Record Revenues Drive Record Profit and Strong Investment in Product Pipeline;
82 Percent Revenue Growth, Net Profits Up $32 Million Compared To First
Quarter 1999
SEATTLE, April 18 /PRNewswire/ -- Immunex Corporation (Nasdaq: IMNX) today
reported net income of $32.2 million, or 6 cents per share, on total revenue
of $179.0 million for the first quarter of 2000. These results compare to a
net income of $0.3 million, or less than one cent per share, on revenues of
$98.2 million reported in the first quarter of 1999.
Total net product sales were $166.7 million for the first quarter of 2000,
up 75 percent from the first quarter of 1999 total net product sales of
$95.2 million. Sales of ENBREL(R) (etanercept) totaled $131.1 million for the
quarter, up 120 percent compared to the first quarter of 1999 sales of ENBREL
of $59.7 million. In addition to the $131.1 million net product sales of
ENBREL, Immunex earned a scheduled payment of $10 million from American Home
Products Corporation (AHP) under a co-promotion agreement for ENBREL,
triggered by total sales of ENBREL exceeding $400 million during the last
twelve months. Sales of the company's specialty therapeutics products,
including LEUKINE(R) (sargramostim), and NOVANTRONE(R) (mitoxantrone for
injection concentrate), were $34.7 million for the first quarter of 2000,
compared to $34.5 million in the first quarter of 1999.
"Immunex is very well positioned for the future, as we continue to make
excellent progress at growing sales, profit and cash flow from operations,"
said Ed Fritzky, Immunex chairman, CEO and president. "We are dedicated to
continued strong execution of business fundamentals."
Research and development investments in the first quarter of 2000 were
$34.7 million, compared to $28.2 million in the first quarter of 1999.
Selling, general and administrative (SG&A) expenses were $72.3 million in the
first quarter of 2000, compared to $44.3 million in the first quarter of 1999.
SG&A expenses include profit-sharing payments to the company's marketing
partner for ENBREL, Wyeth-Ayerst Pharmaceuticals, the pharmaceutical division
of AHP. In addition, investments were higher in support of ENBREL marketing
initiatives and preparation to launch NOVANTRONE to treat worsening forms of
multiple sclerosis pending FDA approval.
"We are very pleased with the FDA advisory committee's recommendation for
expanded use of ENBREL to treat patients with early-stage rheumatoid arthritis
and for use to delay radiographic progression of joint damage associated with
early-stage disease. This pending new indication would expand the potential
rheumatoid arthritis market for ENBREL to approximately one million people in
the United States," said Peggy Phillips, Immunex COO and executive vice
president. "In addition we are prepared to launch NOVANTRONE for use in
patients with worsening forms of multiple sclerosis immediately upon receipt
of FDA approval."
Cash and marketable securities totaled $760.6 million as of
March 31, 2000.
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 disease.
AHP 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, including biotechnological and vaccine products, animal
health care products and over-the-counter medications.
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 http://www.immunex.com.
IMMUNEX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per share amounts)
Three months ended
March 31,
2000 1999
Revenues:
Product sales $166,698 $95,237
Royalty and contract revenue 12,340 2,940
179,038 98,177
Operating expenses:
Cost of product sales 47,803 27,209
Research and development 34,700 28,209
Selling, general and administrative 72,300 44,273
154,803 99,691
Operating income (loss) 24,235 (1,514)
Other income (expense):
Interest income 11,011 1,874
Interest expense (3,434) (69)
Other income, net 773 80
8,350 1,885
Income before income taxes 32,585 371
Provision for income taxes 424 120
Net income $32,161 $251
Net income per common share
Basic $0.06 $0.00
Diluted $0.06 $0.00
Number of shares used for per
share amounts
Basic 497,256 484,200
Diluted 544,357 519,774
IMMUNEX CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
March 31, December 31,
2000 1999
Assets:
Current assets $856,210 $791,181
Property, plant and equipment, net 124,130 110,445
Other assets 69,735 39,615
Total assets $1,050,075 $941,241
Liabilities and shareholders' equity:
Current liabilities $137,365 $135,085
Long-term obligations 450,835 450,826
Shareholders' equity 461,875 355,330
Total liabilities and shareholders' equity $1,050,075 $941,241
IMMUNEX CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended
March 31,
2000 1999
Operating Activities:
Net income $32,161 $251
Depreciation and amortization 5,004 4,690
Change in working capital and other (12,025) (12,050)
Net cash provided by (used in) operations 25,140 (7,109)
Investing and Financing Activities:
Purchases of property, plant and equipment (17,789) (5,394)
Net purchases of marketable securities (59,730) 4,428
Other investing and financing activities 44,577 12,080
Net cash provided by (used in) investing
and financing activities (32,942) 11,114
Net increase (decrease) in cash $(7,802) $4,005
SOURCE Immunex Corporation
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http://www.immunex.com
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CONTACT:
media, Tim Warner, 206-470-4193, or
investors, Mark Leahy, 206-389-4363, both of Immunex Corporation
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