Friday, May 1, 1981
South San Francisco, Calif. -- May 1, 1981 --At its annual meeting today, Genentech, Inc., reported revenues of $3.9 million for the first quarter of 1981, up 144 per cent from the $1.6 million for the same period in 1980.
The recombinant DNA company announced that costs and expenses increased to $3.8 million for the first three months of 1981, from $1.3 million for the comparable period of the previous year.
As a result, net income in the first quarter of 1981 was $133,000, or 2 cents per share, compared with $280,000, or 4 cents per share, in the first three months of 1980. The net income figures include the benefits from utilization of net operating operating loss carryforwards.
Robert A. Swanson, President of Genentech, said, "As we stated in our Annual Report, the company does not expect significant quarterly profits until a number of our products reach the market. In the meantime, the company is making substantial commitments in research and development and the extensive investment in clinical trials that is necessary to gain regulatory approval for our products.
"In our development period, "Mr. Swanson continued,"quarterly financial results may fluctuate widely, reflecting contract payments which are tied to the achievement of research benchmarks which are not predictable."
He added, "Our expectation is that we shall meet our goal of operating at or near the break-even point for 1981."
Mr. Swanson pointed out that in the first quarter the company's employees had increased to over 200 and that laboratory and manufacturing space had more than doubled.
In the first quarter of 1981, Genentech announced the first production of a human protein, interferon, in yeast, and its first product in the agricultural field, bovine growth hormone.
|Quarter March 31||1981||1980|
|Net income||132,783 (a)||280,010 (a)|
|Net income per share||.02 (a)||.04 (a)|
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