Ebb & Flow

Phase III Avastin data always seem to be good for an $11 billion pop in Genentech's market cap, and the company is two for two on that front. Such was the case in 2003, when the compound hit its primary endpoint in a Phase III trial in the now-approved indication of metastatic colorectal cancer, and such was the case last week when the antibody hit its endpoint in a Phase III trial in non-small cell lung cancer.

Evan McCulloch of Franklin Templeton said the market cap bump was "generous, but we think it will stick. The company has important catalysts coming up." These include Phase III data for Lucentis in age-related macular degeneration and Phase III data for Rituxan in rheumatoid arthritis. Rituxan data are expected in the first half, while Lucenta data are expected in the second quarter. Rituxan is marketed by DNA and Biogen Idec (BIIB) for non-Hodgkin's lymphoma. ...