Genentech Q2 earnings up 41 pct UPDATE

Genentech Q2 earnings up 41 pct UPDATE

	Published : Thu, 12 Jul 2007 06:38 By : Agencies Print this Story

(Updating with further detail)

NEW YORK Thomson Financial - Genentech Inc., one of the world's largest biotechnology companies, continued a positive earnings streak, posting a 41 percent boost in second-quarter profit Wednesday on sales of its blockbuster cancer drugs.

The company earned $747 million, or 70 cents per share, compared with profit of $531 million, or 49 cents per share, during the year-ago period.

Revenue rose to $3 billion from $2.2 billion.

The results topped Wall Street expectations. Excluding 6 cents per share for stock-based compensation costs and 2 cents per share related to the redemption of Genentech stock by Roche Holdings Inc. and litigation costs, Genentech earned 78 cents per share.

Analysts polled by Thomson Financial expected profit of 72 cents per share, excluding stock-option costs and charges, on revenue of just under $2.86 billion.

The rheumatoid arthritis and non-Hodgkin's lymphoma drug Rituxan brought in $582 million in sales during the quarter, an 11 percent increase.

Avastin, which treats lung, breast and colon cancer, had sales of $564 million, marking a 33 percent increase. Breast cancer drug Herceptin showed a 3 percent increase in sales to $329 million.

Sales of its Lucentis drug totaled $209 million. The drug, which treats age-related macular degeneration, was approved last June.

Costs and expenses rose 30 percent to $1.88 billion from $1.44 billion. During the quarter, the company began eight phase III clinical trials. Those studies include Lucentis as a possible diabetic macular edema and retinal vein collusion treatment and Avastin for a specific form of lung cancer and as a second-line treatment for colon cancer.

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.

Shares of Genentech fell 11 cents to $75.82 in after-hours trading. They rose $1.08 cents to close the regular session at $75.93.

tf.TFN-Europe_newsdesk@thomson.com

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