ENBREL (R) (etanercept) Tops Expectations at $216 million for Fourth Quarter;
ENBREL Reaches $762 million for Twelve Months
SEATTLE, Jan. 23 /PRNewswire-FirstCall/ --
Immunex Corporation (Nasdaq: IMNX) today reported its annual financial
results. For the twelve months ended December 31, 2001, the company reported
record net income of $170.0 million, or 30 cents per share on record revenues
of $986.8 million, compared to net income of $154.4 million, or 28 cents per
share, on revenues of $861.8 million for the prior year. Cash flow from
operations for the year was $224.3 million, compared to $171.9 million for the
prior year.
For the three months ending December 31, 2001, Immunex reported net income
of $41.6 million, or 7 cents per share, on record revenues of $277.7 million,
which compares to net income of $49.2 million, or 9 cents per share, on
revenues of $250.7 million for the prior-year period. These results for 2001
include the impact of merger-related expenses in the fourth quarter and a
higher tax provision as Immunex moves toward becoming a fully-taxable entity.
Excluding merger-related costs, earnings per share was 8 cents per share for
the fourth quarter and 31 cents per share for the full year.
"We are very pleased to report another record year for revenues, net
income and operating cash flow," said chairman and chief executive officer
Ed Fritzky. "Our financial performance positions us well for investing in our
products for 2002."
Total net product sales for the year totaled $959.6 million, an increase
of 16 percent over the year 2000.
Sales of ENBREL, the company's flagship product, totaled $761.9 million
for the year 2001 despite limitations on supply, up 17 percent from the prior
year. Sales of ENBREL in the fourth quarter of 2001 totaled $216.3 million,
compared to $194.1 million in the fourth quarter of 2000.
"One of our operational goals is for ENBREL to hit the $1 billion mark in
2002," said Peggy Phillips, Immunex executive vice president and chief
operating officer. "Demand for ENBREL is robust, with efficacy and
tolerability setting new standards for treatment in rheumatoid arthritis. We
look forward to growing demand supported by our new psoriatic arthritis
indication."
During the fourth quarter, the company began pivotal clinical development
programs with ENBREL in psoriasis and ankylosing spondylitis. Last week, the
FDA approved ENBREL as the first treatment indicated to reduce signs and
symptoms of active arthritis in patients with psoriatic arthritis, an often
painful chronic inflammatory disease characterized by both joint disease and
skin manifestations.
"Psoriatic arthritis poses a diagnostic challenge for physicians and until
now they have only used treatments borrowed from other diseases with limited
success," said Phillips. "We believe ENBREL provides a new way for physicians
and patients to approach treating the disease, which will further fuel growing
demand."
To help meet growing demand for the drug, the company acquired the
manufacturing facility in Rhode Island dedicated to production of ENBREL from
American Home Products Corporation (NYSE: AHP) on January 1, 2002. Immunex
has begun preparing for the supplemental filing for the Rhode Island facility
with the U.S. Food and Drug Administration (FDA) and expects to complete the
filing in the first half of 2002. FDA approval of the plant is expected in
the second half of 2002.
In the specialty therapeutics product line, sales of LEUKINE(R)
(sargramostim) totaled a record $108.4 million for the year 2001, up
23 percent from year 2000. For the three months ending December 31, 2001,
sales of LEUKINE totaled $32.7 million, compared to $29.3 million in the
fourth quarter of 2000. Sales of NOVANTRONE(R) (mitoxantrone for injection
concentrate) achieved record levels as well in the fourth quarter and for the
year 2001 compared to the year-earlier periods. Year 2001 sales of NOVANTRONE
totaled $71.2 million, an increase of 19 percent over the prior year. Fourth
quarter sales were $23.8 million, up 27 percent over the fourth quarter 2000,
largely due to continuing growth in the market for worsening multiple
sclerosis.
Expenses for the year were consistent with growing sales and expanding
research programs.
R&D investments totaled $204.6 million for the year, an increase of
23 percent over the prior twelve-month period. In 2001, the company expanded
clinical studies for new indications for ENBREL, as well as initiated
earlier-stage programs for potential new products. Among the new programs
were the first clinical study of anti-inflammatory agent IL-1 receptor type
2 and a number of phase 2 cancer studies with ABX-EGF in collaboration with
Abgenix.
Doug Williams, PhD, executive vice president and chief scientific officer
of Immunex said, "Also noteworthy for Immunex in 2001 was elevating three
molecules (RANK, Anti-IL-4 receptor antibody, and TEK) to the 'transition
team' stage, which means preparing to start clinical studies within 12 to 24
months. This is a new level of R&D productivity for Immunex, exceeding past
performance as well as our goal of two molecules in 2001."
Selling, general and administrative (SG&A) expenses totaled $423.0 million
for the year, compared to $344.4 million over the prior twelve-month period,
in large part due to increased sales and marketing expenses related to ENBREL,
which includes profit-sharing payments to co-promotion partner Wyeth-Ayerst.
Wyeth-Ayerst is the pharmaceutical division of AHP.
The company also announced on December 17, 2001, that Immunex has agreed
to be acquired by Amgen Inc. The deal will merge Immunex, one of the fastest
growing biotechnology companies in the industry, with Amgen, the largest
biotechnology company. Under terms of the merger agreement, at the closing,
each share of Immunex stock would be converted into 0.44 of a share of Amgen
common stock and $4.50 in cash. Pending required shareholder approval from
both companies, and approval by regulatory authorities, the transaction is
expected to close in the second half of 2002.
Immunex cash and marketable securities, which includes restricted
investments, totaled $1.6 billion at year end.
Immunex Corporation is a leading biopharmaceutical company dedicated to
improving lives through immune system science innovations.
