Genentech Reports First Quarter Results

South San Francisco, Calif. -- April 16, 1993 -- Genentech, Inc. (NYSE: GNE) announced today that earnings for the first quarter of 1993 increased to $14.3 million, or 12 cents per share, from $3.5 million, or 3 cents per share, in the same quarter of 1992. Revenues for the first quarter of 1993 were $153.0 million, up from $129.0 million in the same quarter of 1992, an increase of 19 percent. This increase was due to higher product sales, royalty income, and contract revenues.

"These financial results are very good, but even more important is our filing for approval to market Pulmozyme in the United States, Europe and Canada in less than 5 years from identifying the scientific idea," said G. Kirk Raab, Genentech's president and chief executive officer. "This achievement is testimony to what can be accomplished through excellent science conducted by dedicated people."

In line with the company's continued strong investment in research and development (R&D) Genentech's R&D expenses in the first quarter of 1993 increased to $74.2 million from $66.0 million in the first quarter of 1992.

Marketed Products

Protropin® (somatrem for injection) human growth hormone sales in the first quarter of 1993 increased 8 percent to $52.2 million from $48.4 million in the first quarter of 1992. Genentech believes the sales growth of Protropin is due to an increased number of patients diagnosed with growth hormone inadequacy.

Net sales of Activase® (Alteplase, recombinant) t-PA for the first quarter of 1993 increased 11 percent to $49.2 million from $44.5 million in the first quarter of 1992. As part of the completion of the GUSTO (Global Utilization of Streptokinase and t-PA for Occluded Coronary Arteries) trial in February of 1993 the number of patients in the commercial market increased in the first quarter of 1993 versus the first quarter of 1992.

The recently completed international 41,000-patient GUSTO trial was undertaken to determine whether rapid and sustained patency (opening) of blocked coronary arteries can increase patient survival. GUSTO compared the mortality of heart attack patients treated with Activase, streptokinase or a combination of the two drugs in conjunction with the anticoagulation therapy most frequently used in the United States. The results of GUSTO will be reported April 30 at an American Federation of Clinical Research Meeting in Washington, D.C.

Sales for Actimmune® (interferon gamma-1b) in the first quarter of 1993 increased to $1.3 million from $0.6 million in the first quarter of 1992. This increase is due primarily to sales of interferon gamma to licensee Boehringer Ingelheim, which received approval to market interferon gamma for treating chronic granulomatous disease in 11 countries in Europe, Africa and South America. Overall sales remain modest due to the very small number of patients with chronic granulomatous disease.

Clinical Development Products

Important progress was made in Genentech's pipeline in the first quarter of 1993:

Genentech filed for approval to market Pulmozyme for treating cystic fibrosis in the United States, Canada and Europe. A 968-patient Phase III clinical trial of Pulmozyme for treating cystic fibrosis, completed in 1992, demonstrated Pulmozyme reduces the rate of respiratory infection and improves lung function in patients with cystic fibrosis. No major adverse effects were noted. Approximately 53,000 people in the United States, Canada and Europe have cystic fibrosis.
Genentech began Phase III clinical trials with Actimmune for treating renal cell carcinoma, cancer of the kidneys.
The company began Phase II trials with humanized HER2 monoclonal antibody in women with advanced breast cancer.
Genentech began Phase II trials with gp120 as a therapeutic for HIV-infected individuals and the National Institutes of Health began Phase II trials with gp120 as an HIV prophylactic vaccine in a diverse population of uninfected volunteers.

In addition, as part of Genentech's continued commitment to cystic fibrosis, the company entered into an agreement with GenVec, Inc. a company developing gene therapy techniques, to license all of its cystic fibrosis gene therapy products in all relevant markets. Genentech may make a future equity investment in the company.

Genentech, Inc. is a leading biotechnology company that discovers, develops, manufactures and markets human pharmaceuticals for significant medical needs. The company has headquarters in South San Francisco, California and is traded on the New York and Pacific Stock exchanges under the symbol GNE.

# # #

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

	Three Months Ended March 30,

	1993		1992
Revenues
Product sales	$	102,658	$	93,525
Royalties	29,342		21,752
Contract and other	10,529		1,848
Interest	10,468		11,889
Total revenues	152,997		129,014

Costs and expenses
Cost of sales	16,599		16,366
Research and development	74,222		65,987
Marketing, general and administrative	46,503		41,659
Interest	1,339		1,268
Total costs and expenses	138,663		125,280

Income before taxes	14,334		3,734
Income tax provision	-		197

Net income	$	14,334	$	3,537

Net income per share	$	0.12	$	0.03

Weighted average number of shares used in computing per share amounts:	115,827		112,961

	March 30,
	1993		1992
Selected balance sheet data
Cash and short-term investments	$	431,767	$	435,323
Accounts receivable	103,013		81,343
Inventories	67,511		55,195
Long-term marketable securities	227,147		247,699
Property, plant and equipment, net	445,645		362,814
Other long-term assets	45,360		38,386
Total assets	1,344,854		1,233,622
Total current liabilities	144,934		111,529
Long-term debt	151,831		152,570
Total liabilities	309,684		276,301
Total stockholders' equity	1,035,170		957,321