Millennium Reports Year End 2000 Financial Results - Provides 2001
Financial Guidance -
CAMBRIDGE, Mass., Jan. 23 /PRNewswire/ -- Millennium Pharmaceuticals, Inc. (Nasdaq: MLNM - news) today reported consolidated financial results for the
year ended December 31, 2000.
(Photo: newscom.com )
The following financial results exclude the impact of the Company's adoption of SAB 101, acquisition-related charges, and debt conversion expenses. For a
discussion of SAB 101's impact on the Company's financial results see section entitled ``Effect of SAB 101'' below.
Revenue for the year ended December 31, 2000 was $213.2 million compared to $183.7 million in 1999. The increase in revenue is due to the addition of new
alliances formed in 2000 and the ongoing success of existing relationships. We believe that our new and existing alliances continue to validate the strength of
Millennium as an important partner in the discovery and development of breakthrough personalized medicine products.
Net operating loss for the year ended December 31, 2000 was $75.0 million, $0.39 per share compared to net operating income of $2.4 million or $0.02 per share
in 1999. The net operating loss reflects Millennium's commitment to expand our development capabilities and invest in our growing pipeline.
Expenditures for research and development for the year ended December 31, 2000 were $268.7 million versus $159.9 million in 1999. The increase represents our
continued investment in one of the strongest clinical and discovery-stage pipelines in the industry.
General and administrative expenses for the year ended December 31, 2000 were $49.3 million versus $32.9 million for 1999. This increase is due to the expansion
of operations and infrastructure necessary to support growth at all levels of Millennium's business.
As of December 31, 2000, Millennium had approximately $1.5 billion in cash, cash equivalents and marketable securities. During October 2000, the Company
raised $767 million in a public offering of its common stock.
``Millennium ended 2000 in its strongest business position ever,'' said Kevin Starr, chief financial officer of Millennium. ``We believe that our substantial cash position
of $1.5 billion and a committed revenue source from partners; combined with the strength of our technology platform and a deep early-stage pipeline, with
ownership of small molecules, antibodies and predictive medicine programs in our key franchise areas; put us in a unique position to build a company that will truly
revolutionize medicine.''
Effect of SAB 101
Millennium adopted U.S. Securities and Exchange Commission's Staff Accounting Bulletin No. 101 (SAB 101) on Revenue Recognition in the fourth quarter of
2000 and recorded a cumulative effect of change in accounting principle related to contract revenues recognized in prior periods. As a result, Millennium recorded a
one-time, non-cash charge of $107.7 million. After giving effect to the implementation of SAB 101, Millennium's 2000 revenue as adjusted was $196.3 million and it
had a net operating loss, before acquisition related charges and debt conversion expenses, of $92.0 million or $0.48 per share for the year ended 2000.
Year 2001 Financial Outlook:
This section contains forward-looking guidance about Millennium's financial outlook in 2001. This guidance excludes the impact of any prior or future potential
merger and acquisition initiatives that may occur during the year and includes the impact of SAB 101, as discussed above.
Revenue: Millennium expects to expand its revenue base and demonstrate its leadership capabilities through expanded relationships with existing partners, new
technology platforms and major strategic alliances. Revenue guidance for the year 2001 is in the range of $220-240 million.
Net Operating Loss: Millennium expects to continue to make balanced investments in building the company in 2001. The investments include spending on
Millennium's clinical pipeline, its technology platform, and the development capabilities and value creation initiatives necessary to maintain its leadership in the
industry. As a result of these investments, our 2001 guidance on loss from operations is in the range of $100-125 million.
Research and Development Expense: As Millennium continues to aggressively advance what we believe is the industry's leading pipeline, guidance for total
research and development spending in the year 2001 is in the range of $375-400 million.
Cash: Guidance for the year is to remain cash neutral by the end of 2001 with a cash balance of approximately $1.5 billion.
Shares outstanding: We anticipate that shares outstanding will increase at approximately the same rate (5-10%) as previous years, excluding equity issued in
major alliances and acquisitions.
``We expect to accelerate Millennium's progress on all fronts even more rapidly in 2001,'' said Mark Levin, chairman and chief executive officer of Millennium. ``We
are particularly looking forward to the launch of our first commercial therapeutic product and the first Diagnomic(TM) test based on our research, major advances in
productivity, the downstream development of our pipeline, and the establishment of important new alliances in our core areas.''
Year 2000 Company Highlights:
* New Alliances
-- Millennium and Aventis Pharma entered into an alliance valued at up to
$450 million with four key components: anti-inflammatory drug
development and commercialization, technology development, technology
transfer, and an equity investment.
* Product Development:
-- The Oncologic Drugs Advisory Committee (ODAC) to the U.S. Food and Drug
Administration (FDA) voted 14 to 1 to recommend accelerated approval of
Millennium and ILEX Partners L.P.'s CAMPATH® investigational
humanized monoclonal antibody for patients with chronic lymphocytic
leukemia (CLL) who have been treated with alkylating agents and have
failed flurarabine therapy.
