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Genentech matches in 3Q
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October 11, 2000: 11:51 a.m. ET
Biotechnology developer posts 27% profit increase on higher cancer drug sales
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NEW YORK (CNNfn) - Genentech Inc., one of the oldest U.S. biotechnology companies, posted a 27 percent increase in third-quarter operating profit Wednesday, powered by sales of its cancer drugs.
The results matched Wall Street's forecasts.
Genentech (DNA: Research, Estimates) earned $85 million, or 31 cents per diluted share, excluding one-time items, up from $66.9 million, or 26 cents per share, in the year-earlier quarter. Analysts polled by earnings tracker First Call Corp. had called for profit of 31 cents per share.
 The results reflect a November 1999 stock split.
Including the accounting impact of majority owner Roche Holding Ltd.'s June 1999 offering of Genentech common stock, net income for the latest period fell to $4.5 million, or 2 cents per share. That compares with a net loss of $62.8 million, or 25 cents per share, in the third quarter of 1999.
Third-quarter revenue rose 29 percent to $445.2 million, driven by sales of Rituxan, a treatment for non-Hodgkin's lymphoma, and breast cancer drug Herceptin as well as stock gains. Sales of Rituxan rose 62 percent to $117.9 million, while Herceptin sales increased 52 percent to $72.6 million.
"During the quarter, we continued to deliver strong financial results fueled by the performance of our oncology products, Rituxan and Herceptin," Chairman and Chief Executive Officer Arthur D. Levinson said in a statement. "This is an exciting time as we lay the groundwork for potential growth with 20 projects in our development pipeline."
Genentech shares edged up 19 cents to $153.50 in late morning trading, down from an earlier session high of 159.
For the first nine months of the year, the company posted a net loss of $35.6 million, or 14 cents per share, including special items, compared with a loss of $971.6 million, or $3.80 per share, in the 1999 period. Revenue increased to $1.24 billion from $1.06 billion in the prior period.
Genentech, based in South San Francisco, Calif., was founded in 1976. Roche acquired control over the company in a 1990 buyout. 
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Genentech
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