1<br />Genentech<br />BA517 Stock Rec.<br />Christopher Greco<br />December 7, 2007<br />
Genentech Is A BUY Because Growth Is In Their Genes<br />2<br />
Genentech has shown continued sales growth<br />3<br />Genentech Is A BUY Because Growth Is In Their Genes<br />
Genentech has shown continued sales growth<br />Genentech has a diverse product base<br />4<br />Genentech Is A BUY Becaus...
Genentech has shown continued sales growth<br />Genentech has a diverse product base<br />Genentech will continue to grow ...
Genentech has shown continued sales growth<br />Genentech has a diverse product base<br />Genentech will continue to grow ...
7<br />Genentech has shown continued sales growth (2004 – 2007)<br />Sources: <br />Genentech, website, November 2007<br /...
Genentech has shown continued sales growth (2004 – 2007)<br />8<br />Sources: <br />Genentech, website, November 2007<br /...
Genentech has shown continued sales growth (2004 – 2006)<br />9<br />Source: Genentech website, November 2007<br />
Genentech has Outperformed Competitors in the Past 5 Years(2003—2007) <br />10<br />% Growth<br />Source:  Reuters, Novemb...
Genentech has shown continued sales growth<br />Genentech has a diverse product base<br />Genentech will continue to grow ...
Genentech has a Diverse Product Base<br />12<br />Source: Genentech website, November 2007<br />
Genentech has a Well Developed Pipeline<br />13<br />Source: Genentech website, November 2007<br />
Avastin has Shown Continued Sales Growth<br />14<br />
Genentech has shown continued sales growth<br />Genentech has a diverse product base<br />Genentech will continue to grow ...
Cancer rates have seen little change since 1950<br />16<br />Rate Per 100,000<br />CerebrovascularDiseases<br />HeartDisea...
Genentech has a Competitive Position in the Market<br />17<br />Source: Yahoo Finance, website, November 2007<br />
The Market Over Reacted to the FDA Advisory Panel’s Decision <br />19<br />Source: Yahoo Finance, website, December 2007<b...
Avastin has Shown Continued Sales Growth<br />20<br />
Genentech has shown continued sales growth<br />Genentech has a diverse product base<br />Genentech will continue to grow ...
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  • Good afternoon everyone. Id like to talk with you today about a company I have been following for some time now, Genentech. My initial interest in them came from the fact that they are the largest biotech company in terms of market cap, and that they are highly ranked by forbes in terms of employee satisfaction, second only to google. And since I am interested in a potential internship with this company, I thought it would be valuable to take a deeper look. As I have said, ive been monitoring this company very closely for the past few months, and while this time wasn’t completely absent of heartburn, I would like to tell you that I strongly recommend that we at the nitany investment club add Genentech to our portfolio. Genentech’s growth in recent years has been so substantial that its clear to
  • . Genentech’s growth in recent years has been so substantial that its clear to me that growth is in their genes. I believe that Genentech is a buy for several reasons. they have shown considerable sales growth in recent years. They have a diverse product base contributing to their growth, and a well developed pipeline. And finally, they are well positioned to grow in the future. First I would like to talk about their continued sales growth
  • . Genentech’s growth in recent years has been so substantial that its clear to me that growth is in their genes. I believe that Genentech is a buy for several reasons. they have shown considerable sales growth in recent years. They have a diverse product base contributing to their growth, and a well developed pipeline. And finally, they are well positioned to grow in the future. First I would like to talk about their continued sales growth
  • . Genentech’s growth in recent years has been so substantial that its clear to me that growth is in their genes. I believe that Genentech is a buy for several reasons. they have shown considerable sales growth in recent years. They have a diverse product base contributing to their growth, and a well developed pipeline. And finally, they are well positioned to grow in the future. First I would like to talk about their continued sales growth
  • As you can see from this chart, their total revenue has doubled between 2004 and 2006. The primary driver of this growth has been product sales, while there is some revenue from other sources such as licensing revenue. And if we look at the first three quarters of 2007, we can see that they are very well positioned to beat last years sales numbers, and they have already outgrown their licensing and other revenues. And since product sales have increased, net income has increased likewise, growing by 300% since 2003. So as you can see from these numbers, sales are continuing to grow which strongly points to a buy recommendation.
  • As you can see from this chart, their total revenue has doubled between 2004 and 2006. The primary driver of this growth has been product sales, while there is some revenue from other sources such as licensing revenue. And if we look at the first three quarters of 2007, we can see that they are very well positioned to beat last years sales numbers, and they have already outgrown their licensing and other revenues. And since product sales have increased, net income has increased likewise, growing by 300% since 2003. So as you can see from these numbers, sales are continuing to grow which strongly points to a buy recommendation.
  • To compare this fact to some competitors in the industry, you can see that Genentech has dramatically outgrown their competition in the past five years, Which even more clearly points to Genentech as the winner in this industry.
