LA JOLLA, Calif., May 13 /PRNewswire/ -- Agouron Pharmaceuticals, Inc.
(Nasdaq: AGPH) today announced consolidated net income of $910,000, or $.03
per share, on total revenues of $157,483,000 for the quarter ended
March 31, 1999. Total sales of the company's HIV protease inhibitor,
VIRACEPT(R) (nelfinavir mesylate), were $145,993,000, including $114,505,000
in North American sales, a 23% increase from the same period a year ago.
Gross margins on North American sales of VIRACEPT increased for the eighth
consecutive quarter to 73% compared to 66% for the same period a year ago.
"VIRACEPT's prescription market share and dollar market share for HIV
protease inhibitors in the U.S. currently exceed 39% and 49%, respectively,
indicating that VIRACEPT has solidified its position as the number one HIV
protease inhibitor in the U.S.," said Kent Snyder, Agouron's head of
commercial affairs.*
"Our third quarter results include a $5,000,000 milestone expense for a
development-stage HIV product and approximately $3,300,000 of merger related
costs. Prior to such expenses, third quarter net income would have been
$7,996,000 or $.23 per share," said Steven S. Cowell, Agouron's chief
financial officer.
On January 26, 1999, the company announced that it had signed a definitive
agreement to merge with Warner-Lambert Company (NYSE: WLA), a worldwide
company devoted to discovering, developing, manufacturing, and marketing
quality pharmaceuticals, consumer healthcare, and confectionery products. The
proposed merger, which is subject to approval by Agouron's shareholders, will
be treated as a "pooling-of-interests" for accounting purposes. Upon
approval, each share of Agouron common stock will be converted into 0.8934
share of Warner-Lambert common stock.
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 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 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.
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.
VIRACEPT(R) is a registered trademark of Agouron Pharmaceuticals, Inc.
*Source: IMS America and company estimates
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
March 31, March 31,
1999 1998 1999 1998
Revenues:
Product sales $145,993 $111,950 $438,056 $283,252
Contracts 5,877 8,608 17,310 31,073
Royalties and
license fees 5,613 13,900 17,763 16,652
157,483 134,458 473,129 330,977
Operating expenses:
Cost of product sales 60,268 49,220 191,554 121,235
Research and development 44,725 31,859 121,434 89,113
Selling, general and
administrative 23,411 14,168 61,254 40,759
Royalties 29,027 18,081 83,005 46,889
157,431 113,328 457,247 297,996
Operating income 52 21,130 15,882 32,981
Other income (expenses):
Interest and other income 1,208 1,624 3,095 4,393
Interest expense (190) (212) (836) (579)
1,018 1,412 2,259 3,814
Income before income taxes 1,070 22,542 18,141 36,795
Income tax provision 160 9,017 2,721 14,718
Net income $910 $13,525 $15,420 $22,077
Earnings per share:
Basic $.03 $.44 $.49 $.73
Diluted $.03 $.4l $.45 $.66
Shares used in calculation of:
Basic 31,936 30,757 31,491 30,414
Diluted 35,291 32,956 34,236 33,251
CONSOLIDATED BALANCE SHEET
(In thousands)
March 31, June 30,
1999 1998
(Unaudited) (Audited)
Assets
Cash, cash equivalents and
short-term investments $84,467 $87,123
Accounts receivable, net 58,334 51,341
Inventories 98,901 103,706
Current deferred tax assets 877 564
Other current assets 2,580 5,247
Total current assets 245,159 247,981
Property and equipment, net 48,066 47,212
Deferred tax assets 71,262 64,644
Purchased intangibles 3,050 3,500
$367,537 $363,337
Liabilities and stockholders' equity:
Accounts payable and accrued
liabilities $73,625 $79,749
Deferred revenue and advances 8,101 23,563
Current deferred tax liabilities 2,589 1,139
Loan payable and current portion of
long-term debt 857 15,802
Total current liabilities 85,172 120,253
Long-term debt, less current portion 6,170 5,892
Accrued rent 822 1,023
Stockholders' equity 275,373 236,169
$367,537 $363,337
Shares outstanding 32,070 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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