Tuesday, Jul 27, 1982
South San Francisco, Calif. -- July 27, 1982 --Genentech, Inc. reported that revenues for the 1982 second quarter were $7.6 million, up 52 percent from $5.0 million for the same period of the previous year.
The Company said expenses had increased to 7.5 million primarily due to increased expenditures for research, manufacturing and marketing. Expenses for the 1981 second quarter were $4.9 million.
Net income for the quarter ended June 30, 1982 was $81,000, or $.01 per share, compared to $76,000, or $.01 per share for the comparable period of the previous year.
Robert A. Swanson, Genentech president, said, "The first products of our technology are nearing the marketplace, led by human insulin which is expected toe available this fall. We are pleased that Genentech is advancing to commercialization with sound financial control of revenues and expenses. Because revenues are primarily generated from research contracts and license agreement dependent upon Genentech's achievement of R&D benchmarks, it is reasonable to expect fluctuations in quarterly results. Our goal is to operate near the break-even point for the year and maintain our leadership position in the field of recombinant DNA."
During the quarter, Genentech reported the production of another human health care product by recombinant DNA (genetic engineering) methods. The product, urokinase, is a thrombolytic agent used to dissolve blood clots that can cause major heart diseases. Currently, urokinase, is a thrombolytic agent used to dissolve blood clots that can cause major heart diseases. Currently, urokinase is in limited supply because of the difficult and expensive process of extracting the enzyme from human urine and kidney cells.
Also during the quarter, Genentech took an aggressive step into the industrial chemical market through the formation of a jointly-owned company with Corning Glass Works. The new company, Genencor, is producing enzymes for the food processing and chemical industries.
Corning, in a separate action, became an equity investor in Genentech, agreeing to purchase 571,000 shares (representing 6.5 percent of Genentech's outstanding common stock) for $20 million over a 2 year period.
Genentech announced two new research contracts during the second quarter. Genentech and Mitsubishi Chemical Industries, Ltd., entered into an agreement to commercialize human serum albumin, the first blood product produced by genetic engineering methods. Albumin is administered to patients to replace blood loss and is presently available only through blood bank donors. The contract provides Mitsubishi with marketing rights to albumin in Japan. Genentech retains all manufacturing rights and worldwide marketing rights outside Japan.
Kyowa Hakko, Ltd. and Mitsubishi Chemical entered into a separate agreement with Genentech to investigate the clinical applications of a new thrombolytic agent, tissue plasminogen activator (TPA). Genentech researchers recently announced the successful production of TPA using genetic engineering methods. The new product will undergo clinical testing to determine its advantages in degrading blood clots.
Genentech, Inc. is a leader in the development, manufacture and marketing of recombinant DNA products for pharmaceutical, agricultural and industrial chemicals markets. The company's headquarters are located at 460 Point San Bruno Blvd., San Francisco, California.
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CONDENSED CONSOLIDATED INCOME STATEMENTS
|Quarter Ended June 30||1982||1981|
|Net income per share||0.01||0.01|
|Six Months Ended June 30||1982||1981|
|Net income per sharea||0.02||0.03|
(a) Includes benefit of utilization of net operating loss carryforward.