Regeneron Reports First Quarter Financial and Operating Results
TARRYTOWN, N.Y.--(BW HealthWire)--April 29, 2002--Regeneron Pharmaceuticals, Inc. (Nasdaq: REGN - news) today announced financial and operating results for the first quarter of 2002.
Regeneron reported a net loss of $25.4 million, or $0.58 per share, for the first quarter of 2002 compared with a net loss of $13.0 million, or $0.35 per share, for the first quarter of 2001. At March 31, 2002, cash, marketable securities, and restricted marketable securities totaled $409.4 million, compared with $438.4 million at December 31, 2001.
Total operating expenses for the first quarter of 2002 were $30.1 million, 43 percent higher than the same period in 2001. Research and development expenses increased 52 percent to $25.5 million, primarily because of increased clinical trial activity. Regeneron also continued to expand its research programs and the technology platforms supporting that research.
At March 31, 2002, the Company had AXOKINE®, the IL1 Trap, and the VEGF Trap in clinical development. Regeneron recently initiated two new studies in the AXOKINE Phase III program for the treatment of obesity. These trials will evaluate shorter dosing periods for AXOKINE and study long-term maintenance of weight loss following cessation of treatment.
"We continue to make progress in all areas of our business, keeping us on track to meet our ambitious goals for 2002," noted Leonard S. Schleifer, M.D., Ph.D., Regeneron's President and Chief Executive Officer. "As planned, we advanced preclinical work on the pegylated version of AXOKINE and the IL4/13 Trap, and we expect both to move into clinical trials by mid-2002. Our development team is managing an expanding clinical program, and we are investing in additional manufacturing capacity. Over the balance of 2002, we will concentrate on strengthening our pipeline and advancing product candidates through the development channel."
Contract manufacturing expense relates primarily to Regeneron's long-term manufacturing agreement with Merck & Co., Inc. In the first quarter of 2002, contract manufacturing expense decreased because Regeneron shipped less product to Merck than in the comparable quarter of 2001. The Company recognizes revenue and the related manufacturing expense as the product is accepted and shipped. Product that Regeneron manufactured for Merck in the end of 2001 and first quarter of 2002 will not be shipped until later this year. General and administrative expense increased in the current quarter due primarily to higher patent-related expenditures to protect the Company's intellectual property portfolio and higher staffing to support the growth of the Company.
The loss in Amgen-Regeneron Partners decreased in the first quarter of 2002 compared to the same period in 2001 due to the substantial completion of studies conducted on behalf of the partnership. Interest expense increased in the first quarter 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.
Regeneron's total revenue decreased to $4.9 million in the first quarter of 2002 from $6.3 million in the same period of 2001. Contract research and development revenue from Amgen-Regeneron Partners decreased due to the substantial completion of studies conducted on behalf of the partnership. Contract manufacturing revenue decreased because Regeneron shipped less product to Merck in the first quarter 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).
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