OVERVIEW: Genentech completed its $919 million buyout of biotechnology company Tanox Inc. during the quarter. It has been collaborating with the company and its partner Novartis on the Asthma drug Xolair since 1996.

Genentech's partner on Avastin, Roche, received European approval for the drug as a treatment for certain forms of lung cancer. Meanwhile, Genentech asked the Food and Drug Administration to approve Avastin as a treatment for metastatic breast cancer, or cancer that has spread to other parts of the body.

BY THE NUMBERS: Analysts polled by Thomson Financial expect Genentech to report profit of 72 cents per share on revenue of $2.93 billion.

ANALYST TAKE: Analysts are mixed on Genentech's third quarter. Lehman Brothers analyst Dr. Jim Birchenough, citing industry sales data, expects Avastin sales to miss Wall Street estimates of $593 million. Meanwhile Robert W. Baird analyst Christopher J. Raymond expects Avastin sales to reach $595 million, citing separate industry data showing prescription growth.

FBR Research analyst Jim Reddoch expects Genentech to meet forecasts, but said growth is stalling for key revenue drivers like Avastin, cancer treatment Herceptin and lymphoma treatment Rituxan. The analyst predicted the company would report declining quarter-over-quarter U.S. sales for those three drugs and the wet macular degeneration treatment Lucentis.

STOCK PERFORMANCE: Shares of Genentech rose 2.4 percent during the quarter. Shares finished Friay's trading at $77.25.