Roche's Prospects Are Rising and right now the potential is the same as DNDN .
The Swiss drug maker's shares are compelling, thanks largely to its recent takeover of Genentech.
Roche, the world's largest maker of cancer drugs, has what it takes to outgrow its rivals and beat earnings estimates.
Roche owes much of its past success to the controlling stake in Genentech it acquired in the early 1990s. In that deal, the Swiss drug maker retained international marketing rights to Genentech's products, including the blockbusters Avastin, Herceptin, Tarceva and MabThera (called Rituxan in the U.S.).
Genentech's scientists have not fled in the deal's wake, an initial fear. And now Roche has 21 new and existing drugs in late-stage studies and could launch 14 new products by 2014, one of these new drugs is a blocking protein called sonic hedgehog, could be the key to saving lives.
This new drug from Roche and the biotech company Curis showing good results in skin cancer has a fascinating history. It hits a crucial protein whose absence can lead to birth defects such as missing eyes and digits or holes in the center of the head. The protein was originally discovered after Idaho sheep rangers wondered why some of their sheep only had one eye. It turned out some lambs were eating a poison that blocked a protein called sonic hedgehog that is essential for early embryo development. But hedgehog also turns out to be very important in a common type of skin cancer called basal-cell carcinoma, as well as some other tumors. These tumors have mutations that turn on hedgehog protein and help drive their growth. Now Roche and Curis, along with various competitors, are testing new cancer drugs that block hedgehog.
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