(BUSINESS WIRE) — IDEC Pharmaceuticals Corporation (Nasdaq: IDPH) today announced its financial results for the fourth quarter and year ended December 31, 2002. Total revenues for 2002 were $404.2 million, a $131.5 million or 48 percent increase over 2001 total revenues of $272.7 million. Net income for 2002 was $148.1 million, or $0.85 per share on a diluted basis, compared to $101.7 million, or $0.59 per share on a diluted basis, for the same period in 2001.
Revenues for 2002 included $385.8 million recorded for IDEC’s joint business arrangement with Genentech, Inc. for the commercialization of Rituxan(R) (Rituximab), which IDEC copromotes in the U.S. with Genentech, compared to $251.4 million for Rituxan during the same period in 2001. Revenues for 2002 also included $13.7 million in U.S. net sales of Zevalin(R) (ibritumomab tiuxetan) which IDEC markets alone in the U.S. and was launched in April 2002.
Total revenues for the fourth quarter of 2002 were $123.7 million compared with $81.7 million for the fourth quarter of 2001. Net income in the fourth quarter of 2002 was $44.6 million, or $0.26 per share on a diluted basis, compared to $28.7 million, or $0.16 per share on a diluted basis for the same period in 2001.
Rituxan Revenues
“Performance of Rituxan during 2002 was absolutely stellar,” said William R. Rohn, IDEC’s President and Chief Operating Officer. “Rituxan revenues in the U.S. grew nearly 39 percent and surpassed $1.0 billion. This achievement validates our long-standing strategy of enhancing the clinical utility of Rituxan through extensive investment in post-marketing clinical trials.”
U.S. net sales of Rituxan, as recorded by Genentech, in the fourth quarter of 2002 were $318.2 million compared to $226.0 million in the fourth quarter of 2001. Total U.S. net sales for the year ended December 31, 2002 were $1.08 billion compared to $779 million for the year ended December 31, 2001.
Revenues from unconsolidated joint business reflect the financial results from the commercialization of Rituxan by IDEC and Genentech. This line item includes various revenues associated with Rituxan commercialization such as IDEC’s share of the pretax copromotion profits, reimbursements from Genentech for IDEC’s Rituxan-related sales force and development expenses, and royalty income from F. Hoffmann-La Roche Ltd. on sales of Rituximab outside the United States. Roche has marketing rights to Rituximab outside of the U.S., and copromotes Rituxan in Japan with Zenyaku Kogyo Co. Ltd.
IDEC’s share of copromotion profits is received in two tiers, a lower tier that resets annually at the beginning of each year and a higher tier which applies once a certain copromotion profit level is met. IDEC’s profit-sharing formula was reset to the lower tier beginning in January 2003 and will remain at that level until such time that the annual fixed copromotion profit level is achieved again, which is expected in the first quarter of 2003.
Operating Costs and Expenses
Operating costs and expenses for 2002 increased by $48.8 million, to $190.3 million from $141.5 million for 2001. The increase was primarily due to increased sales and marketing expenses related to the commercial launch of Zevalin, increased legal expenses to protect our intellectual property rights, increased personnel and facility expenses, and upfront fees incurred under new collaborations, which were partially offset by decreased clinical expenses resulting from the U.S. Food and Drug Administration (FDA) approval of Zevalin and capitalization of manufacturing costs for production of commercial inventory of Zevalin antibodies. Prior to Zevalin’s approval by the FDA, Zevalin manufacturing costs were recorded as research and development expenses.
Operating costs and expenses for the fourth quarter of 2002 increased to $55.8 million compared to $41.5 million for the fourth quarter of 2001, primarily due to increased sales and marketing expenses related to the commercial launch of Zevalin, one-time license fees incurred for technology rights related to our products, and increased legal and facility expenses, which were partially offset by the capitalization of manufacturing costs for production of commercial inventory of Zevalin antibodies.
