Analysts: Key Genentech drug could top 2Q forecast

Shares of the South San Francisco, Calif.-based company gained $3.18, or 4.4 percent, to $75.90 Monday. Shares have traded between $65.35 and $82.20 over the last 52 weeks.

In separate notes to investors, Lazard Capital Markets analyst Joel Sendek and Rodman & Renshaw's Michael King said sales of Avastin, Genentech's key revenue driver, were higher than expected in May. They cited data from IMS Health, which tracks pharmaceutical sales each month.

Avastin, approved as a treatment for colon, lung and breast cancer, brought in just under $2.3 billion in sales in 2007.

King said Avastin sales grew 4.6 percent in May, slightly ahead of his $648 million estimate. The company's other big revenue drivers, Rituxan and Herceptin, also seem to be topping expectations, he said. Rituxan is approved as a treatment for non-Hodgkins lymphoma and rheumatoid arthritis while Herceptin treats breast cancer.

Lazard's Sendek said IMS figures imply that Avastin sales will reach $677.7 million during the quarter, more than the $640.7 million he projected. He increased his estimate to $665 million, citing faster-than-expected growth in Avastin's use as a breast cancer treatment. It received Food and Drug Administration approval for that use in February.

Genentech is scheduled to release its second-quarter financial results July 14.