Subpoena May Spoil Genentech's Earnings Party

Updated from 6:58 a.m. EDT

The drugs Avastin and Tarceva might be the keys to Genentech's (DNA Quote) future, but company executives may have to dwell on the past a little bit more than they would like to Wednesday afternoon when they discuss third-quarter results with analysts and investors.

That's because Genentech disclosed late Monday that the U.S. attorney in eastern Pennsylvania had subpoenaed documents about Rituxan, its treatment for non-Hodgkin's lymphoma, which is sold in the U.S. through a joint venture between Genentech and Biogen Idec(BIIB Quote). Genentech said the "inquiry is both civil and criminal in nature," adding that the subpoena is related to the promotion of the drug. The company offered no other details.

After the markets closed and ahead of its earnings conference call Wednesday, the company said it earned 230.9 million, or 21 cents a share. That compares with earnings of $143.9 million, or 14 cents a share on a split-adjusted basis, for the same period last year. Non a non-GAAP basis, the company earned 24 cents a share. ...