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( BW)(CA-IDEC-PHARMACEUTICALS)(IDPH) IDEC Pharmaceuticals Reports
Second Quarter 2000 Results
Business Editors/Health & Medical Writers
BIOWIRE2K
SAN DIEGO--(BW HealthWire)--July 18, 2000--IDEC Pharmaceuticals
Corporation (Nasdaq:IDPH) today announced its financial results for
the second quarter ended June 30, 2000. Total revenues for the second
quarter ended June 30, 2000 were $37.4 million compared to $35.3
million for the second quarter of 1999. Net income was $13.3 million,
or $0.26 per share on a diluted basis, compared to $19.9 million, or
$0.40 per share on a diluted basis, for the same period in 1999.
Revenues for the second quarter of 2000 included $31.3 million
recorded for IDEC's joint business arrangement with Genentech, Inc.
for the commercialization of Rituxan(R) (Rituximab) compared to $21.0
million for the second quarter of 1999. Revenues for the second
quarter of 1999 included a non-recurrent $13.0 million upfront
licensing fee from Schering AG for the exclusive marketing and
distribution rights outside the United States to ZEVALIN(TM)
(ibritumomab tiuxetan, IDEC-Y2B8). Contract revenues for the second
quarter of 2000 include additional revenues from IDEC's new agreement
with Taisho Pharmaceuticals.
"We are extremely pleased with the growth in Rituxan net sales in
the second quarter of 2000 to $96.7 million," said William R. Rohn,
chief operating officer. "Rituxan sales growth of 41% compared to the
same quarter last year is especially significant. This trend shows the
continued acceptance and adoption of Rituxan for the treatment of
relapsed or refractory, low grade or follicular, B-cell non-Hodgkin's
lymphoma by the oncology community."
Rituxan Revenues
Rituxan is copromoted in the United States by IDEC and Genentech.
U.S. net sales of Rituxan, as recorded by Genentech, in the second
quarter of 2000 were $96.7 million compared to $68.3 million for the
same period in 1999.
Revenues from unconsolidated joint business for the quarter ended
June 30, 2000 reflect the financial results from the U.S. marketing of
Rituxan by IDEC and Genentech. Revenues from unconsolidated joint
business for the second quarter of 2000 consist of IDEC's share of
pretax copromotion profits, reimbursement from Genentech for IDEC's
Rituxan-related sales force and development expenses and royalty
income from F. Hoffmann-La Roche Ltd. on the sales of Rituxan outside
the United States. According to its agreement with Genentech, IDEC's
share of pretax copromotion profits rose for the second quarter of
2000 to a higher percentage upon achievement of an annual fixed profit
target by the Rituxan joint business arrangement.
In addition, net sales of Rituxan reported by Genentech in the
second quarter included $6.1 million of ex-US sales to its partner F.
Hoffmann-La Roche Ltd. IDEC's royalty revenue on sales of Rituximab
outside the U.S. is based on Roche's end-user sales and is recorded
with a one-quarter lag. IDEC recognized, during the second quarter,
$2.0 million in royalties from Roche's end-user sales in the first
quarter.
Operating Costs and Expenses
Operating costs and expenses for the second quarter of 2000
increased to $23.6 million from $15.3 million for the second quarter
of 1999. The higher 2000 operating expenses are the result of
increased manufacturing development and drug supply expenses for
IDEC's products under development, personnel expenses and facility
expenses.
Manufacturing costs in 1999 were driven by IDEC's obligation to
supply Genentech with bulk Rituxan manufactured at IDEC's
manufacturing facility. In September 1999 all manufacturing
responsibilities for bulk Rituxan were transferred to Genentech.
Year-to-date operating costs and expenses increased by $15.1 million,
from $31.5 million in 1999 compared to $46.6 million in 2000,
primarily due to the aforementioned costs and expenses plus increased
contract manufacturing expenses by third-parties and increased legal
and patent filing fees.
IDEC ended the second quarter of 2000 with $274.3 million in cash,
cash equivalents and marketable securities, an increase of $28.0
million from $246.3 million at the end of 1999. Increases in cash stem
primarily from operations and stock purchases under employee stock
plans.
IDEC Signs Agreement with Taisho
As announced in June, IDEC signed a collaborative research and
development agreement with Taisho Pharmaceuticals Co. Ltd. of Tokyo to
develop and commercialize antibody therapeutics against macrophage
migration inhibitory factor (MIF) for the treatment of inflammatory
and autoimmune diseases.
Under the terms of the research and development agreement, IDEC
will develop high-affinity, humanized monoclonal antibodies with the
intent to complete Phase I and Phase II clinical trials during the
term of the agreement.
The research and development agreement is valued at approximately
$35.0 million, including $18.5 million in fixed R&D funding over the
next four years. The remaining value represents patent license
reimbursements, license fees and conditional milestones that will be
realized, if at all, over the life of the collaboration. IDEC will
share any such realized fees or milestones with Cytokine
PharmaSciences.
