Thursday, Jul 14, 1988
South San Francisco, Calif. -- July 14, 1988 --
Genentech, Inc. today reported second quarter net income of $15.5 million, or 18 cents per share, compared to $5.3 million, or 6 cents per share, for the same period last year.Revenues increased to $89.3 million from $47.5 million in the comparable 1987 period. Product sales for the quarter were $75.1 million, compared to $20.0 million last year.
For the six months ended June 30, 1988, net income was $30.7 million, or 36 cents per share, compared to $9.8 million, or 12 cents per share, for the 1987 period. Six month revenue were $163.7 million, compared to $86.1 million last year.
Robert A. Swanson, chief executive officer, said, "In June, the company launched new programs for our heart attack drug, Activase®, to assure its availability to needy patients and broaden distribution to community hospitals." These programs are now being implemented in the hospital marketplace and should impact sales in the latter part of 1988.
"We plan to spend over $120 millin this year in research and development. Many of our promising new products from research will enter the clinic during the coming year," Swanson said.
Genentech, Inc. is a biotechnology company focusing on the development, manufacture and marketing of pharmaceutical products produced by recombinant DNA technology.
# # #
GENENTECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
| Three Months Ended June 30, |
||||
|---|---|---|---|---|
|
|
||||
| 1988 | 1987 | |||
| Revenues | ||||
| Product sales | $ | 75,085 | $ | 20,008 |
| Contract | 10,925 | 23,978 | ||
| Interest | 3,276 | 3,518 | ||
| Total revenues | 89,286 | 47,504 | ||
| Costs and expenses | ||||
| Cost of sales | 13,422 | 3,945 | ||
| Research and development | 32,847 | 22,578 | ||
| Marketing, general and administrative | 24,180 | 12,820 | ||
| Interest | 1,864 | 2,203 | ||
| Total costs and expenses | 72,313 | 41,546 | ||
| Income before taxes | 16,973 | 5,958 | ||
| Income tax provision | 1,499 | 687 | ||
| Net income | $ | 15,474 | $ | 5,271 |
| Net income per share | $ | 0.18 | $ | 0.06 |
| Weighted average number of shares used in computing per share amounts: |
84,732 | 85,223 | ||
| Six Months Ended June 30, |
||||
|
|
||||
| 1988 | 1987 | |||
| Revenues | ||||
| Product sales | $ | 138,606 | $ | 36,518 |
| Contract | 18,847 | 44,413 | ||
| Interest | 6,257 | 5,179 | ||
| Total revenues | 163,710 | 86,110 | ||
| Costs and expenses | ||||
| Cost of sales | 22,726 | 6,567 | ||
| Research and development | 59,228 | 44,413 | ||
| Marketing, general and administrative | 42,930 | 21,961 | ||
| Interest | 3,957 | 2,527 | ||
| Total costs and expenses | 128,841 | 75,468 | ||
| Income before taxes | 34,869 | 10,642 | ||
| Income tax provision | 4,184 | 827 | ||
| Net income | $ | 30,685 | $ | 9,815 |
| Net income per share | $ | 0.36 | $ | 0.12 |
| Weighted average number of shares used in computing per share amounts: |
84,903 | 83,893 | ||