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Launching Avastin

Genentech Inc.'s launched three major drugs in nine months, two in therapeutic areas new to it and the third in a new drug class. The latter, Avastin, is an oncology drug which stifles growth of tumors by cutting off their blood supply. Sales have exceeded expectations.The very high cost isn't likely deter use--even as payers scrutinize oncology costs more seriously--because of the solid trial data and political sensitivities inherent in rationing drugs for terminally ill patients.

Almost without question, Genentech Inc. is the most productive company in the industry. It's launched three major products in the past nine months, omalizumab (Xolair), efalizumab (Raptiva), and most recently bevacizumab (Avastin). Even as other biotech companies trip up, (Biogen Idec Inc. with alefacept (Amevive), MedImmune Inc. with its nasal influenza virus vaccine FluMist), Genentech seems to be executing smoothly. The feat is all the more noteworthy because in the first two cases Genentech is entering new therapeutic areas, asthma and psoriasis, respectively.

The most recent of these to come to market, Avastin, has the highest expectations—and that for a company which has...

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