ZEVALIN Update
ZEVALIN is an investigational therapy seeking to combine the
targeting power of monoclonal antibodies with the cancer-killing
ability of radiation. During the second quarter, IDEC continued to
make progress with its Biologics Licensing Application (BLA) for
ZEVALIN, which is targeted for a fourth quarter filing with the Food
and Drug Administration (FDA). Pivotal trial analysis and BLA-enabling
manufacturing runs have been completed. Based on the favorable safety
and efficacy profile to date, IDEC's primary focus is now on
preparation of the BLA dossier.
Rituxan is copromoted in the United States by IDEC and Genentech.
Rituximab was discovered by IDEC and is jointly developed by IDEC,
Genentech Inc., F. Hoffmann-La Roche Ltd. of Switzerland and Zenyaku
Kogyo Co. Ltd. of Japan. Roche has marketing rights to Rituximab
outside of the United States and Japan.
IDEC Pharmaceuticals focuses on the commercialization and
development of targeted therapies for the treatment of cancer and
autoimmune diseases. IDEC's antibody products act chiefly through
immune system mechanisms, exerting their effect by binding to
specific, readily targeted immune cells in the patient's blood or
lymphatic systems.
IDEC Pharmaceuticals' news releases are available at no charge
through Business Wire's News on Demand Plus. For a menu of IDEC's
current news releases and quarterly reports or to retrieve a specific
release, call (888) 329-2309. On the Internet check the News Center at
IDEC's website: idecpharm.com.
The statements made in this press release contain certain
forward-looking statements that involve a number of risks and
uncertainties. Actual events or results may differ from IDEC's
expectations. For example, the timing, success and cost of preclinical
research and clinical studies, the timing, acceptability and review
periods for regulatory filings, the timing of and ability to obtain
regulatory approval of products, the achievement of future product
sales, the level of manufacturing performance and the risk factors
listed from time to time in IDEC's SEC filings including but not
limited to its Annual Report on Form 10-K for the year ended December
31, 1999 and Form 10-Q for the quarter ended March 31, 2000, may
affect the actual results achieved by IDEC. These forward-looking
statements represent the company's judgment as of the date of this
release. The company disclaims, however, any intent or obligation to
update these forward-looking statements.
IDEC Pharmaceuticals and Rituxan are registered U.S. trademarks of
the company. ZEVALIN is a trademark of the company. The company's
headquarters is located at 3030 Callan Road, San Diego, CA 92121.
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IDEC PHARMACEUTICALS CORPORATION AND SUBSIDIARY CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three months Six months
ended June 30, ended June 30,
2000 1999 2000 1999
Revenues:
Revenues from
unconsolidated joint
business $ 31,302 $ 21,045 $ 53,195 $ 40,324
Contract revenues 6,088 1,249 9,592 2,481
License fees -- 13,000 -- 13,000
-------- -------- -------- --------
Total revenues 37,390 35,294 62,787 55,805
Operating costs and
expenses:
Manufacturing costs -- 879 2,134 4,886
Research and
development 17,038 9,535 31,760 17,354
Selling, general
and administrative 6,600 4,859 12,677 9,253
-------- -------- -------- --------
Total operating
costs
and expenses 23,638 15,273 46,571 31,493
-------- -------- -------- --------
Income from
operations 13,752 20,021 16,216 24,312
Interest income,
net 2,389 930 4,265 1,639
-------- -------- -------- --------
Income before
income tax
provision 16,141 20,951 20,481 25,951
Income tax
provision (2,816) (1,043) (3,557) (1,234)
-------- -------- -------- --------
Net income $ 13,325 $ 19,908 $ 16,924 $ 24,717
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Earnings per
share (1):
Basic $ 0.30 $ 0.49 $ 0.38 $ 0.61
Diluted $ 0.26 $ 0.40 $ 0.32 $ 0.51
Shares used in
calculation
of earnings per
share (1):
Basic 44,508 41,034 43,979 40,798
Diluted 52,042 53,788 52,301 48,750
(1) Per share data for the three and six months ended June 30,
1999 have been restated to reflect a two-for-one stock split in
December 1999.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2000 1999
(unaudited) (audited)
Assets
Current assets:
Cash, cash equivalents and
securities available-for-sale $274,257 $246,286
Inventories 778 2,400
Other current assets 38,544 29,833
-------- --------
Total current assets 313,579 278,519
Property and equipment, net 25,433 20,822
Other non-current assets 13,121 7,733
-------- --------
Total assets $352,133 $307,074
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Liabilities and
Stockholders' Equity
Current liabilities $ 19,315 $ 15,616
Non-current liabilities 135,056 131,480
Stockholders' equity 197,762 159,978
-------- --------
Total liabilities and
stockholders' equity $352,133 $307,074
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CONTACT: IDEC Pharmaceuticals Corporation
Connie Matsui, 858/431-8656 |
