GENENTECH BOOSTING TO FULL CAPACITY

Genentech announced its cost of sales will be higher than expected this year as it ramps up manufacturing operations to nearly full capacity to meet strong demand for its drugs. The biotechnology company on Thursday completed the acquisition of a Biogen Idec manufacturing facility in Oceanside, California, for $408 million. Closing costs were $9 million, and Genentech said it expects to incur additional capital costs at the facility over the next 24 months, including upgrades and start-up costs.

Washington Post (http://www.washingtonpost.com/wp-dyn/content/article/2005/06/24/AR2005062400428.html)