Regeneron Announces Third Quarter 2000 Results
TARRYTOWN, N.Y.--(BUSINESS WIRE)--Oct. 24, 2000--Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN - news) today announced its financial and operating results for the third quarter of 2000.
Regeneron reported a net loss of $3.2 million, or $0.09 per share, for the third quarter of 2000, compared to a net loss of $4.9 million, or $0.16 per share, for the third quarter of 1999. The Company reported a net loss of $13.5 million, or $0.39 per share, for the nine months ended September 30, 2000 compared to a net loss of $21.7 million, or $0.69 per share, for the same period in 1999. Cash and marketable securities at September 30, 2000, were $158.5 million, compared to $93.6 million at December 31, 1999.
Regeneron's total revenue increased to $17.4 million in the third quarter of 2000 from $12.5 million in the same period of 1999, and to $45.8 million for the first nine months of 2000 from $26.6 million in the same period of last year. The increase in the third quarter was due primarily to the receipt of two non-recurring research progress payments totaling $3.5 million from The Procter & Gamble Company related to its long-term collaboration agreement with the Company. The increase for the nine months ended September 30, 2000 was due primarily to higher contract research and development revenue and research progress payments received in 2000. Contract research and development revenue increased from Procter & Gamble in connection with its long-term collaboration agreement and from Amgen-Regeneron Partners related to increased clinical trial activity by Regeneron on brain-derived neurotrophic factor (BDNF) and neurotrophin-3 (NT-3). Research progress payments received in the first nine months of 2000 totaled $6.2 million, including the $3.5 million paid by Procter & Gamble in the third quarter and a $3.0 million payment (less $0.3 million of Japanese withholding tax) from Sumitomo Pharmaceuticals Co., Ltd. during the second quarter related to the development of BDNF in Japan.
Total operating expenses increased to $20.6 million in the third quarter of 2000 from $17.5 million in the same period of 1999, and to $59.3 million for the first nine months of 2000 from $48.3 million in the same period last year. The increase in both the third quarter and the first nine months of 2000 was due primarily to an increase in research and development expenses as a result of higher staffing and increased activity in Regeneron's preclinical and clinical research programs. The loss in Amgen-Regeneron Partners increased as a result of the partnership's increased clinical trial activity on BDNF and NT-3. Contract manufacturing expense was higher due to costs associated with initiating commercial production of both a vaccine intermediate for Merck & Co., Inc. under a long-term manufacturing agreement and clinical supplies of BDNF for Sumitomo Pharmaceuticals.
On April 4, 2000, Regeneron completed a public offering of 2.6 million shares of Common Stock at a price of $29.75 per share for proceeds to the Company, after commissions and expenses, of $72.9 million. On August 3, 2000, the Company sold 573,630 shares of Common Stock to Procter & Gamble at a price of $29.75 per share for total proceeds to the Company of $17.1 million.
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 drugs for the treatment of serious medical conditions. Regeneron's platform technologies include Targeted Genomics(TM), Functionomics(TM), and Designer Protein Therapeutics(TM). Regeneron has drugs in clinical and preclinical development for the potential treatment of obesity, rheumatoid arthritis, cancer, allergies, asthma, amyotrophic lateral sclerosis, and severe constipating conditions.
This news release discusses historical information and includes forward-looking statements about Regeneron and about its products, programs, finances, and business, all of which involve a number of risks and uncertainties, such as risks associated with preclinical and clinical development of drugs and biologics, determinations by regulatory and administrative governmental authorities, competitive factors, technological developments, the availability and cost of capital, the costs of developing, producing, and selling products, the potential for any collaboration agreement to be canceled or to terminate without any product success, and other material risks. A more complete description of these risks can be found in Regeneron's filings with the United States Securities and Exchange Commission, including its current Form 10-Q and its Form 10-K for the year ended December 31, 1999. Regeneron does not undertake any obligation to update publicly any forward-looking statement, whether as a result of new information, future events, or otherwise.
Additional information about Regeneron and recent news releases are available on Regeneron's Worldwide Web Home Page at www.regeneron.com. Fax copies of news releases can be obtained from Regeneron's News-on-Demand Service by dialing (800) 311-0841. |
