Thursday, Feb 14, 1985
South San Francisco, Calif. -- February 14, 1985 --
Genentech, Inc. reported today that 1984 revenues and net income increased substantially over 1983.Revenues for the fiscal year ending December 31, 1984 were $69.8 million, up 48% from $47.0 million in 1983. Net income was $2.7 million in 1984, or 19 cents per share, compared with $1.1 million, or 8 cents per share reported for the previous year.
Robert A. Swanson, chief executive officer, said: "We achieved our revenue goals. 1984 was our sixth consecutive year of profitability."
Operating revenue -- which includes contract research, licensing revenues and manufacture of clinical products for contract partners -- represented 94 percent of Genentech's 1984 revenues.
Fourth quarter revenues were $18.1 million in 1984, compared with $13.5 million in 1983. Fourth quarter net income was $612,000 or 4 cents per share, compared with $226,000 or 2 cents per share in 1983. As in the past, significant quarter-to-quarter income and revenue fluctuations may occur during 1985, due to variations in the timing of revenues for licensing and research benchmarks. These fluctuations have no impact on the company's long-term growth.
1984 was a year of major scientific achievements. Genentech announced three new products: Factor VIII, for treatment of cancer.
A private placement of $33.2 million of partnership interests was successfully competed. The partnership, Genentech Clinical Partners III, will conduct a research and development program to perform human clinical testing and development of TNF.
Genentech is a leading biotechnology company, focusing on the development,
manufacture and marketing of pharmaceuticals produced by recombinant DNA
technology.
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GENENTECH, INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share amounts)
(unaudited)
| Three Months Ended December 31, |
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|---|---|---|---|---|
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| 1984 | 1983 | |||
| Revenues | ||||
| Contract | $ | 5,182 | $ | - |
| Contract | 17,155 | 18,909 | ||
| Interest | 979 | 1,779 | ||
| Total revenues | 18,134 | 25,870 | ||
| Costs and expenses | ||||
| Research and development | 14,625 | 16,717 | ||
| Marketing, general and administrative | 2,831 | 6,612 | ||
| Total costs and expenses | 17,456 | 23,329 | ||
| Income before taxes | 678 | 2,541 | ||
| Income tax provision | 66 | 358 | ||
| Net income | $ | 2,813 | $ | 612 |
| Net income per share | $ | 0.07 | $ | 0.02 |
| Weighted average number of shares used in computing per share amounts: |
28,791 | 32,829 | ||
| Twelve Months Ended December 31, |
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|
|
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| 1984 | 1983 | |||
| Revenues | ||||
| Contract | $ | 5,182 | $ | - |
| Contract | 65,627 | 76,453 | ||
| Interest | 4,159 | 7,964 | ||
| Total revenues | 69,786 | 89,599 | ||
| Costs and expenses | ||||
| Research and development | 54,892 | 64,895 | ||
| Marketing, general and administrative | 11,794 | 18,112 | ||
| Total costs and expenses | 66,776 | 83,007 | ||
| Income before taxes | 3,010 | 6,592 | ||
| Income tax provision | 290 | 984 | ||
| Net income | $ | 5,608 | $ | 2,720 |
| Net income per share | $ | 0.18 | $ | 0.09 |
| Weighted average number of shares used in computing per share amounts: |
28,740 | 32,013 | ||