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GenentechBA517 Stock Rec.

Christopher GrecoDecember 7, 2007

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Genentech Is A BUY Because Growth Is In Their Genes

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• Genentech has shown continued sales growth

Genentech Is A BUY Because Growth Is In Their Genes

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• Genentech has shown continued sales growth

• Genentech has a diverse product base

Genentech Is A BUY Because Growth Is In Their Genes

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• Genentech has shown continued sales growth

• Genentech has a diverse product base

• Genentech will continue to grow in the future

Genentech Is A BUY Because Growth Is In Their Genes

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• Genentech has shown continued sales growth

• Genentech has a diverse product base

• Genentech will continue to grow in the future

Genentech Is A BUY Because Growth Is In Their Genes

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2004 2005 2006 3Q 2007$0

$2,000

$4,000

$6,000

$8,000

$10,000

$3,749$5,488

$7,640 $7,093$872

$1,145

$1,644$1,654

Total Revenue

Other Revenue

Product Sales

Sources: Genentech, website, November 2007CNN Money, November 2007

Genentech has shown continued sales growth

(2004 – 2007)

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Genentech has shown continued sales growth

(2004 – 2007)

2004 2005 2006 Q1-3 2007$0

$2,000

$4,000

$6,000

$8,000

$10,000

$3,749$5,488

$7,640 $7,093$872

$1,145

$1,644$1,654

Total Revenue

Other Revenue

Product Sales

Sources: Genentech, website, November 2007CNN Money, November 2007

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Genentech has shown continued sales growth

(2004 – 2006)

2003 2004 2005 2006$0

$500

$1,000

$1,500

$2,000

$2,500

563

785

1,279

2,113

Net

Inco

me

Source: Genentech website, November 2007

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Genentech has Outperformed Competitors in the Past 5 Years

(2003—2007)

Source: Reuters, November 2007

% G

row

th

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• Genentech has shown continued sales growth

• Genentech has a diverse product base

• Genentech will continue to grow in the future

Genentech Is A BUY Because Growth Is In Their Genes

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Genentech has a Diverse Product Base

$2,071

$1,746$1,234

$425

$402

$380$378

$243 $199 $90

2006 Product Sales (in millions)

RituxanAvastinHerceptinXolarTarcevaLucentisNutropin ProductsThromioticsPulmozymeRaptiva

Source: Genentech website, November 2007

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Genentech has a Well Developed Pipeline

R&D Stage Number of ProductsAwaiting FDA Action 4

FDA Submission Preparation 1Phase III 37Phase II 17Phase I 15Pre-IND 2

Source: Genentech website, November 2007

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Avastin has Shown Continued Sales Growth

2004 2005 2006 Q1-3 2007$0

$500

$1,000

$1,500

$2,000

$545

$1,133

$1,746 $1,694

Avastin Product Sales(in millions)

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• Genentech has shown continued sales growth

• Genentech has a diverse product base

• Genentech will continue to grow in the future

Genentech Is A BUY Because Growth Is In Their Genes

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Series10

100

200

300

400

500

600 586.8

180.7 193.9217.0

50.0

185.8

1950 2004

Cancer rates have seen little change since 1950

HeartDiseases

CerebrovascularDiseases

Cancer

Rate Per 100,000

Source: The American Cancer Society, November 2007

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Genentech has a Competitive Position in the Market

BioTech Industry

Genzyme

Biogen idec

Genentech

AMGN

0 20 40 60 80 100 120 140 160

27.17

145.84

44.93

26.10

19.82

P/E Ratio

Source: Yahoo Finance, website, November 2007

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The Market Over Reacted to the FDA Advisory Panel’s Decision

Source: Yahoo Finance, website, December 2007

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Avastin has Shown Continued Sales Growth

2004 2005 2006 Q1-3 2007$0

$500

$1,000

$1,500

$2,000

$545

$1,133

$1,746 $1,694

Avastin Product Sales(in millions)

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• Genentech has shown continued sales growth

• Genentech has a diverse product base

• Genentech will continue to grow in the future

Genentech Is A BUY Because Growth Is In Their Genes