Ebb & Flow

As a systemically delivered cancer drug, Genentech's Avastin clearly enjoys premium pricing. But the economics of the antibody, which costs $550 per 100 mg vial, could change dramatically in a non-systemic setting, where much less drug may be needed.

Thus, DNA dropped $3.28 to $82.55 on 9.3 million shares last Monday after a note from SG Cowen analyst Eric Schmidt suggested that Avastin may take away a good chunk of the sales potential for the company's Lucentis in age-related macular degeneration (AMD). ...