Ebb & Flow

Genentech shares hit their lowest level since early 2005 last week, shedding $7.76 (10%) to reach $68.49 and lopping off more than $8 billion of the company's market cap to $72 billion. The dive came after FDA's Oncologic Drugs Advisory Committee voted that Avastin bevacizumab plus paclitaxel did not demonstrate a favorable risk-benefit ratio as first-line treatment of metastatic breast cancer.

In a 5-4 vote, panel members expressed concerns about the conduct of the trial DNA submitted to support efficacy, and about toxicity associated with the anti-VEGF antibody (see "Cover Story"). ...