Thursday, Feb 17, 1983
South San Francisco, Calif. -- February 17, 1983 --Genentech, Inc. today reported that both revenues and net income increased for 1982. The genetic engineering company also announced that its board of directors approved a 3 for 2 stock split, effective for shareholders of record as of March 2, 1983.
Revenues for fiscal year ending December 31, 1982 were $32.6 million, up 53 percent compared with $21.3 million in 1981. Net income was $625,000 in 1982, or 5 cents per share. This was a 24 percent increase compared with $503,000 in 1981, or 4 cents per share.
Fourth quarter revenues were $11.4 million, compared with $6.2 million in 1981. Fourth quarter net income was $1,716,000, or 13 cents per share, compared with $49,000 in 1981.
All per share amounts have been adjusted to give effect to the stock split.
Robert A. Swanson, president and chief executive officer, said: "As reported previously, our financial objective was to operate at break-even for the year and we have met our goal. We will strive for the same result in 1983, while continuing our growth."
According to Swanson: "It is important to bear in mind that Genentech's fourth quarter income, following on the heels of a third quarter loss, is typical of the fluctuations which the company expects will continue to occur during 1983. These fluctuations are due to variations in the timing of revenues for licensing and research benchmarks. They have no significance for the long-term growth and earnings of the company.
"1982 was a year of major achievements for Genentech," Swanson said. "We accelerated our product development and strengthened our leadership in the field of recombinant DNA technology. Human insulin, which was the first commercialized human pharmaceutical produced by recombinant DNA technology, received FDA marketing clearance in the-fall of 1982. Human growth hormone, another Genentech development, is in advanced clinical testing for the treatment of hypopituitary dwarfism, a growth disorder in children. The company hopes this product will receive FDA marketing clearance during the fall of lYbJ.
A private placement of $55.6 million of partnership interests (Genentech Clinical Partners, Ltd.) was successfully completed on December 30, 1982. The partnership, in conjunction with Genentech, will conduct clinical trials on human growth hormone and gamma interferon, and will manufacture and market the products in the United States.
Swanson said the company also completed construction of a 72,000 square-foot manufacturing plant which is the largest multiproduct recombinant DNA plant in the world. The building is located near the company's headquarters.
Genentech, Inc. is a leader in the development, manufacture and marketing of recombinant DNA products for pharmaceutical, agricultural and industrial chemicals markets.
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CONDENSED CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share amounts)
|Year Ended December 31||1982||1981|
|Share earnings (b):|
|Average shares (b)||12,412||11,881|
|Fourth Quarter Ended December 31||1983||1982|
|Share earnings (b):|
|Average shares (b)||12,990||11,630|
(a) Tax-loss carry forward
(b) Amounts reflect 3 for 2 stock split authorized February 16, 1983.