One would think that with Avastin recieving NSCLC indication, Genentech stock would be on an uptick.
The FDA has approved the use of Avastin for lung cancer combination treatment with carboplatin and paclitaxel chemotherapy for first line treatment. Avastin is now approved for the most common lung cancer - locally advanced, recurrent or metastatic, non-squamous, non-small cell lung cancer (NSCLC).
But no, rather Genentech seems to have hit the doldrums. And the reason for this is sales of Avastin. Although Genentech met the earnings expectations, sales of Avastin slowed down a bit, and this sent the investors into a tizzy.
Add to this the announcement by Genentech that it would cap the annual cost of Avastin to $55,000 to some "eligible" patients, it seems like Avastin sales might not grow as previously thought.
But Genentech is doing a sensible thing by introducing a self imposed price cap. With Lung cancer patients likely to be taking Avastin for 12 or more months, and the cost per dose for lung cancer patients being twice ($8800) that of Colorectal cancer ($4400), it seemed like Genentech would have become a prime candidate for criticism. What it means to overall Avastin sales remains to be seen, but Genentech may have taken the sting out of the price pinch.
