Friday, May 4, 2001

Genentech Wins Patent Dispute With GlaxoSmithKline

South San Francisco, Calif. -- May 4, 2001 --

Genentech, Inc. (NYSE: DNA) today announced that a federal jury in Delaware unanimously found that Genentech's two leading oncology products, Herceptin® (Trastuzumab) and Rituxan® (Rituximab), do not infringe patents held by GlaxoSmithKline and therefore that Genentech is not required to pay royalties to GlaxoSmithKline on those products. The jury also unanimously found that all of the patent claims that GlaxoSmithKline asserted against Genentech were invalid.

"We are very pleased with the verdict," said Arthur D. Levinson, Ph.D., chairman and chief executive officer at Genentech. "We made our case successfully that GlaxoSmithKline's technology played no role in the development of Herceptin and Rituxan, and that GlaxoSmithKline's patent claims are invalid because Genentech scientists and others working in the field earlier developed the very technology that GlaxoSmithKline was claiming as its own."

GlaxoSmithKline filed its lawsuit against Genentech on May 28, 1999 and asserted that Genentech infringed four U.S. patents owned by GlaxoSmithKline. Two of the patents related to the use of specific kinds of antibodies for the treatment of human disease, including cancer. The other two patents asserted against Genentech related to preparations of specific kinds of antibodies to make them more stable and the methods by which such preparations are made. The trial began on April 16, 2001 and the jury began its deliberations on May 2, 2001. Genentech was successfully represented by Leora Ben-Ami, Patricia Carson, Thomas Fleming, James Ringer, Kenneth Gallo and other attorneys from the New York office of Clifford Chance Rogers & Wells, and by Philip Rovner from the Wilmington, Delaware office of Potter Anderson & Corroon.

Genentech, Inc. is a leading biotechnology company that discovers, develops, manufactures, and markets human pharmaceuticals for significant unmet medical needs. Fourteen of the currently approved biotechnology products stem from Genentech science. Genentech markets nine biotechnology products directly in the United States. The company has headquarters in South San Francisco, California, and is traded on the New York Stock Exchange under the symbol DNA.

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