Thursday, Jan 16, 1992
South San Francisco, Calif. -- January 16, 1992 --Genentech, Inc. today reported revenues for 1991 were $515.9 million, up 8 percent from $476.1 million in 1990. Fourth quarter revenues were $119.5 million, down 9 percent from $131.3 million in the fourth quarter of 1990. Decreased revenues in relation to the fourth quarter of 1990 resulted from a combination of factors, including steady competitive pressure on sales of Activase, tissue plasminogen activator (t-PA).
Genentech profits for 1991 were $44.3 million (39 cents per share), compared to a loss of $98.0 million ($1.05 per share) in 1990, due to a special charge of $167.7 million ($1.74 per share), which was primarily related to the company's merger last year with Roche. Profits for the fourth quarter were essentially break-even, compared to $17.1 million in the fourth quarter of 1990.
Genentech's research and development expenditures for 1991 were $221.3 million, up 28 percent from $173.1 million in 1990. The 1991 expenditures represent 43 percent of revenues. Genentech recently announced that it expects to further increase research and development spending to approximately 50 percent of revenues in 1992.
"Our greatest potential for growth lies in our strong product pipeline," said G.Kirk Raab, Genentech's president and chief executive officer. "We are putting the necessary resources behind our research and development efforts so that we can achieve our goal of getting three new products, as well as new indications for marketed products, approved by 1995."
Protropin®, human growth hormone, sales were $185.1 million, up 18 percent from $157.1 million. As in the previous year, the company attributes the steady sales growth of human growth hormone to the larger size of patients being treated, at a correspondingly larger dose, and to an increased number of diagnosed growth hormone inadequate patients.
Net sales of Activase®, tissue plasminogen activator (t-PA), were $196.5 million for fiscal 1991, down from $210 million in 1990. North American market share has held at the 50 to 55 percent range, compared with approximately 65 percent during the preceding two years. The decline is due largely to the reaction to the reported results of the controversial ISIS-3 study (3rd International Study of Infarct Survival) in March, 1991. Genentech believes in the value of Activase as a first line of therapy for heart attack patients and is funding the 40,000 patient GUSTO trial (Global Utilization of Streptokinase and t-PA in Occluded Coronary Arteries) to give cardiologists a definitive answer about the value of opening blocked coronary arteries early and keeping them open.
1991 Activase revenues include sales of $14.3 million for bulk product shipped to licensees in Japan. Margins from these sales into Japan are significantly lower than margins on Activase sales in the United States. Following a patent victory in the Japanese courts, Genentech's t-PA is now the only recombinant t-PA product marketed in Japan.
Actimmune®, interferon gamma, was approved for marketing in late 1990 and initial sales were recorded in the first quarter of 1991. Sales have been modest due to the small number of patients who have chronic granulomatous disease, the currently approved indication for this drug.
During 1991, two new products entered clinical trials: the HER2 antibody for treating breast and ovarian cancers; and IGF-1 for treating physical wasting associated with AIDS. Chief among several clinical milestones met in 1991 is the commencement of pivotal Phase III clinical trials of DNase for treating cystic fibrosis.
Genentech, Inc. is a leading biotechnology company that discovers, develops, manufactures and markets human pharmaceuticals for significant medical needs. The company has headquarters in South San Francisco, California and is traded on the New York and Pacific Stock exchanges under the symbol GNE.
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CONDENSED CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share amounts)