Genentech Tops Amgen

Genentech Inc. became the world’s largest biotechnology company in terms of market value Wednesday, a distinction long held by rival Amgen Inc.

Investors pushed Genentech’s market value to $73.9 billion, past Amgen’s $73.2 billion. Analysts said it was the first time Genentech had surpassed Amgen in market value since 1999, when Genentech reemerged as a public company.

“I think this is fitting,” said John McCamant, an editor of the Medical Technology Stock Letter. “Amgen does a great job selling, but Genentech is the innovator.”

In terms of sales, however, Amgen is more than twice as big as Genentech and is by far the largest biotech company.

Genentech’s shares have been on the upswing since mid-2003, when the company revealed its drug Avastin was effective in treating colon cancer. Enthusiasm about Avastin swelled last week with news that the drug helped breast cancer patients in a clinical trial. Analysts predict annual sales of Avastin will eventually reach $4 billion.

Amgen’s shares, meanwhile, have been relatively flat for several years. Investors have been nervous about changes in Medicare reimbursement for Amgen’s drugs.