Friday, Apr 24, 1987
South San Francisco, Calif. -- April 24, 1987 --
Genentech, Inc. (NASDAQ: GENE) reported revenues of $38.6 million for the first quarter of 1987, up 33 percent from $29.0 million for the same period last year. Protropin® sales increased to $16.5 million for the quarter.Net income for the quarter ended March 31, 1987 was $4.5 million or 6 cents per share, after an extraordinary tax credit, compared to $1.8 million or 3 cents per share for the first quarter of 1986.
"This quarter Genentech completed a successful offering of $150 million convertible subordinated debentures in Europe at excellent terms -- a five percent coupon rate and a conversion price of $74," said Robert A. Swanson, chief executive officer. "This transaction enables Genentech to accelerated its investment in facilities and capital equipment for the growth opportunities that are ahead."
Genentech products in clinical trials include Activase® tissue plasminogen activator, used to dissolve life-threatening blood clots, a second generation recombinant human growth hormone, gamma interferon for anti-cancer and anti-viral indications and tumor necrosis factor, an anti-cancer agent.
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 STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
| Three Months Ended March 30, |
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|---|---|---|---|---|
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| 1987 | 1986 | |||
| Revenues | ||||
| Product sales | $ | 16,510 | $ | 7,311 |
| Contract | 20,435 | 19,747 | ||
| Interest | 1,661 | 1,984 | ||
| Total revenues | 38,606 | 29,042 | ||
| Costs and expenses | ||||
| Research and development | 21,835 | 17,397 | ||
| Marketing, general and administrative | 12,087 | 9,425 | ||
| Total costs and expenses | 33,922 | 26,822 | ||
| Income before taxes and extraordinary item | 4,684 | 2,220 | ||
| Income tax provision | 1,453 | 467 | ||
| Income before extraordinary item | 3,231 | 1,753 | ||
| Extraordinary item--tax benefit of operating loss carrying forward | 1,313 | - | ||
| Net income | $ | 4,544 | $ | 1,753 |
| Income per share: | ||||
| ???Income before extraordinary item | $ | 0.04 | $ | 0.03* |
| Extraordinary item | 0.02 | - | ||
| Net income | $ | 0.06 | $ | 0.03* |
| Weighted average number of shares used in computing per share amounts: |
82,563 | 68,845* | ||
* All share and per share amounts reflect the January 1987 two-for-one stock split.