Genentech has the biotechnology industry's most extensive track record in all phases of bringing new disease treatments to patients — from discovery research through development, commercialization and product operations. With multiple protein-based products on the market for serious or life-threatening medical conditions, Genentech has experience taking a drug from A to Z, transforming the seed of an idea in a lab into a novel therapy for patients in need.

Discovery Research For more than 30 years, Genentech has been dedicated to rigorous and groundbreaking science. Genentech's Research department aims to strike a balance between basic biomedical research and translational research aimed at developing therapies for unmet medical needs. The company also explicitly fosters individual creativity and initiative among its researchers, encouraging scientists to pursue projects of interest in addition to working towards the company's goals. As a result, our more than 900 scientists have consistently published important papers in prestigious peer-reviewed journals. Genentech's Research organization combines the best of the academic and corporate worlds, allowing researchers not only to pursue important scientific questions but also to watch an idea move from the laboratory into clinical development.

Oncology remains the major focus of Genentech's research organization, with our scientists working to characterize tumor antigens that may be useful in fighting various forms of cancer as well as expanding our expertise about the HER pathway, angiogenesis, and apoptosis. In addition, immunology is increasingly becoming an important focus for Genentech researchers. The range of diseases involving the immune and inflammatory cells is immense, and there is a pressing need for safer and more effective therapies. Our third area of focus is disorders tissue growth and repair. Researchers at Genentech are working to identify and characterize the genes that govern vascular development and functions in order to find possible applications to medicine.

In March 2008, the research organization also announced the initiation of early efforts in two new therapeutic areas: neuroscience and infectious disease.

Development Genentech uses an extensive set of criteria, including scientific rationale and medical need, to determine which projects to move from discovery research into development. Our clinical scientists and medical professionals then perform the essential role of translating basic science into patient benefit. They help Genentech determine which potential new drugs are tested against specific diseases in the clinic and guide chosen drug candidates through the many phases of clinical testing. Genentech is dedicated to evaluating its therapies in rigorous randomized trials. Our approach is to put a drug candidate through tough clinical testing in order to demonstrate its potential benefit as a therapeutic.

Genentech reinvested more than $2.4 billion into research and development in 2007 on a GAAP basis, approximately 21 percent of its operating revenues — significantly more than the pharmaceutical industry average. To balance resource use with the strongest likelihood of success, Genentech continuously evaluates its pipeline products in order to determine which are the most promising projects to move through the many phases of clinical testing. Genentech's development pipeline continues to grow, now numbering more than 100 projects in our therapeutic focus areas. The pipeline includes both breakthrough innovations and new indications for existing, well-understood products that may fight more than one disease or more than one form of a disease.

Manufacturing Genentech was the first biotechnology company to scale up protein manufacturing successfully from the small quantities used for research to the much larger quantities needed for clinical trials and marketing. Today Genentech is a world leader in biologics manufacturing, with more FDA-approved manufacturing capacity for the production of biotech medicines than any other company. Over the last two decades, Genentech has built world-class production facilities, developed expertise in commercially viable manufacturing processes, and also attracted and retained key personnel with experience in all aspects of large-scale biologics manufacturing.

Genentech currently has three manufacturing facilities in California (South San Francisco, Vacaville and Oceanside). In 2004, Genentech began construction on an expansion to the Vacaville site, which, when completed, will be the largest biotechnology manufacturing facility of its kind in the world. Genentech acquired its Oceanside, CA biologics manufacturing facility in June 2005 and received licensure in April 2007. Genentech's manufacturing expertise, capacity (approximately 330,000 liters), and portfolio of capacity enhancement projects position the company well to meet the anticipated demand for our innovative therapies.

Commercialization Commercial plays a crucial role in bringing Genentech's therapies to our customers by transforming our scientific innovations into changes in the practice of medicine that enhance and extend patients' lives. Commercial involvement begins early in product development and lifecycle planning. Research, Product Development, and Commercial partner to explore opportunities to apply Genentech's science. These dialogues are supported by market planning to ensure thoughtful understanding of each therapeutic area and by ongoing examination of broad healthcare trends. After launching a new therapy, we use a distinctive consultative selling model to educate healthcare providers about the innovative science behind our medicines, and we take a strategic and data-driven approach to managing the life cycles of our various products.