Monday, Apr 18, 1988

Genentech Reports First Quarter Earnings

South San Francisco, Calif. -- April 18, 1988 --

Genentech, Inc. (NYSE:GNE) reported revenues of $74.4 million for the first quarter of 1988, up 93 percent from $38.6 million for the same period last year. Product sales increased to $63.5 million for the quarter.

Net income for the quarter ended March 31, 1988 was $15.2 million or 18 cents per share compared to $4.5 million or 6 cents per share for the first quarter of 1987.

"This quarter's growth was fueled by the steady increase in Protropin® usage and strong physician support for Activase®," said Robert A. Swanson, chief executive officer. "At the beginning of the quarter, approximately 1,000 patients per week were receiving Activase for the treatment of heart attacks. By the end of the quarter, that number had doubled.

"We are pleased by the exceptional clinical effectiveness of Activase, as demonstrated in studies presented at the recent national meeting of the American College of Cardiology," Swanson added.

Genentech, Inc. is a leading biotechnology company, focusing on the development, manufacture, and marketing of pharmaceuticals produced by recombinant DNA technology. Protopin and Activase are Genentech's registered trademarks for its growth hormone for children with growth hormone deficiency, and tissue plasminogen activator, or t-PA, a blood clot-dissolving agent used in treating heart attacks.

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(in thousands, except per share amounts)

Three Months
Ended March 31,

1988 1987
Product sales $ 63,521 $ 16,510
Contract 7,922 20,435
Interest 2,981 1,661
Total revenues 74,424 38,606
Costs and expenses
Cost of sales 9,304 2,622
Research and development 26,381 21,835
Marketing, general and administrative 18,750 9,141
Interest 2,093 324
Total costs and expenses 56,528 33,922
Income before taxes 17,896 4,684
Income tax provision 2,685 140
Net income $ 15,211 $ 4,544
Net income per share $ 0.18 $ 0.06
Weighted average number of shares used in
computing per share amounts:
85,074 82,563