LA JOLLA, Calif., July 31 /PRNewswire/ -- Agouron Pharmaceuticals, Inc.
(Nasdaq: AGPH) today reported that fourth quarter sales of its anti-HIV drug
VIRACEPT(R) (nelfinavir mesylate)* were $43,568,000.  Fourth quarter results
excluding a non-recurring charge and a tax credit were a profit of $2,896,000
or $.17 per share on a fully diluted basis.
    VIRACEPT sales since its launch in March 1997 totaled $56,969,000 for the
fiscal year.  Total revenues for the fourth quarter and fiscal year ending
June 30, 1997 were $60,827,000 and $132,063,000, respectively, compared to
$28,490,000 and $55,955,000 for the same periods in fiscal 1996.  The net
losses for the fourth quarter and fiscal year ending June 30, 1997, including
the write-off of $57,500,000 of in-process technology associated with the
company's acquisition of Alanex Corporation and the realization of $43,800,000
in deferred tax benefits, were $10,804,000 ($.76 per share) and $42,806,000
($3.18 per share), respectively, compared to losses of $1,862,000 ($.17 per
share) and $19,523,000 ($1.98 per share) for the same periods in fiscal 1996.
    "Highlights of our fourth quarter results were the successful commercial
launch of VIRACEPT and the acquisition of Alanex," said Peter Johnson,
Agouron's president and chief executive officer.  "Published data from
industry surveys indicate that the demand for VIRACEPT has continued to
increase steadily since its introduction in March; we estimate that 35,000
patients were taking VIRACEPT at the end of June.  We are both gratified and
encouraged by this reception for our first product and the contribution that
VIRACEPT has made to positive financial results for the quarter.  We believe
that VIRACEPT will continue to make a substantial contribution toward
sustaining profitable operating results going forward.  Consistent with this
belief, the company has realized the benefit of its deferred tax assets during
the fourth quarter and, subsequent to the end of the quarter, secured a
commitment from a commercial bank for a $20,000,000 revolving line of credit
to be used for general corporate purposes."
    "With the successful launch of VIRACEPT, our clinical development focus
has been intensified on our portfolio of anti-cancer compounds including
THYMITAQ(TM) (AG337), AG3340 and AG2034."
    "Of the total consideration paid for the acquisition of Alanex, valued at
approximately $62,300,000, $57,500,000 has been attributed to in-process
technology associated with approximately seven Alanex research programs and
expensed in accordance with generally accepted accounting principles.  We are
now focused on the integration of Alanex and Agouron research and development
activities and drug discovery technologies."
    On July 30, 1997 the company's Board of Directors approved a two-for-one
stock split in the form of a special stock dividend of one share of common
stock for each share of the company's common stock outstanding.  The record
date for the transaction is August 15, 1997 and the closing date will be on or
about August 29, 1997.  In applying the effect of the two-for-one stock split
on a retroactive basis, reported net losses per common share for the fourth
quarter and fiscal year ended June 30, 1997 and the fourth quarter and fiscal
year ended June 30, 1996 would have been $.38, $1.59, $.09 and $.99,
respectively, and total shares outstanding at June 30, 1997 and 1996 would
have been 29,429,920 and 21,463,374, respectively.
    Agouron Pharmaceuticals, Inc. is an integrated pharmaceutical company
committed to the discovery, development, manufacturing, and marketing of
small-molecule drugs engineered to inactivate proteins which play key roles in
cancer, AIDS, and other serious diseases.

                      CONSOLIDATED FINANCIAL INFORMATION
                   (In thousands, except per share amounts)

    Statement of Operations          Three Months Ended      Year Ended
                                            June 30,               June 30,
                                     1997        1996       1997       1996
    Revenues:
    Product sales                 $43,568          $0    $56,969         $0
    Contracts                      16,259      13,490     65,094     40,955
    License fees                    1,000      15,000     10,000     15,000
                                   60,827      28,490    132,063     55,955
    Operating expenses:
    Cost of product sales          18,576           0     24,599          0
    Research and development       26,770      27,230    108,137     71,010
    Selling, general and
     administrative                13,139       4,031     32,941      8,082
    Write-off of in-process
     technology                    57,500           0     57,500          0
                                  115,985      31,261    223,177     79,092

    Operating loss               (55,158)     (2,771)   (91,114)   (23,137)

    Interest income, net              859       1,215      5,731      4,548

    Loss before income taxes     (54,299)     (1,556)   (85,383)   (18,589)

    Income tax provisions,
     (benefit)                   (43,495)         306   (42,577)        934

    Net loss                    $(10,804)    $(1,862)  $(42,806)  $(19,523)

    Net loss per common share      $(.76)      $(.17)    $(3.18)    $(1.98)

    Shares used in computing net
     loss per common share         14,178      10,652     13,473      9,844


    Balance Sheet                         June 30,          June 30,
                                              1997              1996
    Assets:
     Cash, cash equivalents and
      short term investments               $91,317           $90,875
     Accounts receivable, net               31,375               613
     Inventories                            58,800                 0
     Property and equipment, net            22,613             6,936
     Deferred tax assets                    56,500                 0
     Other assets                            6,309             1,800
                                          $266,914          $100,224

    Liabilities and stockholders' equity:
     Current liabilities                   $40,848           $11,472
     Deferred contract revenue              27,567            11,435
     Other liabilities                       7,217             1,734
     Stockholders' equity                  191,282            75,583

                                          $266,914          $100,224

    Shares outstanding                      14,715            10,732


    *  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.

    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.  Important factors concerning these risks are discussed in our
Form 10-Q for the quarterly period ended March 31, 1997 currently on file with
the Securities and Exchange Commission.

    For more information on Agouron, you may visit the Agouron Web Site at:
http://www.agouron.com

    VIRACEPT(R) is a registered trademark of Agouron Pharmaceuticals, Inc.

    THYMITAQ(TM) is a trademark of Agouron Pharmaceuticals, Inc.

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