Analyst Michael King says he had anticipated the news. He notes other details concerning the trial's outcome were scant. King reminds investors that Genentech has always stated colorectal cancer is its registration strategy for Avastin. King remains confident of the likelihood of a positive outcome in Avastin's Phase III colorectal cancer trial; he expects these results in mid-2003.
The analyst cuts his EPS estimates to bring them more in line with management guidance: for 2002, from $0.97 to $0.95; for 2003, from $1.23 to $1.09; for 2004, from $1.48 to $1.33; for 2005, from $1.80 to $1.64; for 2006, from $2.12 to $1.95; and for 2007, from $2.47 to $2.27. He rates the shares market perform.