Genentech earnings increase 68%

Genentech Inc. said Wednesday that first-quarter profit surged 68%, helped by sales growth of its cancer medicine Avastin and cost controls.

The world’s second-largest biotechnology firm said sales of its new eye disease drug, Lucentis, were $211 million in just its third full quarter on the market, but that amount was $6 million short of the previous quarter.

Analysts had expected Lucentis to bring in $212 million to $220 million in the first quarter.

Genentech posted a profit of $706 million, or 66 cents a share, compared with $421 million, or 39 cents, a year earlier.

Excluding items, the South San Francisco-based company earned 74 cents a share, topping analysts’ average estimate by 7 cents, according to Reuters Estimates.

Operating revenue for the quarter rose 43% to $2.84 billion, topping Wall Street estimates of $2.75 billion.

U.S. sales of Avastin, the colon cancer drug that also is approved to treat lung cancer and is being used off-label for breast cancer, rose 34% to $533 million.

Genentech reiterated the 2007 forecast it had given last month, saying it expected earnings-per-share growth of 25% to 30% over 2006 levels.