Genentech surge forward

Genentech has announced total product sales of $1,186m for the first quarter of 2005, a 55% increase over product sales of $763.7m in the first quarter of 2004.

Operating revenues increased 50% from the first quarter of 2004 to $1,461.6m. Non-GAAP (Generally Accepted Accounting Principles) earnings per share increased 53% to $0.29 per share from $0.19 per share in the first quarter of 2004. GAAP earnings per share increased 69% to $0.27 per share from $0.16 per share in the first quarter of 2004. Non-GAAP net income increased 50% to $311.6m from $207.6m in the first quarter of 2004. GAAP net income increased 61% to $284.2m from $176.6m in the first quarter of 2004.

'Genentech's persistent focus on attacking diseases where there is significant unmet medical need continues to drive the company's growth. This quarter, fueled by our four new products launched in 2003 and 2004 and continued growth of our other products, Genentech achieved record product sales and revenues. Earnings per share continued to increase, moving us toward exceeding our 5x5 EPS growth goal,' said Dr Arthur Levinson, Genentech's chairman and chief executive officer.

'With a strong start for 2005, we are updating our expectations for 2005 growth,' said David Ebersman, senior vice president and chief financial officer. 'We are currently expecting year-over-year non-GAAP EPS growth of greater than 30% for 2005.'

'Avastin, with net US sales of $675.9m in the first full 12 months following its launch, is the most successful oncology product launch in the United States to date. Avastin remains the first and only anti-angiogenic drug that has shown a survival benefit in both first-line and second-line metastatic colorectal cancer,' said Ian T. Clark, senior vice president and general manager, BioOncology. 'We are pleased that all four of our oncology products have demonstrated a survival benefit in clinical trials.'

For the three months ended March 31, 2005:

• Total product sales increased 55% to $1,186.0m from $763.7m in the first quarter of 2004. Total product sales were comprised of US product sales of $1,087.0m and product sales to collaborators of $99.0m. In the first quarter of 2004, US product sales were $711.0m and product sales to collaborators were $52.7m;

• US sales of Avastin (bevacizumab) were $202.9m, compared to US sales of $38.1m in the first quarter of 2004 when Avastin was launched on February 26. US sales of Avastin in the fourth quarter of 2004 were $190.5m;

• US sales of Tarceva (erlotinib) were $47.6m in its first full quarter of sales;

• US sales of Rituxan (Rituximab) increased 22% to $440.5m from $361.8m in the first quarter of 2004;

• US sales of Herceptin (Trastuzumab) increased 19% to $129.6m from $108.7m in the first quarter of 2004;

• US sales of Xolair (Omalizumab) were $65.3m, an increase of 119% from US sales of $29.8m in the first quarter of 2004;

• US sales of Raptiva (efalizumab) were $16.6m, an increase of 163% from US sales of $6.3m in the first quarter of 2004;

• US sales of legacy products, including growth hormone, cardiovascular products and Pulmozyme (dornase alfa, recombinant) Inhalation Solution, increased 11% to $184.5m from $166.3m in the first quarter of 2004;

• Product sales to collaborators (primarily ex-US sales) were $99.0m, an increase of 88% from sales of $52.7m in the first quarter of 2004. Product sales to collaborators were driven by Enbrel shipments for the US market and shipments of Rituxan, Avastin, Herceptin, Pulmozyme and Raptiva for ex-US markets.