Monday, Jan 11, 1988
South San Francisco, Calif. -- January 11, 1988 --
Speaking before the Sixth Annual Hambrecht & Quist Health Care Conference today, Robert A. Swanson, chief executive officer of Genentech, Inc. announced that the NASDAQ-listed company will soon be traded on the New York Stock Exchange under the symbol GNE and confirmed that the company had shipments of more than $86 million of Protropin® and $58 million of Activase® in 1987. He also said that revenues for 1987 are expected to be up more than 60 percent from 1986. Earnings are expected to be more than 250 percent of 1986 earnings prior to the non-cash partnership buyout charge.
"Based on 45 days of sales, Activase is the most successful new drug ever launched in the United States," Swanson said. Activase, a highly effective blood-clot dissolving agent, was licensed by the FDA on November 13 for the treatment of heart attacks. Already, more than 3,000 hospitals, handling over 85 percent of heart attacks in the U.S., stock the drug, he said.
1987 sales of Protropin growth hormone increased nearly 100 percent over 1986 sales. To make Protropin available to needy children suffering form growth hormone deficiency, in 1987 the company donated $5 million of product for families not covered by private medical insurance or state Medicaid.
Swanson said Genentech is exploring a number of new uses for Activase and Protropin. A new use for growth hormone in adults will be tested in clinical trial for burn victims. Other uses for Activase in blood-clot related disorders are also being tested. Studies underway include those to treat pulmonary embolism, deep vein thrombosis, peripheral arterial occlusion, retinal vein occlusion and unstable angina.
The audience of financial analysts were also updated on the progress of Genentech's other products in clinical trials. Gamma interferon is in Phase III clinical studies for treatment of small cell lung cancer and melanoma in collaboration with the National Cancer Institute. The company's tumor necrosis factor, or TNF, has moved into broad Phase II clinical studies for treatment of various cancers.
Looking at the new year, Swanson predicted explosive growth from product revenues and said the company intends to maintain a high level of investment in research.
Genentech is a leading biotechnology company focusing on the development, manufacture and marketing of pharmaceuticals produced by recombinant DNA technology.
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