CNTO Q2 earning out today: -0.06 vs consensus estimate of -0.08. Reopro sales on track, but the biggest positive is the sharp reduction in debt with cash from secondary CNTO offering in March at $33 a share. Revenue is up at 30.6 million.
Expect CNTO to move up from here. After its recent downturn, CNTO's technical chart pattern is actually very positive: a double bottom had already formed. Do expect short term profit taking from those who bought recently at the bottoms. Similar positive news two days ago, e.g. BGEN, had resulted in BGEN being higher. CHIR is a different story.
Excerpt:
CENTOCOR REPORTS SECOND QUARTER 1996 FINANCIAL RESULTS
* ReoPro(TM) Sales Increase 86% over First Quarter
* Loss Narrowed by 75% as Compared to a Year-ago
* Debt Dramatically Reduced by 69%
MALVERN, Pa., Aug. 1 /PRNewswire/ -- Centocor, Inc. (Nasdaq: CNTO)
announced today its second quarter financial results, for the period
ending June 30, 1996. For the quarter, Centocor achieved revenues of
$30.6 million, comprising $20.1 million in Pharmaceutical revenues and
$10.5 million in Diagnostic revenues. The company reported a loss of
$4.3 million, or $0.06 per share, compared to a loss for the second
quarter of last year of $17.3 million, or $0.30 per share.
Cash balances at the end of the second quarter totaled
$162.3 million. This compares with $251.5 million at the end of the
first quarter of 1996, which reflected the company's public offering of four million additional shares of Common Stock during that quarter.
Total debt was reduced by $168.6 million, or 69% in the second quarter, and now stands at $77.1 million. The 7-1/4% Convertible Notes were eliminated, as well as $70.2 million of the 6-3/4% Convertible Debentures. Total cash usage was $9.7 million for the quarter, excluding financing and debt reduction, versus $19.3 million in the same period a year ago.
"Centocor is on track to reach its goal of profitability in the
final quarter of this year. Our financial and operating performance
this quarter demonstrates our corporate commitment to improving
shareholder value," said David P. Holveck, President and Chief Executive Officer of Centocor. "Second quarter revenues show market share growth in the adoption of ReoPro(TM), which is becoming the standard of care in high-risk angioplasty, in a market where economic value plays an increasing role in managing patient care."
Pharmaceutical Update:
ReoPro (anti-platelet for high-risk angioplasty)
-- Q2 Centocor sales were $18.5 million to Eli Lilly and Company,
the worldwide marketing partner for ReoPro. Lilly end sales to
customers were $37.2 million in Q2.
-- ReoPro received marketing approval in both Italy and Canada.
-- Analysis of EPIC one-year data was recently completed, and
results are consistent with those previously reported at 6-months.
Details will be disclosed at the European Society of Cardiology
conference, by Dr. Eric Topol of The Cleveland Clinic.
-- Data for 30-days and 6-months from the CAPTURE trial for
refractory unstable angina patients eligible for PTCA will be presented
at the European Society of Cardiology on August 27, in the U.K. This
data will reflect the pre-dosing effect on PTCA outcomes.
-- RAPPORT, trial for direct angioplasty in acute myocardial
infarction patients, continues to enroll well. The two stent trials,
ERASER and EPILOG-Stent, were initiated in the last quarter and are
scheduled to conclude enrollment in mid 1997.
-- An early phase II study for acute myocardial infarction is
underway, with plans for phase III to commence sometime next year.
-- Last month, Centocor bought back from Lilly, the resale rights to ReoPro in the Japanese market. Centocor is in the final stages of
discussion with a potential new marketing partner in Japan.
CenTNF(TM)(anti-inflammatory)
-- Positive data from the phase II trial for Crohn's disease were
presented at the Digestive Disease Week conference. A pivotal trial for fistulae in Crohn's disease was initiated last month.
-- In Japan, phase II trials have begun to enroll patients for
Crohn's Disease, with our marketing partner in that country, Tanabe
Seiyaku Co., Ltd.
-- Results from the company's multi-center, placebo-controlled,
double-blinded clinical trial evaluating multiple treatments with CenTNF in the setting of severe rheumatoid arthritis were positive. This trial, led by the Kennedy Institute of Rheumatology in London,
demonstrated clinical benefit consistent with that observed in the
recent Crohn's trial.
Diagnostics Update:
-- Unit volume growth was up more than 10%, year-to-date, reflecting greater utilization on automated diagnostic platforms.
-- Myoscint(TM) received final marketing approval from the Food and Drug Administration on July 3. Myoscint will be launched in Japan in the fourth quarter of this year, and in the U.S. during the first
quarter of 1997.
-- Early detection of ovarian cancer with use of the CA 125II(TM)
test was shown to be a valuable diagnostic approach for post-menopausal women over 50 years, at the American Society of Clinical Oncology conference.
Medical Advertising News has named Centocor the "Best Biotechnology Company" in its 1995 Annual Report of Biotechnology Companies. MedAd News, a monthly business newsmagazine targeted for the pharmaceutical business and marketing community, said "after a complete restructuring and a new business strategy, the company is on its way to commercialization and profitability."
Centocor is a biotechnology company that develops therapeutic and
diagnostic human health care products for cardiovascular, autoimmune and infectious diseases, and cancer. The company concentrates on research and development, manufacturing and market development, with a primary technological focus on monoclonal antibodies, with additional programs in genetic vaccines and peptides.
Any statements released by Centocor that are forward looking are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that forward
looking statements involve risks and uncertainties which may affect the Company's business and prospects, including economic, competitive,
governmental, technological and other factors discussed in the Company's filings with the Securities and Exchange Commission.
On the Internet: Recent press releases can be found on Centocor's
site on the World Wide Web.
Point your browser to centocor.com
CENTOCOR, INC.
SUMMARY OF OPERATIONS
(in thousands except for per share amounts)
(Unaudited)
Three months ended Six months ended
6\30\96 6\30\95 6\30\96 6\30\95
Revenues:
Sales $29,526 $17,754 $51,236 $37,073
Contracts 1,060 3,000 1,232 7,676
Total Revenues 30,586 20,754 52,468 44,749
Costs and expenses 35,732 32,199 66,237 61,819
Other income
(expense), net 118 (2,114) (957) (4,731)
Loss before special
items ($5,028) ($13,559) ($14,726) ($21,801)
Loss per share before
special items ($0.07) ($0.23) ($0.23) ($0.38)
Special items:
Net gain on extinguishment
of debt(1) 705 - 705 -
Litigation charge(1) - (3,750) - (3,750)
Loss ($4,323) ($17,309) ($14,021) ($25,551)
Loss per share ($0.06) ($0.30) ($0.22) ($0.44)
Weighted average
number of shares
outstanding 67,645 58,258 63,901 58,014
(1) The extraordinary net gain for the three and six months ended
June 30, 1996 pertains to the repurchase of the Company's 6-3/4%
Convertible Debentures net of debt issuance costs, partially offset by
debt issuance costs on the conversion of the Company's 7-1/4%
Convertible Notes. Special charges for the three and six months ended
June 30, 1995 represent a charge relating to a litigation settlement. |
