DOW JONES NEWSWIRES

Genentech Inc.'s (DNA) fourth-quarter net income surged 47% on surging sales of most of its U.S. products, as the biotechnology giant issued a 2009 view just below Wall Street expectations.

The company reported net income of $931 million, or 87 cents a share, up from $632 million, or 59 cents a share, a year ago.

Excluding items, earnings rose to 95 cents from 69 cents.

Revenue grew 25% to $3.71 billion.

Analysts polled by Thomson Reuters forecast earnings of 96 cents a share on revenue of $3.67 billion.

Sales of cancer and arthritis drug Rituxan, which Genentech co-markets with Biogen Idec Inc. (BIIB), rose 14% to $677 million, while cancer drug Avastin sales grew 21% to $731 million in the U.S.

Sales of breast-cancer drug Herceptin increased 2.8%, to $336 million in the U.S., while sales of Lucentis, which treats wet age-related macular degeneration, rose 20% to $236 million. Avastin has been a major sales boost for Genentech, but the drug has been cutting into sales of Lucentis, which is chemically similar but more expensive.

Sales of Rituxan and Lucentis came in above estimates compiled by health care market research firm MDRx Financial, while sales of Herceptin came in below estimates. Avastin's results were about even with the firm's estimates.

Looking ahead, the company expects 2009 earnings to be $3.55 to $3.90 a share. Wall Street was looking for $3.92.

Chairman and Chief Executive Arthur D. Levinson said the company had the potential to receive four FDA approvals and anticipates filing more than 10 regulatory applications for new indications in 2009.

There is speculation Roche Holding AG (RHHBY), the Swiss majority owner of Genentech, which already owns a 56% stake in Genentech, could boost its takeover bid to $95 from $89 a share, which would require debt financing of up to $35 billion. Genentech rejected the original offer but some analysts expect the bid to eventually succeed, despite financing concerns.

Shares dropped 1.5% to $83.80 in after-hours trading, after closing down 0.6% in the regular session.

-By John Kell, Dow Jones Newswires; 201-938-5285; john.kell@dowjones.com

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