Thursday, Aug 4, 1994

Genentech Employee Indicted on Charges of Violating Medicare/Medicaid Anti-Remuneration Laws as a Result of Federal Investigation in Minnesota

Federal authorities in Minnesota say neither Genentech nor any other Genentech employees are expected to be indicted

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

Federal authorities in Minneapolis, Minnesota today announced the return of a 51-count indictment charging five individuals and Caremark Inc. with violations of the Medicare/Medicaid antiremuneration laws and other federal criminal statutes. Dr. David R. Brown, Caremark Inc. and several Caremark employees were indicted. Also named in three of the counts was Edmon R. Jennings, Vice President of Sales and Marketing at Genentech. Jennings, 47, has been with Genentech eight years. Federal authorities in Minneapolis have said that neither Genentech, Inc. nor any other Genentech employee is expected to be indicted in connection with this investigation.

After becoming aware of the investigation in Minnesota, Genentech contacted the federal authorities to cooperate, and has done so since then.

"Obviously we are very concerned about Ed's indictment," said G. Kirk Raab, President and CEO of Genentech. "He is a highly admired and valued executive who has contributed a great deal to our organization. We support Ed in his forthcoming effort to vindicate himself of the charges."

The indictment alleges that payments, including research grant payments, were made to a physician residing in Minneapolis to induce him to prescribe Protropin® human growth hormone. Caremark is a distributor of Protropin.

Due to the active nature of this proceeding, Genentech will not comment further at this time.

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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