Managed Markets Structures and Strategies

1. Managed Markets Structuresand Strategies:Leading Companies’ Approaches JUNE 2013

2. GENENTECH:SAMPLE PAGES

3. GENENTECH Key Changes Since Previous Report • Managed Care and Customer Operations (MCCO) organization continues to deploy a similar configuration to 2012 • MCCOis comprised of five subset functional areas • Access Solutions & Managed Care Marketing • Channel Strategy & Management • Customer Operations • Payer Account Management • Strategic Pricing & Contract Management • Multiple specialized payer Account Manager teams are leveraged to advance business within critical MCOs • Dedicated field Medical support for payer-focused initiatives Copyright 2013 by PharmaForce International R E A D I N G, P A

4. GENENTECH Strategic Approach to Managed Markets • Has integrated legacy Roche personnel into the Managed Care and Customer Operations (MCCO) organization • MCCO organization is responsible for contracting, pricing, distribution, account management, managed care marketing and operations, and company Access to Care programs • Approach to managed markets customers consists of multiple field-based teams, including: • Field Reimbursement Managers (FRMs) • Provide reimbursement expertise and drive access at the physician office and local payer levels • Teams are aligned by therapeutic area (BioOncology, Asthma, Immunology and Retinal) • Work closely with the Sales force to provide expertise and manage pull-through • Hospital Systems Account Team • Provides reimbursement and managed markets expertise within assigned health systems and large hospital settings • Develops relationships with key clinical and non-clinical staff • Responsible for the entire company portfolio Copyright 2013 by PharmaForce International R E A D I N G, P A

5. GENENTECH Strategic Approach to Managed Markets (cont’d) • Payer Account Management Team • Drives reimbursement and provides expertise at the regional payer level • Responsible for the entire company portfolio • Government Account Managers (GAMs) • Drive reimbursement and provide expertise at the regional Medicare and Medicaid levels • Responsible for the entire company portfolio • Channel Account Managers (CAMs) • Drive reimbursement and provide expertise at regional specialty pharmacies, distributors and trade and regional oncology accounts • Responsible for the entire company portfolio • National Account Managers (NAMs) • Drive reimbursement and provide expertise to national public and private payers, specialty pharmacies and trade accounts • Responsible for the entire company portfolio • Employer Account Managers (EAMs) • Drive reimbursement and provide expertise at regional/national employer groups • Responsible for the entire company portfolio Copyright 2013 by PharmaForce International R E A D I N G, P A

6. GENENTECH Approach to Targeting Integrated Delivery Networks • Integrated Delivery Networks (IDNs) are the responsibility of the Hospital Systems Account Team • Targeting key clinical and C-Suite employees, the team develops business-to-business relationships to create value, oversee pull-through activities and create access opportunities for company products and employees within assigned IDNs Copyright 2013 by PharmaForce International R E A D I N G, P A

7. GENENTECH Use of HEOR Liaisons • Reporting through Genentech Medical Affairs Group (gMed), deploys a team of PSLs • Field-based team that provides support to all Account Manager Teams within assigned geographies • PSLs develop and cultivate relationships with key decision makers and other influencers in health plans, channel, government and PBMs to enhance access to and optimize formulary positioning for company products • Team keeps payers and other key external constituents or influencers abreast of new product launches, line extensions and/or other significant developments Copyright 2013 by PharmaForce International R E A D I N G, P A

8. GENENTECH Portfolio Management • Following positions have responsibility for the entire portfolio of products: • Hospital Systems Account Team • Priority emphasis is placed on products used in inpatient and outpatient hospital channels • Payer Account Management Team • NAMs • EAMs • GAMs • CAMs • Sources indicate a priority emphasis is placed on the BioOncology portfolio, Xolair, Actemra, Rituxan, Pegasys and Lucentis • FRM Team manages the product portfolio within their assigned therapeutic area • BioOncology – Avastin, Herceptin, Rituxan, Tarceva, Xeloda, Zelboraf • Asthma – Xolair • Immunology – Actemra, Rituxan • Retinal – Lucentis Copyright 2013 by PharmaForce International R E A D I N G, P A

9. GENENTECH Services/Programming for Managed Care Organizations Copyright 2013 by PharmaForce International R E A D I N G, P A

10. GENENTECH Deployment by Type of Managed Markets Personnel • MCCO organization consists of 490 personnel • Field Reimbursement Manager (FRM) team, including: • 32 FRMs, BioOncology • 18 FRMs, Retinal • 21 FRMs, Asthma • 21 FRMs, Immunology • 10 Area Managers • 3 Regional General Managers • 1 Lead, Field Reimbursement Team • Hospital Systems Account Team, including: • 65 Hospital Systems Account Managers • 9 Area Managers • 3 Regional General Managers • 1 Lead, Hospital Systems Account Team • Payer Account Management Team, including: • 72 Payer Account Managers • 8 Area Managers, Payer Field Team • 2 Associate Directors, Regional Payers • 1 Director, Regional Payers • 18 Employer Account Managers • 2 Area Managers, Employer Account Team • 1 Director, Employer Account Team • 3 National Account Managers (NAMs), Federal Markets • 4 NAMs, National PBM • 3 NAMs, Specialty Pharmacy • 3 NAMs, Trade Relations • 1 Director, National Account Payer Team • 1 Vice President, Payer Account Management • Government Markets Team, including: • 24 Government Account Managers • 2 Area Managers • 1 Director, Government Markets • Channel National Team, including: • 21 Channel Account Managers • 3 Area Managers • 1 Lead, Channel National Team • 1 Senior Vice President, Managed Care and Customer Operations (MCCO) • Genentech Medical Affairs Group (gMed) support includes: • 1 Director, Payer Support • 3 Associate Directors, Payer Support • 25 Payer Support Liaisons • MCCO Marketing/Market Science includes: • 12 Group Product Managers • 56 Product Managers • 6 Associate Directors, MCCO Marketing • 1 Lead, MCCO Marketing Operations • 1 Director, MCCO Marketing Science • 4 Group Managers • 25 Market Planners TOTAL = 490 Copyright 2013 by PharmaForce International R E A D I N G, P A

11. GENENTECH Organizational Structure 1 Senior Vice President, Managed Care and Customer Operations 1 Vice President, Payer Account Management 1 Director, Regional Payers 1 Director, National Account Payer Team 1 Director, Employer Account Team 2 Associate Directors, Regional Payers 3 National Account Managers, Federal Markets 3 National Account Managers, Specialty Pharmacy 3 National Account Managers, Trade Relations 4 National Account Managers, National PBM 2 Area Managers, Employer Account Team 8 Area Managers, Payer Field Team 18 Employer Account Managers 72 Payer Account Managers Copyright 2013 by PharmaForce International R E A D I N G, P A

12. GENENTECH Evaluation of Managed Markets Personnel Copyright 2013 by PharmaForce International R E A D I N G, P A

13. GENENTECH Compensation for Managed Markets Personnel http://www.pharmaforce.biz Copyright 2013 by PharmaForce International R E A D I N G, P A