Subject: Conference call highlights
Date: Tue, Apr 14, 1998 21:01 EDT
From: LMoss
Agouron had a fine third quarter. Earnings were $0.41/share (diluted).
Viracept 3Q total sales were $112 million, 22% above 2Q sales. U.S. sales of Viracept were $92 million, 10% above 2Q.
In February, Viracept accounted for 38% of all revenue from sales of protease inhibitors in the U.S., according to DDD audit. It was the highest in sales of any antiretroviral product.
An estimated 85,000 U.S. patients were taking Viracept in March, and 100,000 worldwide.
Growth in Viracept sales is expected in 4QFY98 and throughout FY99.
Agouron's 3Q revenue was 28% above that of 2Q.
Gross margins on U.S. sales of Viracept were 66%; for all of FY98 they are expected to be about 64%.
Viracept 3Q sales to Roche were $18.9 million.
For all of FY98, the following is estimated:
Contract revenues $40 million
License fees and royalties $20 million
R&D $120 million
SG&A $58 million
At the end of 3Q, cash and equivalents were $117 million, and working capital $146 million.
An interim analysis of twice-daily dosing of Viracept indicates that it is at least as effective as three-times-daily dosing. After a final evaluation of this, Agouron expects to file for BID before the end of the (calendar) year. It is thought that roughly 15% of patients taking Viracept may already be using BID.
Phase ll/lll clinical testing of AG3340 (the MMP inhibitor) began in 3Q for patients with hormone-refractory prostate cancer and other patients with non-small-cell lung cancer.
The selected rhinovirus protease inhibitor now has a name (or at least a label). It is AG7088. It appears to be as effective in inhibiting rhinovirus replication as Viracept is in inhibiting HIV. Phase l clinical testing should begin before the end of the year.
Viracept is now approved in 26 countries, but in about half of them certain details (reimbursement levels, etc.) are yet to be decided so that active marketing can begin.
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When Joe Kernan of CNBC reported earnings after the close today, he referred to Agouron as "the big biotechnology company." A slip of the tongue, or perhaps the beginning of increased respect for what Agouron has achieved and what it will achieve in the future.
LMoss |