-- During the year Millennium presented preclinical and clinical study
results on a number of its development programs including an
investigational proteasome inhibitor, LDP-341, the first in a new class
of anti-cancer agents, and LDP-02, an investigational monoclonal
antibody for the potential treatment of inflammatory bowel disease.
* Research and Discovery:
-- Millennium and Bayer AG announced that they have moved more than 70
disease-relevant validated drug targets into high-throughput screening
or lead identification in the first two years of the five-year research
alliance.
* Intellectual Property:
-- As of December 31, 2000, Millennium owned or is the exclusive licensee
under more than 1,400 U.S. and foreign patents and patent applications,
including more than 140 issued U.S. patents.
* Millennium Predictive Medicine Update:
-- Millennium acquired the minority equity interest of Millennium
Predictive Medicine, Inc. (MPMx), making it a wholly-owned subsidiary
of the Company. This move more closely aligned Millennium's
therapeutic and predictive discovery and development efforts, bringing
the company closer to its goal of delivering breakthrough products and
personalized medicine.
* Stock Changes:
-- Millennium completed a public offering of its common stock that
resulted in the Company raising $767 million. Earlier in the year,
Millennium raised $400 million by issuing convertible subordinated
notes.
-- Millennium effected two, two-for-one, stock splits of its common shares
in the form of stock dividends. These splits occurred on April 18,
2000 and October 4, 2000.
* Senior Hires:
-- Robert Pietrusko, Pharm.D., has joined the company as vice president,
worldwide regulatory affairs, reporting to Lee Brettman, M.D., FACP,
senior vice president, clinical development and medical affairs. Dr.
Pietrusko brings with him an extraordinary depth and breadth of
regulatory and development experience from a tenure of 18 years at
SmithKline Beecham Pharmaceuticals where he was most recently vice
president and director, U.S. regulatory affairs. In his new role at
Millennium, Dr. Pietrusko will continue to build the regulatory affairs
group, as well as provide seasoned guidance in developing our
relationships with regulatory authorities worldwide.
-- Millennium added the following senior managers to its team in 2000:
Paul Hamelin, senior vice president, commercial operations; James Nash,
senior vice president, manufacturing; Susan Ward, Ph.D., senior vice
president, strategy leadership; Marsha Fanucci, vice president, mergers
and acquisitions; Steven Gilman, Ph.D., vice president, inflammation
and Michael Spellman, Ph.D, vice president, quality assurance and
quality control.
Millennium, a leading biopharmaceutical company, applies its comprehensive and integrated science and technology platform for the discovery and development of
breakthrough therapeutic and predictive medicine products, with a goal of delivering personalized medicine. Through the industrialization of this gene-to-patient
platform, Millennium is also striving to accelerate the process of drug discovery and development. Headquartered in Cambridge, Massachusetts, Millennium
currently employees more than 1,300 people.
(tables follow)
This press release contains ``forward-looking statements,'' including statements about our growth and future operating results, discovery and development of
products, potential acquisitions, strategic alliances and intellectual property. Various risks may cause Millennium's actual results to differ materially, including: adverse
results in our drug discovery and clinical development processes; failure to obtain patent protection for our discoveries; commercial limitations imposed by patents
owned or controlled by third parties; our dependence upon strategic alliance partners to develop and commercialize products and services based on our work;
difficulties or delays in obtaining regulatory approvals to market products and services resulting from our development efforts; and the requirement for substantial
funding to conduct research and development and to expand commercialization activities. For a further list and description of the risks and uncertainties we face, see
the reports we have filed with the Securities and Exchange Commission. We disclaim any intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise
Editor's Note: This release is also available on Millennium's website at: millennium.com
MILLENNIUM PHARMACEUTICALS, INC.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(in thousands, except per share
amounts) Year Ended December 31,
2000 2000
Excluding Including
SAB 101 SAB 101 1999
REVENUES:
Revenue under strategic alliances $213,190 $196,269 $183,679
COSTS AND EXPENSES:
Research and development 268,740 268,740 159,877
General and administrative 49,315 49,315 32,896
Total costs and expenses 318,055 318,055 192,773
OTHER INCOME, NET 29,834 29,834 11,453
NET OPERATING INCOME (LOSS) (BEFORE
AMORTIZATION CHARGES, DEBT
CONVERSION EXPENSES, ACQUIRED IN-
PROCESS RESEARCH AND DEVELOPMENT,
DEEMED PREFERRED STOCK DIVIDEND AND
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE) $(75,031) $(91,952) $2,359
Amortization of intangibles (Note 1) (55,123) (55,123) (3,816)
Debt conversion expenses (Note 1) (54,852) (54,852) -
Acquired in-process research and
development - - (350,503)
Deemed preferred stock dividend (Note
1) (45,668) (45,668) -
Cumulative effect of change in
accounting principle (Note 2) - (107,692) -
Basic net operating income (loss) per
share before amortization charges,
debt conversion expenses, acquired
in-process research and development,
deemed preferred stock dividend and
cumulative effect of change in
accounting principle $(0.39) $(0.48) $0.02
Shares used in computing basic and
diluted net income (loss) per share
(Note 3,4) 192,835 192,835 145,412
Presentation: The financial information presented above reflects results
Excluding and Including the impact of Millennium's adoption of Staff
Accounting Bulletin 101, "Revenue Recognition in Financial Statements"
("SAB 101") respectively, as noted in the column headings.
