Genentech profits surge 56 percent

Article Launched: 10/11/2005 07:01:23 AM

Genentech profits surge 56 percent

By Paul Elias/AP Biotechnology Writer

SAN FRANCISCO - Genentech Inc. reported a 56 percent surge in third-quarter net income Monday, fueled by strong drug sales across its product line.

The results, released after the stock market closed, beat analysts' expectations.

For the quarter ended Sept. 30, the South San Francisco-based company with a manufacturing facility in Vacaville earned $359.4 million, or 33 cents a share, up from the previous year's third-quarter earnings of $230.9 million, or 21 cents a share.

Excluding special items and income related to litigation, Genentech said it would have posted a profit of $383.8 million, or 35 cents a share. On that basis, the results exceeded the per-share estimate among Wall Street analysts by 5 cents, according to research firm Thomson Financial.

Revenue rose 46 percent to $1.75 billion, from $1.2 billion in the same third quarter last year.

Genentech shares rose 35 cents Monday to close at $81.50 on the New York Stock Exchange, before the income report was released.