Genentech reports profit jump of 41%

Genentech Inc., one of the world’s largest biotechnology companies, continued a positive earnings streak, posting a 41% boost in second-quarter profit Wednesday on sales of its blockbuster cancer drugs.

The South San Francisco-based company earned $747 million, or 70 cents a share, compared with $531 million, or 49 cents a share, during the same period a year earlier.

Revenue rose to $3 billion from $2.2 billion.

The results topped Wall Street expectations. Excluding 6 cents a share for stock-based compensation costs and 2 cents a share related to the redemption of Genentech stock by Roche Holdings Inc. and litigation costs, Genentech earned 78 cents a share.

Analysts polled by Thomson Financial had expected profit of 72 cents a share, excluding stock-option costs and charges, on revenue of just under $2.86 billion.

The rheumatoid arthritis and non-Hodgkin’s lymphoma drug Rituxan brought in $582 million in sales during the quarter, an 11% increase.

Avastin, which treats lung, breast and colon cancer, had sales of $564 million, marking a 33% increase. Breast cancer drug Herceptin showed a 3% increase in sales to $329 million.

Sales of Genentech’s Lucentis totaled $209 million. The drug, which treats age-related macular degeneration, was approved in June 2006.

Costs and expenses rose 30% to $1.88 billion from $1.44 billion. During the quarter, the company began eight Phase III clinical trials.

Those studies include Lucentis as a possible diabetic macular edema and retinal vein collusion treatment and Avastin for a specific form of lung cancer and as a second-line treatment for colon cancer.

For the full year, the company said it expected earnings per share, excluding costs and charges, to range from $2.85 to $2.95.

Analysts expect earnings of $2.91 a share.

Shares of Genentech fell 11 cents to $75.82 in after-hours trading. They had risen $1.08 to close the regular session at $75.93.