Why Genentech Is In Play Today

• May 19, 2003
• Paul Ruggieri

Genentech

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testing their new drug Avastin with chemotherapy improved overall survival in
previously untreated patients with metastatic colorectal cancer. This is
significant news. Avastin is a monoclonal antibody aimed at a protein called
Vascular Endothelial Growth Factor (VEGF). VEGF plays a crucial role in
stimulating the growth of new blood vessels that are necessary to supply
nutrients to growing cancer cells. Avastin blocks the action of VEGF,
subsequently choking off the blood supply to a growing malignancy. Genentech’s
multi-center trial is one of the first to show benefit of the so-called
“anti-angiogenesis” class of drugs to treat advanced cancer. I suspect Genentech
will be the focus of some serious attention once trading opens up this morning. 

In addition, keep an eye on some other companies developing
similar “anti-angiogenesis” drugs to treat cancer. Once such company is
EntreMed
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developing the “anti-angiogenesis” approach to the treatment of cancer. The
company is developing several new compounds that have the potential to block the
blood supply to growing cancers. Regeneron
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is another company in this space. This company will present Phase II clinical
data of its VEGF inhibitor against a variety of solid cancers at the upcoming
ASCO meeting. I also like Oxigene
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company is developing “vascular targeting agents” or VATS to treat a variety of
cancers. Like Genentech’s Avastin, VATS have the potential to block the blood
supply to a variety of cancers. I suspect all of these companies will get swept
up in the trading excitement today.

Good Luck,

Paul Ruggieri MD