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Genentech Stock PitchTRANSCRIPT
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GenentechBA517 Stock Rec.
Christopher GrecoDecember 7, 2007
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Genentech Is A BUY Because Growth Is In Their Genes
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• Genentech has shown continued sales growth
Genentech Is A BUY Because Growth Is In Their Genes
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• Genentech has shown continued sales growth
• Genentech has a diverse product base
Genentech Is A BUY Because Growth Is In Their Genes
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• Genentech has shown continued sales growth
• Genentech has a diverse product base
• Genentech will continue to grow in the future
Genentech Is A BUY Because Growth Is In Their Genes
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• Genentech has shown continued sales growth
• Genentech has a diverse product base
• Genentech will continue to grow in the future
Genentech Is A BUY Because Growth Is In Their Genes
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2004 2005 2006 3Q 2007$0
$2,000
$4,000
$6,000
$8,000
$10,000
$3,749$5,488
$7,640 $7,093$872
$1,145
$1,644$1,654
Total Revenue
Other Revenue
Product Sales
Sources: Genentech, website, November 2007CNN Money, November 2007
Genentech has shown continued sales growth
(2004 – 2007)
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Genentech has shown continued sales growth
(2004 – 2007)
2004 2005 2006 Q1-3 2007$0
$2,000
$4,000
$6,000
$8,000
$10,000
$3,749$5,488
$7,640 $7,093$872
$1,145
$1,644$1,654
Total Revenue
Other Revenue
Product Sales
Sources: Genentech, website, November 2007CNN Money, November 2007
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Genentech has shown continued sales growth
(2004 – 2006)
2003 2004 2005 2006$0
$500
$1,000
$1,500
$2,000
$2,500
563
785
1,279
2,113
Net
Inco
me
Source: Genentech website, November 2007
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Genentech has Outperformed Competitors in the Past 5 Years
(2003—2007)
Source: Reuters, November 2007
% G
row
th
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• Genentech has shown continued sales growth
• Genentech has a diverse product base
• Genentech will continue to grow in the future
Genentech Is A BUY Because Growth Is In Their Genes
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Genentech has a Diverse Product Base
$2,071
$1,746$1,234
$425
$402
$380$378
$243 $199 $90
2006 Product Sales (in millions)
RituxanAvastinHerceptinXolarTarcevaLucentisNutropin ProductsThromioticsPulmozymeRaptiva
Source: Genentech website, November 2007
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Genentech has a Well Developed Pipeline
R&D Stage Number of ProductsAwaiting FDA Action 4
FDA Submission Preparation 1Phase III 37Phase II 17Phase I 15Pre-IND 2
Source: Genentech website, November 2007
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Avastin has Shown Continued Sales Growth
2004 2005 2006 Q1-3 2007$0
$500
$1,000
$1,500
$2,000
$545
$1,133
$1,746 $1,694
Avastin Product Sales(in millions)
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• Genentech has shown continued sales growth
• Genentech has a diverse product base
• Genentech will continue to grow in the future
Genentech Is A BUY Because Growth Is In Their Genes
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Series10
100
200
300
400
500
600 586.8
180.7 193.9217.0
50.0
185.8
1950 2004
Cancer rates have seen little change since 1950
HeartDiseases
CerebrovascularDiseases
Cancer
Rate Per 100,000
Source: The American Cancer Society, November 2007
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Genentech has a Competitive Position in the Market
BioTech Industry
Genzyme
Biogen idec
Genentech
AMGN
0 20 40 60 80 100 120 140 160
27.17
145.84
44.93
26.10
19.82
P/E Ratio
Source: Yahoo Finance, website, November 2007
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The Market Over Reacted to the FDA Advisory Panel’s Decision
Source: Yahoo Finance, website, December 2007
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Avastin has Shown Continued Sales Growth
2004 2005 2006 Q1-3 2007$0
$500
$1,000
$1,500
$2,000
$545
$1,133
$1,746 $1,694
Avastin Product Sales(in millions)
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• Genentech has shown continued sales growth
• Genentech has a diverse product base
• Genentech will continue to grow in the future
Genentech Is A BUY Because Growth Is In Their Genes