Genentech Inc.'s (DNA) fourth-quarter profit rose 47% on strong sales of its cancer drugs, but it gave a disappointing 2009 earnings outlook reflecting the current economic uncertainty.

The South San Francisco, Calif., biotech giant said it expects 2009 per-share earnings between $3.55 and $3.90, below expectations of $3.92 a share, noting there are a "large number of business uncertainties that make it a difficult year to forecast."

Analyst Eric Schmidt of Cowen & Co. said the guidance could be an issue for investors and expressed surprise at the company's uncharacteristically broad range.

Shares fell 1% to $84.15 in after-hours trading.

Genentech's earnings continue to be overshadowed by questions of whether majority shareholder Roche Holding AG (RHHBY) will increase its already rejected takeover offer of $89 a share.

Earlier this week, Roche Chief Financial Officer Erich Hunziker said plans to acquire the 44% of Genentech it doesn't already own are on track. Despite Roche's consistent reassurance, many have questioned whether the Swiss company can raise the money needed in a difficult credit environment and with a stronger dollar.

Genentech's stock rose 24% in 2008, but has traded well under its August high of $99.14 on those concerns.

For the quarter ended Dec. 31, Genentech reported net income of $931 million, or 87 cents a share, up from year-ago earnings of $632 million, or 59 cents a share.

Excluding per-share stock-based compensation costs and other charges, Genentech reported earnings of 95 cents a share, just below a Thomson Reuters average analyst estimate of 96 cents a share.

Revenue rose 25% to $3.71 billion, above the average Street projection of $$3.66 billion.

"Genentech is still more a top-line story than bottom," said Schmidt, noting that the company's top products did "about as well as expected" on the whole.

"People still want to see those top-line products grow; it doesn't bother me that they posted non-GAAP EPS a penny below consensus," he said.

Avastin, approved to treat advanced breast, lung and colorectal cancer, had U.S. sales of $731 million in the quarter, up 21% from a year ago and in line with a consensus estimate of $731.6 million, according to health-care market research firm MDRx Financial.

Cancer and rheumatoid arthritis treatment Rituxan, co-marketed with Biogen Idec Inc. (BIIB), posted sales of $677 million for the quarter, up 14% and beating Wall Street expectations of $671.1 million.

Breast-cancer drug Herceptin's sales rose 3% to $336 million, missing expectations of $347.8 million.

Sales of Lucentis, which treats wet age-related macular degeneration, rose 20% to $236 million, beating expectations of $219.1 million.

-By Thomas Gryta, Dow Jones Newswires; 201-938-2053; thomas.gryta@dowjones.com

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