Thursday, Feb 18, 1982
South San Francisco, Calif. -- February 18, 1982 --Genentech, Inc., reporting on its second year of operations since it went public, said today that total revenues had increased 137% to $21.3 million in 1981, up from $9.0 million in 1980. Operating revenues increased to $15.2 million from the $6.5 million reported in 1980.
The genetic engineering company said net income in 1981 increased to $503,000 or $.06 per share from $236,000 or $.04 per share in the previous year. The net income figures include the benefits from the utilization of net operating loss carry-forwards.
Robert Swanson, President and Chief Executive Officer, said, "In 1981 Genentech completed substantial investments to insure the Company's position as a manufacturer of recombinant DNA products. In the year ahead, we will continue building manufacturing and marketing capabilities, conducting clinical investigations and generating new products for targeted industries. We expect to see a substantial increase in revenues and expenses in 1982. In this developmental period prior to the market introduction of our products, we expect to be operating at or near the break-even point. An increasing percentage of our revenues is tied to benchmark payments which may cause wide swings and possibly losses on a quarterly basis. At this point, quarterly results are not a significant measure of the Company's progress."
Genentech announced the development of five new products in 1981: human serum albumin, immune interferon, human calcitonin, a vaccine against foot and mouth disease in livestock and porcine growth hormone.
One of Genentech's first products developed by recombinant DNA methods, human insulin, is in advanced human clinical studies conducted by Eli Lilly and Company. Genentech is conducting advanced studies on its human growth hormone. The insulin and growth hormone are expected to be the first human recombinant DNA products on the market.
Two leukocyte interferons developed by Genentech are in human clinical investigations under the direction of Hoffmann-La Roche. Immune interferon was recently developed by Genentech as another potential antiviral, anti-tumor interferon therapy.
Genentech is a leader in the development of recombinant DNA products for pharmaceutical, agricultural and industrial chemical applications. The Company's headquarters are at 460 Point San Bruno Blvd., South San Francisco, California.
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CONDENSED CONSOLIDATED INCOME STATEMENTS
|Year Ended December 31||1981||1980|
(a) Tax-loss carry-forward