Note 1: Amortization of intangibles, debt conversion expenses, a one-
time deemed preferred stock dividend related to Millennium's repurchase
of Millennium Predictive Medicine, Inc. preferred stock previously held by
Becton Dickinson and Company and a one-time non-cash charge for the
cumulative effect of change in accounting principle related to
Millennium's adoption of SAB 101 are deducted from Net Operating Income
(Loss) to arrive at Net Loss Attributable to Common Stockholders for the
year ended December 31, 2000.
Note 2: The cumulative effect of change in accounting principle is a
one-time non-cash charge relating to Millennium's adoption of Staff
Accounting Bulletin No. 101, ("SAB 101"). SAB 101 was issued by the
Securities and Exchange Commission ("SEC") in December 1999. SAB 101
provides guidance related to revenue recognition policies based on
interpretations and practices followed by the SEC. The impact of
Millennium's adoption of SAB 101 was to defer revenue recognition for
certain portions of the revenue previously recognized by Millennium under
its strategic alliances into future accounting periods.
Note 3: Shares used in computing basic and diluted net income (loss) per
share have been restated to give retroactive application to the April 18,
2000 and October 4, 2000 two-for-one stock splits, as applicable.
Note 4: Net Loss Attributable to Common Stockholders, including
amortization of intangibles, debt conversion expenses, deemed preferred
stock dividend and cumulative effect of change in accounting principle,
for the year ended December 31, 2000 (Including SAB 101) was $355,287, or
$1.84 per basic and diluted share.
Condensed Consolidated Balance Sheets
(in thousands) December 31, December 31,
2000 1999
Cash, cash equivalents and marketable
securities
Other current assets $1,452,367 $261,716
Property and equipment, net 33,213 24,794
Restricted cash and other assets 85,803 59,543
Intangible assets, net 34,599 12,965
Total assets 205,940 182,607
$1,811,922 $541,625
Current liabilities
Capital lease obligations, net $225,566 $59,163
Long term debt 28,146 27,488
Minority interest 95,927 -
Stockholders' equity - 15,568
Total liabilities and
stockholders' equity 1,462,283 439,406
$1,811,922 $541,625
MILLENNIUM PHARMACEUTICALS, INC.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(in thousands, except per share
amounts) Three Months Ended December 31,
(unaudited)
2000 2000
Excluding Including
SAB 101 SAB 101 1999
REVENUES:
Revenue under strategic alliances $69,697 $58,686 $55,098
COSTS AND EXPENSES:
Research and development 77,846 77,846 46,601
General and administrative 14,996 14,996 8,989
Total costs and expenses 92,842 92,842 55,590
OTHER INCOME, NET 18,699 18,699 2,217
NET OPERATING INCOME (LOSS) (BEFORE
AMORTIZATION CHARGES, DEBT
CONVERSION EXPENSES AND ACQUIRED IN-
PROCESS RESEARCH AND DEVELOPMENT) $(4,446) $(15,457) $1,725
Amortization of intangibles (Note 1) (16,512) (16,512) (1,789)
Debt conversion expenses (Note 1) (5,520) (5,520) -
Acquired in-process research and
development - - (350,503)
Basic net operating income (loss) per
share before amortization charges,
debt conversion expenses and
acquired in-process research and
development $(0.02) $(0.07) $0.01
Shares used in computing basic and
diluted net income (loss) per share
(Note 2,3) 211,786 211,786 151,532
Presentation: The financial information presented above reflects
results Excluding and Including the impact of Millennium's adoption of
Staff Accounting Bulletin 101, "Revenue Recognition in Financial
Statements" ("SAB 101") respectively, as noted in the column headings.
Note 1: Amortization of intangibles and debt conversion expenses are
deducted from Net Operating Income (Loss) to arrive at Net Loss for the
fourth quarter of 2000.
Note 2: Shares used in computing basic and diluted net income (loss)
per share have been restated to give retroactive application to the
April 18, 2000 and October 4, 2000 two-for-one stock splits, as
applicable.
Note 3: Net Loss including amortization of intangibles and debt
conversion expenses for the quarter ended December 31, 2000 (Including
SAB 101) was $37,489 or $0.18 per basic and diluted shared. |
