Wednesday, Jan 21, 1987
South San Francisco, Calif. -- January 21, 1987 --Genentech, Inc. reported today that revenues for the year ended December 31, 1986 were $134.0 million, up 50 percent from $89.6 million in 1985. Operating income (after taxes and before the charge discussed below) was $12.8 million in 1986, or 18 cents per share, compared with $5.6 million, or 9 cents per share reported for the previous year. A net loss of $352.2 million was reported after accounting for a one time, non-cash charge of $365.0 million incurred from the company's purchase of the assets of its first two R&D partnerships. The acquisition of the partnerships assets produced a net increase of $61.9 million to shareholders equity.
The per share amounts reflect the 2 for 1 stock split, which is to be effective for shareholder meeting to approve the company's proposed reincorporation from California to Delaware. The stock split was submitted to shareholders as part of the reincorporation.
Fourth quarter revenues were $36.7 million in 1986, compared with $25.9 million in 1985. Fourth quarter operating income (after taxes and before the charge discussed above) was $4.5 million, or 6 cents per share, compared with $2.2 million or 3 cents per share in 1985. A net loss of $360.4 million was reported after accounting for the one time, non-cash charge of $365.0 million.
Robert A. Swanson, chief executive officer said,"With the purchase of the assets of the partnerships, Genentech now has exclusive U.S. ownership of the products developed by the partnerships: Protropin®; human growth hormone, gamma interferon and Activase® tissue plasminogen activator. The acquisition of these products will have positive impact on Genentech's future earnings through increased profit margins and tax benefits."
"After its first full calendar year of marketing, Protropin sales reached $43.6 million, making it one of the most successful first-year pharmaceuticals ever introduced in the United States", Swanson said.
Genentech, Inc. is a leading biotechnology company, focusing on the development, manufacture and marketing of pharmaceuticals produced by recombinant DNA technology.
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SUMMARY OF OPERATIONS
(in thousands, except per share amounts)
Ended December 31,
Ended December 31,
|Research and development expense||21,028||16,717||79,834||64,895|
before charge below*
|Operating income per share*||0.06||0.03||0.18||0.09|
|Charge for purchase of in-process
research and development*
|Charge per share||5.47||-||5.26||-|
|Net income (loss)||(360,442)||2,183||(352,204)||5,608|
|Net income (loss) per share||(5.41)||0.03||(5.08)||0.09|
* After current tax effect
|Selected balance sheet information at December 31:|
|Total shareholders' equity||294,975||204,455|
Per share amounts reflect the pending January 28, 1987 two-for-one stock split. Before giving effect to the split, operating income (before the charge shown above) per share for 1986 and 1985, respectively, would be $.13 and $.07 for the quarter and $.36 and $.18 for the year. Net income (loss) per share for 1986 and 1985, respectively, would be $(10.81) and $.07 for the quarter and $(10.17) and $.18 for the year.