Genentech Inc has posted impressive financial performance during the second quarter ended June 2007 with higher sales in US. The company's net profit went up by 40.7 per cent to $747 million from $531 million in the corresponding period of last year. Its total operating revenues increased by 36.6 per cent to $3004 million from $2199 million. With significant rise in profitability, its earning per share moved up to $0.71 from $0.50.
The company's product sales touched to $ 2443 million from $1810 million in the same period of last year. Its sales in US improved by 25 per cent to $2149 million as against $ 1716 million. Rituxan increased by 11 per cent to $582 million and that of Avastin improved by 33 per cent to $ 564 million. The research and development expenses increased by 58 per cent to $603 million from $ 390 million. R&D expenses for second quarter of 2007 were 20 per cent of operating revenues, compared to 18 per cent in the second quarter of 2006.
The company initiated eight phase III clinical trials, including studies of Lucentis (ranibizumab injection) in diabetic macular edema and retinal vein occlusion, Avastin (bevacizumab) in adjuvant non-small cell lung cancer and second-line metastatic colorectal cancer, and two additional trials of second-generation humanized anti CD20 (ocrelizumab) for patients with reheumatoid arthritis.
For the first half ended June 2007, Genentech recorded 39.7 per cent growth in revenues at $5847 million as against $ 4185 million in the previous period. Its net profit for the first half of 2007 increased by 52.6 per cent to $ 1453 million from $ 952 million. The earning per share worked out to $1.38 as compared to$ 0.90.
Genentech announced that it currently expects 28 to 32 per cent growth in earnings per share for the full year at $2.85 to $2.95. The company's cell culture manufacturing facility in Oceanside, California received FDA licensure for the production of bulk Avastin drug product. The approval adds 90,000 liters of biologic manufacturing capacity.