Genentech continued its streak of double-digit growth in its top and bottom lines in the quarter, with a year-over-year 22% gain in revenue and 22% gain in net income after excluding one-time charges. Importantly, Genentech is managing to keep its non-R&D expenditures in check as its bottom line grew at the same speed as its top line, even though research and development spending was up 38% in the quarter.
Its top drug, cancer treatment Avastin, is still experiencing torrid expansion, as sales of the drug were up 37% year over year, making up for the mediocre 6% growth in Herceptin as it comes under competitive attack from GlaxoSmithKline's
Dozens of clinical trials have expanded Avastin's uses to include every major type of solid tumor there is. The drug has a PDUFA date of Feb. 23 for its label expansion into first-line metastatic breast cancer. Barring the introduction of small-molecule competitors from Pfizer
Except for the fact that it doesn't pay a dividend, Genentech is becoming the new Johnson & Johnson