Genentech growth to slow in 2008
pharmafile | January 15, 2008 | News story | Sales and Marketing |Â Â Â
The spectacular growth which has made Genentech the world's biggest biotech company is set to slow in 2008, as its array of blockbuster brands begin to mature.
The Californian biotech company has enjoyed huge revenue and earnings growth in the past few years, but has now forecast earnings to rise between 12 and 17 per cent.
For the largest pharmaceutical companies, this would represent outstanding performance, but Genentech earnings grew 26% in 2007, and shareholders have enjoyed as much 70% growth in previous years.
In particular, the company's prospects for short-term growth took a hit in December when an FDA committee recommended Avastin be rejected for use in breast cancer.
Already approved for colorectal cancer and lung cancer, a licence to treat breast cancer would expand Avastin's sales potential hugely.
But an FDA panel voted narrowly against approving the drug in combination with paclitaxel, citing safety concerns about toxicities and little evidence of extended survival in patients.
The company's chief executive Arthur Levinson said: "This is a difficult year for us to provide earnings expectations because there is some significant near-term business uncertainties; in particular, the FDA review of Avastin for breast cancer, which has an action date in six weeks."
For long-term growth, the company has set itself the target of adding a total of 30 molecules into development during the five-year period from the beginning of 2006 to the end of 2010, with 15 already in the pipeline.






