Record Financial Performance Positions Immunex for Growth - Sales Up 60%,
Profits Up 248% and Cash at $1.6 Billion
SEATTLE, Jan. 24 /PRNewswire/ -- Immunex Corporation (Nasdaq: IMNX) today
reported net income of $154.4 million for the year ending December 31, 2000,
or 28 cents per share, on revenues of $861.8 million. This record-setting
performance for the company reflects significant growth over 1999 results,
when the company posted net income of $44.3 million, or 8 cents per share, on
revenues of $541.7 million.
For the three months ending December 31, 2000, Immunex reported net income
of $49.2 million, or 9 cents per share, on revenues of $250.7 million,
compared to net income of $16.2 million, or 3 cents per share, on revenues of
$162.6 million for the same period in 1999. Also during the quarter, a note
for $450 million held by American Home Products Corporation (NYSE: AHP) was
converted to Immunex common stock.
For the year, the company generated positive cash flow from operations of
$171.9 million. Cash and marketable securities at December 31, 2000 totaled
$1.6 billion, due largely to the successful completion of an equity offering
that netted Immunex proceeds in excess of $770 million.
Total product sales for the year grew 60 percent, to $828.8 million in
2000 from $519.3 million in 1999.
"Record product sales have allowed Immunex to increase investments in
research and development to create the next generation of innovative medicines
for patients, and new value for our shareholders," said Immunex chairman and
chief executive officer, Ed Fritzky. "In 2001, we expect to advance products
forward in seven disease areas, including clinical trials for the first time
of two new molecules: IL-1 receptor type 2 in inflammation and TRAIL/Apo2
ligand in cancer. Ending the year with $1.6 billion in cash, we are well
positioned to capitalize on our many opportunities for future value creation."
Sales of ENBREL(R) (etanercept), a leading biologic treatment for
rheumatoid arthritis, increased 78 percent to $652.4 million in 2000, its
second full year on the market.
"At the launch of ENBREL, we set a sales goal of $500 million for its
third year, and sales of ENBREL in its second year of over $650 million have
far exceeded that goal," said Peggy Phillips, Immunex chief operating officer.
"This demand demonstrates both the value ENBREL can bring to patients, and why
we are expanding capacity as rapidly as possible -- to make ENBREL available
for all patients who are candidates for therapy. In addition, we are pleased
to announce that ENBREL has received an updated indication and is now the only
biologic treatment indicated for first-line use to inhibit the progression of
structural damage in patients with moderately to severely active rheumatoid
arthritis."
Fourth quarter 2000 sales of ENBREL totaled $194.1 million, a gain of
65 percent over the same period in 1999 and 13 percent over the third quarter
of 2000. As earlier announced, this strong demand for ENBREL has reached the
company's current manufacturing capacity. To help ensure that patients
already using ENBREL have uninterrupted access, the company has registered
over 70,000 patients in the ENBREL Enrollment Program to continue to receive
the medicine. Immunex has also established a queue system for new patients.
New patients who enroll in the program will receive supply when it becomes
available. A manufacturing facility in Rhode Island is now being retrofit to
produce ENBREL in 2002 and, assuming regulatory approval, should potentially
double the supply.
The company's specialty therapeutics product line posted an overall
increase of 18 percent over 1999 levels. For the year 2000, net sales of the
immune system modulator LEUKINE(R) (sargramostim) grew 28 percent over 1999 to
$88.3 million. Net sales of NOVANTRONE(R) (mitoxantrone for injection
concentrate) totaled $59.9 million, an increase of 35 percent over 1999.
NOVANTRONE was approved by the U.S. Food and Drug Administration for a new use
during the fourth quarter 2000, to treat worsening forms of multiple
sclerosis.
Research and development expenses totaled $166.7 million for the year,
compared to $126.7 million in 1999, reflecting a range of new investments in
research and product collaborations to expand and accelerate the company's new
product pipeline.
