Last Friday DNA discontinued enrollment in the Phase II ovarian cancer trial when five out of 44 patients, or 11 percent, given Avastin showed signs of gastrointestinal perforations, a known possible risk that has arisen in 2 percent to 4 percent of patients in previous trials. Stock down 2% on the news. Yesterday, SG Cowen analyst Eric Schmidt cut his revenue and earnings estimates for Genentech because more and more eye doctors are prescribing the cancer drug Avastin as a treatment for age-related macular degeneration, or AMD, a type of vision loss that occurs when blood vessels grow in front of the retina and begin to leak. No doubt the stock will be under pressure and continue to fall lower. So, I’m bearish on the short term, but remain bullish long term on the company because of its management, innovative ability, and strong pipe line. The stock may find support at $80. If it break through $80, then it may fall to around $72. Watch it carefully and buy on dip.

This entry was posted on Tuesday, September 27th, 2005 at 9:42 am and is filed under Stock. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.