Tuesday, Apr 14, 1992
South San Francisco, Calif. -- April 14, 1992 --Genentech, Inc. (NYSE:GNE) announced today that revenues for the first quarter of 1992 were $129.0 million, compared to $132.0 million in the same quarter in 1991. As expected, earnings for the first quarter were $3.5 million, down from $19.4 million in the first quarter of 1991. The company said that the decreased earnings are due primarily to a previously announced increase in R&D spending for 1992.
"Genentech is investing approximately 50 percent of 1992 revenues in R&D to meet the goal of having three new products, and new indications for existing products, approved by 1995," said G. Kirk Raab, president and chief executive officer.
Protropin® human growth hormone sales increased 10.3 percent to $48.4 million from $43.9 million in the first quarter of 1991. The sales increase is due to the larger size of patients treated at a correspondingly larger dose, and to the increased number of patients diagnosed with growth hormone inadequacy.
Sales of the company's thrombolytic (clot dissolver) Activase® t-PA were $44.5 million, compared to $55.5 million in the first quarter of 1991. The decrease in Activase sales stems from the results of a controversial clinical trial. Activase's market share is between 50 and 55 percent.
Genentech awaits the 40,000-patient GUSTO trial, which it expects will be completed in 1993 at a cost to Genentech of over $50 million, to provide important answers about the comparative benefits of thrombolytic pharmaceuticals by evaluating currently approved products administered according to standard U.S. practice.
First quarter 1992 sales of Actimmune® interferon gamma 1b were $0.6 million. Sales remain modest since the approved indication, chronic granulomatous disease, is very rare.
Research and development expenses for the first quarter 1992 were $66.0 million, up 35.2 percent from $48.8 million in the same period last year. Raab explained, "Increased R&D spending is necessary largely to fund the clinical trials needed to test the many promising products in our pipeline, all being studied for treating serious medical conditions."
Genentech's product, DNase, recently had encouraging results reported: two Phase I trials for treating cystic fibrosis were published in the New England Journal of Medicine and the Journal of the American Medical Association. Results of Phase II trials for this indication will be reported at a medical meeting in May. DNase is currently in Phase III trials for treating cystic fibrosis; patient enrollment is complete with more than 900 patients enrolled at 50 study centers. DNase is also being investigated in Phase II trials for treating chronic bronchitis.
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)