In our detailed analysis of the Psychology of the Genentech Call on Thursday April 10, we wrote: "We would wait for the Lupus studies to be announced within days and, since management sounded pessimistic on this front, buy shares on that potentially terrific pull back." The results of the lupus study were released today:
Study of lupus treatment fails to meet primary endpoint
We are initiating Genentech Inc. (DNA) as a BUY at $68.70. The news of the failed Rituxan Lupus study presents a temporary set back for DNA, providing a perfect buying opportunity, especially with the catalyst of the ASCO scheduled for May 30th-June 3rd, in Chicago. Look at our DNA CC analysis (http://psychologyofthecall.blogspot.com/2008/04/psychology-of-genentech-inc-dna-q1-2008.html) to see why being long DNA from this day forward makes sense. Congratulations to our supporters who waited: CC psychology and patience remain two integral parts for your success with Genentech going forward.