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Biotech / Medical : wla(warner lambert) -- Ignore unavailable to you. Want to Upgrade?

To: kas1 who wrote (528)	2/3/1999 11:57:00 PM
From: margie	Read Replies (1) \| Respond to of 942

Agouron beat the estimates by $0.05, no matter which way earnings are counted; on a consolidated basis or a divisional basis. On CNBC much earlier, they said that Agouron beat the estimates by $0.05. Prior to the proposed merger with Warner-Lambert announced last week, Agouron had planned on spinning off their oncology operations into a separate division, with a separate tracking stock for the oncology operations. Agouron was planning on reporting earnings for this quarter on a divisional basis, i.e., for two divisions: Agouron proper, and the new Oncology division. However due to the merger with Warner-Lambert, the tracking stock proposal for a new Oncology division has been deferred indefinitely and earnings are being reported on a consolidated basis, i.e. counting all the parts of Agouron, including the oncology operations. On a consolidated basis, Agouron earned $0.22 cents a share, for 2Q99. First Call estimates (consolidated) were $0.17 for 2Q 99. So Agouron beat the estimates by $0.05. If earnings had been reported on a divisional basis for 2Q99, they would have been $0.56 a share. First Call estimates for 2Q99 were $0.48, on a divisional basis. Viracept continues to assert itself as a market leader in the protease inhibitor market and the entire anti-retroviral market. Viracept product sales for 2Q99 were $158,193 million; a 72% increase over sales in 2Q98, and an 18% increase sales over the preceding quarter, 1Q99. North American product sales were approximately $113 million for 2Q99. Viracept sales to Roche were just over $45 million for the quarter, a 71% increase in the immediately preceding quarter. They believe Viracept sales in North America alone for fiscal 99 will meet or exceed $440 million. Agouron estimates that sales to Roche in Europe and elsewhere in fiscal 99 will exceed $100 million dollars. Sales to Roche may begin decline in 3Q99 as Roche starts to manufacture over 80% of their Viracept. Hoewever Agouron will receive a ‘manufacturing support fee' from Roche which will approximate the same small margin generated from these transfers sale, so the overall amount will not be that different. Viracept continues to strengthen its position as the No. 1 protease inhibitor, due to its potency, unique resistance profile, tolerability, twice a day dosing supported by many studies, and also due to increasing clinical data which supports it's use in different situations. For the month of December, Viracept's market share was about 37%, the highest ever. It is becoming clear that Viracept is the No. 1 prescribed protease inhibitor and the gap between it and the #2 Crixivan, Merck's protease inhibitor, continues to widen. Crixivan's market share for December was 31%. Viracept prescriptions grew about 5% each month for the last three months. For the last three months, Crixivan's growth was about 1%; Prescription growth for the two forms of Saquinir (Roche)was about 1.1% and Norvir's (Abbot) was about 1.9%. Viracept is now available in Canada in the three major provinces: British Columbia, Ontario, and Quebec. According to Roche, Viracept is the number one market leader in France, the United Kingdom, Germany, Australia, Switzerland, and is doing very well in other countries around the world. It is approved in 42 countries and has been launched in 25 countries. Agouron is continuing to see steady growth in the protease inhibitor market as well as for other antiretroviral products and they expect this to continue as more patients seek treatment or change treatment. There are about 300,000 patients on protease inhibitors in North America, and the market continues to increase slowly. they estimate that approximately 105,000 patients are on Viracept in North America.