General Information
IDEC Pharmaceuticals Corporation is a leader in the discovery, development, and commercialization of targeted immunotherapies for the treatment of cancer and autoimmune diseases. IDEC discovered and developed the first commercially available radioimmunotherapy product (Zevalin) approved in the United States, which is used to treat certain non-Hodgkin’s lymphomas. IDEC also discovered, and with co-promotion partner Genentech, Inc., developed the first monoclonal antibody product (Rituxan) approved in the United States for the treatment of cancer. Rituxan is approved in over 70 countries worldwide and is also used to treat various types of non-Hodgkin’s lymphomas. IDEC is a San Diego based, integrated biopharmaceutical company with multiple products in clinical stage development and strategic alliances in a variety of research platforms.
Today, interested parties can access a live webcast of management’s discussion of full-year and fourth quarter of 2002 results at IDEC’s website (http://idecpharm.cdmail.biz) at 1:30 p.m. Pacific Standard Time. The webcast will remain available for 10 business days. For a menu of IDEC’s current news releases and quarterly reports or to retrieve a specific release, call (888) 329-2309.
The statements made in this press release contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from IDEC’s expectations. For example, the risk factors listed from time to time in IDEC’s SEC filings including but not limited to its Annual Report on Form 10-K for the year ended December 31, 2001 and Form 10-Q for the quarter ended September 30, 2002, may affect the actual results achieved by IDEC. These forward-looking statements represent the company’s judgment as of the date of this release. The company disclaims, however, any intent or obligation to update these forward-looking statements.
IDEC Pharmaceuticals, Rituxan and Zevalin are registered U.S. trademarks of the company. The company’s headquarters are located at 3030 Callan Road, San Diego, CA 92121.
IDEC PHARMACEUTICALS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three months Year ended December 31, ended December 31, ------------------ ------------------ 2002 2001 2002 2001 ---- ---- ---- ---- Revenues: Product sales $ 5,453 $ -- $ 13,711 $ -- Revenues from unconsolidated joint business 116,559 76,273 385,809 251,428 Corporate partner revenues 1,640 5,402 4,702 21,249 -------- -------- -------- -------- Total revenues 123,652 81,675 404,222 272,677 Operating costs and expenses: Cost of sales 336 -- 1,457 -- Research and development 26,052 22,387 93,648 86,299 Selling, general and administrative 29,376 19,116 95,241 55,241 -------- -------- -------- -------- Total operating costs and expenses 55,764 41,503 190,346 141,540 -------- -------- -------- -------- Income from operations 67,888 40,172 213,876 131,137 Interest income, net 4,409 5,510 17,646 30,467 -------- -------- -------- -------- Income before income tax provision 72,297 45,682 231,522 161,604 Income tax provision 27,703 16,940 83,432 59,945 -------- -------- -------- -------- Net income $ 44,594 $ 28,742 $148,090 $101,659================================Earnings per share: Basic $ 0.29 $ 0.19 $ 0.97 $ 0.67 Diluted $ 0.26 $ 0.16 $ 0.85 $ 0.59 Shares used in calculation of earnings per share: Basic 153,410 152,579 153,086 150,756 Diluted 178,247 182,283 179,634 181,481 CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (In thousands) December 31, December 31, 2002 2001 ------------ ------------ (unaudited) (audited) Assets Current assets: Cash, cash equivalents and securities available-for-sale $ 787,774 $ 623,823 Other current assets 189,836 84,991 ---------- ---------- Total current assets 977,610 708,814 Long-term securities available-for-sale 660,091 242,784 Property and equipment, net 264,537 108,588 Other 157,451 81,030 ---------- ---------- Total assets $2,059,689 $1,141,216====================Liabilities and Stockholders' Equity Current liabilities $ 56,225 $ 33,789 Non-current liabilities 893,774 150,948 Stockholders' equity 1,109,690 956,479 ---------- ---------- Total liabilities and stockholders' equity $2,059,689 $1,141,216====================
| CONTACT: | IDEC Pharmaceuticals Corporation |
|---|