Genentech (NYSE: DNA) is perhaps losing some of its old luster to a newer and fresher group of emerging biotechs. The American Society of Clinical Oncology, or "ASCO," is in the midst of its annual meeting in Chicago, the conference that historically has offered make or break news for many a cancer-focused biotech. In previous years, Genentech saw its stock get huge a boost from all of the possibilities of Avastin as an indicated treatment for multiple forms of cancer.
This weekend, Genentech announced results of Phase III study for Avastin Plus Interferon therapy, showing it nearly doubled the median survival in patients with previously Untreated advanced kidney cancer. The company also released more of its pipeline that looks like a post-Avastin world.
Unfortunately, the data coming out of these is not good enough to fuel share buying so far. Shares are indicated down 0.7% at $78.97 in pre-market trading (8:55 a.m.) Monday. While this may change later, Genetech's parent, Roche (LSE: ROG), saw its shares fall 1.9% in London.
Avastin has been a great drug for Genentech and for cancer patients alike, but seeing as that Genentech shares have been dead money for 18-months and with the company sporting an $83 billion market cap, investors are left holding the "what's next?" bag.
Shares of Onyx Pharmaceuticals Inc. (NASDAQ: ONXX) are up 6.7% in pre-market trading (9:23 a.m.) and Celgene Corp. (NASDAQ: CELG) shares are trading up over 1.5% on positive data at the ASCO conference.
Jon Ogg is a partner at 24/7 Wall St.; he does not own securities in the companies he covers.
Genentech ... no longer cuts it at ASCO
Posted Jun 4th 2007 9:45AM by Jon Ogg
Filed under: Before the bell, Press releases, Annual meetings, Genentech Inc (DNA)
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