Genentech profits up on cancer-drug sales

SAN FRANCISCO (AP) — Genentech Inc., the nation's largest biotechnology company in terms of market capitalization, blew past Wall Street expectations on Tuesday with a 79 percent jump in second quarter earnings, driven largely by the continued popularity of its cancer-fighting drugs.

For the quarter ended June 30, the company, which is based in South San Francisco, Calif., earned $531 million, or 49 cents per share, up from the previous year's $296.2 million, or 27 cents per share.

Excluding special expenses, Genentech said it would have earned $602 million, or 56 cents a share. On that basis, the results exceeded the per-share estimate among Wall Street analysts by 9 cents, according to research firm Thomson Financial.

Revenue increased 44 percent to $2.2 billion from $1.5 billion in the second quarter of 2005.

Ahead of the income report, Genentech shares rose 33 cents to close at $84.06 Tuesday on the New York Stock Exchange.

The stock lost nearly 3 percent, or $2.44, to $81.62 in aftermarket trading. Analysts said many investors were disappointed that approval of the company's colon cancer drug, Avastin to treat breast cancer, could be delayed beyond Nov. 22, the date the Food and Drug Administration was expected to approve the drug.

Genentech President Susan Desmond-Hellmann said the FDA is going to need more information than previously expected about Avastin's use in breast cancer.

"We haven't firmly established what the FDA would like," she said.