Genentech 8-K Genentech Announces First Quarter 2005 Results

EXHIBIT 99.2

GENENTECH, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) (unaudited)
	Three Months Ended March 31,
		2005		2004
Revenues:
Product sales	$	1,186,002	$	763,700
Royalties		231,915		154,097
Contract revenue		43,661		57,338
Total operating revenues		1,461,578		975,135
Costs and expenses:
Cost of sales		251,041		114,480
Research and development		243,240		190,345
Marketing, general and administrative		315,214		247,314
Collaboration profit sharing		176,277		126,431
Recurring charges related to redemption		34,482		38,209
Special items:  litigation-related		11,256		13,399
Total costs and expenses		1,031,510		730,178
Operating margin		430,068		244,957
Other income, net(1)		16,396		22,321
Income before taxes		446,464		267,278
Income tax provision		162,290		90,691
Net income	$	284,174	$	176,587
Earnings per share:
Basic	$	0.27	$	0.17
Diluted	$	0.27	$	0.16
Weighted average shares used to compute earnings per share:
Basic		1,046,832		1,055,198
Diluted		1,067,071		1,081,628

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(1) "Other income, net" includes realized gains and losses from the sale of certain biotechnology equity securities and write-downs for other-than-temporary impairments in the fair value of certain biotechnology debt and equity securities. In addition, "other income, net" includes interest income and interest expense. For further detail, refer to our web site at www.gene.com.

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GENENTECH, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited)
	March 31,
	2005		2004
Selected balance sheet data:
Cash, cash equivalents and short-term investments	$	1,904,732	$	1,637,821
Accounts receivable - product sales, net		688,480		367,413
Accounts receivable - royalties, net		229,203		174,497
Accounts receivable - other, net		152,826		98,405
Inventories		565,597		524,729
Long-term marketable securities and other		800,395		1,654,985
Property, plant and equipment, net		2,230,957		1,679,549
Goodwill		1,315,019		1,315,019
Other intangible assets		635,216		765,415
Long-term assets		964,562		769,221
Total assets		9,699,469		9,163,966
Total current liabilities		1,292,503		717,119
Total liabilities		2,695,458		2,056,716
Total stockholders' equity		7,004,011		7,107,250
Year-to-date:
Capital expenditures	$	143,942	$	97,707
Total GAAP depreciation and amortization expense		87,929		78,975

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GENENTECH, INC. NET PRODUCT SALES DETAIL (in thousands) (unaudited)
	Three Months Ended March 31,
	2005		2004
Net US Sales:
Rituxan	$	440,550	$	361,808
Herceptin		129,630		108,695
Avastin		202,855		38,127
Growth Hormone		89,868		83,965
Thrombolytics		50,567		44,265
Pulmozyme		43,983		38,015
Xolair		65,263		29,853
Raptiva		16,645		6,291
Tarceva		47,585		-
Total US Sales	$	1,086,946	$	711,019
Net Sales to Collaborators:
Rituxan	$	33,050	$	38,822
Herceptin		10,888		4,768
Avastin		11,632		-
Growth Hormone		2,220		1,505
Thrombolytics		3,003		1,959
Pulmozyme		7,763		5,417
Xolair		3,334		210
Raptiva		7,470		-
Enbrel		19,696		-
Total Sales to Collaborators	$	99,056	$	52,681
Total Net Product Sales	$	1,186,002	$	763,700

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