Agouron Reports 1998 Net Income; Announces Intention to Create Separate Oncology Division
LA JOLLA, Calif., July 21 /PRNewswire/ -- Agouron Pharmaceuticals, Inc. (Nasdaq: AGPH - news) today announced fiscal 1998 net income of $13,154,000, or $.40 per share, on total revenues of $466,505,000. Fiscal 1998 sales of the company's anti-HIV drug VIRACEPT(R) (nelfinavir mesylate) were $409,298,000 which included sales in the United States of $358,321,000. Fourth quarter VIRACEPT sales in the United States were $105,633,000. Total VIRACEPT sales in the fourth quarter were $126,046,000, a 13% increase from the immediately preceding quarter. The fourth quarter net loss of $8,923,000, or $.29 per share, reflected the company's payment of licensing fees of $26,000,000 for three development-stage anti-HIV products. Prior to such license fees and related costs, fourth quarter and annual fiscal 1998 net income was $7,222,000 or $.22 per share and $29,659,000 or $.89 per share, respectively. Prior year results for the fourth quarter and fiscal year were, respectively, net losses of $10,804,000 ($.38 per share) and $42,806,000 ($1.59 per share) on total revenues of $60,827,000 and $132,063,000.
The company also announced its intention to create a separate operating division in which the company's research and development of products for oncology and related fields will be conducted. Under the proposed plan, which must be approved by the company's shareholders, the financial performance of this oncology R&D division would be tracked by a separate divisional stock.
''With this plan to separately monitor the financial performance of our oncology R&D group, we are pursuing two objectives,'' said Peter Johnson, Agouron's president and chief executive officer. ''First, we seek to unlock what we believe to be the largely unappreciated value of our R&D pipeline of products for oncology and related fields. Second, we seek to sustain the potential for earnings growth from our VIRACEPT-driven antivirals business without compromising our vigorous investment in new product opportunities.''
Agouron Pharmaceuticals, Inc. is an integrated pharmaceutical company committed to the discovery, development, manufacturing, and marketing of innovative therapeutic products engineered to inactivate proteins that play key roles in cancer, AIDS, and other serious diseases.
For more information on Agouron, you may visit the Agouron Web Site at agouron.com.
VIRACEPT is indicated for the treatment of HIV infection when antiretroviral therapy is warranted. This indication is based on analyses of surrogate marker changes in patients who received VIRACEPT in combination with nucleoside analogues or alone for up to 24 weeks. At present, there are no results from controlled trials evaluating the effect of therapy with VIRACEPT on clinical progression of HIV infection, such as survival or the incidence of opportunistic infections.
The most commonly observed adverse event of moderate or greater severity in clinical trials of VIRACEPT was diarrhea, which was generally controlled with over-the-counter medications. New onset or exacerbation of diabetes mellitus and hyperglycemia, as well as increased bleeding in patients with hemophilia types A and B, have been reported with protease inhibitors.
VIRACEPT(R) is a registered trademark of Agouron Pharmaceuticals, Inc.
CONSOLIDATED STATEMENT OF INCOME (LOSS)
(In thousands, except per share amounts)
Three Months Ended Year Ended
June 30, June 30,
1998 1997 1998 1997
(Unaudited)
Revenues:
Product sales $126,046 $43,568 $409,298 $56,969
Contracts 7,782 16,259 38,855 65,094
License fees and royalties 1,700 1,000 18,352 10,000
135,528 60,827 466,505 132,063
Operating expenses:
Cost of product sales 51,409 18,576 172,644 24,599
Research and development 61,544 26,770 150,657 108,137
Selling, general and
administrative 17,253 13,139 58,012 32,941
Royalties 21,534 0 68,423 0
Write-off of in-process
technology 0 57,500 0 57,500
151,740 115,985 449,736 223,177
Operating income (loss) (16,212) (55,158) 16,769 (91,114)
Other income (expense):
Interest and other income 1,514 908 5,907 5,873
Interest expense (173) (49) (752) (142)
1,341 859 5,155 5,731
Income (loss) before
income taxes (14,871) (54,299) 21,924 (85,383)
Income tax provision
(benefit) (5,948) (43,495) 8,770 (42,577)
Net income (loss) $(8,923) $(10,804) $13,154 $(42,806)
Earnings (loss) per share:
Basic $ (.29) $(.38) $ .43 $(1.59)
Diluted $ (.29) $(.38) $ .40 $(1.59)
Shares used in calculation of:
Basic 30,963 28,356 30,571 26,946
Diluted 30,963 28,356 33,214 26,946
CONSOLIDATED BALANCE SHEET
(Audited, in thousands)
June 30, June 30,
1998 1997
Assets:
Cash, cash equivalents and short term
investments $87,123 $91,317
Accounts receivable, net 51,341 31,375
Inventories 103,706 58,800
Current deferred tax assets 564 500
Other current assets 5,247 2,209
Total current assets 247,981 184,201
Property and equipment, net 47,212 22,613
Deferred tax assets 64,644 56,000
Purchased intangibles 3,500 4,100
$363,337 $266,914
Liabilities and stockholders' equity:
Accounts payable and accrued liabilities $79,749 $37,722
Deferred revenue and advances 23,563 27,567
Current deferred tax liabilities 1,139 600
Loan payable and current portion
of long-term debt 15,802 2,526
Total current liabilities 120,253 68,415
Long-term debt, less current portion 5,892 5,940
Accrued rent 1,023 1,277
Stockholders' equity 236,169 191,282
$363,337 $266,914
Shares outstanding 31,053 29,430
SOURCE: Agouron Pharmaceuticals, Inc.
--------------------------------------------------------------------------------
|
