Not bad at all!!
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Millennium Reports Fourth Quarter And Year End 1997 Financial Results
February 16, 1998 4:29 PM EST
1997 Sees Company Launch Three New Subsidiaries and Expand Drug Development Capabilities with ChemGenics Acquisition
CAMBRIDGE, Mass., Feb. 16 /PRNewswire/ -- Millennium Pharmaceuticals, Inc. (Nasdaq: MLNM) today reported consolidated financial results for the three months and year ended December 31, 1997.
For the quarter ended December 31, 1997, revenues under strategic alliances increased to $51,955,000 compared to $9,524,000 in strategic alliance revenue during the same period in 1996. Net income for the quarter was $25,576,000 or basic earnings per share of $0.88, compared to a net loss of $3,772,000 or basic loss per share of $0.16 for the quarter ended December 31, 1996. Expenditures on research and development for the fourth quarter of 1997 were $24,454,000 versus $10,831,000 for the fourth quarter of 1996.
For the year ended December 31, 1997, strategic alliance revenues almost trebled to $89,933,000 from $31,764,000 for the same period in 1996, reflecting payments from Millennium's multiple strategic partners. Net loss for the year ended 1997 was $81,222,000 or basic loss per share of $2.87, compared to $8,768,000 or basic loss per share of $0.39 for the same period of 1996. Included in the net loss for the year ended December 31, 1997 is a one- time charge of $83,800,000 for acquired in-process research and development related to the ChemGenics, Inc. merger, as well as $2,397,000 of related amortization expense. Excluding the one-time charge for acquired in-process research and development, Millennium would have realized a net income for the year ended 1997 of $2,578,000 or basic earnings per share of $0.09. Research and development expenditures for the year ended December 31, 1997 were $74,828,000, versus $34,803,000 for the year ended December 31, 1996. As of December 31, 1997, Millennium had over $96,557,000 in cash, cash equivalents and marketable securities.
"1997 was a year of tremendous accomplishment and expansion for Millennium," said Mark Levin, president and chief executive officer of Millennium. "Through our successes and growth, we have provided our shareholders their first look at what we believe is a new model for a fully- integrated genomics company. Most importantly, 1997 was a year in which we delivered on all of our major corporate objectives. By forming our subsidiaries, Millennium BioTherapeutics, Inc., Millennium Predictive Medicine, Inc. and Millennium Information, Inc. we have created new ventures to leverage our high-throughput genomics technology platform and expect to maximize the potential of our retained rights from our pharmaceutical partners. Additionally, our Monsanto collaboration, which we believe to be the largest genomics collaboration ever, proved that our integrated science and technology platform is a powerful product and expanded Millennium's reach in the life sciences.
Mr. Levin continued, "Contributing to our ability to develop products with our pharmaceutical partners and to undertake the Monsanto collaboration was our acquisition of ChemGenics, Inc. in early 1997. This acquisition gave us important infectious disease and chemistry screening capabilities to accelerate targets into leads. In addition, we believe the strength of our technology base and of our innovative business strategy was validated by the fact that in 1997 we essentially achieved break-even financial results, excluding a one-time charge for acquired in-process research and development, for the Company. We are looking forward to 1998, which we believe will be another year of great progress for Millennium."
Highlights for the year and quarter include:
-- Completed merger with ChemGenics, a leading anti-infective drug discovery firm.
-- Established Millennium BioTherapeutics (MBio) to discover and develop novel therapeutic proteins, gene therapy, antibody therapy and antisense products and entered into an alliance with Eli Lilly to discover and commercialize therapeutic proteins.
-- Established Millennium Predictive Medicine, Inc. (MPMx), focusing on pharmacogenomics and Diagnomics(TM), to develop genomic and proteomic-derived products and services to diagnose, treat, predict and prevent disease.
-- Established unique consortium with Affymetrix, Inc. and Bristol-Myers Squibb to fund a functional genomics research program at the Whitehead Institute. The consortium is developing the next generation of genomics technologies under the direction of Eric Lander, D.Phil.
-- Formed a collaboration with Monsanto to establish new, Monsanto wholly- owned subsidiary to develop agricultural and life sciences products using Millennium's integrated genomics technologies.
-- Expanded Eli Lilly cardiovascular collaboration to five years and added a new target--congestive heart failure.
