Starting stock price: $81.80
Ending stock price: $67.07
Percent Change: -18%
Scoop: Genentech's stock slowly declined in â€™07 as investors realized that the company's amazing growth was starting to slow. Analysts now anticipate a profit pace of 15 percent to 20 percent for several yearsâ€”which, while very strong, doesnâ€™t come close to the 74 percent pace of previous years. Many of the companyâ€™s products are facing mounting pressure from competing therapies, and Genentech had to make major R&D investments 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 for itâ€™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 â€™08. Against all odds (and an expert FDA committeeâ€™s recommendation) Genentech scored a major approval for Avastin's use against breast cancer.
Current stock price (3/25): $80.73