2001 was a strong year for Genentech on many fronts, with one new product approved, four new projects added to our pipeline, 10 projects in late-stage development, and the foundation in place to begin preparations for the greatest commercialization phase in the history of the company. We hit two significant milestones in 2001, surpassing $2 billion in total revenues and $1 billion in oncology sales.

On the financial front, we had strong top-line and bottom-line growth in 2001, with total revenues growing 27 percent(1), product sales growing 36 percent and earnings-per-share(2) growing 25 percent(1). Our fundamentals remain strong and we continue to make progress towards the 5X5 goals, our five-year plan running through 2005. I’m proud to say that Genentech continues to deliver on the promise of biotechnology.

While we made significant progress on several of our late-stage clinical programs, we did encounter regulatory delays with two of our programs—Xolair for adult allergic asthma and Xanelim for moderate-to-severe psoriasis. These programs required additional clinical work in order to complete their submissions but in each case we are working closely with the U.S. Food and Drug Administration (FDA) to help assure that ultimate filing packages will support approval. We are fully committed to these products and expect to file a Biologics License Application (BLA) for Xanelim and an amended BLA for Xolair with the FDA in 2002.

Financial Performance
In 2001, we made excellent progress toward our longer-term growth and financial targets in the 5X5 plan. Our earnings goal is average annual EPS growth of 25 percent(1) during that period, and we were right on track in 2001 and in fact have averaged 30 percent(1) over the past three years. The possibility of multiple product launches in 2003 would put us ahead of our 5X5 goal of five new products or indications approved by 2005, as we have already averaged a product launch every year since 1999. In fact, we have averaged a product launch every year since 1996.