TO ALL: Earnings released. Way ahead of first call expectations
IDEC Pharmaceuticals Posts 1Q Net Loss Of $2.2M
FORM TYPE: PRNews
ISSUER: IDEC PHARMACEUTICALS CORP.
SYMBOL: IDPH
SAN DIEGO, May 8 /PRNewswire/ -- IDEC Pharmaceuticals
Corp., a biopharmaceutical company developing products for the long term
management of immune system cancers and autoimmune and inflammatory
diseases, today announced its financial results for the first quarter
ended March 31, 1997.
Revenues for the first quarter ended March 31, 1997 were $6.7
million compared to $9.9 million for the first quarter of 1996. The net
loss for the quarter was $2.2 million, or $0.12 per share, compared to
net income of $1.8 million, or $0.10 per share, for the same period in
1996. Revenue for the first quarter of 1997 decreased due to the
revenue recognition in 1996 of certain licensing activities. Licensing
fees and milestone payments are typically variable in their timing and
dependent on specific events.
Operating expenses increased to $9.7 million for the first
quarter of 1997 compared to $7.5 million for the first quarter of 1996.
Operating expenses increased on a period-to-period basis due to higher
costs related to the FDA submission of a Biologics License Application
for IDEC-C2B8 (rituximab), to creation of sales and marketing
infrastructure, and to establishment of additional warehouse and office
space. At the same time, clinical expenses during the first quarter
were somewhat lower compared to 1996 when the Phase III clinical trial
of IDEC-C2B8 was ongoing.
"We achieved a major milestone in the development of our lead
product on February 28, 1997: the simultaneous submission of
applications for U.S. and European marketing approval for the proposed
use of IDEC-C2B8 as a single agent therapy for the treatment of relapsed
low grade or follicular non- Hodgkin's lymphoma," said William H.
Rastetter, chairman, president and chief executive officer. "The FDA
has since accepted for filing the Biologics License Application for
IDEC-C2B8, and this application has received the status of 'priority
review'." IDEC-C2B8 is being developed in collaboration with Genentech
in the U.S. and with F.Hoffmann-La Roche in Europe. If IDEC- C2B8 is
licensed for marketing, it would be the first available therapeutic
monoclonal antibody for the treatment of cancer in the United States.
IDEC ended the first quarter with $70.1 million in cash, cash
equivalents and marketable securities, a decrease of $8.6 million from
the $78.7 million at the end of 1996. The use of $8.6 million in cash
stems primarily from $5.6 million used in operations and working capital
and $2.8 million in fixed asset additions.
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 the company's
expectations. In addition to the matters described in this press
release, timelines for clinical ongoing activity are subject to change,
results of pending or future clinical trials cannot be accurately
predicted and decisions by the FDA and other regulatory agencies, as
well as the risk factors listed from time to time in the company's SEC
filings, including but not limited to its Annual Report on Form 10-K for
the year ended December 31, 1996 may affect the actual results achieved
by the company.
IDEC Pharmaceuticals is a registered U.S. trademarks of the
company. The company headquarters is located at 11011 Torreyana Road,
San Diego, CA 92121.
IDEC PHARMACEUTICALS CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three months ended
March 31,
1997 1996
Revenues:
Contract research revenues $2,664 $2,936
License fees 4,000 7,000
6,664 9,936
Operating expenses:
Research and development 7,474 5,641
Selling, general and
administrative 2,208 1,854
9,682 7,495
Income (loss) from operations (3,018) 2,441
Interest income (expense), net 786 (594)
Net income (loss) $(2,232) $1,846
Net income (loss) per share $(0.12) $0.10
Shares used in calculation of
net income (loss) per share 18,195 19,121*
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
1997 1996
(unaudited) (audited)
ASSETS
Current assets:
Cash, cash equivalents and
securities available-for-sale$70,083 $78,727
Inventories 6,198 4,384
Other current assets 9,322 8,504
Total current assets 85,603 91,615
Property and equipment, net 23,352 21,453
Other non-current assets 603 761
Total assets $109,558 $113,829
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $11,619 $13,687
Non-current liabilities 6,888 7,528
Shareholders' equity 91,051 92,614
Total liabilities and
shareholders' equity $109,558 $113,829
*Owing to profitable quarter, share amount includes the dilutive
effect of 2,081 shares (share amounts in thousands) from outstanding
options, 457 shares from outstanding warrants and 1,434 shares from
convertible preferred stock.
SOURCE IDEC Pharmaceuticals Corporation, Inc.
/FEDERAL FILINGS CONTACTS: (202) 393-7856 FOR EDITORIAL,
(800) 487-6162 FOR DOCUMENT SALES,
(202) 628-8990 FOR NEWSWIRE SALES,
& (888) FED-FILE FOR TECHNICAL SUPPORT./
(END) FEDERAL FILINGS-DOW JONES NEWS 05-08-97
09:53
05/08/97 09:53
:TICKER: IDPH
:SUBJECT: BIOT CA EARN
Copyright (c) 1997 Federal Filings, Inc. - A Dow Jones Information Services Co.
Received by NewsEDGE/LAN: 5/8/97 9:51 AM |
