Thursday, Apr 18, 1991
South San Francisco, Calif. -- April 18, 1991 --Genentech, Inc. (NYSE: GNE) announced today that first quarter profits were $19.4 million, or 17 cents per share, up from $13.3 million, or 15 cents per share, for the same quarter in 1990.
Revenues for the quarter rose 10 percent to $132.0 million, from $120.2 million. During the quarter, the company recorded initial sales for its third marketed product, Actimmune®, gamma interferon, which was approved by the FDA in December for the management of chronic granulomatous disease, a rare inherited immune system disorder.
Sales of the company's heart attack drug, Activase® t-PA, were $55.5 million, compared with $54.9 million for the first quarter of 1990 and compared with $58.6 million for the fourth quarter of 1990. First quarter results show Activase with over 60 percent market share.
Genentech had previously disclosed that the results of the controversial British-based ISIS-3 thrombolytic study were expected to lead to a decrease in market share from the two-thirds held earlier. The study may have a negative impact on sales, although it is not currently known if that impact will be material.
The applicability of this study to U.S. medical practice is questionable because it tested an experimental unmarketed version of t-PA, that is different from Genentech's product. Also, ISIS-3 did not use the adjunctive treatment regimen recommended by the American College of Cardiology and the American Heart Association, and used by virtually all of the U.S. cardiologists, to ensure arteries are kept open. The ultimate effect on sales will depend on how U.S. cardiologists evaluate this study in terms of their own successful medical experience using Activase.
The large GUSTO mortality trial, designed to compare Genentech's Activase t-PA and streptokinase in a manner which will measure the life-saving benefits of opening arteries earlier and keeping them open, is currently underway. GUSTO is testing Activase according to U.S. treatment procedures, and is expected to provide a more meaningful set of answers to the medical community.
Protropin® human growth hormone sales increased 26 percent to $43.9 million, up from $35.0 million for the first quarter of 1990 and compared with $40.8 million for the fourth quarter of 1990. The sales increase is due to the larger size of patients being treated, at a correspondingly larger dose, and from an increased number of diagnosed growth hormone deficient patients.
Total research and development expenses for the first quarter were $48.8 million, up from $37.4 million for the same period last year. For all of 1991, research and development expenses are expected to increase approximately 25 percent over 1990 totals.
On April 5, the company announced that Phase I clinical trials for HER-2, a monoclonal antibody, began. "With HER-2 entering clinical trials earlier this month as a potential treatment for breast and ovarian cancers, Genentech's pipeline now has 10 products in clinical trials," said G. Kirk Raab, president and chief executive officer. "The pipeline, as well as our financial strength, comprise a solid foundation for growth during the coming years."
The 1990 first quarter results included a special charge of $11.7 million, or 12 cents per share. The special charge was related to Genentech's transaction with Roche Holdings, Inc. Last year's first quarter results also included a pre-tax gain of approximately $11.9 million, or about 12 cents per share, in contract revenues related to the sale of Genentech's one-quarter interest in Genencor, an industrial enzyme joint venture.
Genentech, Inc. is a biotechnology company that discovers, develops, manufactures and markets human pharmaceuticals for significant medical needs.
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CONDENSED CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share amounts)