Nothing new. Slightly increased spending for BDNF and NT3. No update on programs and clinical trials plan for 99. I am still puzzled what triggered sudden reaction few days back.
Miljenko
Company Press Release
Regeneron Announces Annual and Fourth Quarter 1998 Results
TARRYTOWN, N.Y.--(BUSINESS WIRE)--Feb. 9, 1999--Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN - news) today announced its annual and fourth quarter financial and operating results for 1998.
Regeneron's total revenue for the year ended December 31, 1998 increased to $45.2 million from $33.1 million in 1997. The increase was due primarily to a $5.0 million research progress payment (reduced by $0.5 million of Japanese withholding tax) received from Sumitomo Pharmaceuticals Co., Ltd. related to the development of Regeneron's brain-derived neurotrophic factor (BDNF) in Japan and higher contract manufacturing revenue related to a long-term manufacturing agreement with Merck & Co., Inc. Contract research and development revenue also increased as revenue related to the Company's collaboration with The Procter & Gamble Company to develop Regeneron's AXOKINE® second generation ciliary neurotrophic factor for obesity associated with Type II diabetes more than offset a decrease in revenue associated with the Company's ongoing collaboration with Sumitomo. In the fourth quarter of 1998, the Company's total revenue decreased to $9.2 million from $11.4 million in the same period of 1997. The fourth quarter decrease was due primarily to the timing of research progress payments received from Procter & Gamble. In 1997, $2.5 million research progress payments were received in each of the third and fourth quarters, whereas in 1998 a $5.0 million research progress payment was received in the third quarter.
Total operating expenses in 1998 increased to $53.8 million from $44.7 million in 1997 and, for the fourth quarter, increased to $14.7 million in 1998 from $10.9 million in 1997. The increase for the year and the fourth quarter was due primarily to an increase in research and development expense as a result of increased activity in the Company's preclinical and clinical research programs. Contract manufacturing expense was higher due to increased activity in connection with the Merck manufacturing agreement. These increases were partly offset by lower depreciation and amortization expense as some of the Company's laboratory equipment became fully depreciated in 1997 and 1998. The Company's share of the loss in Amgen-Regeneron Partners in 1998 decreased for the year, but increased for the fourth quarter, since the partnership's research and development expenses for the full year were lower, but clinical study activity on BDNF and neurotrophin-3 (NT-3) increased in the fourth quarter.
Regeneron reported a net loss of $8.6 million for the full year 1998 compared to a net loss of $11.6 million for the full year 1997 and a net loss of $5.5 million for the fourth quarter of 1998 versus net income of $0.5 million for the fourth quarter of 1997. On a per share basis (basic and diluted), Regeneron reported a net loss of $0.28 per share for the full year 1998 versus a net loss of $0.40 per share for the full year 1997, and a net loss of $0.18 per share for the fourth quarter of 1998 versus a net income of $0.02 per share for the fourth quarter of 1997. Per share amounts are based on the weighted average number of shares of the Company's Common Stock and Class A Stock outstanding and, where dilutive, common stock equivalents. The weighted average number of shares was 31.0 million for the full year 1998, 28.7 million for the full year 1997, 31.0 million for the fourth quarter of 1998, and 30.9 million (basic) and 32.1 million (diluted) for the fourth quarter of 1997.
At December 31, 1998, Regeneron had $113.5 million in cash and marketable securities, compared to $128.0 million at December 31, 1997.
Regeneron is a leader in the application of molecular and cell biology to the search for novel human therapeutics. Regeneron uses its expertise in growth factors and their mechanisms of action to discover and develop protein-based and small molecule drugs for the treatment of obesity and neurological, inflammatory, and muscle diseases, as well as abnormal bone growth, cancer, and angiogenesis. Amgen-Regeneron Partners is conducting human clinical studies of BDNF and NT-3. The Company has a number of research collaborations, including a broad-based, long-term agreement with Procter & Gamble.
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