Wednesday, Apr 25, 1990
South San Francisco, Calif. -- April 25, 1990 --Genentech, Inc. (NYSE:GNE) announced today that first quarter profits were $13.3 million, or 15 cents per share, up from $7.4 million, or nine cents per share for the same quarter in 1989. Revenues for the quarter rose 32 percent, to $120.2 million up from $91.1 million.
A pre-tax gain of approximately $11.9 million, or about 12 cents per share, in contract revenues is related to the sale in March of Genentech's one-quarter interest in Genencor. Genencor is the industrial enzyme joint venture which Genentech helped found in 1982. Genentech's divestiture of Genencor reflects its commitment to focus research activities and resources on the development of human therapeutics.
During the quarter, merger-related expenses of $11.7 million, or approximately 12 cents per share, were incurred. These expenses are related to the proposed merger of Genentech with Roche Holdings, Inc. Merger-related expenses are expected to total approximately $150 million when the transaction is completed. After consideration of the merger-related expenses, Genentech expects to incur a loss for the year.
Genentech invested $37.4 million in research and development during the first quarter. Relaxin, another potential new product, entered clinical trials during the first quarter to study its ability to facilitate safe and natural childbirth.
"Genentech now has five potential new products in human clinical trials and we believe one of the most promising pipelines in the industry," said G. Kirk Raab, president and chief executive officer. "The pending investment by Roche should give us the additional resources and financial stability to maximize the potential of this pipeline."
Sales of the company's heart attack drug, Activase®, were $54.9 million for the first quarter, compared with $48.1 million for the same quarter of 1989 and compared with $56.7 million for the fourth quarter of 1989.
Activase, tissue plasminogen activator (t-PA), maintained approximately two-thirds market share during the first quarter of 1990.
Protropin®, human growth hormone, sales increased to $35.0 million from $24.9 million for the same quarter a year ago.
This is the first quarter that the results of Genentech's Canadian operation, which became a wholly-owned subsidiary at the end of 1989, are consolidated with the company's overall results. Genentech Canada, which primarily is engaged in sales and marketing, had first quarter sales of $1.9 million.
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)
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