Wednesday, Nov 30, 1994

Judge Finds Growth Hormone Patent Infringement by Novo-Nordisk and BTG; Recommends Dismissal of Complaint On Technicality

Genentech will appeal recommendation and sue in federal court

South San Francisco, Calif. -- November 30, 1994 --

Genentech, Inc. (NYSE: GNE) today announced that the Administrative Law Judge of the United States International Trade Commission (ITC) has determined that both Novo-Nordisk and Bio-Technology General Corporation (BTG) infringe certain Genentech process patents covering recombinant human growth hormone. The Administrative Law Judge recommended to the full Commission that the case be dismissed due to a technicality.

Genentech will file a petition for review by the ITC. The recommendation by the Administrative Law Judge is an initial determination and subject to review by the Commissioners of the ITC. A final decision by the ITC is expected by the end of March 1995. Furthermore, Genentech intends to file suit in federal district court against Novo-Nordisk and BTG based on the Administrative Law Judge's determination of patent infringement.

The Administrative Law Judge recommended dismissal as a sanction because Genentech delayed in providing certain documents to Novo-Nordisk and BTG. Genentech did not produce the documents initially because it believed the they were protected by the attorney-client privilege. Further, Genentech does not believe that the documents are material to the issue of patent infringement. However, the Administrative Law Judge thought that the documents should have been produced earlier and recommended dismissal as a sanction.

"We are pleased with the Administrative Law Judge's finding that Novo-Nordisk and BTG infringe our patents". said Stephen Raines, Ph.D., Genentech Vice President of Intellectual Property. "However, the Judge's recommendation to dismiss the case on what amounts to a technicality is disappointing. The Judge was allowed additional time to consider all the evidence, including the disputed documents, before him. intend to appeal to the full Commission the Judge's recommendation to dismiss and believe that it is inappropriate under the ITC's own rules, " said Raines.

Genentech, Inc. is a biotechnology company involved in the research, development and manufacture of human pharmaceuticals that meet significant unmet medical needs. The company remains committed to providing its product to patients who need them regardless of their ability to pay. In fact, since the creation of its Uninsured Patients Program in 1985, Genentech has supplied more than $130 million of Protropin and Nutropin free to growth deficient children.

Genentech has headquarters in South San Francisco and is traded on the New York and Pacific Stock Exchanges under the symbol GNE.

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