Product Sales for the First Half of 2000 Up More Than 64 Percent;
Revenue Growth Continues; ENBREL(R) and Specialty Therapeutic Sales
Strong Through the First Half of 2000
SEATTLE, July 19 /PRNewswire/ -- Immunex Corporation (Nasdaq: IMNX) today
reported net income of $41.5 million, or 8 cents per share, on total revenue
of $213.2 million for the second quarter of 2000. These results compare to
net income of $6.9 million, or 1 cent per share, on revenues of $128.5 million
reported in the second quarter of 1999. Total net product sales were $196.2
million for the second quarter of 2000, up 56 percent over second quarter 1999
sales of $125.9 million.
For the six months ending June 30, 2000, the company reported net income
of $73.7 million, or 14 cents per share, on total revenues of $392.2 million.
This compares to a net income of $7.1 million, or 1 cent per share, on total
revenues of $226.7 million in the first half of 1999. Product sales for the
first half of 2000 have increased more than 64 percent to $362.9 million,
compared to $221.1 million in the first half of 1999.
Sales of ENBREL(R) (etanercept) totaled $155.1 million for the second
quarter, up more than 78 percent compared to the second quarter of 1999 sales
of ENBREL of $86.9 million, and up more than 18 percent from first quarter
sales of ENBREL of $131.1 million. In addition to the $155.1 million net
product sales of ENBREL, Immunex earned a scheduled payment of $15 million
from American Home Products Corporation (NYSE: AHP), under a co-promotion
agreement for ENBREL. This payment was triggered by U.S. Food and Drug
Administration (FDA) approval of ENBREL on June 6, 2000, as a first line
therapy to treat patients with moderately to severely active rheumatoid
arthritis and to delay structural damage.
Sales of the company's specialty therapeutic products, including record
product sales for LEUKINE(R) (sargramostim), and NOVANTRONE(R) (mitoxantrone
for injection concentrate), were $40.4 million for the second quarter of 2000,
up from $38.4 million in the second quarter of 1999.
"Record revenue has led to a strong outlook for Immunex," said Ed Fritzky,
Immunex chairman, CEO and president. "We are investing with the goal of
establishing Immunex as one of the most exciting growth companies in health
care."
Research and development investments in the second quarter of 2000 were
$41.2 million compared to $30.3 million in the second quarter of 1999.
Selling, general and administrative (SG&A) expenses were $81.9 million in the
second quarter of 2000, compared to $52.9 million in the second quarter of
1999. SG&A expenses include profit-sharing payments to the company's
marketing partner for ENBREL, Wyeth-Ayerst, the pharmaceutical division of
AHP.
"Sales success is fueling our investment in long-term research and
manufacturing initiatives, from exploiting robust receptor technology and
monoclonal antibody programs to mining the newly-completed human genome," said
Peggy Phillips, Immunex COO and executive vice president.
Cash and short-term investments totaled $750.0 million as of June 30,
2000.
Immunex Corporation is a biopharmaceutical company dedicated to improving
lives through immune system science innovations.
American Home Products Corporation 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, our reliance on third-party manufacturers, product
commercialization and other risks described from time to time in the SEC
reports filed by Immunex, including the most recently filed Form 10-Q and Form
10-K. 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.
-- Financial Highlights Follow --
IMMUNEX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share amounts)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
Revenues:
Product sales $196,196 $125,854 $362,894 $221,091
Royalty and
contract revenue 16,954 2,620 29,294 5,560
213,150 128,474 392,188 226,651
Operating expenses:
Cost of product
sales 57,029 39,678 104,832 66,887
Research and
development 41,192 30,264 75,892 58,473
Selling, general and
administrative 81,943 52,937 154,243 97,210
180,164 122,879 334,967 222,570
Operating income 32,986 5,595 57,221 4,081
Other income (expense):
Interest income 12,182 5,075 23,193 6,949
Interest expense (3,439) (1,628) (6,873) (1,697)
Other income, net 74 69 847 149
8,817 3,516 17,167 5,401
Income before income
taxes 41,803 9,111 74,388 9,482
Provision for income
taxes 290 2,250 714 2,370
Net income $41,513 $6,861 $73,674 $7,112
Net income per common
share, diluted $0.08 $0.01 $0.14 $0.01
Number of shares
used for per share
amounts 543,039 531,186 543,860 525,690
IMMUNEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
2000 1999
Assets:
Current assets $867,522 $791,181
Property, plant and equipment, net 140,773 110,445
Other assets 105,777 39,615
Total assets $1,114,072 $941,241
Liabilities and shareholders' equity:
Current liabilities $151,499 $135,085
Long-term debt and other obligations 450,836 450,826
Shareholders' equity 511,737 355,330
Total liabilities and shareholders' equity $1,114,072 $941,241
IMMUNEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six months ended
June 30,
2000 1999
Cash flows from operating activities:
Net income $73,674 $7,112
Depreciation and amortization 10,845 9,728
Change in working capital and other (27,259) 8,663
Net cash provided by operating activities 57,260 25,503
Cash flows from investing and financing activities:
Purchases of property, plant and equipment (39,150) (13,562)
Net purchases of marketable securities (179,152) (292,016)
Proceeds from issuance of convertible note to
AHP, net -- 449,000
Other investing and financing activities 51,649 37,232
Net cash provided by (used in) investing
and financing activities financing
activities (166,653) 180,654
Net increase (decrease) in cash and cash
equivalents $(109,393) $206,157
SOURCE Immunex Corporation
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CONTACT:
media, Tim Warner, 206-470-4193, or,
investors, Mark Leahy, 206-389-4363, both of Immunex
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