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2000 Annual Report


  
A New Beginning Severe asthma has kept Drew Williams from participating in most school outings and physical activities since early childhood. For the past 2 1/2 years, Drew has received the monoclonal antibody Xolair as part of a clinical study. Healthier and more active than ever, Drew has been able to stop all his other medications, except for the occasional use of an inhaler.

Xolair is being developed by Genentech and partners Novartis Pharmaceuticals Corporation and Tanox, Inc.

A New World of Opportunity Emerges From the beginning of its existence, Genentech has recognized the value of strategic partnerships. The company joined forces with Eli Lilly and Company in 1978 (licensing to Lilly the rights to market recombinant human insulin), and since then has formed hundreds of alliances that span all areas of the business — from basic research and clinical development to manufacturing and commercialization. Partnerships, alliances and acquisitions have been identified as key strategies and drivers of future growth.

Genentech's considerable assets make it a valuable ally, as does the ability to design and implement collaborations that fit the situation rather than adhere to a single, rigid business model. Over the years, Genentech has also become more adept at identifying unique opportunities offered by teaming up with partners whose strengths complement its own. A successful partnership with IDEC Pharmaceuticals Corporation, which resulted in the 1997 launch of the breakthrough biooncology drug Rituxan, is representative of a true collaborative effort — one that benefited both companies and facilitated the delivery of a much-needed therapy to patients.

When it comes to partnerships in the area of development, Genentech's pipeline says it all: of the 20 projects in its pipeline, 15 are evolving through collaborations with other companies. One exciting product poised to emerge from the pipeline is Xolair, an anti-IgE monoclonal antibody therapy with the potential to reduce asthma exacerbations and control the symptoms of seasonal allergic rhinitis, reducing the need for corticosteroids and improving the patient's quality of life. Genentech is developing this product with partners Novartis Pharmaceuticals Corporation and Tanox, Inc. and will commercialize the product in the United States with Novartis.


 
Abgenix, Inc.  •  Actelion Ltd.  •  Alkermes, Inc.  •  Aventis S.A.  •  Boehringer Ingelheim International GmbH  •  Cambridge Antibody Technology Ltd.  •  COR Therapeutics, Inc. & Schering-Plough Corporation  •  CuraGen Corporation  •  DAKO  •  IDEC Pharmaceuticals Corporation  •  Immunex Corporation  •  ImmunoGen, Inc.  •  Incyte Genomics, Inc.  •  Inspire Pharmaceuticals, Inc.  •  InterMune Pharmaceuticals, Inc.  •  Millennium Pharmaceuticals, Inc.  •  Novartis Pharmaceuticals Corporation & Tanox, Inc.  •  OSI Pharmaceuticals, Inc.  •  Pharmacia Corporation  •  Roche  •  Schwarz Pharma AG  •  Seattle Genetics, Inc.  •  Sumitomo Pharmaceuticals Corporation  •  UroGenesys, Inc.  •  XOMA Ltd.

 
A number of other collaborative efforts moved forward in 2000. XOMA Ltd. initiated and completed enrollment in a Phase I/II clinical study of Xanelim anti-CD11a antibody in the prevention of kidney transplant rejection, and completed enrollment in two Phase III studies of Xanelim in psoriasis. Under an innovative deal structure, Genentech and XOMA are working together to develop this antibody. Also, partner Millennium Pharmaceuticals, Inc. announced encouraging Phase I/II clinical trial results for LDP-02 in treating inflammatory bowel disease.

Genentech entered into several new strategic alliances in 2000 and early 2001 that augment its focus areas of cardiovascular medicine and oncology. The company entered into two separate agreements with Actelion Ltd. for the development and copromotion of tezosentan, for the potential treatment of acute heart failure, and Tracleer (bosentan), for the potential treatment of pulmonary hypertension and acute and chronic heart failure. Genentech and Roche entered into agreements for the global codevelopment and commercialization of OSI Pharmaceuticals' lead anti-cancer drug, OSI-774, which is now in Phase II clinical studies for non-small cell lung, head and neck, and ovarian cancers.

More collaborations are on the horizon. Recent success in sequencing the human genome is changing the landscape of drug discovery and development, and Genentech is cultivating key partnerships in this area to enhance its already strong position.