LA JOLLA, Calif., Feb. 3 /PRNewswire/ -- Agouron Pharmaceuticals, Inc.
(Nasdaq: AGPH) today announced consolidated net income of $7,620,000, or $.22
per share, on total revenues of $170,709,000 for the quarter ended December
31, 1998. Total sales of the company's HIV protease inhibitor, VIRACEPT(R)
(nelfinavir mesylate), were $158,193,000, including $112,600,000 in North
American sales, a 33% increase from the same period a year ago. Prior year
results for the same period were a net income of $4,922,000, or $.15 per
share, on total revenues of $104,662,000.
"Results of the company's non-oncology operations, which would have been
reported separately today had we not previously announced our plan to merge
with Warner-Lambert, were net income of $19,096,000, or $.56 per share, on
total revenues of $170,580,000 for the quarter," said Peter Johnson, Agouron's
president and chief executive officer.
On January 26, 1999, the company announced that it had signed a definitive
agreement to merge with Warner-Lambert Company, a worldwide company devoted to
discovering, developing, manufacturing, and marketing quality pharmaceuticals,
consumer healthcare, and confectionery products. Warner-Lambert employs more
than 40,000 people worldwide. The proposed merger, which is subject to
approval by Agouron's shareholders and federal regulators, will be treated as
a "pooling of interests" for accounting purposes. If approved, each share of
Agouron common stock will be converted into the right to receive that number
of shares of Warner-Lambert common stock equal to $60.00 divided by an average
sales price of Warner-Lambert common stock prior to closing, except that such
ratio will not be less than 0.8108 or more than 0.9300.
Agouron Pharmaceuticals, Inc. is an integrated pharmaceutical company
committed to the discovery, development, manufacturing, and marketing of
innovative therapeutic products engineered to inactivate proteins that play
key roles in cancer, AIDS, and other serious diseases.
This press release may contain forward-looking statements or predictions.
These statements represent our judgment as of this date and are subject to
risks and uncertainties (including those associated with regulatory approvals
and the impact of competitive products) that could cause the actual results to
differ materially. These statements, which include statements as to the
expected accounting treatment of the merger, represent our judgment as of this
date and are subject to risks and uncertainties that could cause the actual
results to differ materially. Additional information concerning factors that
could cause actual results to materially differ are discussed in our Form 10-K
for the fiscal year ended June 30, 1998 currently on file with the Securities
and Exchange Commission. Agouron undertakes no obligation to publicly release
the result of any revisions to such forward-looking statements which may be
made to reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.
For more information on Agouron, you may visit the Agouron Web Site at:
http://www.agouron.com
VIRACEPT(R) is a registered trademark of Agouron Pharmaceuticals, Inc.
VIRACEPT is indicated for the treatment of HIV infection when
antiretroviral therapy is warranted. This indication is based on analyses of
surrogate marker changes in patients who received VIRACEPT in combination with
nucleoside analogues or alone for up to 24 weeks. At present, there are no
results from controlled trials evaluating the effect of therapy with VIRACEPT
on clinical progression of HIV infection, such as survival or the incidence of
opportunistic infections.
The most commonly observed adverse event of moderate or greater severity
in clinical trials of VIRACEPT was diarrhea, which was generally controlled
with over-the-counter medications. New onset or exacerbation of diabetes
mellitus and hyperglycemia, as well as increased bleeding in patients with
hemophilia types A and B, have been reported with protease inhibitors.
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
December 31, December 31,
1998 1997 1998 1997
Revenues:
Product sales $158,193 $91,800 $292,063 $171,302
Contracts 5,416 12,462 11,433 22,465
Royalties and
license fees 7,100 400 12,150 2,752
170,709 104,662 315,646 196,519
Operating expenses:
Cost of
product sales 74,241 37,942 131,286 72,015
Research and
development 39,345 30,322 76,709 57,254
Selling, general
and administrative 20,701 14,045 37,843 26,591
Royalties 28,085 15,432 53,978 28,808
162,372 97,741 299,816 184,668
Operating income 8,337 6,921 15,830 11,851
Other income (expense):
Interest and
other income 851 1,488 1,887 2,769
Interest expense (223) (206) (646) (367)
628 1,282 1,241 2,402
Income before
income taxes 8,965 8,203 17,071 14,253
Income tax provision 1,345 3,281 2,561 5,701
Net income $7,620 $4,922 $14,510 $8,552
Earnings per share:
Basic $.24 $.16 $.46 $.28
Diluted $.22 $.15 $.43 $.26
Shares used in
calculation of:
Basic 31,410 30,520 31,269 30,242
Diluted 34,237 33,238 33,661 33,298
CONSOLIDATED BALANCE SHEET
(In thousands)
December 31, June 30,
1998 1998
(Unaudited) (Audited)
Assets:
Cash, cash equivalents and
short-term investments $73,734 $87,123
Accounts receivable, net 68,560 51,341
Inventories 104,419 103,706
Current deferred tax assets 594 564
Other current assets 2,552 5,247
Total current assets 249,859 247,981
Property and equipment, net 46,557 47,212
Deferred tax assets 71,680 64,644
Purchased intangibles 3,200 3,500
$371,296 $363,337
Liabilities and
stockholders' equity:
Accounts payable and
accrued liabilities $68,435 $79,749
Deferred revenue
and advances 17,017 23,563
Current deferred
tax liabilities 2,447 1,139
Loan payable and
current portion of
long-term debt 7,880 15,802
Total current liabilities 95,779 120,253
Long-term debt,
less current portion 6,375 5,892
Accrued rent 864 1,023
Stockholders' equity 268,278 236,169
$371,296 $363,337
Shares outstanding 31,739 31,053
SOURCE Agouron Pharmaceuticals, Inc.
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Related links:
http://www.agouron.com
Company News On-Call:
http://www.prnewswire.com/comp/019650.html or fax,
800-758-5804, ext. 019650
CONTACT:
Donna Nichols, Vice President, Head of
Corporate Communications of Agouron Pharmaceuticals, Inc.,
619-622-3009
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