Nicole Falk
Genentech
Corporate Overview
Sales in 2005 were $5,488 mil, sales in 2004 were $3,749.
This increase in sales was partly due to there 5x5 initiative.
5X5 Report Card Our 5X5 goals were conceived in 1999 and continued through 2005.
1. 25 percent average annual non-GAAP¹ EPS growth The first goal was the most important of the 5X5 goals. We exceeded this goal, with an average annual non-GAAP¹ earnings per share (EPS) growth of 33 percent between 1999 and 2005 (using 1998 as the base year).
2. 5 new products/indications approved With seven new products approved and multiple new indications, we have exceeded our 5X5 goal of five new products or indications approved by 2005.
3. 5 significant products in late-stage clinical trials We ended the 5X5 period with six products for 21 potential indications in our late-stage development pipeline, exceeding our goal of five late-stage products in clinical development.
4. $500 million in new revenues from strategic alliances or acquisitions In 2005, we achieved more than $300 million in revenues associated with strategic alliances or acquisitions, missing our goal of $500 million.
5. 25 percent non-GAAP¹ net income as a percentage of operating revenues Our 2005 non-GAAP¹ net income as a percentage of operating revenues was 21 percent. We did not meet this final productivity goal, primarily due to the success of Rituxan® (Rituximab) and the effect of the associated profit-sharing arrangement.
Two most successful drugs (financially) are Rituxon and Herceptin which provide over 30% of the Genentech’s annual revenue, totaling more than 2.5 bil annually.
I am interested in MBA internship opportunities in Manufacturing/Operations. However, all the interns listed on their website were in marketing and it appears they only take ~3 MBA’s a year.
The manufacturing facilities for Genentech are located in San Francisco, Oceanside, and Vacaville, all in CA. Additionally they have a facility in Porrino, Spain.
Corporate Strategy
Topics in news:
1)FDA Delays Approval for Expanded Use of Genentech's Herceptin
2)Possibility of biogenerics affecting biotech companies
3)Roches files Avastin (originally made to treat colon cancer) for lung cancer in Europe
4)Age-related macular degeneration AMD treatment Lucentis was approved by the Food and Drug Administration at the end of June. Both Macugen and Lucentis are delivered directly into the eye via injection and work by binding to a protein believed to play a critical role in the formation of new blood vessels.
5)Another one of Genentech's drugs, Avastin, is increasingly being used by ophthalmologists as an "off-label" treatment for wet AMD. Avastin is approved to treat colorectal cancer.
The company seeks to extend its exclusive patent rights over its drugs by finding new theraputic uses for them than was originally intended when they were created.
Genentech strategy is to create new drugs and also keep many new early stage drugs in the pipeline. However, they strongly rely on discover new applications for their current biologics.
Career
Product OperationsOperations Rotational Development Program (ORDP)
The ORDP gives recent graduates the opportunity to gain a broad perspective of the core product operations and quality/regulatory functions that are critical to the manufacture of Genentech products. This is accomplished over a two-year period through four six-month rotational assignments within the Product Operations (PROP) Organization, including Engineering, Facilities, Global Supply Chain, Operations, Process Development, Quality-Regulatory and other functions as needed. The rotations are tailored to provide new hires with challenging and meaningful assignments, training in technical and managerial skills, coaching, and career counseling with assignment managers and mentors.
The ORDP provides participants with a combination of rotational assignments, continuous development and educational opportunities, and coaching/career counseling aligned with the strategic objectives of Genentech's PROP organization. Participants will further develop existing technical, business and management skills necessary to lead in the manufacturing environment of Genentech.
Each assignment will last six months and will be based on each participant's individual technical qualifications and strategic business needs and on the needs of the department in which he/she is assigned. Examples of these assignments are: operations, quality, science and technology, regulatory/compliance, supply chain management, new product launches, financial accounting, engineering and continuous improvement. Participants will be responsible for projects on an individual and/or team basis and will perform activities and functions as a member of the staff.
During the fourth and final rotational assignment, analysts will have the opportunity to apply for open positions at Genentech that meet analysts' career goals and for which they are qualified.
Internship opportunities are available in commercial operations. They are 10-12 weeks long.
Hiring Process
Genentech lists the schools they visit to recruit on their website. They are all top (10) programs, including Stanford, HBS, Wharton, Tuck, Kellogg, Sloan and Haas. They do not recruit at MSU, but you can apply online. There were 2 MSU alum listed in the database who work at Genentech. The most recent grad was in ‘02. I know one recent MBA grad from Vanderbilt ‘06 who received an internship and then a full-time position at Genentech in marketing. It is a very competitive company to get an offer from and I realize this. Genentech is looking for very driven, intelligent, MBA’s who have a science or engineering background, in addition to their graduate work, and have a solid understanding of the biotech industry. I feel that I fit into the corporate culture that they foster, which they describe as “an atmosphere of casual intensity.” Also, given my background in pharmaceuticals, and most recently medical devices and instrumentation for cancer, I think I have a decent background to pursue an internship at this company.