Thursday, Jul 19, 1984

Genentech, Inc. Reports Second Quarter Results

South San Francisco, Calif. -- July 19, 1984 --

Genentech, Inc. reported revenues of $17.3 million for the second quarter of 1984, up 57 percent from $11 million for the same period last year.

Net income for the quarter ended June 30, 1984 was $625,000 or 4 cents per share, compared to $332,000 or 2 cents per share for the second quarter of 1983.

Six month revenues for 1984 were $32.6 million, compared to $20.8 million for the same period last year. Six month net income was $1,010,000 or 7 cents per share compared to $562,000 or 4 cents per share for the first half of 1983.

Operating revenue, which includes contract research, licensing revenues and product sales for clinical use, represented over 90 percent of total revenues for the quarter.

"This was a very productive quarter for the company, particularly in research and development," said Robert A. Swanson, president and chief executive officer. "Genentech announced two scientific breakthroughs: the production by recombinant DNA technology of Factor VIII, a blood-clotting agent for treating hemophilia; and the production of recombinant lymphotoxin, an anticancer agent normally produced in minute quantities by the body's immune system."

Other products under development and in clinical trials include human growth hormone, for the treatment of short stature due to growth hormone deficiency; gamma interferon for anticancer and antiviral indications; tissue-type plasminogen activator for dissolving blood clots in victims of heart attacks; and bovine interferons for the treatment of Bovine Respiratory Disease ("shipping fever").

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

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(in thousands, except per share amounts)

Quarter Ended June 30 1984 1983
Revenues $ 17,269 $ 10,968
Net income 625 332
Share earnings:    
   Net income 0.04 0.02
Average shares 14,363 14,166
Six Months Ended June 30 1984 1983
Revenues $ 32,563 $ 20,793
Net income 1,010 562
Share earnings:    
   Net income 0.07 0.04
Average shares 14,353 13,984