Genentech

Genentech, Inc.
Company type	Subsidiary
Industry	Biotechnology
Founded	1976; 50 years ago
Founder	Robert A. Swanson, Herbert Boyer
Headquarters	South San Francisco, California, United States
Area served	Worldwide
Key people	Ashley Magargee (interim CEO), Severin Schwan (board chairman)
Products	Avastin, Herceptin, Rituxan, Perjeta, Kadcyla, Gazyva, Tarceva, Ocrevus, Tecentriq
Owner	Roche
Number of employees	13,539 (2021)
Parent	Roche

Genentech, Inc. is a biotechnology firm based in South San Francisco, California, operating as an independent subsidiary under the umbrella of the holding company Roche. Within Roche, Genentech Research and Early Development functions as a distinct and autonomous division. Established in 1976 by Robert A. Swanson and Herbert Boyer, Genentech holds the distinction of being the first biotechnology company globally.

By July 2021, Genentech's workforce numbered 13,539 employees, with revenues reaching $26.4 billion in 2020. Its diverse product lineup features prominent drugs such as Avastin, Herceptin, Rituxan, Perjeta, Kadcyla, Gazyva, Tarceva, Ocrevus, and Tecentriq. The company’s strategic focus lies in pioneering pharmaceutical development across oncology, immunology, and neuroscience sectors, sustaining its market leadership through visionary management and ongoing research investment.

Leadership includes interim CEO Ashley Magargee and board chairman Severin Schwan, who also serves as CEO of Roche Group. The organizational framework supports extensive global activities and subsidiaries that bolster Genentech’s competitive standing within the biotechnology sector.

History

Founded in 1976 by venture capitalist Robert A. Swanson alongside biochemist Herbert Boyer, a trailblazer in recombinant DNA technology, Genentech emerged from groundbreaking scientific advances. Boyer and Stanley Norman Cohen had established that restriction enzymes could excise DNA fragments suitable for insertion into plasmid vectors. While Cohen returned to academic pursuits, Swanson collaborated with Boyer to create Genentech, each contributing $500 to establish the company with the goal of commercializing genetically engineered proteins. Boyer worked with Arthur Riggs and Keiichi Itakura to successfully express a human gene in bacteria by producing somatostatin in 1977. Subsequent efforts by David Goeddel and Dennis Kleid led to the synthesis of human insulin in 1978.

In 1990, F. Hoffmann-La Roche AG acquired a controlling interest in Genentech, marking a pivotal transformation in its corporate governance and global presence.

Genentech’s initial acquisition occurred in 2006 with the purchase of Tanox, a company engaged in developing the asthma treatment Xolair. This move enabled Genentech to expand its revenue base by advancing drug development in collaboration with Novartis.

By March 2009, Roche completed full ownership of Genentech through an acquisition valued at approximately $46.8 billion, solidifying its status as a wholly owned subsidiary within the biotech industry.

In July 2014, Genentech and Roche further expanded their oncology pipeline by acquiring Seragon Pharmaceuticals for $725 million upfront, with potential milestone payments up to $1 billion, enhancing their portfolio of small-molecule cancer therapies.

Acquisition history

Hoffmann-La Roche
- Genentech
  - Tanox, Inc
  - Arrayit Corporation
  - Seragon
  - Jecure Therapeutics

Research

As a biotechnology enterprise driven by research innovation, Genentech maintains strong internal R&D capabilities alongside strategic partnerships to fuel scientific advancement.

Significant collaborative efforts include:

2008: Joint development of obinutuzumab with Roche and GlycArt.
2010: Partnership with University of California, San Francisco focusing on neurology-related small molecule drug discovery.
2014: Agreement involving $150 million upfront with NewLink Genetics targeting checkpoint inhibitor therapies.
2015: Collaboration with The Data Incubator aimed at training data scientists to enhance big data analytics proficiency.
2015: Contract valued at $60 million with 23andMe providing access to genomic datasets and patient-reported information.
2015: Cooperation with Nimbus Therapeutics utilizing computational drug discovery platforms.
2016: Clinical trial partnership with Epizyme combining EZH2 inhibitor tazemetostat and Genentech’s atezolizumab.
2016: Alliance with Carmot Therapeutics focused on discovering and developing novel drug candidates.
2016: Collaboration with Israeli company BioLineRx to co-develop checkpoint inhibitor combinations involving atezolizumab.

These partnerships exemplify Genentech’s strategic approach of integrating external innovation alongside internal research efforts to reinforce its leadership position within the biotechnology field.

Facilities

Genentech's main corporate office is located in South San Francisco, California (), while its production sites are situated in Vacaville, California; Oceanside, California; and Hillsboro, Oregon. In March 2024, the Swiss pharmaceutical firm Lonza purchased the Vacaville facility from Roche for $1.2 billion.

Back in December 2006, Genentech divested its Porriño, Spain plant to Lonza and obtained exclusive rights to acquire Lonza's mammalian cell culture manufacturing facility that was under development in Singapore. By June 2007, Genentech had initiated construction of an E. coli-based manufacturing plant in Singapore aimed at producing bulk drug substance for Lucentis (ranibizumab injection) on a global scale.

In 2023, the company revealed plans to shut down its South San Francisco production facility while simultaneously investing $450 million to expand its Oceanside operations with a new biotech plant expected to generate approximately 150 new jobs.

