Regeneron Reports Second Quarter Financial and Operating Results
TARRYTOWN, N.Y.--(BW HealthWire)--July 30, 2002--Regeneron Pharmaceuticals, Inc. (Nasdaq: REGN - News) today announced financial and operating results for the second quarter of 2002.
Regeneron reported a net loss of $30.4 million, or $0.69 per share, for the second quarter of 2002 compared with a net loss of $14.8 million, or $0.34 per share, for the second quarter of 2001. The Company reported a net loss of $55.9 million, or $1.27 per share, for the six months ended June 30, 2002 compared with a net loss of $27.9 million, or $0.69 per share, for the same period in 2001. At June 30, 2002, cash, marketable securities, and restricted marketable securities totaled $374.0 million, compared with $438.4 million at December 31, 2001.
Total operating expenses for the second quarter of 2002 were $35.5 million, 49 percent higher than the same period in 2001, and for the first six months of 2002 were $65.7 million, 46 percent higher than the comparable period in 2001. Research and development expenses increased 57 percent to $30.7 million for the second quarter of 2002 and 54 percent to $56.2 million for the first six months of 2002, primarily due to expansion of Regeneron's clinical development programs. The Company also continued to expand its research programs and the technology platforms supporting that research.
At June 30, 2002, Regeneron had four product candidates in clinical development: AXOKINE® for the treatment of obesity, the IL1 Trap for rheumatoid arthritis, the VEGF Trap for cancer, and a pegylated version of AXOKINE called PegAXOKINE.
In the AXOKINE Phase III program, the average time on study for participants in the pivotal trial that enrolled approximately 2,000 patients is more than eight months, and three smaller studies have been initiated recently. A trial started in June 2002 will assess the safety and efficacy of AXOKINE in overweight individuals with type 2 diabetes mellitus. Two additional trials, which were fully enrolled in July 2002 and each of which involve approximately 300 patients, will study maintenance of weight loss following short-term treatment regimens with AXOKINE. In addition, in June 2002, Regeneron announced the initiation of a Phase I trial of PegAXOKINE for the treatment of obesity. This chemically modified version of AXOKINE is potentially a longer-lasting molecule.
Contract manufacturing expense relates primarily to Regeneron's long-term manufacturing agreement with Merck & Co., Inc. to produce an intermediate for a Merck pediatric vaccine. For the first six months of 2002, contract manufacturing expense decreased because Regeneron shipped less product to Merck than in the comparable period of 2001. Quantities of product that the Company manufactured for Merck in the first half of 2002 will not be shipped until later this year. The Company recognizes contract manufacturing revenue and the related manufacturing expense as the product is shipped. General and administrative expense increased in the current quarter and for the first six months of 2002 due primarily to higher staffing to support the growth of the Company, higher fees paid to outside service providers, and higher patent and legal expenses related to the protection and expansion of the Company's intellectual property portfolio.
The loss in Amgen-Regeneron Partners decreased in the second quarter and for the first six months of 2002 compared with the same periods in 2001 due to the substantial completion of studies conducted on behalf of the partnership. Interest expense increased in the second quarter and for the first six months of 2002 due to interest incurred on $200.0 million of convertible notes issued by the Company in October 2001. These notes bear interest at 5.5% per annum, payable semi-annually. Investment income declined in the current quarter and for the first six months of 2002 due to lower effective interest rates on investment securities.
Regeneron's total revenue decreased to $5.6 million in the second quarter of 2002 from $5.8 million in the same period of 2001. The Company's total revenue for the first six months of 2002 decreased to $10.5 million from $12.1 million for the comparable period of 2001. Contract research and development revenue decreased due to the substantial completion of studies conducted on behalf of Amgen-Regeneron Partners. Contract manufacturing revenue decreased because Regeneron shipped less product to Merck in the first half of 2002.
Per share amounts are based on the weighted average number of shares of the Company's Common Stock and Class A Stock outstanding.
Regeneron is a biopharmaceutical company that discovers, develops, and intends to commercialize therapeutic medicines for the treatment of serious medical conditions. Regeneron has therapeutic candidates in clinical trials for the potential treatment of obesity, rheumatoid arthritis, and cancer, and has preclinical programs in asthma, allergies, and other diseases and disorders. Regeneron's platform technologies include Targeted Genomics(TM), Functionomics(TM), and Designer Protein Therapeutics(TM). |
