Earnings were good. First profitable quarter in the company's history. Here are the details...
SEATTLE -- October 15, 1997 -- Immunex Corporation (NASDAQ:IMNX) today reported a profit for the third
quarter due to increased product sales and a $15 million milestone payment related to a new promotion agreement with
Wyeth-Ayerst, a division of American Home Products Corporation (AHP).
The company reported net income of $6.2 million, or 15 cents per share, for the three months ended September 30,
1997, compared to a net loss of $10.7 million, or 27 cents per share, reported in the third quarter of 1996. Total
revenues in the current quarter were $56.0 million, compared to $33.4 million for the year-earlier period. During the
1997 quarter, Immunex received a $15 million payment from AHP related to the signing of a promotion agreement for
Immunex's investigational product EnbrelT (TNF receptor).
For the first nine months of 1997, the company reported a net loss of $11.2 million, or 28 cents per share, on total
revenues of $138.4 million, compared to a net loss for the first nine months of 1996 of $23.1 million, or 58 cents per
share, on revenues of $116.7 million.
"This was an extraordinary quarter for Immunex," said Ed Fritzky, company chairman and chief executive officer. "We
achieved record sales of our lead products Leukine and Novantrone, achieving near-term goals. Strengthening the
company's long-term prospects, we were pleased to report positive findings from a Phase III study with Enbrel in
advanced rheumatoid arthritis, and the signing of a key promotion agreement for Enbrel in North America with
Wyeth-Ayerst, the U.S. leader in arthritis, pain and inflammation medications. With targeted investment in research and
drug development, we have advanced the next wave of product candidates that we believe hold significant potential for
patients with asthma, AIDS and cardiovascular diseases."
Product sales in the third quarter of 1997 were up 24 percent to $37.7 million from $30.3 million in the same period of
1996. For the first nine months of 1997, product sales increased 15 percent to $112.5 million from $97.6 million in the
same period of 1996. The increase was led by significant sales gains from the company's flagship therapeutic products,
Novantroner (mitoxantrone for injection concentrate) and Leukiner (sargramostim). New labeling for Novantrone
in the first half of 1997, and a new formulation for Leukine in the first quarter of 1997 have contributed to increased
demand for both products.
Net sales of Novantrone increased 35 percent in the third quarter of 1997, to $13.4 million, compared to $9.9 million
in 1996. Sales in the first nine months of 1997 were up 37 percent to $37.9 million, compared to $27.7 million a year
earlier.
Net sales of Leukine, a white blood cell stimulant, totaled $14.1 million, compared to $9.2 million in the third period of
1996. Sales increased 20 percent in the first nine months of 1997 to $39.6 million compared to $33.0 million in the
comparable period in 1996.
Year-to-date sales of other oncology products have decreased slightly, caused primarily by a decline in sales of
leucovorin calcium resulting from continuing generic price competition.
Total operating expenses in the third quarter of 1997 were $50.7 million compared to $44.6 million for the same period
in 1996.
Research and development expenses were $28.0 million in the third quarter, up from $22.3 million in the same period in
1996. The increase is due to further investment in the company's development products: Enbrel, currently being studied
as a potential treatment for rheumatoid arthritis and congestive heart failure, MobistT (FLT-3 ligand) in clinical studies in
cancer patients, and the IL-4 receptor, a potential new treatment for asthma.
Sales, general and administrative expenses were $16.5 million in the third quarter of 1997, a decrease from $17.4 million
reported for the same quarter in 1996.
The company reported positive cash flow from operations of $7.6 million for the nine-month period, and ended the
quarter with cash and marketable securities totaling $81.5 million.
Immunex Corporation is a biopharmaceutical company dedicated to developing immune system science to protect human
health. The company's products offer hope to patients with cancer, inflammatory and infectious diseases. |
