REGN financials:
Friday July 30, 8:34 am Eastern Time
Company Press Release
Regeneron Announces Second Quarter 1999 Results
TARRYTOWN, N.Y.--(BUSINESS WIRE)--July 30, 1999--Regeneron
Pharmaceuticals, Inc. (NASDAQ: REGN - news) today announced its financial and operating results for the second quarter
of 1999.
Regeneron's total revenue in the second quarter of 1999 decreased to $7.2 million from $15.2 million in the same period of
1998. The Company's total revenue for the first six months of 1999 decreased to $14.1 million from $23.4 million in the
same period last year. The decrease for both the second quarter and the first six months of 1999 was due primarily to a
non-recurring $5.0 million research progress payment received in 1998 from The Procter & Gamble Company in connection
with a collaboration to develop AXOKINE® second generation ciliary neurotrophic factor and lower contract research and
development revenue related to Regeneron's ongoing collaborations with Procter & Gamble and Sumitomo Pharmaceuticals
Company, Ltd. The increase in contract manufacturing revenue from 1998 to 1999 relates to a long-term manufacturing
agreement with Merck & Co., Inc.
Total operating expenses increased to $15.0 million in the second quarter of 1999 from $13.1 million in the same period of
1998. The Company's total operating expenses for the first six months of 1999 increased to $30.9 million from $25.1 million
in the same period last year. The increase in both the second quarter and the first six months of 1999 was due primarily to an
increase in research and development expense as a result of higher staffing and increased activity in the Company's preclinical
and clinical research programs. The Company's share of the loss in Amgen-Regeneron Partners increased as a result of the
partnership's increased clinical trial activity on brain-derived neurotrophic factor (BDNF) and neurotrophin-3 (NT-3).
Contract manufacturing expense for the first six months of 1999 was higher due to increased activity in connection with the
Merck manufacturing agreement.
Regeneron reported a net loss of $7.8 million for the second quarter of 1999 versus net income of $2.1 million for the second
quarter of 1998, and a net loss of $16.8 million for the six months ended June 30, 1999 compared to a net loss of $1.7
million for the same period in 1998. On a per share basis (basic and diluted), Regeneron reported a net loss of $0.25 per
share for the second quarter of 1999 versus net income of $0.07 per share for the second quarter of 1998, and a net loss of
$0.54 per share for the six months ended June 30, 1999 versus a net loss of $0.05 per share for the same period in 1998.
Per share amounts are based on the weighted average number of shares of the Company's Common Stock and Class A
Stock outstanding and, where dilutive, common stock equivalents.
At June 30, 1999, Regeneron had $ 96.6 million in cash and marketable securities, compared to $113.5 million at December
31, 1998. Beginning in the third quarter of 1999, Procter and Gamble's support of research and development activities at
Regeneron, in addition to amounts paid to support development of AXOKINE which vary from quarter to quarter, will
increase from $1.1 million per quarter to at least $6.3 million per quarter for the following three years of the companies'
long-term collaboration agreement.
During the first six months of 1999, Regeneron and Procter & Gamble initiated a Phase I clinical study of AXOKINE which
is being developed for the treatment of Type II diabetes in obese patients and uncomplicated obesity. Regeneron, on behalf
of Amgen-Regeneron Partners, continued initial clinical studies of NT-3 for the treatment of constipation in patients with
spinal cord injury, Parkinson's disease, and other medical conditions. Amgen-Regeneron Partners also continued to enroll
patients in a multi-center clinical trial of BDNF delivered intrathecally (infusion into the spinal fluid through an implanted
pump) to patients with amyotrophic lateral sclerosis (ALS) and plans to begin a study of BDNF delivered subcutaneously
(injection under the skin) to ALS patients later this year.
Regeneron is a leader in the application of molecular and cell biology to the search for novel human therapeutics. Regeneron
uses its expertise in growth factors and their mechanisms of action to discover and develop protein-based and small molecule
drugs. Regeneron is currently conducting a clinical trial, in collaboration with The Procter & Gamble Company, of
AXOKINE second generation ciliary neurotrophic factor for the treatment of Type II diabetes in obese patients and
uncomplicated obesity. Regeneron is also conducting clinical trials, in partnership with Amgen Inc., of brain-derived
neurotrophic factor for the treatment of amyotrophic lateral sclerosis and of neurotrophin-3 for the treatment of constipation
associated with spinal cord injury and other medical conditions.
This news release discusses historical information and includes forward looking statements about Regeneron's products,
programs, finances, and business, all of which involve a number of risks and uncertainties, such as risks associated with
preclinical and clinical development of drugs and biologics, determinations by regulatory and administrative governmental
authorities, competitive factors, technological developments, the availability and cost of capital, the costs of developing,
producing, and selling products, the potential for any collaboration agreement to be canceled or to terminate without any
product success, and other material risks. A more complete description of these risks can be found in Regeneron's Form
10-K for the year ended December 31, 1998, a copy of which should be read before making any investment decision
regarding Regeneron common stock.
Additional information about Regeneron and recent news releases are available on Regeneron's Worldwide Web Home Page
at www.regeneron.com. Fax copies of news releases can be obtained from Regeneron's News-on-Demand Service by
dialing (800) 311-0841.
REGENERON PHARMACEUTICALS, INC.
CONDENSED BALANCE SHEETS (Unaudited)
(In thousands)
June 30, December 31,
1999 1998
ASSETS
Cash and marketable securities $96,568 $113,530
Investment in Amgen-Regeneron
Partners 1,534 3,091
Property, plant, and equipment, net 35,179 33,019
Other assets 6,558 7,275
Total assets $139,839 $156,915
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued
expenses $4,854 $5,551
Deferred revenue 15,673 15,673
Capital lease obligations 1,981 2,508
Other liabilities 1,935 1,956
Stockholders' equity 115,396 131,227
Total liabilities and
stockholders' equity $139,839 $156,915
REGENERON PHARMACEUTICALS, INC.
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
For The For The
three months six months
ended June 30, ended June 30,
1999 1998 1999 1998
Revenues
Contract research
and development $3,397 $6,202 $6,741 $10,776
Research progress payments 5,000 5,000
Contract manufacturing 2,454 2,281 4,569 4,167
Investment income 1,319 1,712 2,778 3,502
7,170 15,195 14,088 23,445
Expenses
Research and development 10,818 9,054 22,039 17,204
Loss in Amgen-Regeneron Partners 591 186 1,557 873
General and administrative 1,520 1,693 3,113 3,077
Depreciation and amortization 829 780 1,554 1,649
Contract manufacturing 1,164 1,235 2,418 2,103
Interest 81 107 170 228
15,003 13,055 30,851 25,134
Net (loss) income ($7,833) $2,140 ($16,763) ($1,689)
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Net (loss) income per share:
basic and diluted ($0.25) $0.07 ($0.54) ($0.05)
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Weighted average number of Common
and Class A shares outstanding:
basic 31,303 31,003 31,289 30,968
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Weighted average number of Common
and Class A shares outstanding:
diluted 31,303 31,988 31,289 30,968
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