Wednesday, Jan 17, 1990
Marks FDA Division's First Electronic Filing -- January 17, 1990 --Genentech, Inc. (NYSE:GNE) announced today that for the fourth quarter, profits were $15.5 million, or 18 cents per share, compared with a loss of $15.4 million, or 18 cents per share, for the same quarter in 1988. Revenues jumped 24 percent from $89.5 million to $111.4 million, largely due to growing product sales, the second quarter in a row that the company's quarterly revenues topped $100 million.
Fourth quarter net sales of Activase® increased 63% and the company's heart attack drug sales totaled $56.7 million, up from $34.7 million for the same quarter a year ago. The company's other marketed product, human growth hormone, sold under the brand name Protropin®, recorded net sales of $34.3 million, up from $31.7 million.
For all of 1989, profits rose 114 percent to a record $44.0 million, or 51 cents per share, up from $20.6 million, or 24 cents per share in 1988. Revenues reached $400.5 million, a milestone, up 20% from $334.8 million. Genentech's total cash and short-term investments grew to $205.0 million from $152.5 million a year earlier.
"I am proud that Genentech generated $400 million in revenues, investing about 40 percent of that in research and development for future growth, and still yielded an 11 percent after tax profit," said Robert A. Swanson, chief executive officer.
Genentech's research and development expenses for 1989 were expanded to $156.9 million, from $132.7 million the year before. The increase was due in part to costs associated with entering three new potential products into human clinical trials during 1989. Those products were Argatroban, a blood-clot inhibiting agent; insulin-like growth factor, which will be studied for tissue repair and as a nutrition supplement for severely ill patients; and CD4-IgG, a second generation potential AIDS therapeutic. Another key activity in R&D last year was the filing of a Product License Application for gamma interferon for the treatment of chronic granulomatous disease, a pediatric immunodeficiency disorder. Actimmune®, Genentech's tradename for gamma interferon, will, if approved by the FDA, be Genentech's third marketed product.
Marketing, general and administrative expenses increased to $127.9 million last year, from $101.9 million, primarily due to the completion of the expansion of the sales force to 278 representatives and other marketing activities. Net sales of Activase® increased 30 percent last year, from $151.4 million to $196.4 million, exceeding Genentech's 20-25 percent goal. Protropin net sales were $122.7 million, up 10 percent from $111.1 million. Genentech retained an approximately two-thirds market share for Activase and a three-quarters market share for Protropin.
The 1988 fourth quarter loss occurred because of a special charge of approximately 26 cents per share taken primarily against certain quantities of Activase® inventory which may be out of date before they are sold.
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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CONDENSED CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share amounts)