Genentech's Kirk Raab Fired Over Roche Loan

President and chief executive of Genentech Kirk Raab has been fired from his dual post at the head of one of the USA's major biotechnology companies as a result of his disclosure that he had tried to secure a personal loan from Roche, Genentech's majority shareholder, at the time of negotiations with the Swiss company regarding the acquisition of the outstanding shares in Genentech.

The company's board of directors has appointed Genentech's head of research, Arthur Levinson, as Mr Raab's replacement. The company said the change in leadership follows an inquiry by the board.

At a board meeting in June, it was disclosed that during the period of renegotiations with Roche concerning its stake in Genentech, Mr Raab, at his request, discussed with Roche a guarantee by Roche of a $2 million personal bank loan to Mr Raab. No guarantee was provided by Roche.