GENENTECH FAST FACTS

Genentech is a leading biotechnology company that discovers, develops, manufactures and commercializes biotherapeutics for significant unmet medical needs. Eighteen of the currently approved biotechnology products originated from or are based on Genentech science. Genentech manufactures and commercializes 12 biotechnology products in the United States. The company has headquarters in South San Francisco, California, and is traded on the New York Stock Exchange under the symbol DNA.

Founders and Date of Incorporation: Robert Swanson and Dr. Herbert Boyer founded Genentech on April 7, 1976.

Financial Highlights from 2003 (in millions, except per share amounts)

Total Operating Revenues (GAAP): $3,300.2
Total Operating Revenues (Non-GAAP): $3,300.2

Product Sales (GAAP): $2,621.4
Product Sales (Non-GAAP): $2,621.4

Net Income (GAAP): $562.5
Net Income (Non-GAAP): $634.9

Total Costs and Expenses (GAAP): $2,454.4
Total Costs and Expenses (Non-GAAP): $2,495.6

Diluted Earnings Per Share (GAAP): $1.15
Diluted Earnings Per Share (Non-GAAP): $1.20

Cash and Short-Term Investments: $2,934.7

Research & Development (R&D) expenses: $722.0

R&D expenses as a % of revenue: 22%

Employees

Number of Full- and Part-Time Employees Company-Wide: 6,500

Number of Full- and Part-Time Employees in California: 5,600

Recent and Expected Growth

Genentech’s growth has been substantial in the past year, with more than 1,900 employees hired in 2003, and 1,500 more new hires expected in 2004.

In addition, on April 1, 2004, Genentech announced the planned expansion of its biotechnology manufacturing site in Vacaville, California. The nearly $600 million expansion will include three new buildings totaling 380,000 square feet and will be configured with 8 X 25,000 liter fermenters. The facility will employ approximately 575 new employees, doubling the number of employees at the site. Combined with Genentech’s existing 427,000 square foot manufacturing facility, the Vacaville site will be the largest biotechnology manufacturing facility in the world. Construction of the facility will begin later this year and it is expected to be operational in 2009.

According to statistics provided by Regional Economic Models, Inc. (REMI), the construction of this new manufacturing facility will produce more than 5,600 jobs, including construction workers, architects, accountants, etc. On an annual basis, the facility is expected to generate nearly $20 million in revenues for the state of California. These are direct and indirect revenues and include property tax, sales tax, individual income tax, corporate income tax and smaller revenue sources as well.

Charitable Giving and Community Commitment

An essential cornerstone of Genentech's corporate responsibility is its commitment to the community. Genentech demonstrates this commitment by providing charitable support to non-profit organizations working in the areas of healthcare and science in which Genentech is involved; being active in the local communities where we do business; making our marketed products available to qualified uninsured or underinsured patients in the United States; supporting the charitable interests of our employees; and providing an inroad for diverse students to gain access to the biotechnology industry.

Consistent with our mission of addressing unmet medical needs, Genentech has provided more than $18 million to nonprofit organizations in the last four years through its Corporate Contributions program and by supporting the Genentech Foundation for Biomedical Sciences.

Since 1996, the Genentech Foundation for Biomedical Sciences, an independent foundation, has awarded nearly $6 million to organizations in the San Francisco Bay Area that share the Foundation’s commitment to supporting innovative science programs for local students.

Products

Since the company was founded in 1976, Genentech has focused its drug discovery efforts on therapies that would fill unmet medical needs. Today, Genentech manufactures and commercializes 12 protein-based biotherapeutics for serious or life-threatening medical conditions – giving Genentech one of the leading product portfolios in the biotech industry.

• Herceptin® (Trastuzumab) for first line therapy in combination with paclitaxel and as a single agent in second and third line therapy for patients with metastatic breast cancer who have tumors that overexpress the HER2 (human epidermal growth factor receptor2) protein


• Rituxan® (Rituximab) for the treatment of patients with relapsed or refractory low-grade or follicular, CD20 positive, B-cell non-Hodgkin’s lymphoma


• Avastin™ (bevacizumab) for use in combination with 5-Fluorourcil-based chemotherapy in the treatment of first-line metastatic cancer of the colon or rectum


• Xolair® (Omalizumab) for Subcutaneous Use for the treatment of moderate-to-severe persistent asthma in adults and adolescents


• RAPTIVA™ (efalizumab) for the treatment of chronic moderate-to-severe plaque psoriasis in adults age 18 or older who are candidates for systemic therapy or phototherapy


• TNKaseä (Tenecteplase), a single-dose clot-busting agent for the treatment of acute myocardial infarction (heart attack)


• Activase® (Alteplase, recombinant), a tissue-plasminogen activator to dissolve blood clots, for treating patients with acute myocardial infarction, patients with acute massive pulmonary embolism (blood clots in the lungs), and for treating patients with acute ischemic stroke (brain attack) within the first three hours of symptom onset


• Cathflo™ Activase® (Alteplase), a thrombolytic agent for the restoration of function to central venous access devices


• Nutropin AQ® [somatropin (rDNA origin) injection], a liquid formulation of Nutropin for the same indications as Nutropin


• Nutropin AQ Pen® for use with Nutropin AQ Pen™ Cartridge, a delivery device for Nutropin AQ®


• Nutropin® [somatropin (rDNA origin) for injection] human growth hormone for treating GHD, for treating growth failure due to chronic renal insufficiency prior to kidney transplantation, and for treating short stature associated with Turner syndrome


• Protropin® (somatrem for injection) growth hormone also for the treatment of GHD in children


• Pulmozyme® (dornase alfa, recombinant) Inhalation Solution, the first new therapeutic approach for cystic fibrosis in more than 30 years.

Pipeline

Genentech’s development pipeline has never been more productive and promising with approximately 20 projects targeting a range of disease areas across all phases of clinical development. More than half of Genentech’s pipeline is composed of therapeutic antibodies—an area in which Genentech continues to lead the industry.

Last Updated: June 2004