Top 4%
Genentech has shown great great returns over the past 5 years Return on Equity nearly 20% and return on capital over 15%. over the past 10 years sales are up 25%/year
One of their major products Avastin has been approved in the treament of various cancers and its use in additional cancers are currently in study.
What this all says to me is this is a growth company that has been consistly growing sales/equity and capital over the long term. I believe given the current trends in the market this company is undervalued given these consistent growth rate and i am looking for a price of 85.
This post is more than 60 days old. Replying to it might be confusing for other members reading the discussion.
By all means, keep the ball rolling and post a new opinion.
Top 1%
blacktuna
May 19 at 3:08 ET
I've held DNA before and went nowhere with it for about a year.. Do you have any info on why the company declined so badly during the market slide in January and then again in April? was that drop connected to the Avastin launch?
This is true for many large cap Pharmaceuticals like Novartis (NVS), TEVA and even Gelgene (CELG). The only Pharmaceutical I know that's been doing well is Gilead (GILD). GILD has been doing well because of it's superior aids combo drug. Could it be that the market is over valuating the Pharma business?
That said DNA definitely looks interesting.
Top 4%
ITGURU
May 19 at 6:47 ET
I think Avastin has a lot of long term promise for DNA. My wife works in cancer research in a regional hospital and a lot of their testing involves avastin. Both she and the MD's she works with like the potential and current uses of Avastin. I really do not follow the pharm industry, so yes I am breaking my rule of understanding a market, but the numbers look good to me and I like whats on theradar. Time will tell....
Top 1%
guliamo
May 22 at 10:14 ET
Don't forget, my dear Tuna, that cancer is the big issue of the future and any medication treating it is, unfortunately, very big business..
Top 4%
ITGURU
Jul 31 at 7:25 ET
Guess i got lucky with this one, up near5ly 40% since the originalk post on buyout offer