Biotech Boost

Genentech(DNA)has raised its earnings forecast for 2007.The biotech colossus has boosted its projection from 2.80-2.90 a share to 2.85-2.95 a share.In the second quarter of 2007,profits increased 41%.Sales were led by Rituxin,a treatment for non-Hodgkin's lymphoma,which brought in 582 million dollars-a gain of 11%.Its lung and colorectal cancer drug Avastin realized a 33% increase,to 564 million.Sales of Herceptin,a breast cancer treatment,rose 11%,while its macular degeneration drug Lucentis went from 10 million in 2006 to 209 million this year.With the graying of the population,there will be a considerable need for Genentech's medications in the years ahead.In addition to its cancer and blindness treatments,DNA has recently partnered with Tercica(TRCA)to develop two drugs for metabolic disorders.Chris Raymond,senior biotech analyst with Robert W. Baird and Co.,noted that the stock has been playing defense lately,because a European study shows Avastin may be better in a lower dosage;yet this may benefit Genentech in the long run,as it could quiet price critics.

Genentech Expands

Genentech(DNA),the largest biotech company in terms of market capitalization,has a vast pipeline.It is currently developing thirty new drugs and has an inventory of thirteen new molecules.These prospects follow the blockbusters Herceptin(breast cancer),Avastin(late stage colon cancer) and Lucentis(macular degeneration).The latter drug can literally restore sight to the blind.To accomodate its research,DNA is erecting eleven new buildings on its San Francisco Bay Area campus.The volume of its quality work looks to ensure continuing benefit to the chronically ill,as well as its shareholders.