Tuesday, Oct 30, 1984

Genentech Reports Third Quarter Results

South San Francisco, Calif. -- October 30, 1984 --

Genentech, Inc. reported revenues of $19.1 million for the third quarter of 1984, up 50 percent from $12.7 million for the same period last year. Net income for the quarter ended September 30, 1984 was $1.1 million or 8 cents per share, compared to $340,000 or 2 cents per share for the third quarter of 1983.

"We're on target with our goals, and are making excellent progress with our products under development and in clinical research," said Robert A. Swanson, president and chief executive officer. "The third quarter increase reflects this continued growth, as well as a variability in the timing of product licensing and research benchmark achievements, which do not always fall neatly within quarterly reporting periods."

Nine month revenues for 1984 were $51.7 million, compared to $33.5 million for the same period of 1983. Nine month net income was $2.1 million or 15 cents per share, compared to $902,000 or 6 cents per share for the first nine months of 1983.

Operating revenue -- which includes contract research, licensing revenues and manufacture of product for clinical research -- represented 94 percent of total revenues for the nine month period.

Genentech, Inc. is a leading biotechnology company, focusing on the development, manufacture and marketing of pharmaceutical products 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,

1984 1983
Revenues
   Contract $ 18,059 $ 11,422
   Interest 1,030 1,326
      Total revenues 19,089 12,748
     
Costs and expenses
   Research and development 14,765 9,762
   Marketing, general and administrative 3,133 2,544
      Total costs and expenses 17,898 12,306
     
Income before taxes 1,191 442
Income tax provision 93 102
     
Net income $ 1,098 $ 340
     
Net income per share $ 0.08 $ 0.02
     
Weighted average number of shares used in
   computing per share amounts:
14,380 14,325
 
Nine Months
Ended September 30,

1984 1983
Revenues
   Contract $ 48,472 $ 30,151
   Interest 3,180 3,390
      Total revenues 51,652 33,541
     
Costs and expenses
   Research and development 40,357 26,067
   Marketing, general and administrative 8,963 6,310
      Total costs and expenses 49,320 32,377
     
Income before taxes 2,332 1,164
Income tax provision 224 262
     
Net income $ 2,108 $ 902
     
Net income per share $ 0.15 $ 0.06
     
Weighted average number of shares used in
   computing per share amounts:
14,362 14,099