Political lobbying

Genentech contributes financially to the Center for Health Care Strategies, an organization that advocates on Medicaid-related matters before the U.S. government.

Genentech Inc Political Action Committee

The Genentech Inc Political Action Committee (PAC) collects donations from employees and their families to back federal candidates whose policies align with the company’s objectives.

Disputes

In November 1999, Genentech resolved a patent conflict lasting nine years with the University of California, San Francisco (UCSF) by agreeing to a $200 million settlement. UCSF had initiated legal action against Genentech in 1990 seeking $400 million over alleged misappropriation of technology tied to a 1982 patent. Genentech asserted that Protropin (recombinant human growth hormone) was developed independently. Protropin, used for treating dwarfism, was Genentech’s inaugural marketed drug and generated $2 billion in revenue, significantly enhancing its market position and leadership within the industry. The settlement distributed funds as follows: $30 million to the University of California General Fund, $85 million to inventors and researchers, $50 million towards establishing a new UCSF teaching and research campus, and $35 million dedicated to university-wide research initiatives.

In 2009, The New York Times reported that Genentech’s lobbying efforts shaped official remarks made by several U.S. Congress members during debates over national health care reform. Representatives Joe Wilson and Blaine Luetkemeyer released identical statements endorsing the biotechnology sector that were originally drafted by Genentech lobbyists. These statements highlighted biotechnology as a key driver of U.S. employment growth and criticized the outsourcing of research activities to countries such as India.

Products timeline

1982: FDA approval of synthetic "human" insulin, developed in partnership with Eli Lilly and Company, which licensed and produced Humulin, the first genetically engineered human therapeutic.
1985: Introduction of Protropin (somatrem), a growth hormone for children with deficiency (discontinued in 2004).
1987: Launch of Activase (alteplase), a recombinant tissue plasminogen activator used for acute myocardial infarction and stroke treatment.
1990: Release of Actimmune (interferon gamma 1b) for chronic granulomatous disease (licensed out to Intermune).
1993: Market debut of Nutropin (recombinant somatropin) for growth hormone therapy prior to kidney transplant; introduction of Pulmozyme (dornase alfa) for cystic fibrosis.
1997: Approval of Rituxan (rituximab), targeting non-Hodgkin's lymphomas and rheumatoid arthritis.
1998: Launch of Herceptin (trastuzumab) for HER2-positive metastatic breast cancer and gastric cancer.
2000: Introduction of TNKase (tenecteplase), a thrombolytic agent for myocardial infarction.
2003: Release of Xolair (omalizumab) for moderate to severe asthma; debut of Raptiva (efalizumab) for psoriasis, withdrawn in 2009.
2004: Market introduction of Avastin (bevacizumab), an anti-VEGF monoclonal antibody indicated for metastatic colon, lung, breast cancers (breast cancer indication revoked in 2011), glioblastoma, and renal cell carcinoma; launch of Tarceva (erlotinib) targeting lung and pancreatic cancers.
2006: Approval of Lucentis (ranibizumab) for wet age-related macular degeneration.
2010: Introduction of Actemra (tocilizumab), the first IL-6 receptor inhibitor approved for rheumatoid arthritis.
2011: Launch of Zelboraf (vemurafenib) for metastatic melanoma harboring BRAF mutations.
2012: Debut of Erivedge (vismodegib), the first approved treatment for advanced basal-cell carcinoma; release of Perjeta (pertuzumab) combined with Herceptin and chemotherapy for HER2-positive metastatic breast cancer.
2013: Introduction of Kadcyla (ado-trastuzumab emtansine), Genentech’s first antibody-drug conjugate targeting HER2-positive metastatic breast cancer; launch of Gazyva (obinutuzumab) for untreated chronic lymphocytic leukemia, receiving breakthrough therapy designation approval.
2014: Release of Esbriet (pirfenidone), an anti-fibrotic agent developed by Intermune for idiopathic pulmonary fibrosis.
2015: Introduction of Cotellic (cobimetinib), used alongside Zelboraf for BRAF-mutant metastatic melanoma; launch of Alecensa (alectinib) targeting non-small cell lung cancer.
2016: Approval of Venclexta (venetoclax) for chronic lymphocytic leukemia with a 17p deletion; introduction of Tecentriq (atezolizumab), the first anti-PD-L1 antibody approved for advanced bladder cancer and metastatic non-small cell lung cancers following chemotherapy failure.
2017: Launch of Ocrevus (ocrelizumab), the first FDA-approved treatment effective against both relapsing-remitting and primary progressive multiple sclerosis; release of Hemlibra (emicizumab) for haemophilia A, developed by Chugai Pharmaceutical.
2018: Introduction of Xofluza (baloxavir marboxil), an antiviral agent targeting influenza A and B strains, developed by Shionogi.
2019: Market debut of Polivy (polatuzumab vedotin-piiq), used in combination with bendamustine and rituximab to treat diffuse large B-cell lymphoma.

External links

Genentech's Network of Suppliers, Partners, and Clients
Genentech Corporate Timeline
"Promising Cancer Treatment Comes with a High Cost", The New York Times, February 15, 2006, Alex Berenson
Genentech Staff Presentation on Sustainable Business Practices January 10, 2007