GENENTECH (DNA): Bernstein Cut Targets, Sees Few Catalysts

Dow Jones Equity News, Wednesday, June 09, 2004 at 14:04

By Michelle Rama Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--Genentech Inc. (DNA) Sanford C. Bernstein downgraded the stock, citing a weak start for the colorectal cancer drug Avastin, declining sales growth in two key products and limited positive catalysts. We believe support for the current valuation is tenuous and believe the risk of a material disappointment - from slower than anticipated sales of either Avastin, or established products such as [the non-Hodgkin's lymphoma drug] Rituxan and [breast cancer drug] Herceptin - could negatively affect sentiment and lower expectations,"wrote Bernstein analyst Geoffrey Porges, who downgraded the stock.