Ebb & Flow

Despite disappointing product sales, Genentech (NYSE:DNA) managed to beat the Street's 4Q EPS estimate by controlling costs and posting royalty revenues above expectations.

Product sales rose only 1% sequentially to $2.35 billion in 4Q07 from $2.32 billion in 3Q07. That represented a 5% increase over 4Q06 but still $100 million (4%) below the consensus estimate...