Record Sales of ENBREL(R) (etanercept) at $198.1 million, Net Income Up 26
Percent, Fortune Recognizes Company as 'One of the Top Ten Fastest Growing' in
the U.S.; Immunex Joins Standard & Poor's 500 Index
SEATTLE, Oct. 17 /PRNewswire/ -- Immunex Corporation (Nasdaq: IMNX),
recognized as one of the fastest growing companies in the United States by
Fortune magazine, today reported a strong quarter, driven by record quarterly
sales of ENBREL(R) (etanercept). During the quarter, Immunex also joined
Standard & Poor's 500 Index, which is comprised of companies that are leaders
in their industries.
"The company has delivered another outstanding quarter, with our business
operating at an annualized run rate of $1 billion in revenue," said Ed
Fritzky, Immunex president, chairman and chief executive officer. "Our track
record of financial performance has led to national recognition of our
leadership in the field of biotechnology. We are continuing to capitalize on
this performance by investing our positive operating cash flow in products and
a pipeline with potential."
For the three months ending September 30, 2001, net income for the company
was up 26 percent at $39.7 million, or 7 cents per share, on total revenue of
$253.0 million. These results compared to net income of $31.5 million, or 6
cents per share, on revenues of $219.0 million for the third quarter of 2000.
Total product sales in the third quarter of 2001 were $242.8 million, up 12
percent compared to $217.2 million in the third quarter of 2000.
For the first nine months of 2001, the company reported net income of
$128.3 million, or 23 cents per share, compared to a net income of $105.2
million, or 19 cents per share, for the first nine months of 2000. Revenues
for the first nine months of 2001 were $709.1 million, compared to $611.2
million from the same period last year.
Sales of ENBREL totaled $198.1 million for the third quarter of 2001, up
15 percent compared to sales in the third quarter 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. Sales of ENBREL for the
first nine months of 2001 were $545.6 million, up more than 19 percent
compared to sales of $458.3 million during the same period of last year.
During the quarter, the company achieved several important milestones for
ENBREL:
-- The first manufacturing process improvement for ENBREL was filed with
the U.S. Food and Drug Administration (FDA). This process, expected to
be implemented throughout 2002 upon FDA approval, may increase the
yield of ENBREL by 10 to 30 percent, augmenting overall supply of the
drug next year.
-- ENBREL was granted priority review by the FDA for a potential new
indication in psoriatic arthritis. Thus, the regulatory agency agreed
to act on the application by mid-January 2002. Psoriatic arthritis is
a disease which affects more than 300,000 people in the United States
(U.S.) and there is currently no therapy approved by the FDA to treat
the disease.
-- Positive Phase 2 results with ENBREL in moderate to severe psoriasis, a
serious skin disease affecting more than one million people in the
U.S., were announced. Data from the study of 112 patients with
moderate to severe psoriasis will be presented at an upcoming medical
meeting in 2002.
"With these solid clinical achievements and strong business strategy, we
are investing in an Immunex U.S. sales force for ENBREL, preparing the way for
launch into an important potential new area -psoriatic arthritis, which means
calling on a new audience that includes dermatologists," said Peggy Phillips,
executive vice president and chief operating officer. "Strong demand for
ENBREL and NOVANTRONE in existing markets generated double-digit growth this
quarter, and importantly, significant market potential remains for both
products."
Specialty therapeutics sales totaled $44.7 million for the third quarter
of 2001, compared to $44.8 million in the third quarter of 2000, when sales of
certain products divested in the second quarter of 2001 were included.
Specialty therapeutics sales for the first nine months of 2001 were $140.2
million compared to $119.9 million during the same period last year. Sales of
the two leading specialty therapeutics products NOVANTRONE(R) (mitoxantrone
for injection concentrate) and LEUKINE(R) (sargramostim) increased in the
third quarter of 2001, with sales of NOVANTRONE increasing by 27%, compared to
the year-earlier quarter.
Total operating expenses for the third quarter of 2001 were $224.5 million
compared to $198.3 million in the third quarter of 2000. Increased expenses
reflect higher cost of product sales, which is a function of growing sales
volume, and sales and marketing costs associated with ENBREL. Selling,
general and administrative (SG&A) expenses were $109.4 million for the third
quarter, compared to $88.8 million in the third quarter of 2000. Expenses
related to SG&A 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).
Research and development investments in the third quarter of 2001 were
$51.4 million, compared to $44.2 million in the third quarter of 2000 as the
company continues to invest in expanding into new markets and bringing new
molecules into the clinic.
"To fuel future growth, we are significantly expanding process development
with the goal of moving a number of new molecules toward human testing over
the next 24 months," said Doug Williams, executive vice president and chief
technology officer. "We are pleased that one of our next candidates, RANK,
will be presented at a plenary session of the American College of Rheumatology
meeting in November and look forward to continuing to perform high-caliber
research in areas of unmet medical need."
Cash flow provided by operations was $159.6 million for the nine months
ended September 30, 2001. Cash and marketable securities, which include
restricted investments, totaled $1.8 billion as of September 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.
-- Financial Highlights Follow --
IMMUNEX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share amounts)
Three months ended Nine months ended
September 30, September 30,
2001 2000 2001 2000
Revenues:
Product sales $242,832 $217,158 $685,860 $580,052
Royalty and contract revenue 10,131 1,815 23,231 31,109
252,963 218,973 709,091 611,161
Operating expenses:
Cost of product sales 63,695 65,340 186,753 170,172
Research and development 51,403 44,173 151,384 120,065
Selling, general and
administrative 109,435 88,816 304,849 243,059
224,533 198,329 642,986 533,296
Operating income 28,430 20,644 66,105 77,865
Other income (expense):
Interest and other income, net 25,198 14,320 94,361 38,360
Interest expense (13) (2,991) (44) (9,864)
25,185 11,329 94,317 28,496
Income before income taxes 53,615 31,973 160,422 106,361
Provision for income taxes 13,928 451 32,085 1,165
Net income $39,687 $31,522 $128,337 $105,196
Net income per common share,
diluted $0.07 $0.06 $0.23 $0.19
Number of shares used for per
share amounts 563,553 544,490 569,068 544,067
IMMUNEX CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
September 30, December 31,
2001 2000
Assets:
Current assets $1,171,637 $1,756,281
Property, plant and equipment, net 186,087 174,049
Restricted cash and investments 765,000 --
Other assets 97,337 109,043
Total assets $2,220,061 $2,039,373
Liabilities and shareholders' equity:
Current liabilities $196,082 $200,441
Long-term obligations 770 796
Shareholders' equity 2,023,209 1,838,136
Total liabilities and shareholders' equity $2,220,061 $2,039,373
IMMUNEX CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
Nine Months Ended
September 30,
2001 2000
Operating Activities:
Net income $128,337 $105,196
Depreciation and amortization 23,223 16,486
Tax benefit from stock option plans 29,275 --
Gain on sale of product rights (16,000) --
Change in working capital and other (5,252) 46,566
Net cash provided by operations 159,583 168,248
Investing and Financing Activities:
Purchases of property, plant and equipment (44,176) (88,490)
Net purchases of investments (481,093) (293,847)
Other investing and financing activities 28,317 51,281
Net cash used in investing and financing
activities (496,952) (331,056)
Net decrease in cash and cash equivalents $(337,369) $(162,808)
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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