Genentech Reports Third Quarter Results

South San Francisco, Calif. -- October 30, 1984 -- Genentech, Inc. reported revenues of $19.1 million for the third quarter of 1984, up 50 percent from $12.7 million for the same period last year. Net income for the quarter ended September 30, 1984 was $1.1 million or 8 cents per share, compared to $340,000 or 2 cents per share for the third quarter of 1983.

"We're on target with our goals, and are making excellent progress with our products under development and in clinical research," said Robert A. Swanson, president and chief executive officer. "The third quarter increase reflects this continued growth, as well as a variability in the timing of product licensing and research benchmark achievements, which do not always fall neatly within quarterly reporting periods."

Nine month revenues for 1984 were $51.7 million, compared to $33.5 million for the same period of 1983. Nine month net income was $2.1 million or 15 cents per share, compared to $902,000 or 6 cents per share for the first nine months of 1983.

Operating revenue -- which includes contract research, licensing revenues and manufacture of product for clinical research -- represented 94 percent of total revenues for the nine month period.

Genentech, Inc. is a leading biotechnology company, focusing on the development, manufacture and marketing of pharmaceutical products produced by recombinant DNA technology.

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GENENTECH, INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share amounts)
(unaudited)

	Three Months Ended September 30,

	1984		1983
Revenues
Contract	$	18,059	$	11,422
Interest	1,030		1,326
Total revenues	19,089		12,748

Costs and expenses
Research and development	14,765		9,762
Marketing, general and administrative	3,133		2,544
Total costs and expenses	17,898		12,306

Income before taxes	1,191		442
Income tax provision	93		102

Net income	$	1,098	$	340

Net income per share	$	0.08	$	0.02

Weighted average number of shares used in computing per share amounts:	14,380		14,325

	Nine Months Ended September 30,

	1984		1983
Revenues
Contract	$	48,472	$	30,151
Interest	3,180		3,390
Total revenues	51,652		33,541

Costs and expenses
Research and development	40,357		26,067
Marketing, general and administrative	8,963		6,310
Total costs and expenses	49,320		32,377

Income before taxes	2,332		1,164
Income tax provision	224		262

Net income	$	2,108	$	902

Net income per share	$	0.15	$	0.06

Weighted average number of shares used in computing per share amounts:	14,362		14,099