Earnings are out! What a move today!
Immunex Reports First Quarter 1999 Results
PR Newswire - April 20, 1999 09:16
Revenue Growth More Than Doubles Compared to Previous Quarters, Driven by Significant Increase in
Product Sales
SEATTLE, April 20 /PRNewswire/ -- Immunex Corporation (Nasdaq: IMNX) today reported net
income of $251,000 on total revenue of $98.2 million for the first quarter of 1999. These figures compare
to a net loss of $9,025,000, or 11 cents per share, on revenues of $41.9 million reported in the first
quarter of 1998.
The improvement in operating results reflects a 134 percent increase in revenues compared to the first
quarter of 1998, resulting from increased product sales. Net sales of ENBREL(R) (etanercept) totaled
$59.7 million in its first full quarter on the market. ENBREL was approved by the U.S. Food and Drug
Administration (FDA) on November 2, 1998, for the treatment of moderately to severely active
rheumatoid arthritis (RA). ENBREL was launched shortly following approval of the drug, and achieved
sales of $12.7 million in the fourth quarter of 1998.
Sales of the company's products used in the fight against cancer were on target. Quarterly net sales of
LEUKINE(R) (sargramostim), a white blood cell stimulant, were $16.0 million, up from $15.5 million in
the fourth quarter of 1998 and $15.1 million in the first quarter of 1998. Net sales of
NOVANTRONE(R) (mitoxantrone for injection concentrate) this quarter were $10.8 million, compared
to $9.4 million in the fourth quarter of 1998 and $13.4 million in the first quarter of 1998.
"The excellent financial performance of the company in the first quarter demonstrates that we're off to a
great start for 1999. Broad acceptance of ENBREL by physicians and patients has led to this substantial
increase in product sales," said Ed Fritzky, Immunex chairman and CEO. "As we approach the turn of
the century, we remain focused on building revenue growth and earnings by advancing new products in
our pipeline, and investing in cutting-edge drug discovery research."
Total expenses were $99.7 million for the first quarter of 1999, up from $73.5 million for the fourth
quarter of 1998 and $52.4 million in the first quarter of 1998. Increased expenses reflect higher costs of
product sales, a function of growing sales volume. Selling, general and administrative expenses were
$44.3 million in the first quarter of 1999, compared to $33.0 million in the fourth quarter of 1998 and
$18.4 million in the first quarter of 1998. This increase is due primarily to expanded investment in
marketing initiatives for ENBREL.
Total research and development investments in the first quarter of 1999 were $28.2 million, compared to
$26.9 million in the first quarter of 1998.
"We continue to assess the potential of ENBREL in rheumatoid arthritis and in new markets, and have
expanded the clinical studies for treatment of chronic heart failure," Fritzky said. "In addition, we made
significant progress in the development of several new Immunex products and in existing products,
including NOVANTRONE in multiple sclerosis and LEUKINE in HIV/AIDS. The development of
NUVANCE(TM) (IL-4 receptor), an investigational product in asthma, advanced to phase II clinical
studies."
Cash and marketable securities totaled $143.9 million as of March 31, 1999.
Immunex is a biopharmaceutical company dedicated to developing immune system science to protect
human health. The company's products offer hope to patients with cancer and inflammatory and infectious
diseases.
American Home Products owns a majority interest in Immunex. AHP is one of the world's largest
research-based pharmaceutical and health care products companies. It is a leader in the discovery,
development, manufacturing and marketing of prescription drugs and over-the-counter medications. It is
also a leader in vaccines, biotechnology, agricultural products and animal health care.
NOTE: This news release contains forward-looking statements that involve risks and uncertainties,
including risks associated with clinical development, regulatory approvals, patent litigation, product
commercialization, and other risks described from time to time in the SEC reports filed by Immunex,
including the most recently filed form 10-K and form 10-Q. For more information, please refer to
www.immunex.com.
Immunex Corporation
Consolidated Statements Of Operations
(In Thousands Except Per Share Amounts)
Three months ended
March 31,
1999 1998
Revenues:
Product sales $95,237 $38,816
Royalty and contract revenue 2,940 3,050
98,177 41,866
Operating expenses:
Cost of product sales 27,209 7,091
Research and development 28,209 26,906
Selling, general and administrative 44,273 18,437
99,691 52,434
Operating loss (1,514) (10,568)
Other income (expense):
Interest income 1,874 1,540
Interest expense (69) (110)
Other income (expense), net 80 171
1,885 1,601
Income (loss) before income taxes 371 (8,967)
Provision for income taxes 120 58
Net income (loss) $251 $(9,025)
Earnings (loss) per common share
Basic $0.00 $(0.11)
Diluted $0.00 $(0.11)
Number of shares used for per share amounts
Basic 80,700 79,468
Diluted 86,629 79,468
Immunex Corporation
Condensed Consolidated Balance Sheets
(In Thousands)
March 31, December 31,
1999 1998
Assets:
Current assets $215,864 $201,985
Property, plant and
equipment, net 92,100 90,092
Other assets 39,860 33,248
Total assets $347,824 $325,325
Liabilities and
shareholders' equity:
Current liabilities $79,137 $75,513
Long-term obligations 2,396 2,349
Shareholders' equity 266,291 247,463
Total liabilities and
shareholders' equity $347,824 $325,325
Immunex Corporation
Condensed Consolidated Statement of Cash Flows
(In Thousands)
Three Month Ended
March 31,
1999 1998
Net income (loss): $251 $(9,025)
Depreciation and amortization 4,690 4,259
Change in working capital and other (12,050) (706)
Net cash used in operations (7,109) (5,472)
Cash flows from investing and
financing activities:
Purchases of property, plant and equipment (5,394) (3,151)
Net purchases of marketable securities 4,428 (38,489)
Guaranty payments from AHP - 60,032
Other investing and financing activities 12,080 (3,631)
Net cash provided by investing and
financing activities 11,114 14,761
Net increase in cash $4,005 $9,289 |
