Wednesday, Jul 17, 1991
South San Francisco, Calif. -- July 17, 1991 --Genentech, Inc. (NYSE: GNE) today announced that profits for the second quarter ended June 30 were $11.4 million, or ten cents per share, up from $5.3 million, or six cents per share, for the same quarter in 1990. (Results for the second quarter of 1990 reflect an expense of $7.2 million, or about eight cents per share, related to the merger transaction with Roche Holding Ltd.)
Revenues for the second quarter of 1991 were $129.5 million, up 15 percent from $112.5 million for the same quarter last year and product sales were $97.3 million, up from $89.5 million. Net sales of Protropin®, human growth hormone, were $46.6 million, up 13 percent from $41.2 million. Total net sales of Activase®, the company's heart attack drug, were $50.4 million compared with $48.3 million for the same quarter a year ago.
Total Activase net sales include for the first time bulk sales to Japan. Genentech's t-PA was approved for marketing in Japan last month and Genentech began shipping bulk t-PA manufactured at its South San Francisco, Calif. plant to Japan, where final filling is done. The margins on these bulk shipments are significantly lower than those on domestic sales. Genentech also will receive royalties on the licensees' product sales in Japan.
North American net sales of Activase were $44.5 million for the second quarter, compared with $48.3 million for the same quarter last year and compared with $55.5 million for the first quarter of 1991. Activase market share was approximately 53 percent in the second quarter of 1991, compared with about 60 percent in the first quarter. Based on current conditions, the company expects that its market share will remain at approximately 50 percent for the remainder of the year, although variation up or down is possible. The current market share estimates would lead to 1991 net North American Activase sales of approximately $180 million.
"While we regret that Activase sales are down, we are encouraged that half of the heart attack patients treated with thrombolytics are receiving our life-saving therapy," said G. Kirk Raab, president and chief executive officer. "Activase opens more arteries faster and we are spending more than $40 million to fund the GUSTO trial to confirm the value of that benefit." GUSTO is a 40,000-patient study which began last year and uses standard U.S. treatment.
For the second quarter, Genentech's research and development expenditures were up 26 percent, from $42.1 million to $52.9 million for the same quarter last year. The company now has ten products in human clinical trials. "Our large product pipeline provides the opportunity for substantial long-term growth based on products with meaningful benefits to patients with serious health problems," Raab said.
This was the first full quarter that Genentech recorded sales for its third marketed product, Actimmune®, which is approved for the management of chronic granulomatous disease, a very rare inherited immune system disorder.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)