GENENTECH, the San-Francisco-based biotechnology company, has been rocked by the resignation of Kirk Raab, the company’s president. Raab resigned over potential conflicts of interest that came to light at a meeting of the Genentech board on 22 June.
The company revealed that during sensitive business negotiations earlier this year with the pharmaceuticals giant Hoffmann-La Roche, which owns 65 per cent of Genentech’s shares, Raab had asked Hoffmann-La Roche for guarantees on a personal loan worth $2 million. The company refused.
“I regret I may have created the perception of a conflict of interest by seeking assistance on a personal loan,” said Raab this week. Art Levinson, Genentech’s senior vice-president, takes over from Raab.
