Wednesday, Jan 19, 1994

Settlement Reached in Factor VIII Litigation Involving Genentech, Miles, The Scripps Research Institute and Rhone-Poulenc Rorer

South San Francisco, Calif. -- January 19, 1994 --

Following the settlement reached by Genentech Inc., Miles, Inc., The Scripps Research Institute and Rhone-Poulenc Rorer Inc., the United States District Court for the Northern District of California formally dismissed with prejudice a longstanding patent lawsuit concerning recombinant-DNAand plasma- derived human Factor VIII. The product is a protein associated with human blood clotting and the treatment of hemophilia.

The patent infringement suit began in 1983 when Genentech and Miles were sued by Rhone-Poulenc Rorer's predecessor, Rorer Group, Inc. and The Scripps Research Institute. Rorer charged that the other companies' blood clotting factors violated the Scripps patent that was licensed exclusively to Rorer.

Genentech's involvement in the now terminated litigation related only to its development of recombinant-human Factor Vl11, which it exclusively licensed to Farbenfabriken Bayer Gmbh, the parent of Miles which markets the product under the trademark, Kogenate®.

"The outcome of this long-awaited settlement is that Genentech would now be receiving increased royalties; not only from sales of Kogenate by its exclusive licensee, Miles, but also from recombinant-human Factor VlII supplied by Miles to Rhone-Poulenc Rorer," said Dr. Stephen Raines, vice president of Intellectual Property. "Since both Miles and Rhone-Poulenc Rorer are major suppliers of Factor VIII in the market place, Genentech should benefit significantly."

Genentech, Inc. is a leading biotechnology company that discovers, develops, manufactures and markets human pharmaceuticals for significant medical needs. The company has headquarters in South San Francisco, California and is traded on the New York and Pacific Stock Exchanges under the symbol GNE.

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