) to market perform from buy.
Analyst Dennis Harp told Standard & Poor's MarketScope that the downgrade was based on two factors: 1) based on relative valuation - Genentech's p-e to growth rate vs. its peer group of profitable biotech companies -- the stock is trading at a multiple of 1.5 vs.the 0.8 average of its peer group; and 2) concerns regarding the upcoming Phase III data on the company's breast cancer drug. Harp says he is concerned that the primary endpoint -- a 50% improvement in time to progression -- may not be met. He says it is an aggressive goal. While he maintains his EPS estimates of $0.92 for 2002 and $1.01 for 2003, he slashed his $60 price target to $35.