he and his partners launched genentech in 1976 with nothing more than a checkbook and an idea. >> thedea was to trick nature into letting us make something that didn't exist in nature -- in particular, human insulin. >> genentech's success led to new ways of treating everything from diabetes to dwarfism, and to getting rich. kleiner perkins' initial investment of $250,000 soared 800-fold to $200 million. >> that'at v capitalists are created to do, and you can blame converting the orchards of silicon valley into parking lots partly on me and partly on genentech, because we proved that this kind of high-risk, high-tech venture capital could be an enormous home run, and everybody wanted to get in on it, including lots of entrepreneurs, and that's what got this whole silicon valley engine rolling, in my opinion. >> and it took somebody like perkins, with a background in science, to figure it out. he got an engineering degree from m.i.t. and an mba from harvard business school, and yet, he says, only two out of about every 10 of his projects resulted in a home run. when you think about put

by genentech.aughton repeatedly blamed his european supplier and regulators for failing to discover the counterfeit drug. >> we are legally entitled to sell any product with our license. to any registered licensed doctor, wholesaler. >> reporter: not according to the fda you're not. >> then you need to go to the clinic. >> reporter: now it's the clinic's fault, it's not your fault for bringing in through your company into the united states avastin that turned out to be fake? >> these clinics, they purchased this product. and we're not in the u.s., so i'm not sure what the u.s. laws are. they would have to -- they would have to make sure what they're doing. >> reporter: you're not sure of what the u.s. laws are regarding the use of avastin, a cancer-fighting drug, a life-saving drug in the united states? >> i'm telling you that we, my wholesaler in the united kingdom -- >> reporter: but it's your company. >> yeah, i know. i know what the laws are in the uk, but you'd have to ask the clinic. >> repor

food and drug administration for use in the united states is manufactured in the united states by genentech many as 19 medical practices in the u.s. purchased this avastin that turned out to be from outside this country and contained no active ingredients. some vials had little more than salt and starch. carmen catizone is national director of boards of pharmacy. >> counterfeit drugs is a huge problem in the united states. the estimate, $75 billion worth of sales of counterfeit drugs occur annually. >> reporter: how did the fake avastin reach doctors' offices here in america? we follow the trail. the counterfeit avastin was sold by a company known as montana healthcare solutions. it offered 400 milligram vials for just under $2,000. about $400 less than the manufacturer's price. one source told cbs news that when doctors called the company originally registered to this address in montana, their calls were routed to this office complex in the caribbean nation of barbados, where cbs news has learned that montana healthcare solutions is owned and operated. we found the fake drugs sold by monta

by genentech.who operates several pharmaceutical-related business in barbados, repeatedly blamed his european supplier and regulators for failing to discover the counterfeit drug. >> we are legally entitled to sell any products within the-- with our license to any registered or licensed doctor, wholesaler so the question... >> reporter: not according to the f.d.a. you're not. >> ...then you need to go to these clinics. >> reporter: now it's the clinics' fault? it's not your fault for bringing in through your company into the united states avastin that turned out to be fake? >> these clinics, they purchase this product, and we're not in the u.s., so i'm not sure what the u.s. laws are. they would have to-- they would have to make sure what they're doing-- >> reporter: you're not sure of what the u.s. laws are regarding the use of avastin, a cancer- fighting drug, a life-saving drug in the united states? >> i'm telling you that we, my wholesaler in the united kingdom, i clearly-- >> reporter: it's yo

food and drug administration for use in the united states is manufactured in the united states by genentechny as 19 medical practices in the u.s. purchase this avastin that turned out to be from outside this country and contained no active ingredients. some vials had little more than salt and starch. carmen catizone is executive director of the national association of boards of pharmacy. >> counterfeit drugs is a huge problem in the united states. the estimates are that $75 billion worth of sales of counterfeit drugs occur annually. >> reporter: how did the fake avastin reach doctors' offices here in america? we follow the trail. the counterfeit avastin was sold by a company known as montana health care solutions. it offered 400 milligram vials for just under $2,000-- about $400 less than the manufacturer's price. one source told cbs news that when doctors called the company originally registered to this address in montana their calls were routed to this office complex in the caribbean nation of barbados where cbs news has learned that montana health care solutions is owned and operated. we

that is eminently preventable and another way to combine genentech signatures and sensors to change the face and prevent diseases. i hopefully convince you of two things. we have a few minutes left and we will get some questions but medicine will -- this is the last part. you need to push this because it won't happen by accident. that is why i put this book together. this was an article, march 10th, a few days ago, saturday. the article, not for doctors. you can't find a doctor on the web. you can find anything else. whatever you want, there is nothing to get doctors. nothing that is good to get information about doctors and that is because it is a relatively protected, non accountable community. non transparent. this wall street journal article from january says should physicians use e-mail to communicate with patients? how can you ask this question? how can you ask it? that i found out 62% of doctors will not communicate with their patients through e-mail? that is amazing to me. this is 2012. i was communicating with my patients in 1995 by e-mail. that shows you how ossified the medic

i have genentech, youtube and facebook. so it's a bustling county with lots of innovation, lots of start-up companies, so we're doing better than the national average, obviously. for home forclosures, less in my area than around the country, certainly. host: but is it higher? i am sorry, is it high for the state of california? >> no. it is not. it is lower. >> is you're doing pretty much -- -- >> two more issues we want to put on the table before we begin taking your calls for representative jackie speier. eight rim alleged raped in retaliation in u.s. military. this came out yesterday or tuesday, i should say. is this a story you're following, and as a member of the arled services committee, are you planning on pursuing this? guest: i've introduced legislation on this issue i feel very strongly about. about 19,000 men and women are sexual assaulted or raped in the military. those are figures from 2010 from the department of defense. of that 19,000 figure, about 13% actually report to crime, and only 8% actually are process