Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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
'Spotlight' is just the latest edition of newspaper movies Here's a list of the best newspaper movies. More
Most valuable car collection ever auctioned In total, the 'Pinnacle Portfolio' is the most valuable group of cars from one collection ever sold in a single auction. More
This is how far robots have come since the 1930s Are robots catching up to humans? Yes. Should we be scared? Find out! More

Special Offer