in the second quarter of 2005.
"Genentech has reached its half-year mark with another set of excellent results," Genentech CEO Arthur Levinson said in a statement.
Ahead of the income report, Genentech shares rose 33 cents to close at $84.06 Tuesday on the New York Stock Exchange. The stock lost 2.9 percent, or $2.46, in aftermarket trading.
The biotechnology's profit soared behind sales of Avastin, its colon cancer treatment that is also effective in treating the eye disorder macular degeneration. Avastin sales in the United States increased 72 percent to $423 million, from $246 million in the second quarter of 2005.
The Food and Drug Administration approved the drug in 2004 for use by the sickest colon cancer patients. But a number of recent scientific studies show it's likely to combat several other forms of cancer, including cancers of the lung and breast.
Avastin is designed to choke the blood supply that feeds tumors and is the first drug of its kind to be approved by the FDA. When used with chemotherapy, it extends the life of the sickest patients by an average of about five months.
Analysts expect the drug, which costs each patient about $4,400 per month, to surpass $2 billion in annual sales by 2007.
The company's stable of other drugs also reported strong sales for the second quarter.
U.S. sales of its flagship product, the non-Hodgkin's lymphoma drug Rituxan, increased 17 percent to $526 million, from $450 million in the second quarter of 2005.
Sales of it breast cancer drug, Herceptin, jumped 111 percent to $320 million, from $152 million in the second quarter of 2005.
The company also in the second quarter received Food and Drug Administration approval for Lucentis, which also treats macular degeneration. The drug rang up $10 million in sales for the quarter.
Genentech reported U.S. product sales increased 41 percent to $1.7 billion from $1.2 billion in the second quarter of 2005.
SAN FRANCISCO -- Genentech Inc., the nation's largest biotechnology company in terms of market capitalization, blew past Wall Street expectations on Tuesday with a 79 percent jump in second quarter earnings, driven largely by the continued popularity of its cancer fighting drugs.
For the quarter ended June 30, the company, which is based in South San Francisco, Calif., earned $531 million, or 49 cents per share, up from the previous year's $296.2 million, or 27 cents per share.
Excluding special expenses, Genentech said it would have earned $602 million, or 56 cents a share. On that basis, the results exceeded the per-share estimate among Wall Street analysts by 9 cents, according to research firm Thomson Financial.
Revenue increased 44 percent to $2.2 billion from $1.5 billion in the second quarter of 2005.
"Genentech has reached its half-year mark with another set of excellent results," Genentech CEO Arthur Levinson said in a statement.
Ahead of the income report, Genentech shares rose 33 cents to close at $84.06 Tuesday on the New York Stock Exchange. The stock lost 2.9 percent, or $2.46, in aftermarket trading.
The biotechnology's profit soared behind sales of Avastin, its colon cancer treatment that is also effective in treating the eye disorder macular degeneration. Avastin sales in the United States increased 72 percent to $423 million, from $246 million in the second quarter of 2005.
The Food and Drug Administration approved the drug in 2004 for use by the sickest colon cancer patients. But a number of recent scientific studies show it's likely to combat several other forms of cancer, including cancers of the lung and breast.
Avastin is designed to choke the blood supply that feeds tumors and is the first drug of its kind to be approved by the FDA. When used with chemotherapy, it extends the life of the sickest patients by an average of about five months.
Analysts expect the drug, which costs each patient about $4,400 per month, to surpass $2 billion in annual sales by 2007.
The company's stable of other drugs also reported strong sales for the second quarter.
U.S. sales of its flagship product, the non-Hodgkin's lymphoma drug Rituxan, increased 17 percent to $526 million, from $450 million in the second quarter of 2005.
Sales of it breast cancer drug, Herceptin, jumped 111 percent to $320 million, from $152 million in the second quarter of 2005.
The company also in the second quarter received Food and Drug Administration approval for Lucentis, which also treats macular degeneration. The drug rang up $10 million in sales for the quarter.
Genentech reported U.S. product sales increased 41 percent to $1.7 billion from $1.2 billion in the second quarter of 2005.
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