-- Transferred three novel antibacterial targets to Wyeth-Ayerst Research for drug candidate screening.
-- Expanded antifungal collaboration with Pfizer.
-- Received six U.S. patents for mammalian tub gene, genes related to malignant melanoma, Uncoupling Protein Homologue (UCPH) gene and anti-fungal drug discovery.
-- Recruited multiple, talented scientific and business staff, including John Maraganore, Ph.D., general manager, Millennium BioTherapeutics, Inc., Nicholas Galakatos, Ph.D., vice president of new businesses, Ken Conway, president, Predictive Medicine, Kazumi Shiosaki, Ph.D., senior director, drug discovery, Michael Pavia, Ph.D., chief technology development officer, and Clare Midgley, vice president, corporate communications.
-- Awarded a Small Business Innovation Research (SBIR) grant in the amount of $750,000 over the next 2 years, from the National Institute of Health's Institute of Allergy and Infectious Diseases division. The grant covers the development of novel drugs from unculturable fungi.
-- Created Scientific Advisory Board including Christopher T. Walsh, Ph.D., K. Frank Austen, M.D., Gerald R. Fink, Ph.D., Raju S. Kucherlapati, Ph.D., Eric S. Lander, D.Phil., and Harvey F. Lodish, Ph.D.
Millennium, a leading genomics-driven life sciences company, employs large-scale genetics, genomics, high-throughput screening and bioinformatics in an integrated, broad-based discovery platform to enable and accelerate the discovery and development of new, proprietary therapeutic, diagnostic and life sciences products and services addressing major market needs. Headquartered in Cambridge, Massachusetts, Millennium and its affiliates currently employ more than 500 people.
This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from those indicated in such forward looking statements include uncertainties relating to gene identification, drug discovery and clinical development processes; changes in relationships with strategic partners and dependence upon strategic partners for the performance of critical activities under the collaborative agreements; the impact of competitive products and technological changes; uncertainties relating to patent protection; and uncertainties relating to the Company's ability to obtain the substantial additional funds required for its progress. The factors that could affect the performance of Millennium are more fully described in filings by Millennium with the Securities and Exchange Commission including but not limited to the factors set forth under the heading "Business -- Factors That May Affect Results" in the Annual Report on Form 10-K of Millennium for the year ended December 31, 1996 as filed on March 31, 1997.
MILLENNIUM PHARMACEUTICALS, INC.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
Consolidated Statements of Operations
(in thousands, except per share data)
(UNAUDITED)
Three Months Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
Revenue under strategic
alliances $51,955 $9,524 $89,933 $31,764
Costs and expenses:
Research and development24,454 10,831 74,828 34,803
General and administrative4,508 2,830 16,517 7,973
Acquired in-process
research and development 0 0 83,800 0
Amortization of intangible
assets 676 0 2,397 0
29,638 13,661 177,542 42,776
Income (loss) from
operations 22,317 (4,137) (87,609) (11,012)
Interest income 1,185 627 4,412 3,131
Interest expense (389) (262) (1,435) (887)
Minority Interest 2,463 0 3,410 0
Net income (loss) $25,576 $(3,772) $(81,222) $(8,768)
Basic net income (loss)
per share $0.88 $(0.16) $(2.87) $(0.39)
Shares used in computing
basic net income
(loss) per share 29,052 23,885 28,323 22,287
Diluted net income
(loss) per share $0.81 $(0.16) $(2.87) $(0.39)
Shares used in computing
diluted net income
(loss) per share 31,444 23,885 28,323 22,287
Consolidated Condensed Balance Sheets
(in thousands)
December 31,
1997 1996
Cash, cash equivalents and
marketable securities $96,557 $63,848
Due from strategic partners 778 5,710
Other current assets 4,595 2,512
Property and equipment, net 29,030 15,191
Intangible assets, net 8,413 0
Restricted cash and other assets5,140 483
Total assets $144,513 $87,744
Current liabilities $16,359 $11,797
Capital lease obligations, net 19,809 9,308
Minority Interest 16,590 0
Stockholders' equity 91,755 66,639
Total liabilities and
stockholders' equity $144,513 $87,744
NOTE: The net income for 1997 was $2,578 or basic earnings per share of $.09, exc
one-time charge for acquired in-process research and development. SOURCE Millennium Pharmaceuticals, Inc.
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