Biotech was the best performing industry in the US stocks in the second quarter of 2005, led by Genentech. The California Company became one of the world’s largest biotech firms after the success of its cancer-fighting drugs.

Shares in the Biotech Index rose 14.5% from April to June 2005, topping all other industry indices. The seven largest US biotechnology firms have overtaken the pharmaceutical industry’s 9.1% rise.

Genentech’s shares soared 41.8% in the quarter and are up more than 50% .The latest share price gives Genentech an $89bn market capitalization.

The success rests on four cancer drugs, Avastin, Herceptin, Rituxan, and Tarceva. Sales of the cancer drugs in the second quarter alone amounted to $919m, which was 76% of total US sales.

Tests on the breast cancer medicine Herceptin showed that it might prohibit tumours from returning after chemotherapy.

Sales of Avastin, a colon cancer drug approved by the FDA in February 2004, climbed 85% from 2004. Some doctors see it as a wonder drug, prescribing it for lung, kidney and breast cancer.