Wednesday, Oct 20, 1982
South San Francisco, Calif. -- October 20, 1982 --A group of Swedish organizations has invested $20 million in the common stock of Genentech, Inc., a leading gene splicing company, it was announced today.
Robert A. Swanson, president of Genentech, said the Swedish investors purchased 571,428 shares in a private placement at $35 a share, equaling about 6.5 percent of Genentech's outstanding shares.
The Swedish investment group consists of Alfa Laval AB, which manufactures and markets process equipment, including separation and filtration systems for biotechnology; the Wallenberg Foundation, a private, philanthropic foundation supporting Swedish research and education; AB Fannyudde, an investment company affiliated with the Volvo group; and D. Carnegie & Co., a leading Swedish investment company.
Harry Faulkner, president and CEO of Alpha Laval, cited his firm's recognition of the potential impact of biotechnology on alpha Laval's key business areas, food, energy and agriculture as one factor leading to the share purchase. "We look forward to cooperative efforts with Genentech," he said.
Carnegie Fondkommission, a Carnegie subsidiary, assisted in the private placement. Swanson said, "This is further evidence of the confidence shown by the worldwide business community in recombinant DNA technology and in Genentech as a pioneer and leading company in the development of the technology. We welcome the participation of these organizations and expertise they bring toward the achievement of Genentech's goals."
Genentech's first human health care product and the first recombinant DNA product to become commercially available, human insulin, is being marketed by Eli Lilly and Company in the United Kingdom, where it was approved by regulatory agencies last month. The human insulin, under the trade name Humulin®, is being manufactured by Lilly under a license agreement from Genentech. Genentech is in the business of research, development, manufacturing and marketing recombinant DNA products for health care, agriculture and industrial chemical markets. A subsidiary, Genencor, which is co-owned with Corning Glass Works, is active in the field of industrial enzyme production.
Genentech's headquarters are at 460 Point San Bruno Boulevard, South San Francisco, CA 94080.