6 of 6
BACK NEXT
Genentech
Genentech
Debt as a % of capital: 16%
Return on capital: 23%

The biotech business is all about what new products are coming down the pipeline. So, like most drugmakers, Genentech uses its cash to fund research and development.

And San Francisco-based company, which discovers and develops a wide range of pharmaceutical products, has emerged as one of the industry's leaders.

"Genentech has the broadest clinical pipeline in the biotechnology industry," according to a recent research report by JPMorgan analyst Geoffrey Meacham.

What's more, Genentech has a successful track record for using its cash to fund research in areas that other drugmakers may have overlooked.

"Historically, the company has been effective in focusing its resources in areas of significant unmet medical need, and hence blockbuster sales potential," Meacham wrote.

The company has been particularly adept at finding new cancer treatments, says analyst Eric Schmidt of Cowen and Company. And that's a big reason why analysts expect Genentech's earnings to increase at about a 23% clip a year, on average, for the next few years.

More galleries

Last updated June 20 2008: 1:08 PM ET
More Galleries
These 10 food trends could dominate 2015 So long, kale. Here's what's expected to shake up the food industry next year. More
Beyond Russia: Geopolitical hot spots in 2015 Investors beware: These 5 global crises are likely to rattle the stock market and world economy. More
These 20 antique guns could fetch big bucks Morphy Auctions in Pennsylvania is putting nearly 1,000 old guns on the block. Here are just a few. More

Special Offer

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.