Both of these companies have several potentially lucrative products in the later stages of trials. Genentech is testing Herceptin, a treatment for metastatic breast cancer, on 10,000 patients. Next comes a middle tier of newer companies that also have an active product pipeline, a lot of cash and some revenues, but little or no earnings because no drugs are in full distribution. Millennium is close to marketing an early detector to tell whether someone with melanoma is at risk to contract the often-fatal metastatic melanoma. Doctors reported this winter that Rituxan, Idec's treatment for non-Hodgkin's lymphoma, can markedly improve the low survival rate for this virulent cancer.
Rituxan sales are low but escalating.
Idec's projected 2001 price-earnings ratio in mid March was above 133, based on this year's expected earnings. This is one of the most speculative collections of publicly traded stocks on earth. The following companies all have promising drugs newly approved by the FDA or in the third phase of clinical trials, the final stage before approval. Drug companies post progress reports on clinical trials on their Web sites because they often need patients to participate. These companies' shares are speculative.