NOTE: Except for the historical information contained herein, this news
release contains forward-looking statements that involve substantial risks and
uncertainties. Among the factors that could cause actual results or timelines
to differ materially are risks associated with research and clinical
development, regulatory approvals, our supply capabilities and reliance on
third-party manufacturers, product commercialization, competition, litigation
and other risk factors listed from time to time in reports filed by Immunex
with the SEC, including but not limited to risks described under the caption
"Important Factors That May Affect Our Business, Our Results of Operations and
Our Stock Price" within our most recently filed Form 10-Q. The
forward-looking statements contained in this news release represent our
judgment as of the date of this release. Immunex undertakes no obligation to
publicly update any forward-looking statements. An electronic version of this
news release -- as well as additional information about Immunex of interest to
investors, customers, future employees and patients -- is available on the
Immunex home page at http://www.immunex.com.
Additional Information about the Acquisition and Where to Find It
In connection with the proposed acquisition, Immunex and Amgen intend to
file with the SEC a joint proxy statement/prospectus and other relevant
materials that will contain important information about the merger. The joint
proxy statement/prospectus will be mailed to the stockholders of Immunex and
Amgen. Investors and security holders of Immunex and Amgen are urged to read
the joint proxy statement/prospectus and the other relevant materials when
they become available because they will contain important information about
Immunex, Amgen and the acquisition. The joint proxy statement/prospectus and
other relevant materials (when they become available), and any other documents
filed by Immunex or Amgen with the SEC, may be obtained free of charge at the
SEC's web site at http://www.sec.gov. In addition, investors and security holders
may obtain free copies of the documents filed with the SEC by Immunex by
contacting Immunex Corporation, 51 University Street, Seattle, WA 98101, Attn:
Investor Relations. Investors and security holders may obtain free copies of
the documents filed with the SEC by Amgen by directing a request to: Amgen
Inc., One Amgen Center Drive, Thousand Oaks, CA 91320, Attn: Investor
Relations. Investors and security holders are urged to read the joint proxy
statement/prospectus and the other relevant materials when they become
available before making any voting or investment decision with respect to the
acquisition.
Immunex, Amgen and their respective executive officers and directors may
be deemed to be participants in the solicitation of proxies from the
stockholders of Immunex and Amgen in favor of the merger. Information about
the executive officers and directors of Immunex and their ownership of Immunex
common stock is set forth in the proxy statement for Immunex's 2001 Annual
Meeting of Stockholders, which was filed with the SEC on March 16, 2001.
Information about the executive officers and directors of Amgen and their
ownership of Amgen common stock is set forth in the proxy statement for
Amgen's 2001 Annual Meeting of Stockholders, which was filed with the SEC on
April 4, 2001. Investors and security holders may obtain more detailed
information regarding the direct and indirect interests of Immunex, Amgen and
their respective executive officers and directors in the merger by reading the
joint proxy statement/prospectus regarding the acquisition when it becomes
available.
IMMUNEX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share amounts)
Three months ended Twelve months ended
December 31, December 31,
2001 2000 2001 2000
Revenues:
Product sales $273,725 $248,776 $959,586 $828,828
Royalty and contract
revenue 3,989 1,892 27,219 33,001
277,714 250,668 986,805 861,829
Operating expenses:
Cost of product sales 69,369 72,972 256,123 243,144
Research and development 53,265 46,647 204,649 166,712
Selling, general and
administrative 118,151 101,324 422,999 344,383
Merger related costs 5,619 -- 5,619 --
246,404 220,943 889,390 754,239
Operating income 31,310 29,725 97,415 107,590
Other income (expense):
Interest and other
income, net 20,736 21,435 115,097 59,795
Interest expense (14) (873) (58) (10,737)
20,722 20,562 115,039 49,058
Income before income taxes 52,032 50,287 212,454 156,648
Provision for income taxes 10,406 1,131 42,491 2,296
Net income $41,626 $49,156 $169,963 $154,352
Net income per common
share, diluted $0.07 $0.09 $0.30 $0.28
Number of shares used for
per share amounts 569,104 565,273 569,077 549,250
IMMUNEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2001 2000
Assets:
Current assets $1,037,221 $1,756,281
Property, plant and equipment, net 200,429 174,049
Restricted cash and investments 765,000 --
Deposit on Rhode Island manufacturing
facility 192,778 --
Other assets 99,880 109,043
Total assets $2,295,308 $2,039,373
Liabilities and shareholders' equity:
Current liabilities $230,864 $200,441
Long-term debt and other obligations 764 796
Shareholders' equity 2,063,680 1,838,136
Total liabilities and shareholders'
equity $2,295,308 $2,039,373
IMMUNEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve months ended
December 31,
2001 2000
Operating Activities:
Net income $169,963 $154,352
Depreciation and amortization 31,110 21,781
Tax benefit from stock option plans 38,554 --
Gain on sale of product rights (16,000) --
Change in working capital and other 658 (4,253)
Net cash provided by operating activities 224,285 171,880
Investing and Financing Activities:
Purchases of property, plant and equipment (65,011) (80,675)
Purchase of property held for development (13,413) (27,509)
Net purchases of investments (355,432) (612,938)
Deposit on Rhode Island manufacturing
facility (192,778) --
Net proceeds from common stock offering -- 771,207
Other investing and financing activities 48,359 70,032
Net cash provided by (used in) investing
and financing activities financing
activities (578,275) 120,117
Net increase (decrease) in cash and cash
equivalents $(353,990) $291,997
SOURCE Immunex Corporation
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Related links:
http://www.immunex.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/434644.html
CONTACT:
media, Robin Shapiro, +1-206-389-4040, or
investors, Mark Leahy, +1-206-389-4363, both of Immunex
Corporation
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