Biotech Values

[drbio45]

accounting is a wonderful thing

Mike King:

DNA – Market Outperform: Note out post call: Takeaways =

1) Colorectal (Avastin) not ramping as well as expected

2) TnF Refractory oppty is smaller than some had thought

3) Quality of earnings light but top line growth should rebound (according to Mike) in Q4

4) PDUFA today for Avastin in NSCLC should help the stock (80% chance of approval)

5) Modifying #s going forward but nothing dramatic….



Partner Impact:

Avastin light = PDLI (Negative)

Rituxan very light = BIIB (Negative)

Tarceva light = OSIP (Negative)

Herceptin very light = PDLI

Xolair barely light = TNOX/NVS/PDLI (Flat)

Raptiva just missed = XOMA/PDLI (Flat)

Lucentis crushed it = XOMA/NVS (positive)



Pipeline – CRIS’s Hedgehog Inhibitor also mentioned

Every quarter Genentech beat expectations. without lucentis this quarter would have been a disaster. It is great to be able, to let us say, adjust internally some prior exuberance, if it can be offset by a new product