Back to top

Analyst Blog

Roche (RHHBY - Analyst Report) received positive news when the EU Committee for Medicinal Products for Human Use recommended that the European Commission approve the use of Avastin in combination with chemotherapy as a treatment for women with ovarian cancer that is resistant to platinum-containing chemotherapy.

We note that Avastin is approved in Europe for the treatment of advanced stages of breast cancer, colorectal cancer, non-small cell lung cancer, kidney cancer and ovarian cancer, and in the U.S. for the treatment of colorectal cancer, non-small cell lung cancer and kidney cancer.

Roche filed for the new indication for Avastin based on encouraging results from a phase III study, AURELIA. The study was conducted among women suffering from recurrent, platinum-resistant ovarian cancer who received either chemotherapy or Avastin added to chemotherapy.

The results from the study showed that the addition of Avastin to chemotherapy reduced the risk of disease worsening or death by 62%. AURELIA is the fourth phase III study on Avastin conducted in women suffering from ovarian cancer to demonstrate that Avastin can significantly increase the lifespan of women without worsening of the disease.

We note that Avastin was one of the leading drugs for Roche. Avastin generated sales of CHF 1.6 billion in the first quarter of 2014.

We are encouraged by Roche's efforts to expand Avastin's label which should further boost sales.

Roche currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader healthcare sector include Shire (SHPG - Analyst Report), Allergan (AGN - Analyst Report) and Regeneron Pharmaceuticals (REGN - Analyst Report). While Regeneron Pharma carries a Zacks Rank #1 (Strong Buy), Shire and Allergan carry a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%