Genentech (NYSE:DNA) posted $0.73 EPS vs $0.72 estimates, but revenues were $2.95 Billion versus a $2.93 Billion estimate. It looks like 3 of the 4 major drugs came in under expectations, with Avastin being the only above-plan seller. Here was our preview ahead of earnings.
U.S. product sales were $2.155 Billion, an 18% increase year over year. As far as guidance, Genentech continues to expect 28% to 32% growth in non-GAAP earnings per share for the full year 2007, relative to 2006, for a range of $2.85 to $2.95. unfortunately, and at least for the time being, the street has paid much closer attention to those revenue figures.
Shares closed up 0.3% in normal trading, but shares traded down about 2% at $76.00 in the initial after-hours trading reaction before recovering a bit of the losses. Until the company clarifies its sales and expectations and until it gives more formal guidance in the conference call, this one should only be considered a partially-known earnings report.
OTHER ISSUES:
- Genentech announced that in the third quarter of 2007 it resubmittedthe supplemental Biologic License Application for Avastin®(bevacizumab) with chemotherapy in first-line metastatic breast cancerbased on data from the E2100 trial. The U.S. Food and DrugAdministration (FDA) notified the company that the Oncologic DrugsAdvisory Committee (ODAC) meeting would occur in December 2007 and theFDA action date is February 23, 2008.
- Genentech also announced that enrollment was completed in the Phase IIIfirst-line HER2-negative metastatic breast cancer study RIBBON-1evaluating physicians’ choice of chemotherapy with Avastin, the PhaseIII study of Rituxan® (rituximab) in second-line relapsed chroniclymphocytic leukemia, and the Phase II study of topical VEGF(telbermin) as a treatment for diabetic foot ulcers. Additionally,Genentech initiated enrollment in a Phase III combination study ofRituxan and Avastin in first-line diffuse large B-cell lymphoma, aPhase II combination study of Avastin and sunitinib malate in renalcell carcinoma, and a Phase I study of the anti-cMET molecule MetMab inpatients with solid tumor malignancies.
Jon C. Ogg
October 15, 2007
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.