Genentech's Revenues Top $3 Billion

Genentech's Revenues Top $3 Billion
By Shelly Meron/Business Writer

Genentech Inc. reported a 41 percent increase in profits during the second quarter of this year, and saw its revenues reach $3 billion for the first time, the company said Wednesday.

The biotech giant, which operates a drug manufacturing facility in Vacaville, announced it earned $747 million - or 70 cents per share - during the second quarter of 2007, up from $531 million - or 49 cents per share in the second quarter of last year.

"We're pleased with the progress we have made across the business," said Arthur Levinson, Genentech's CEO.

The increase in revenue was attributed in part to Genentech's drug Avastin, used to treat several types of cancer, which saw a 33 percent increase in U.S. sales.

Genentech's drug Rituxan, used to treat non-Hodgkin's lymphoma and rheumatoid arthritis, saw an 11 percent increase in sales, while the breast cancer drug Herceptin saw a 3 percent increase.

The asthma drug Xolair saw a 14 percent increase. Last week, the FDA finalized a "black box" label for Xolair, warning about a potential allergic reaction.

Genentech, based in South San Francisco, said the expansion of its Vacaville facility has "achieved mechanical completion" and will begin phases of commissioning and qualification this month. It's expected to be licensed by the FDA in 2009.

Genentech also announced that it initiated 10 clinical trials in the second quarter of 2007, including studies of Lucentis, used to treat a type of macular degeneration, and Avastin. Genentech also submitted two supplemental Biologics License Applications to the FDA for Herceptin.

In April, Genentech also announced that its manufacturing facility in Oceanside was licensed by the FDA for the production of bulk Avastin drug product.

Genentech's stock rose $1.08 to close at $75.93 in regular trading Wednesday, but fell by 11 cents in after-hours trading. For the full year, the company said it expects earnings per share, excluding costs and charges, to range from $2.85 to $2.95. Analysts expect earnings of $2.91 per share.

Shelly Meron can be reached at business@thereporter.com.