Genentech Names Two to Share Post of President

Genentech Inc. on Tuesday named two executives as co-presidents of the South San Francisco-based biotechnology drug company in a move analysts said set up a contest for the top job.

Analysts said the announcement underscored the rising importance of Susan D. Hellmann, 46, who led development of the company’s highly anticipated colon cancer drug Avastin.

Hellman will share the role of president with Genentech’s sales and marketing boss, Myrtle S. Potter, 45.

Hellman will continue to oversee product development and regulatory matters while taking on responsibility for business development, an area that had been led by Potter. Hellmann was executive vice president and chief medical officer.

Potter will continue to lead the company’s sales and marketing efforts. She was chief operating officer.

Genentech also said its head of manufacturing, David Ebersman, would report to Chief Executive Arthur Levinson, signaling the importance of production as the company launched Avastin, a potential $2-billion-a-year product.

Ebersman previously reported to Hellman.

Analysts said the changes put Hellman and Potter in competition for the CEO post held by Levinson, 53. However, Levinson hasn’t talked about leaving Genentech and isn’t expected to do so anytime soon.

Genentech spokeswoman Mary Stutts said the firm didn’t believe the executives were in a contest for the CEO job. The promotions, she said, reflected the equal importance of the areas overseen by Hellman and Potter.

Analyst Geoffrey C. Porges of Sanford C. Bernstein & Co. said the changes were positive and would help Genentech retain Hellmann and Potter, but he said few firms could reward them as richly.

Hellman exercised options last year valued at $22.9 million and Potter exercised options valued at $7.8 million. They each received about $1.1 million in salary and bonus.

Genentech shares fell $2.91 to $109.10 on the New York Stock Exchange, on a day when the markets generally were down.