Revenue Up 22%; Earnings Up 24%; Product Sales Up 27%
Manufacturing Capacity Expansion 'On Track' for Mid-2002 Approval
SEATTLE, April 18 /PRNewswire/ -- Immunex Corporation (Nasdaq: IMNX) today
reported net income grew 24 percent to $39.8 million for the three months
ended March 31, 2001, or 7 cents per share. This compares to net income of
$32.2 million reported for the first quarter of 2000, or 6 cents per share.
Revenues for the quarter grew 22 percent, to $217.8 million in 2001 compared
to $179.0 million for the same period in 2000. The first quarter 2000
included a $10 million scheduled payment to the company related to the
co-promotion agreement on ENBREL(R) (etanercept).
"Product sales continue to fuel our business expansion, and position the
company for a record-breaking revenue year," said Ed Fritzky, Immunex chairman
and CEO. "With a strong financial position, we are capitalizing on investment
opportunities in research technology, product development and commercial
manufacturing assets."
Total product sales for the quarter were $211.8 million, up 27 percent
over the prior-year quarter.
Net factory sales of ENBREL, a leading biologic treatment for rheumatoid
arthritis, increased 26 percent from the first quarter of 2000, to
$164.9 million. First quarter factory sales were impacted by the
implementation of the ENBREL Enrollment Program. The ENBREL Enrollment
Program was initiated to identify and enroll current users of ENBREL because
growing demand was projected to exceed the current supply. After
implementation of the program on January 1, 2001, pharmacies were restricted
from replenishing existing inventories. This action resulted in a one-time
reduction in pharmacy inventory and improved distribution efficiency, which
will help the company optimize the number of patients able to use ENBREL. In
addition, patients filled prescriptions sooner than usual in the
fourth quarter due to the announcement of the ENBREL Enrollment Program.
"We believe factory sales of ENBREL in future quarters will more closely
reflect patient demand -- which is currently about $180 -185 million per
quarter -- and positions us to grow our sales up to $750 million this year,"
said Peggy Phillips, Immunex COO and executive vice president. "We also are
making excellent progress in meeting our critical path deadlines for the
manufacturing plant in Rhode Island, an important strategic investment for the
company."
Net sales of the company's specialty therapeutics product line grew to
$46.9 million for the quarter, an increase of 35 percent over the first
quarter of 2000. Contributing to the growth were increased sales of
LEUKINE(R) (sargramostim), an immune system modulator, which were up
79 percent to $26.1 million in the current quarter compared to the same period
in 2000.
Research and development investments totaled $49.2 million in the quarter,
up from $34.7 million in the first quarter of 2000, as the company has
increased investment in research, process science and clinical development
programs to drive future products and product growth.
"After learning about positive results in the first quarter from our
Phase III study of ENBREL in psoriatic arthritis, we are moving forward in
requesting approval from the FDA (U.S. Food and Drug Administration) to market
ENBREL to people suffering from this devastating disease," said
Peggy Phillips. "At the same time, our investments, including the Process
Development Facility, will help us accelerate our clinical program for the
IL-1 Receptor Type II, the next Immunex anti-inflammation molecule to enter
the clinic this year."
Expenses related to selling, general and administrative (SG&A) activities
totaled $93.0 million in the quarter compared to $72.3 million in the first
quarter of 2000. SG&A expenses include profit-sharing payments to
co-promotion partner Wyeth-Ayerst Laboratories for ENBREL. Wyeth-Ayerst is
the pharmaceutical division of American Home Products Corporation.
Cash and cash equivalents, including restricted investments, increased by
$22.5 million during the quarter to $1.63 billion.
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-K. 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.
IMMUNEX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share amounts)
Three months ended
March 31,
2001 2000
Revenues:
Product sales $211,846 $166,698
Royalty and contract revenue 5,993 12,340
217,839 179,038
Operating expenses:
Cost of product sales 58,783 47,803
Research and development 49,207 34,700
Selling, general and administrative 92,961 72,300
200,951 154,803
Operating income 16,888 24,235
Other income (expense):
Interest income 25,081 11,011
Interest expense (14) (3,434)
Other income, net 4,907 773
29,974 8,350
Income before income taxes 46,862 32,585
Provision for income taxes 7,029 424
Net income $39,833 $32,161
Net income per common share
Basic $0.07 $0.06
Diluted $0.07 $0.06
Number of shares used for per share amounts
Basic 541,266 497,256
Diluted 575,902 544,357
IMMUNEX CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
March 31, December 31,
2001 2000
Assets:
Current assets $1,010,670 $1,756,281
Property, plant and equipment, net 173,312 174,049
Restricted cash and investments 765,837 --
Other assets 109,191 109,043
Total assets $2,059,010 $2,039,373
Liabilities and shareholders' equity:
Current liabilities $166,638 $200,441
Long-term obligations 787 796
Shareholders' equity 1,891,585 1,838,136
Total liabilities and shareholders' equity $2,059,010 $2,039,373
IMMUNEX CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended
March 31,
2001 2000
Operating Activities:
Net income $39,833 $32,161
Depreciation and amortization 6,687 5,004
Tax benefit from stock option plans 5,828 --
Change in working capital and other (29,141) (12,025)
Net cash provided by operations 23,207 25,140
Investing and Financing Activities:
Purchases of property, plant and equipment (14,903) (17,789)
Net purchases of investments (553,408) (59,730)
Other investing and financing activities 1,277 44,577
Net cash used in investing
and financing activities (567,034) (32,942)
Net decrease in cash and cash equivalents $(543,827) $(7,802)
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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