(BW HealthWire) — IDEC Pharmaceuticals Corporation (Nasdaq: IDPH) today announced its financial results for the first quarter ended March 31, 2002. Total revenues for the first quarter ended March 31, 2002 were $79.7 million compared to $56.5 million for the first quarter of 2001. Net income was $29.7 million, or $0.17 per share on a diluted basis, compared to $20.8 million, or $0.12 per share on a diluted basis, for the same period in 2001.
Revenues for the first quarter of 2002 included $78.2 million recorded for IDEC’s joint business arrangement with Genentech, Inc. for the commercialization of Rituxan(R) (rituximab) compared to $48.6 million for the first quarter of 2001.
“We are very pleased with the performance of Rituxan in the first quarter of this year,” said William R. Rohn, IDEC’s president and chief operating officer. “Net sales for the first quarter of 2002 increased $67 million to $235 million, compared to $168 million from the first quarter of 2001, representing a 40 percent increase year over year.”
Rituxan is copromoted in the United States by IDEC and Genentech. U.S. net sales of Rituxan, as recorded by Genentech, in the first quarter of 2002 were $235 million compared to $168 million for the same period in 2001.
Revenues from unconsolidated joint business for the quarter ended March 31, 2002 reflect the financial results from the U.S. marketing of Rituxan by IDEC and Genentech. Revenues from unconsolidated joint business for the first quarter of 2002 consist of IDEC’s share of 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. and Zenyaku Kogyo Co. Ltd. on the sales of Rituxan outside the United States. IDEC’s share of pretax copromotion profits consists of two tiers, a lower tier that resets annually at the beginning of each year and a higher tier, which applies once an annual fixed pretax copromotion profit level is met. IDEC began recording its share of pretax copromotion profits at the higher tier during the first quarter of 2002.
Operating expenses for the first quarter of 2002 increased to $38.1 million from $33.2 million for the first quarter of 2001. The higher 2002 operating expenses are primarily the result of increased personnel expenses, sales and marketing expenses, facility expenses and increased legal and patent filing fees, which were offset by decreased research and development expenses resulting from the U.S. Food and Drug Administration (FDA) approval of Zevalin(TM) (ibritumomab tiuxetan) 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.
IDEC ended the first quarter of 2002 with $876.4 million in cash, cash equivalents and marketable securities, compared to $866.6 million at December 31, 2001. Increases in cash stem primarily from operations and stock purchases under employee stock plans offset by investments in property and equipment.
Rituxan was discovered by IDEC and is jointly developed by IDEC, Genentech Inc., F. Hoffmann-La Roche Ltd. of Switzerland and Zenyaku Kogyo Co. Ltd. of Japan. F. Hoffmann-La Roche Ltd. has marketing rights to Rituximab outside of the United States and Japan. Zevalin was approved for marketing by the FDA for certain B-cell lymphomas on February 19, 2002. IDEC has retained all U.S. marketing rights to Zevalin and Schering A.G. has marketing rights to Zevalin outside the U.S.
IDEC Pharmaceuticals focuses on the commercialization and development of targeted therapies for the treatment of cancer and autoimmune diseases. IDEC’s antibody products act chiefly through immune system mechanisms, exerting their effect by binding to specific, readily targeted immune cells in the patient’s blood or lymphatic system.
For a menu of IDEC’s current news releases and quarterly reports or to retrieve a specific release, call (888) 329-2309. On the Internet check the News Center at IDEC’s website: http://idecpharm.cdmail.biz. As previously announced, interested parties can access a live webcast of management’s discussion of the first quarter 2002 results through a link at IDEC’s website at http://idecpharm.cdmail.biz. The webcast will begin today at 1:30 p.m. Pacific Standard Time and will remain available for 10 business days.
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 timing, success and cost of preclinical research and clinical studies, the timing, acceptability and review periods for regulatory filings, the timing of and ability to obtain regulatory approval of products, the achievement of future product sales, the level of manufacturing performance and 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, 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 and Rituxan are registered U.S. trademarks of the company. Zevalin is a trademark of the company. The company’s headquarters are located at 3030 Callan Road, San Diego, CA 92121.
IDEC PHARMACEUTICALS CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three months ended March 31, 2002 2001 Revenues: Revenues from unconsolidated joint business $ 78,182 $ 48,558 Contract revenues 1,459 1,355 License fees 100 6,625 Total revenues 79,741 56,538 Operating expenses: Research and development 19,249 21,470 Selling, general and administrative 18,843 11,704 Total operating expenses 38,092 33,174 Income from operations 41,649 23,364 Interest income, net 4,002 9,723 Income before income tax provision 45,651 33,087 Income tax provision 15,978 12,280 Net income $ 29,673 $ 20,807 Earnings per share: Basic $ 0.19 $ 0.14 Diluted $ 0.17 $ 0.12 Shares used in calculation of earnings per share: Basic 153,432 147,842 Diluted 182,418 167,167 CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) March 31, December 31, 2002 2001 (unaudited) (audited) ASSETS Current assets: Cash, cash equivalents and securities available-for-sale $ 479,487 $ 623,823 Other current assets 82,703 76,220 Total current assets 562,190 700,043 Long-term securities available-for-sale 396,924 242,784 Property and equipment, net 126,807 108,588 Investments and other assets 96,001 81,313 Total assets $ 1,181,922 $ 1,132,728 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $ 28,708 $ 35,289 Non-current liabilities 143,497 140,960 Stockholders' equity 1,009,717 956,479 Total liabilities and stockholders' equity $ 1,181,922 $ 1,132,728
CONTACT: IDEC Pharmaceuticals Corp., San Diego Vince Reardon, Director, Corporate Communications 858/431-8656
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