"Immunex agreements with Celera, Abgenix and Cambridge Antibody Technology
this year have broadened our research capabilities with the latest genomics
tools, and created a comprehensive strategy for development of fully human
therapeutic monoclonal antibodies," stated Doug Williams, Ph.D., Immunex chief
technology officer. "Moreover, our new process science facility opens new
pathways for moving more Immunex and collaborator molecules into clinical
trials, faster."
Selling, general and administrative (SG&A) expenses totaled
$344.4 million, up from $216.7 million in 1999. SG&A expenses include
profit-sharing payments to co-promotion partner Wyeth-Ayerst for ENBREL.
Wyeth-Ayerst is the pharmaceutical division of American Home Products.
The year was also significant in terms of talent acquisition and employee
productivity. Growth in total employees was 23 percent, while sales per
employee increased 30 percent to $592,000 in 2000, compared to $457,000 in
1999. Depth was added in both the ENBREL and Specialty Therapeutics
franchises, as well as early-stage research in vascular biology, oncology and
protein engineering. With a retention rate of 95%, and selection by FORTUNE
magazine as one of the 100 Best Companies to Work for in America, the company
is well positioned to continue to attract and retain talent.
Immunex Corporation is a leading biopharmaceutical company dedicated to
improving lives through immune system science innovations.
American Home Products 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,
including biotechnological and vaccine products, animal health care products
and over-the-counter medications.
NOTE: This new release contains forward-looking statements that involve
risks and uncertainties, including risks associated with clinical development,
regulatory approvals, our reliance on third-party manufacturers, product
commercialization and other risks described from time to time in the SEC
reports filed by Immunex, including the most recently filed Form 10-Q. 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.
IMMUNEX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share amounts)
Three months ended Twelve months ended
December 31, December 31,
2000 1999 2000 1999
Revenues:
Product sales $248,776 $158,750 $828,828 $519,287
Royalty and contract
revenue 1,892 3,895 33,001 22,431
250,668 162,645 861,829 541,718
Operating expenses:
Cost of product sales 72,972 50,271 243,144 159,269
Research and development 46,647 37,139 166,712 126,682
Selling, general
and administrative 101,324 62,568 344,383 216,714
220,943 149,978 754,239 502,665
Operating income 29,725 12,667 107,590 39,053
Other income (expense):
Interest income 19,865 10,108 56,816 26,150
Interest expense (873) (3,479) (10,737) (8,656)
Other income, net 1,570 50 2,979 277
20,562 6,679 49,058 17,771
Income before income taxes 50,287 19,346 156,648 56,824
Provision for income taxes 1,131 3,130 2,296 12,500
Net income $49,156 $16,216 $154,352 $44,324
Net income per common
share, diluted $0.09 $0.03 $ 0.28 $ 0.08
Number of shares used for
per share amounts 565,273 534,648 549,250 529,974
IMMUNEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2000 1999
Assets:
Current assets $1,756,281 $791,181
Property, plant and equipment, net 174,049 110,445
Other assets 109,043 39,615
Total assets $2,039,373 $941,241
Liabilities and shareholders' equity:
Current liabilities $200,441 $135,085
Long-term debt and other obligations 796 450,826
Shareholders' equity 1,838,136 355,330
Total liabilities and shareholders' equity $2,039,373 $941,241
IMMUNEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve months ended
December 31,
2000 1999
Cash flows from operating activities:
Net income $154,352 $44,324
Depreciation and amortization 21,781 20,081
Deferred income tax provision -- 12,050
Change in working capital and other (4,253) 36,277
Net cash provided by operating activities 171,880 112,732
Cash flows from investing and
financing activities:
Purchases of property, plant and equipment (80,675) (35,563)
Purchase of property held for development (27,509) --
Net purchases of investments (612,938) (352,207)
Net proceeds from common stock offering 771,207 --
Proceeds from issuance of convertible note to
AHP, net -- 449,000
Other investing and financing activities 70,032 43,208
Net cash provided by investing
and financing activities
financing activities 120,117 104,438
Net increase in cash and cash equivalents $291,997 $217,170
SOURCE Immunex Corporation
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CONTACT:
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investors, Mark Leahy, 206-389-4363, both of Immunex Corporation
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