Sales of Three Leading Products Set Record for Company's First Half
Net Income Up 20%, Product Sales Up 22% for First Half
SEATTLE, July 18 /PRNewswire/ -- Immunex Corporation (Nasdaq: IMNX) today
reported product sales growth of 22 percent in the first half of 2001, to
$443.0 million, a record for the company, which is marking its twentieth
anniversary this month.
Net income for the three months ended June 30, 2001 totaled $48.8 million,
or 9 cents per share, on revenues of $238.3 million. This compares to net
income for the second quarter of 2000 of $41.5 million, or 8 cents per share,
on revenues of $213.2 million. The results reflect one-time transactions in
each of the periods, as well as the company's transition in 2001 to a taxable
entity. In the current quarter, the company reported a one-time after-tax
gain of approximately $13 million, or 2 cents per share, related to
divestiture of certain non-core, generic products. In the second quarter of
2000, the company had reported milestone revenue of $15 million for having
received an expanded approval of ENBREL(R) (etanercept) to inhibit structural
damage of moderately to severely active rheumatoid arthritis.
For the six months ending June 30, 2001, the company reported net income
of $88.7 million, or 16 cents per share, on total revenues of $456.1 million.
This compares to net income of $73.7 million, or 14 cents per share, on
revenues of $392.2 million in the first half of 2000. Cash flow from
operations totaled $97.4 million for the first half of 2001.
"We are on target to meet an annualized revenue run-rate of $1 billion
this year," said Ed Fritzky, chairman and CEO of Immunex. "Nearly
$100 million in cash flow will help fuel investments in commercial-scale
manufacturing, expanded process engineering capacity and a research and
technology center, which are important for near-term revenue growth and
pipeline expansion."
Net sales of ENBREL for the quarter totaled $182.6 million, an increase of
18 percent from the year-earlier quarter. Net sales of ENBREL for the
first half of 2001 were $347.5 million, up 21 percent over the first half of
2000, even as the company is managing access to the drug through the ENBREL
Enrollment Program because current demand is greater than available supply.
The company recently requested expedited review from the U.S. Food & Drug
Administration (FDA) to approve ENBREL in the treatment of psoriatic
arthritis. If approved, ENBREL would be the first FDA approved treatment for
this difficult disease.
"Strong patient and physician interest in ENBREL continues, and currently,
approximately 1,000 new patients a week are signing up to access ENBREL as
additional supply becomes available," said Peggy Phillips, executive vice
president and chief operating officer of Immunex.
Sales of the company's specialty therapeutics products increased
20 percent in the second quarter of 2001 over the year-earlier period.
Net sales of the immunomodulator LEUKINE(R) (sargramostim) totaled
$24.4 million in the second quarter of 2001, compared to $20.4 million in the
same period of 2000. For the first half of 2001, net sales of LEUKINE totaled
$50.6 million.
Net sales of NOVANTRONE(R) (mitoxantrone for injection concentrate)
totaled $15.9 million in the second quarter of 2001, compared to $13.9 million
in the second quarter of 2000. NOVANTRONE was the first product approved by
the FDA for worsening multiple sclerosis when it was launched in late 2000,
and the increase in sales is attributed primarily to the launch in that new
market.
Also in the quarter, Immunex completed the divestiture of certain
non-core, generic products, including AMICAR(R) (aminocaproic acid),
methotrexate sodium injectable and leucovorin calcium. The sale enables the
company to eliminate efforts that are not central to proprietary growth
products and focus activities on its key revenue drivers.
Overall expenses increased in the quarter, reflecting increased
investments in research and development, as well as sales and marketing
activities related to growing product sales.
For the quarter, research and development expenses totaled $50.8 million,
compared to $41.2 million in the second quarter of 2000.
"We are investing in discovery research programs, which include
pre-clinical and clinical work on ABX-EGF, TRAIL/Apo2 Ligand, RANK Ligand and
ENBREL in a variety of clinical studies including psoriasis and ankylosing
spondylitis. Investing in our process science activities is also helping us
move new molecules -- like the IL-1 Receptor Type II -- into human clinical
study more rapidly," said Doug Williams, Ph.D., Immunex executive vice
president and chief technology officer.
The company announced last week that it filed an investigational new drug
application with the FDA to begin Phase 1 clinical studies with Interleukin-1
(IL-1) Receptor Type II to assess tolerability. IL-1 is known to be a key
mediator of inflammatory disease. The immune system needs a certain amount of
IL-1 to function properly. Too much IL-1 in the body can lead to the
development of diseases such as rheumatoid arthritis, osteoporosis, multiple
myeloma, multiple sclerosis and Crohn's disease.
Expenses related to selling, general and administrative (SG&A) activities
totaled $102.5 million for the second quarter of 2001, compared to
$81.9 million in the second 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 (NYSE: AHP).
Cash and marketable securities, which include restricted investments,
totaled $1.7 billion on June 30, 2001.
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-Q. 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, customers, future employees and patients -- is available on the
Immunex home page at http://www.immunex.com.
IMMUNEX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share amounts)
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
Revenues:
Product sales $231,183 $196,196 $443,028 $362,894
Royalty and contract
revenue 7,106 16,954 13,100 29,294
238,289 213,150 456,128 392,188
Operating expenses:
Cost of product
sales 64,276 57,029 123,058 104,832
Research and
development 50,774 41,192 99,981 75,892
Selling, general and
administrative 102,452 81,943 195,414 154,243
217,502 180,164 418,453 334,967
Operating income 20,787 32,986 37,675 57,221
Other income (expense):
Interest and other
income, net 39,175 12,256 69,163 24,040
Interest expense (17) (3,439) (31) (6,873)
39,158 8,817 69,132 17,167
Income before income
taxes 59,945 41,803 106,807 74,388
Provision for income
taxes 11,128 290 18,157 714
Net income $48,817 $41,513 $88,650 $73,674
Net income per common
share, diluted
$0.09 $0.08 $0.16 $ 0.14
Number of shares
used for per share
amounts
567,749 543,039 571,826 543,860
IMMUNEX CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
June 30, December 31,
2001 2000
Assets:
Current assets $1,072,168 $1,756,281
Property, plant and equipment, net 184,140 174,049
Restricted cash and investments 765,000 --
Other assets 114,599 109,043
Total assets $2,135,907 $2,039,373
Liabilities and shareholders' equity:
Current liabilities $177,635 $200,441
Long-term obligations 779 796
Shareholders' equity 1,957,493 1,838,136
Total liabilities and shareholders' equity $2,135,907 $2,039,373
IMMUNEX CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended
June 30,
2001 2000
Operating Activities:
Net income $88,650 $73,674
Depreciation and amortization 13,580 10,845
Tax benefit from stock option plans 16,031 --
Gain on sale of product rights (16,000) --
Change in working capital and other (4,864) (27,259)
Net cash provided by operations 97,397 57,260
Investing and Financing Activities:
Purchases of property, plant and equipment (30,675) (39,150)
Net purchases of investments (509,762) (179,152)
Other investing and financing activities 6,758 51,649
Net cash used in investing and financing
activities (533,679) (166,653)
Net decrease in cash and cash
equivalents $(436,282) $(109,393)
SOURCE Immunex Corporation
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CONTACT:
media, Robin Shapiro, 206-389-4040, or
investors, Mark Leahy, 206-389-4363, both of Immunex Corporation
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