Product Sales Growth Drives Financial Performance:
Revenue and Product Sales Up 25%, Operating Income Up 61%
SEATTLE, April 22 /PRNewswire-FirstCall/ --
Immunex Corporation (Nasdaq: IMNX) today reported financial results for the
first quarter of 2002. Total revenues were up 25 percent to $272.0 million for
the first three months of 2002 compared to $217.8 million in the first quarter
of 2001. Total product sales in the first quarter of 2002 were $265.4 million,
up 25 percent over the prior-year quarter. As a result, operating income
increased 61 percent to $27.1 million in the first quarter of 2002, compared
to $16.9 million in the first quarter of 2001. Net income was $34.9 million,
or 6 cents per share in the first quarter of 2002, compared to net income of
$39.8 million, or 7 cents per share in the first quarter of 2001. Net income
was down comparably quarter over quarter as the company's tax rate changed
from 15 percent in the first quarter of 2001 to 31 percent in the first
quarter of 2002.
"Strong sales growth continues to fuel our business momentum," said
Ed Fritzky, Chairman and CEO of Immunex. "A new indication, manufacturing
progress and an expanded sale force for ENBREL are expected to help us achieve
more growth in 2002."
Sales of ENBREL(R) (etanercept), the company's flagship drug to treat
rheumatoid arthritis and psoriatic arthritis, grew 31 percent to
$216.5 million for the first quarter of 2002, compared with $164.9 million in
the first quarter of 2001. Sales of ENBREL for the first quarter were
comparable to the fourth quarter of 2001 as the company managed demand with
available supply.
"Demand for ENBREL has grown substantially because it has been a
breakthrough therapy in rheumatoid arthritis and psoriatic arthritis," said
Peggy Phillips, executive vice president and chief operating officer. "We
anticipate that demand will continue to grow from current and potential future
indications, including ankylosing spondylitis and psoriasis. To keep pace with
future anticipated demand, we are investing in technology and facilities to
substantially increase supply."
ENBREL is currently manufactured by Boehringer Ingelheim Pharma KG in
Germany. Immunex's goal is to gain Food and Drug Administration (FDA) approval
of its manufacturing plant in Rhode Island by year end. Last week the company
announced progress toward increased mid-term supply of ENBREL, which is
anticipated to be significantly boosted in 2004 and 2005 by additional
contract manufacturing with Genentech, Inc. Two additional plants are under
construction; a second facility in Rhode Island owned by Immunex and a
facility in Ireland owned by Wyeth, the company's co-promotion partner for
ENBREL.
Net sales of LEUKINE(R) (sargramostim) and NOVANTRONE(R) (mitoxantrone for
injection concentrate) grew 22 percent to $47.9 million for the first quarter,
compared to $39.3 million in the first quarter of 2001. Sales of NOVANTRONE
grew 46 percent quarter-over-quarter to $19.3 million, supported by strong
demand in worsening multiple sclerosis.
Research and development investments totaled $53.7 million for the first
quarter of 2002, compared to $49.2 million for the first quarter of 2001.
Increase in these investments primarily supported initiation for new clinical
trials for ENBREL in psoriasis, ankylosing spondylitis and Wegener's disease;
clinical trials for IL-R type 2 in rheumatoid arthritis; and for ABX-EGF in
cancer.
Expenses related to selling, general and administrative (SG&A) activities
totaled $120.9 million for the first quarter of 2002, up 30 percent when
compared to the same period in 2001, primarily due to the higher profit
sharing payments to Wyeth from higher sales of ENBREL. In addition, a new
sales force for ENBREL launched a new indication for reducing the signs and
symptoms of active arthritis in patients with psoriatic arthritis in January
2002.
Cash and cash equivalents, including restricted investments were
$1.3 billion as of March 31, 2002.
On December 17, 2001, Immunex agreed to be acquired by Amgen Inc. The
acquisition will merge Immunex, one of the fastest growing biotechnology
companies in the industry with Amgen, the largest biotechnology company.
Pending required shareholder approval for both companies, and approval by
regulatory authorities, the transaction is expected to be completed as early
as June 2002. Shareholder meetings for both companies are scheduled to occur
on May 16, 2002.
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 Operation 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. An electronic version of this news release -- as
well as additional information about Immunex of interest to investors,
customer, future employees and patients -- is available on the Immunex home
page at http://www.immunex.com.
Where you can find Additional Information about the Acquisition
In connection with the proposed acquisition, Immunex and Amgen filed with
the SEC on March 22, 2002, Amendment No. 1 to their joint proxy
statement/prospectus that contains important information about the merger.
Investors and security holders of Immunex and Amgen are urged to read the
Amendment No. 1 to the joint proxy statement/prospectus filed with the SEC on
March 22, 2002, and any other relevant materials filed by Immunex or Amgen
because they contain, or will contain, important information about Immunex,
Amgen and the acquisition. The Amendment No. 1 to the joint proxy
statement/prospectus filed with the SEC on March 22, 2002, other relevant
materials and any other documents filed, or to be 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 Amendment No.1 to the
joint proxy statement/prospectus filed with the SEC on March 22, 2002 and any
other relevant materials filed by Immunex or Amgen 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, and information about the
executive officers and directors of Amgen and their ownership of Amgen common
stock is set forth in the Amendment No. 1 to the joint proxy
statement/prospectus for Immunex's annual meeting of shareholders and Amgen's
annual meeting of stockholders, which has been filed with the SEC. 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 Amendment No. 1 to the
joint proxy statement/prospectus regarding the acquisition.
IMMUNEX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share amounts)
Three months ended
March 31,
2002 2001
Revenues:
Product sales $265,401 $211,846
Royalty and contract revenue 6,562 5,993
271,963 217,839
Operating expenses:
Cost of product sales 70,266 58,783
Research and development 53,698 49,207
Selling, general and administrative 120,874 92,961
244,838 200,951
Operating income 27,125 16,888
Other income (expense):
Interest and other income, net 23,509 29,988
Interest expense (15) (14)
23,494 29,974
Income before income taxes 50,619 46,862
Provision for income taxes 15,692 7,029
Net income $34,927 $39,833
Net income per common share, diluted $0.06 $0.07
Number of shares used for per
share amounts 568,208 575,902
IMMUNEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2002 2001
Assets:
Current assets $698,903 $1,037,221
Property, plant and equipment, net 755,898 200,429
Restricted cash and investments 765,000 765,000
Deposit on Rhode Island manufacturing
facility -- 192,778
Other assets 96,637 99,880
Total assets $2,316,438 $2,295,308
Liabilities and shareholders' equity:
Current liabilities $193,435 $230,864
Long-term debt and other obligations 756 764
Shareholders' equity 2,122,247 2,063,680
Total liabilities and shareholders' equity $2,316,438 $2,295,308
IMMUNEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three months ended
March 31,
2002 2001
Operating Activities:
Net income $34,927 $39,833
Depreciation and amortization 8,768 6,687
Tax benefit from stock option plans 14,875 5,828
Change in working capital and other (55,257) (32,441)
Net cash provided by operating activities 3,313 19,907
Investing and Financing Activities:
Purchases of property, plant and equipment (370,654) (14,903)
Net proceeds from sales, maturities and
purchases of investments 224,136 (550,108)
Other investing and financing activities 30,359 1,277
Net cash used in investing and financing
activities financing activities (116,159) (563,734)
Net decrease in cash and cash equivalents $(112,846) $(543,827)
SOURCE Immunex Corporation
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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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