Genentech fires chief, makes biochemist CEO Biopharmaceutical producer Genentech has fired its president and chief executive officer, G. Kirk Raab, after learning of his involvement in an apparent conflict of interest. On July 7, the South San Franciscobased company's board of directors requested and accepted Raab's resignation. Three days later, it promoted senior vice president Arthur D. Levinson, 45, to the top posts. For the first time, the firm—known for its scientific strength—is headed by a scientist. Biochemist Levinson has led the firm's R&D efforts for the past two years. Raab, 59, was ousted after a board inquiry found he requested a $2 million personal loan from Roche Holding during recent merger negotiations. Roche, the Swiss parent of pharmaceutical maker Hoffmann-La Roche, has held a majority stake in Genentech since 1990. Roche held an option to increase its holding to 75% from 66%, expiring June 30. But instead of exercising the option, as many anticipated, Roche and Genentech negotiated a new and somewhat unpopular deal (C&EN, May 8, page 11). Under the deal, Roche has until June 30,1999, to increase its holding to 79.9%. Roche also gets non-U.S. marketing rights to Genentech products. The deal—which sets prices that rise quarterly for Roche's stock purchases through June 1999—aroused opposition from shareholders, who filed a classaction lawsuit. Along with the management change, Genentech and Roche have announced modest increases in the stock prices to settle the lawsuit. The settlement awaits court approval, and the stock agreement requires ratification by non-Roche shareholders in Genentech. In his resignation statement, Raab apologized for the apparent conflict of interest, but said he negotiated the best deal possible with Roche. However, other issues arose in the board's review of his leadership. Raab is credited with boosting Genentech's growth during his five years as CEO: Revenues nearly doubled to about $800 million, earnings almost tripled to $124 million, and an increasing number of products are in clinical trials. But he has been criticized for his aggressive tactics.
Genentech's marketing practices are talist and cofounder Robert A. Swanthe target of probes by the Food & Drug son, who is now chairman. Raab leaves Administration, the Federal Trade Com- with $1.2 million in salary and bonuses mission, and a U.S. district attorney in and payments of more than $400,000 California. And the firm's vice president per year for the next 15 years. for sales and marketing, Edmon R. JenLevinson has been a significant force nings, has been indicted in a Minnesota in Genentech R&D for 15 years, but his bribery case slated for trial Aug. 1. mettle as a chief executive has yet to be Raab came to Genentech from a tested. However, many analysts sugmanagement and marketing back- gest Roche may now view Genentech ground at Abbott Laboratories 10 years as primarily an R&D operation, rather ago and was only the second head of than an independent business. Genentech. He followed venture capiAnn Thayer
Global monitoring shows ozone treaty is working Ongoing measurements of methyl chlo- pounds for 16 years at five stations roform (CH3CCI3) in the atmosphere around the world. Its observations on show levels of the ozone-destroying methyl chloroform appear in last week's compound have been declining since Science [269,187 (1995)]. 1991—solid confirmation that the MonThe researchers believed there was treal Protocol on Substances That De- more methyl chloroform in the atmoplete the Ozone Layer is working. sphere than there turns out to be beIn addition, a new calibration tech- cause previous standards were off. nique has led researchers to significantly "Methyl chloroform is a tricky molecule lower the absolute values for methyl to make a standard for," says James W. chloroform in the atmosphere. And the Elkins, a National Oceanic & Atmoscientists have deduced that the average spheric Administration (NOAA) physicist global concentration of hydroxyl radical who also monitors halocarbons. "It's a (OH) is significantly greater than previ- quite sticky molecule that reacts on certain ously estimated. OH is the lower atmo- surface walls. It gives everyone fits." sphere's primary cleansing agent, so The team's new methyl chloroform this new appraisal suggests many pol- concentrations jibe well with less extenlutants—including cWorofluorocarbon sive data Elkins has gathered. (CFC) substitutes—are removed from The group has used its new numbers to the environment more quickly than had been thought. Atmospheric methyl chloroform concentration "It's exciting to fihas been decreasing since peak in 1991 nally see one of the halocarbons actually CH3CCI3, ppt 180 decreasing," says Ronald G. Prinn, 160 professor of atmospheric chemistry at Massachusetts Insti140 tute of Technology. "There's no doubt 120 about it: Industry has gone all out to 100 decrease the manufacture and use of 80 [methyl chloroform]. It's nice to get verification from the 60 Tasmania atmosphere." Prinn leads an in40 1978 80 82 84 86 88 90 92 94 96 ternational team of scientists that has Note: Monthly mean atmospheric mole fractions as measured at five stations. Source: Science been collecting data on halogenated comJULY 17,1995 C&EN 7
