Monday, Apr 4, 1994

Genentech to Provide Growth Hormone Products Through PCS Pharmacy Network

South San Francisco, Calif. -- April 4, 1994 --

Genentech, Inc. (NYSE: GNE) announced today that it has entered into an agreement with PCS Health Systems, Inc. to develop a new computerized managed care distribution system for Genentech's two human growth hormone products. The system should be operational later this year.

Under the new agreement, PCS will contract with its network of providers and develop financial arrangements to ensure cost-effective delivery of these growth hormone products to patients for whom it is medically necessary. PCS will develop software to continue to rigorously track the use of Protropin® (somatrem for injection) and Nutropin® (somatropin [rDNA origin] for injection) through its pharmacy networks.

"This PCS system will allow Genentech to work more effectively with managed care providers, an important customer segment already working extensively with PCS," said Edmon R. Jennings, Genentech's vice president of sales and marketing. "PCS's state-of-the-art computer system will also provide a tightly controlled distribution system capable of tracking the use of these drugs through its networks."

Because the PCS system makes it possible to both monitor and manage access to Nutropin and Protropin, Gententech can continue to limit their availability to those patients who have legitimate medical need for them.

PCS, headquartered in Scottsdale, Arizona, is the leading provider of prescription benefit management and other managed care services. In the current fiscal year, PCS will manage some 200 million prescriptions valued at about $6 billion. PCS is a subsidiary of McKesson Corp. (NYSE: MCK).

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

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