Genentech Reports Third Quarter Results

South San Francisco, Calif. -- October 24, 1985 -- Genentech, Inc. reported revenues of $22.2 million for the third quarter of 1985, compared to $19.1 million for the same period last year.

Net income for the quarter ended September 30, 1985 was $1.6 million or 10 cents per share, compared to $1.1 million or 8 cents per share for the third quarter of 1984.

Nine month revenues for 1985 were $63.7 million, compared to $51.7 million for the same period of 1984. Nine month net income was $3.4 million or 22 cents per share, compared to $2.1 million or 15 cents per share for the first nine months of 1984.

"Protropin growth hormone was approved for marketing last week by the Food and Drug Administration," reported Robert A. Swanson, chief executive officer. "Protropin is the first biosynthetic pharmaceutical to be developed, manufactured and marketed in the U.S. by a biotechnology firm."

Genentech's clinical program for its other priority products was expanded recently with the commencement of human clinical testing of tumor necrosis factor (TNF). The seventh Genentechdeveloped product to enter human clinical trials, TNF is being tested as a potential anti-cancer treatment at two leading U.S. cancer research hospitals.

Clinical trials on gamma interferon and ACTIVASE™, Genentech's tissue plasminogen activator (t-PA) are continuing. To date, more than 700 patients have been treated with ACTIVASE, used to dissolve life-threatening blood clots. The manufacturing scaleup of ACTIVASE was recently completed and the company is now producing product at the scale which will be used when the product is marketed.

Additionally, the results of the first human clinical tests of Genentech's hepatitis-B vaccine conducted by the Natlonal Institutes of Health (NIH) were announced recently. In a statement to the press, the NIH said the vaccine, produced by recombinant DNA technology, was "as safe as the currently licensed vaccine and even more effective in stimulating the immune system."

Genentech is a leading biotechnology company focusing on the development, manufacture and marketing of pharmaceuticals 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,

	1985		1984
Revenues
Contract	$	19,727	$	18,059
Interest	2,426		1,030
Total revenues	22,153		19,089

Costs and expenses
Research and development	16,065		14,765
Marketing, general and administrative	4,182		3,133
Total costs and expenses	20,247		17,898

Income before taxes	1,906		1,191
Income tax provision	297		93

Net income	$	1,609	$	1,098

Net income per share	$	0.10	$	0.08

Weighted average number of shares used in computing per share amounts:	16,381		14,380

	Nine Months Ended September 30,

	1985		1984
Revenues
Contract	$	57,544	$	48,472
Interest	6,185		3,180
Total revenues	63,729		51,652

Costs and expenses
Research and development	48,178		40,357
Marketing, general and administrative	11,500		8,963
Total costs and expenses	59,678		49,320

Income before taxes	4,051		2,332
Income tax provision	626		224

Net income	$	3,425	$	2,108

Net income per share	$	0.22	$	0.15

Weighted average number of shares used in computing per share amounts:	15,869		14,362