Genentech's Still the Gold Standard in Biotech

Genentech(DNA Quote) is a good biotech company. Not mind-blowingly great -- just good, maybe even very good. But in a roiled market that's in desperate need of leaders, it's hard to bet against 'em.

I know -- this isn't a pound-the-table, get-the-bulls-running type of endorsement. But if you're looking for cheerleading, go someplace else. Criticizing Genentech isn't easy -- after all, this is the company that invented the biotech industry. Its campus in South San Francisco is sacred ground, a holy shrine to the cult of recombinant DNA.

But let's be honest, Genentech has taken its lumps in recent months at the Food and Drug Administration. The company's stock is not necessarily expensive, but it's not cheap, either. And management's stubbornness -- dare we say arrogance -- has put the company in danger of falling short of some rather lofty expectations.

So why do I like this company? Because Genentech hires people with big brains. These folks are smart. They're proven winners. They may stumble from time to time, but at the end of the day, Genentech develops more biotech drugs than anyone else. That's the kind of success you can take to the bank. ...