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
Tech's highest paid women Silicon Valley isn't known for its diversity, but it is home to a handful of highly paid female executives. More
9 reasons to be hopeful about women in tech These startups are working to leverage technology to level the playing field for minorities and women in tech. More
10 best states to retire in Forget Florida. Residents of these states are happy, safe, and have good health care -- all for the right price. More

Special Offer