Friday, Apr 16, 1993
South San Francisco, Calif. -- April 16, 1993 --Genentech, Inc. (NYSE: GNE) announced today that earnings for the first quarter of 1993 increased to $14.3 million, or 12 cents per share, from $3.5 million, or 3 cents per share, in the same quarter of 1992. Revenues for the first quarter of 1993 were $153.0 million, up from $129.0 million in the same quarter of 1992, an increase of 19 percent. This increase was due to higher product sales, royalty income, and contract revenues.
"These financial results are very good, but even more important is our filing for approval to market Pulmozyme in the United States, Europe and Canada in less than 5 years from identifying the scientific idea," said G. Kirk Raab, Genentech's president and chief executive officer. "This achievement is testimony to what can be accomplished through excellent science conducted by dedicated people."
In line with the company's continued strong investment in research and development (R&D) Genentech's R&D expenses in the first quarter of 1993 increased to $74.2 million from $66.0 million in the first quarter of 1992.
Protropin® (somatrem for injection) human growth hormone sales in the first quarter of 1993 increased 8 percent to $52.2 million from $48.4 million in the first quarter of 1992. Genentech believes the sales growth of Protropin is due to an increased number of patients diagnosed with growth hormone inadequacy.
Net sales of Activase® (Alteplase, recombinant) t-PA for the first quarter of 1993 increased 11 percent to $49.2 million from $44.5 million in the first quarter of 1992. As part of the completion of the GUSTO (Global Utilization of Streptokinase and t-PA for Occluded Coronary Arteries) trial in February of 1993 the number of patients in the commercial market increased in the first quarter of 1993 versus the first quarter of 1992.
The recently completed international 41,000-patient GUSTO trial was undertaken to determine whether rapid and sustained patency (opening) of blocked coronary arteries can increase patient survival. GUSTO compared the mortality of heart attack patients treated with Activase, streptokinase or a combination of the two drugs in conjunction with the anticoagulation therapy most frequently used in the United States. The results of GUSTO will be reported April 30 at an American Federation of Clinical Research Meeting in Washington, D.C.
Sales for Actimmune® (interferon gamma-1b) in the first quarter of 1993 increased to $1.3 million from $0.6 million in the first quarter of 1992. This increase is due primarily to sales of interferon gamma to licensee Boehringer Ingelheim, which received approval to market interferon gamma for treating chronic granulomatous disease in 11 countries in Europe, Africa and South America. Overall sales remain modest due to the very small number of patients with chronic granulomatous disease.
Important progress was made in Genentech's pipeline in the first quarter of 1993:
In addition, as part of Genentech's continued commitment to cystic fibrosis, the company entered into an agreement with GenVec, Inc. a company developing gene therapy techniques, to license all of its cystic fibrosis gene therapy products in all relevant markets. Genentech may make a future equity investment in the company.
Genentech, Inc. is a leading biotechnology company that discovers, develops, manufactures and markets human pharmaceuticals for significant medical needs. The company has headquarters in South San Francisco, California and is traded on the New York and Pacific Stock exchanges under the symbol GNE.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Ended March 30,
|Contract and other||10,529||1,848|
|Costs and expenses|
|Cost of sales||16,599||16,366|
|Research and development||74,222||65,987|
|Marketing, general and administrative||46,503||41,659|
|Total costs and expenses||138,663||125,280|
|Income before taxes||14,334||3,734|
|Income tax provision||-||197|
|Net income per share||$||0.12||$||0.03|
|Weighted average number of shares used in
computing per share amounts:
|Selected balance sheet data|
|Cash and short-term investments||$||431,767||$||435,323|
|Long-term marketable securities||227,147||247,699|
|Property, plant and equipment, net||445,645||362,814|
|Other long-term assets||45,360||38,386|
|Total current liabilities||144,934||111,529|
|Total stockholders' equity||1,035,170||957,321|