ARTICLE | Finance

Ebb & Flow

October 11, 2004 7:00 AM UTC

Genentech (DNA) did everything it was supposed to do in the third quarter: it beat the Street estimates, raised its full year guidance and reported a faster than expected ramp in sales of colorectal cancer drug Avastin. The market, however, didn't reward the strong numbers, as the stock dropped $5.91 (11%) to $47.25 on the week.

There are differing opinions on the apparent disconnect. Some buysiders and analysts suggested that the company's comments about a fast Avastin ramp were of concern, because a fast ramp leads to fast maturity. ...