  • To compare this fact to some competitors in the industry, you can see that Genentech has dramatically outgrown their competition in the past five years, Which even more clearly points to Genentech as the winner in this industry.
  • Inform:Genentech has a diverse product base to build upon, and the major players are Rituxan, Avastin, and HerceptinInsight:Despite the FDA boards decision to recommend against approving Avastin for treatment of metastatic breast cancer, Avastin is already one of the major sources of revenue for Genentech. Furthermore, Herceptin is already approved and used for treatment of metastatic breast cancer.Even though the FDA board made this recommendation against approving Avastin for use in metastatic breast cancer, the company is still strong for several reasons:Avastin is already a very successful and widely used medicationGenentech already has a presence in metastatic breast cancer treatment with the drug HerceptinThis ruling does not affect the revenue streams already in place with these other medicationsAction:The NIC should invest in Genentech because of their strong product base
  • Despite the announcement by the FDA Advisory Panel, Genentech still receives a BUY rating for several reasons. Firstly, Genentech has shown considerable growth in recent years, and is well poised to grow in the future. Genentech has a large pipeline of products in late stage development to support this future growth. Second, Avastin is currently approved for use in colorectal and lung cancer treatments, and Avastin is in stage III clinical studies for use in treating 12 other cancer diagnoses. Third, 3 studies of Avastin use in metastatic breast cancer are scheduled to be completed after the FDA decision deadline. These will move forward regardless of the FDA’s decision, and are expected to yield positive results. If the FDA does not approve Avastin and these studies do yield positive results and the FDA would likely re-evaluteAvastin for use in metastatic breast cancer. Finally, Genentech already has a substantial presence in breast cancer treatment with their drug Herceptin, which has shown considerable growth in this area in recent years.
  • Genentech supporting graphics

    1. 1. 1<br />Genentech<br />BA517 Stock Rec.<br />Christopher Greco<br />December 7, 2007<br />
    2. 2. Genentech Is A BUY Because Growth Is In Their Genes<br />2<br />
    3. 3. Genentech has shown continued sales growth<br />3<br />Genentech Is A BUY Because Growth Is In Their Genes<br />
    4. 4. Genentech has shown continued sales growth<br />Genentech has a diverse product base<br />4<br />Genentech Is A BUY Because Growth Is In Their Genes<br />
    5. 5. Genentech has shown continued sales growth<br />Genentech has a diverse product base<br />Genentech will continue to grow in the future<br />5<br />Genentech Is A BUY Because Growth Is In Their Genes<br />
    6. 6. Genentech has shown continued sales growth<br />Genentech has a diverse product base<br />Genentech will continue to grow in the future<br />6<br />Genentech Is A BUY Because Growth Is In Their Genes<br />
    7. 7. 7<br />Genentech has shown continued sales growth (2004 – 2007)<br />Sources: <br />Genentech, website, November 2007<br />CNN Money, November 2007<br />
    8. 8. Genentech has shown continued sales growth (2004 – 2007)<br />8<br />Sources: <br />Genentech, website, November 2007<br />CNN Money, November 2007<br />
    9. 9. Genentech has shown continued sales growth (2004 – 2006)<br />9<br />Source: Genentech website, November 2007<br />
    10. 10. Genentech has Outperformed Competitors in the Past 5 Years(2003—2007) <br />10<br />% Growth<br />Source: Reuters, November 2007<br />
    11. 11. Genentech has shown continued sales growth<br />Genentech has a diverse product base<br />Genentech will continue to grow in the future<br />11<br />Genentech Is A BUY Because Growth Is In Their Genes<br />
    12. 12. Genentech has a Diverse Product Base<br />12<br />Source: Genentech website, November 2007<br />
    13. 13. Genentech has a Well Developed Pipeline<br />13<br />Source: Genentech website, November 2007<br />
    14. 14. Avastin has Shown Continued Sales Growth<br />14<br />
    15. 15. Genentech has shown continued sales growth<br />Genentech has a diverse product base<br />Genentech will continue to grow in the future<br />15<br />Genentech Is A BUY Because Growth Is In Their Genes<br />
    16. 16. Cancer rates have seen little change since 1950<br />16<br />Rate Per 100,000<br />CerebrovascularDiseases<br />HeartDiseases<br />Cancer<br />Source: The American Cancer Society, November 2007<br />
    17. 17. Genentech has a Competitive Position in the Market<br />17<br />Source: Yahoo Finance, website, November 2007<br />
    18. 18.
    19. 19. The Market Over Reacted to the FDA Advisory Panel’s Decision <br />19<br />Source: Yahoo Finance, website, December 2007<br />
    20. 20. Avastin has Shown Continued Sales Growth<br />20<br />
    21. 21. Genentech has shown continued sales growth<br />Genentech has a diverse product base<br />Genentech will continue to grow in the future<br />21<br />Genentech Is A BUY Because Growth Is In Their Genes<br />

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