Tuesday, Jan 17, 1995

ITC Votes Not to Review Judge's Decision

Genentech Proceeds With Suit Against Novo-Nordisk and BTG in Federal Court

South San Francisco, Calif. -- January 17, 1995 --

Genentech, Inc. (NYSE: GNE) today announced that the International Trade Commission (ITC) voted not to review the ruling by its Administrative Law Judge that Genentech's case against Novo-Nordisk and Bio-Technology General Corporation (BTG) be dismissed. The ITC took no position on the ITC Judge's findings that certain Genentech patents were valid and infringed by Novo-Nordisk and BTG. Genentech is considering an appeal of the ITC decision to the Court of Appeals for the Federal Circuit.

On December 1, 1994, Genenech filed suit in federal district court against Novo-Nordisk and BTG. Although the ITC Judge's findings did not take into account certain documents, Genentech is confident that these documents will not affect the outcome of the case in federal court. Those same documents were made available to Eli Lilly and Company prior to its decision to settle with Genentech for $145 million in addition to future payments. Patents at issue in the ITC case involve two of the three technologies that were at issue in the Lilly litigation.

"The ITC Judge's findings of infringement by Novo-Nordisk and BTG and the recent settlement with Lilly support Genentech's patent position, and we are confident in a favorable ruling in federal court," said Stephen Raines, Ph.D., Genentech vice president, Intellectual Property.

On November 30, the ITC 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 then and continues to believe that they were protected by the attorney-client privilege. Genentech does not believe that the documents are material to the issue of patent infringement. However, the ITC Judge thought that the documents should have been produced earlier and recommended dismissal as a sanction.

Genentech, Inc. is a biotechnology company involved in the research, development, manufacture and marketing of human pharmaceuticals that meet significant unmet medical needs. The company remains committed to providing its products 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® (somatrem for injection) and Nutropin® (somatropin rDNA origin for injection) free to growth deficient children in the United States.

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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