Thursday, Feb 14, 1985

Genentech Reports Substantial Increase in 1984 Revenues and Income

South San Francisco, Calif. -- February 14, 1985 --

Genentech, Inc. reported today that 1984 revenues and net income increased substantially over 1983.

Revenues for the fiscal year ending December 31, 1984 were $69.8 million, up 48% from $47.0 million in 1983. Net income was $2.7 million in 1984, or 19 cents per share, compared with $1.1 million, or 8 cents per share reported for the previous year.

Robert A. Swanson, chief executive officer, said: "We achieved our revenue goals. 1984 was our sixth consecutive year of profitability."

Operating revenue -- which includes contract research, licensing revenues and manufacture of clinical products for contract partners -- represented 94 percent of Genentech's 1984 revenues.

Fourth quarter revenues were $18.1 million in 1984, compared with $13.5 million in 1983. Fourth quarter net income was $612,000 or 4 cents per share, compared with $226,000 or 2 cents per share in 1983. As in the past, significant quarter-to-quarter income and revenue fluctuations may occur during 1985, due to variations in the timing of revenues for licensing and research benchmarks. These fluctuations have no impact on the company's long-term growth.

1984 was a year of major scientific achievements. Genentech announced three new products: Factor VIII, for treatment of cancer.

A private placement of $33.2 million of partnership interests was successfully competed. The partnership, Genentech Clinical Partners III, will conduct a research and development program to perform human clinical testing and development of TNF.

Genentech is a leading biotechnology company, focusing on the development, manufacture and marketing of pharmaceuticals 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 December 31,
	1984		1983
Revenues
Contract	$	5,182	$	-
Contract	17,155		18,909
Interest	979		1,779
Total revenues	18,134		25,870
Costs and expenses
Research and development	14,625		16,717
Marketing, general and administrative	2,831		6,612
Total costs and expenses	17,456		23,329
Income before taxes	678		2,541
Income tax provision	66		358
Net income	$	2,813	$	612
Net income per share	$	0.07	$	0.02
Weighted average number of shares used in    computing per share amounts:	28,791		32,829
	Twelve Months Ended December 31,
	1984		1983
Revenues
Contract	$	5,182	$	-
Contract	65,627		76,453
Interest	4,159		7,964
Total revenues	69,786		89,599
Costs and expenses
Research and development	54,892		64,895
Marketing, general and administrative	11,794		18,112
Total costs and expenses	66,776		83,007
Income before taxes	3,010		6,592
Income tax provision	290		984
Net income	$	5,608	$	2,720
Net income per share	$	0.18	$	0.09
Weighted average number of shares used in    computing per share amounts:	28,740		32,013