Thursday July 31 4:00 PM EDT
.17c a share PROFIT, after charge
Company Press Release
Source: Agouron Pharmaceuticals, Inc.
Agouron Pharmaceuticals Reports Fourth Quarter and Fiscal 1997 Financial Results; Announces 2 For 1 Stock Split
LA JOLLA, Calif., July 31 /PRNewswire/ -- Agouron Pharmaceuticals, Inc. (Nasdaq:AGPH) today reported that fourth quarter sales of its anti-HIV drug VIRACEPT(R) (nelfinavir mesylate)* were $43,568,000. Fourth quarter results excluding a non-recurring charge and a tax credit were a profit of $2,896,000 or $.17 per share on a fully diluted basis.
VIRACEPT sales since its launch in March 1997 totaled $56,969,000 for the fiscal year. Total revenues for the fourth quarter and fiscal year ending June 30, 1997 were $60,827,000 and $132,063,000, respectively, compared to $28,490,000 and $55,955,000 for the same periods in fiscal 1996. The net losses for the fourth quarter and fiscal year ending June 30, 1997, including the write-off of $57,500,000 of in-process technology associated with the company's acquisition of Alanex Corporation and the realization of $43,800,000 in deferred tax benefits, were $10,804,000 ($.76 per share) and $42,806,000 ($3.18 per share), respectively, compared to losses of $1,862,000 ($.17 per share) and $19,523,000 ($1.98 per share) for the same periods in fiscal 1996.
``Highlights of our fourth quarter results were the successful commercial launch of VIRACEPT and the acquisition of Alanex,'' said Peter Johnson, Agouron's president and chief executive officer. ``Published data from industry surveys indicate that the demand for VIRACEPT has continued to increase steadily since its introduction in March; we estimate that 35,000 patients were taking VIRACEPT at the end of June. We are both gratified and encouraged by this reception for our first product and the contribution that VIRACEPT has made to positive financial results for the quarter. We believe that VIRACEPT will continue to make a substantial contribution toward sustaining profitable operating results going forward. Consistent with this belief, the company has realized the benefit of its deferred tax assets during the fourth quarter and, subsequent to the end of the quarter, secured a commitment from a commercial bank for a $20,000,000 revolving line of credit to be used for general corporate purposes.''
``With the successful launch of VIRACEPT, our clinical development focus has been intensified on our portfolio of anti-cancer compounds including THYMITAQ(TM) (AG337), AG3340 and AG2034.''
``Of the total consideration paid for the acquisition of Alanex, valued at approximately $62,300,000, $57,500,000 has been attributed to in-process technology associated with approximately seven Alanex research programs and expensed in accordance with generally accepted accounting principles. We are now focused on the integration of Alanex and Agouron research and development activities and drug discovery technologies.''
On July 30, 1997 the company's Board of Directors approved a two-for-one stock split in the form of a special stock dividend of one share of common stock for each share of the company's common stock outstanding. The record date for the transaction is August 15, 1997 and the closing date will be on or about August 29, 1997. In applying the effect of the two-for-one stock split on a retroactive basis, reported net losses per common share for the fourth quarter and fiscal year ended June 30, 1997 and the fourth quarter and fiscal year ended June 30, 1996 would have been $.38, $1.59, $.09 and $.99, respectively, and total shares outstanding at June 30, 1997 and 1996 would have been 29,429,920 and 21,463,374, respectively.
Agouron Pharmaceuticals, Inc. is an integrated pharmaceutical company committed to the discovery, development, manufacturing, and marketing of small-molecule drugs engineered to inactivate proteins which play key roles in cancer, AIDS, and other serious diseases.
CONSOLIDATED FINANCIAL INFORMATION
(In thousands, except per share amounts)
Statement of Operations Three Months Ended Year Ended
June 30, June 30,
1997 1996 1997 1996
Revenues:
Product sales $43,568 $0 $56,969 $0
Contracts 16,259 13,490 65,094 40,955
License fees 1,000 15,000 10,000 15,000
60,827 28,490 132,063 55,955
Operating expenses:
Cost of product sales 18,576 0 24,599 0
Research and development 26,770 27,230 108,137 71,010
Selling, general and
administrative 13,139 4,031 32,941 8,082
Write-off of in-process
technology 57,500 0 57,500 0
115,985 31,261 223,177 79,092
Operating loss (55,158) (2,771) (91,114) (23,137)
Interest income, net 859 1,215 5,731 4,548
Loss before income taxes (54,299) (1,556) (85,383) (18,589)
Income tax provisions,
(benefit) (43,495) 306 (42,577) 934
Net loss $(10,804) $(1,862) $(42,806) $(19,523)
Net loss per common share $(.76) $(.17) $(3.18) $(1.98)
Shares used in computing net
loss per common share 14,178 10,652 13,473 9,844
Balance Sheet June 30, June 30,
1997 1996
Assets:
Cash, cash equivalents and
short term investments $91,317 $90,875
Accounts receivable, net 31,375 613
Inventories 58,800 0
Property and equipment, net 22,613 6,936
Deferred tax assets 56,500 0
Other assets 6,309 1,800
$266,914 $100,224
Liabilities and stockholders' equity:
Current liabilities $40,848 $11,472
Deferred contract revenue 27,567 11,435
Other liabilities 7,217 1,734
Stockholders' equity 191,282 75,583
$266,914 $100,224
Shares outstanding 14,715 10,732
* 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.
This press release may contain forward-looking statements or predictions. These statements represent our judgment as of this date and are subject to risks and uncertainties, that could cause the actual results to differ materially. Important factors concerning these risks are discussed in our Form 10-Q for the quarterly period ended March 31, 1997 currently on file with the Securities and Exchange Commission.
For more information on Agouron, you may visit the Agouron Web Site at: agouron.com
VIRACEPT(R) is a registered trademark of Agouron Pharmaceuticals, Inc.
THYMITAQ(TM) is a trademark of Agouron Pharmaceuticals, Inc.
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SOURCE: Agouron Pharmaceuticals, Inc.
Contact: Donna Nichols, Vice President, Head of Corporate Communications of Agouron Pharmaceuticals, 619-622-3009
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