Product Sales, Net Income Up More Than 50 Percent Over
1999 Quarter-to-Quarter; All Lead Products Hit Record Sales; R&D Investments
Produce New Approval for NOVANTRONE(R), New Collaborations
SEATTLE, Oct. 18 /PRNewswire/ -- Immunex Corporation (Nasdaq: IMNX) today
reported net income of $31.5 million, or 6 cents per share, on total revenue
of $219.0 million for the third quarter of 2000. These results compare to a
net income of $21.0 million, or 4 cents per share, on revenues of
$152.4 million reported in the third quarter of 1999. Revenues last year
included a $10 million one-time scheduled payment related to a product. Total
product sales were up 56 percent over third quarter 1999 to $217.2 million for
the third quarter of 2000. Each of the company's lead marketed products,
ENBREL(R)(etanercept), LEUKINE(R) (sargramostim) and NOVANTRONE(R)
(mitoxantrone for injection concentrate) hit record sales this quarter.
For the first nine months of 2000, the company reported net income of
$105.2 million, or 19 cents per share, compared to a net income of
$28.1 million, or 5 cents per share, for the first nine months of 1999.
Revenues for the first nine months of 2000 were $611.2 million, up 61 percent
over the same period last year.
"Immunex has hit the mark operationally," said Ed Fritzky, chairman and
chief executive officer. "Consistently growing product sales and strong
positive cash flow from operations have built a strong financial base for the
company. We are very well positioned with a diverse product pipeline to
expand and capitalize on multiple opportunities for future growth. The new
FDA approval for NOVANTRONE for worsening forms of multiple sclerosis is the
latest example of executing our strategy for growth."
Sales of ENBREL totaled $172.1 million for the third quarter, up
69 percent compared to sales in the third quarter of 1999. This marks the
seventh straight quarter of plus-ten percent growth. Sales of ENBREL for the
first nine months of 2000 were $458.3 million, up more than 84 percent
compared to sales of $248.6 million during the same period last year.
Sales of the company's specialty therapeutics products, including LEUKINE
and NOVANTRONE, were up 24 percent to $44.8 million for the third quarter of
2000, compared to $36.0 million for the third quarter of 1999. Sales of
LEUKINE grew 18 percent over the second quarter of 2000 to an historic
quarterly high of $24.0 million. Specialty therapeutics sales for the first
nine months of 2000 were $119.9 million compared to $108.5 million during the
same period last year.
Total operating expenses for the third quarter of 2000 were
$198.3 million, an increase from $130.1 million in the third quarter of 1999.
Increased expenses reflect higher costs of product sales, which is a function
of growing sales volume, and sales and marketing costs associated with ENBREL.
Selling, general and administrative expenses were $88.8 million in the third
quarter of 2000, compared to $56.9 million in the third quarter of 1999 in
part due to profit sharing payments to co-promotion partner Wyeth-Ayerst for
ENBREL. Wyeth-Ayerst is the pharmaceutical division of American Home
Products.
Research and development investments in the third quarter of 2000 were
$44.2 million, compared to $31.1 million in the third quarter of 1999.
"On the research front, this year we have invested to advance TRAIL/Apo2
Ligand and IL-1 receptor type II toward clinical trials, and we have
significantly expanded our discovery efforts with a number of strategic
collaborations," said Doug Williams, executive vice president and chief
technology officer. "We have initiated programs in genomics with Celera, in
therapeutic monoclonal antibodies with Abgenix and Urocor, and in chemistry
with Array Biopharma and Oxford Asymmetry. In addition, the completion and
staffing of our new process sciences facility will pave the way for moving
more molecules to the clinical stage faster."
Cash flow from operations was $168.2 million for the nine months ended
September 30, 2000. Cash and short-term investments totaled $817.7 million as
of September 30, 2000.
Immunex Corporation is a leading 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. 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 Nine months ended
September 30, September 30,
2000 1999 2000 1999
Revenues:
Product sales $217,158 $139,446 $580,052 $360,537
Royalty and contract revenue 1,815 12,976 31,109 18,536
218,973 152,422 611,161 379,073
Operating expenses:
Cost of product sales 65,340 42,111 170,172 108,998
Research and development 44,173 31,070 120,065 89,543
Selling, general and
administrative 88,816 56,936 243,059 154,146
198,329 130,117 533,296 352,687
Operating income 20,644 22,305 77,865 26,386
Other income (expense):
Interest income 13,758 9,093 36,951 16,042
Interest expense (2,991) (3,480) (9,864) (5,177)
Other income, net 562 78 1,409 227
11,329 5,691 28,496 11,092
Income before income taxes 31,973 27,996 106,361 37,478
Provision for income taxes 451 7,000 1,165 9,370
Net income $31,522 $20,996 $105,196 $28,108
Net income per common
share, diluted $0.06 $0.04 $ 0.19 $ 0.05
Number of shares used for
per share amounts 544,490 532,671 544,067 528,162
IMMUNEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2000 1999
Assets:
Current assets $936,503 $791,181
Property, plant and equipment, net 185,724 110,445
Other assets 94,151 39,615
Total assets $1,216,378 $941,241
Liabilities and shareholders' equity:
Current liabilities $219,127 $135,085
Long-term debt and other obligations 450,838 450,826
Shareholders' equity 546,413 355,330
Total liabilities and
shareholders' equity $1,216,378 $941,241
IMMUNEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Nine months ended
September 30,
2000 1999
Cash flows from operating activities:
Net income $105,196 $28,108
Depreciation and amortization 16,486 14,824
Deferred income tax provision -- 8,734
Change in working capital and other 46,566 15,363
Net cash provided by
operating activities 168,248 67,029
Cash flows from investing and
financing activities:
Purchases of property, plant
and equipment (88,490) (22,410)
Net purchases of investments (293,847) (297,299)
Proceeds from issuance of
convertible note to AHP, net -- 449,000
Other investing and financing activities 51,281 41,149
Net cash provided by (used in)
investing and financing activities
financing activities (331,056) 170,440
Net increase (decrease) in cash and
cash equivalents $(162,808) $237,469
SOURCE Immunex Corp.
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CONTACT:
media, Tim Warner, 206-470-4193, or
investors, Mark Leahy, 206-389-4363, both of Immunex Corp.
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