Genentech - Big Biotech's Stock Report

Company: Genentech
Starting stock price: $81.80
Ending stock price: $67.07
Percent Change: -18%

Scoop: Genentech's stock slowly declined in ’07 as investors realized that the company's amazing growth was starting to slow. Analysts now anticipate [1] a profit pace of 15 percent to 20 percent for several years—which, while very strong, doesn’t come close to the 74 percent pace of previous years. Many of the company’s products are facing mounting pressure from competing therapies, and Genentech had to make major R&D investments [2] in order to keep its edge in drug development. All of that added up to an 18 percent stock drop over the course of 2007.

The company is pursuing a raft of new indications [3] for it’s blockbuster drug Avastin, including a form of brain cancer, kidney cancer and non-small cell lung cancer. It also announced positive Phase II results of Gemcitabine for advanced ovarian cancer. And things are looking good in ’08. Against all odds (and an expert FDA committee’s recommendation [4]) Genentech scored a major approval for Avastin's use against breast cancer.

Current stock price (3/25): $80.73