(BW HealthWire) — IDEC Pharmaceuticals Corporation (Nasdaq:IDPH) today announced its financial results for the fourth quarter and year ended December 31, 2001. Total annual revenues were $272.7 million, a $118.0 million, or 76 percent increase over 2000 revenues of $154.7 million. The company reported net income of $101.7 million, or $0.59 per share on a diluted basis in 2001, versus net income of $48.1 million, or $0.30 per share on a diluted basis for the same period in 2000. IDEC’s fourth quarter and full year results for 2000 have been adjusted to reflect IDEC’s three-for-one stock split in January 2001 and implementation of the U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 101.
Revenues for 2001 increased primarily due to $251.4 million recorded as revenues from unconsolidated joint business from the commercialization of Rituxan(R) (rituximab) with business partner Genentech, Inc., compared to $132.8 million in 2000.
“Year-end 2001 marks IDEC’s fourth consecutive year of profitability and at the core of this success is Rituxan,” said William H. Rastetter, chairman and chief executive officer of IDEC. “Revenues in the year 2001 grew 76 percent compared to 2000, driven by an 84 percent increase in U.S. net Rituxan sales during the year.”
Total revenues for the fourth quarter of 2001 were $81.7 million compared with $45.8 million for the fourth quarter of 2000. Net income in the fourth quarter of 2001 was $28.7 million, or $0.16 per share on a diluted basis, compared to $20.4 million, or $0.12 per share on a diluted basis for the same period in 2000.
Rituxan Revenues
Rituxan is copromoted in the United States by IDEC and Genentech. U.S. net sales of Rituxan, as recorded by Genentech, in the fourth quarter of 2001 were $226.0 million compared to $134.0 million in the fourth quarter of 2000. Total U.S. net sales for the year ended December 31, 2001 were $779.0 million compared to $424.3 million for the year ended December 31, 2000.
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.
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 2002 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 2002.
Operating Expenses
Annual operating costs and expenses increased by $42.7 million, to $141.5 million from $98.8 million in 2000. This increase was primarily due to increased clinical testing for our various products under development, personnel expenses, sales and marketing expenses, facility expenses and increased legal and patent filing fees, which were offset by decreased manufacturing costs. The decrease in manufacturing costs was related to the transfer of all Rituxan manufacturing to IDEC’s partner, Genentech.
Operating costs and expenses increased to $41.5 million for the fourth quarter of 2001, compared to $27.7 million in fourth quarter 2000, primarily due to increased personnel expenses, sales and marketing expenses and increased legal and patent filing fees.
General Information
Rituxan was discovered by IDEC and is copromoted in the United States by IDEC and Genentech. Rituxan is jointly developed by IDEC, Genentech Inc., F. Hoffmann-La Roche Ltd. of Switzerland and Zenyaku Kogyo Co. Ltd. of Japan. Roche has marketing rights to Rituximab outside of the United States, and copromotes Rituxan in Japan in collaboration with Zenyaku Kogyo.
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 systems.
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. Interested parties can access a live webcast of management’s discussion of fourth quarter and full-year 2001 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 48 hours.
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. In particular, the timing and nature of the resolution of the manufacturing issues at the company’s third-party manufacturer will depend on the ability of that party to demonstrate to the satisfaction of the FDA compliance with Good Manufacturing Practices (GMP). The failure to satisfy GMP requirements could delay approval and commercial launch of Zevalin(TM) (ibritumomab tiuxetan). Reference is also made to 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, 2000 and Form 10-Q for the third quarter ended September 30, 2001, which may affect 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) Three months Years ended December 31, ended December 31, ---------------------- ---------------------- (unaudited) (audited) (unaudited) (audited) 2001 2000(2) 2001 2000(2) ---------- ---------- ---------- ---------- Revenues: Revenues from unconsolidated joint business $76,273 $42,809 $251,428 $132,782 Contract revenues 5,302 1,408 9,899 15,400 License fees 100 1,625 11,350 6,500 ---------- ---------- ---------- ---------- Total revenues 81,675 45,842 272,677 154,682 Operating costs and expenses: Manufacturing costs -- -- -- 2,134 Research and development 22,387 19,154 86,299 68,922 Selling, general and administrative 19,116 8,514 55,241 27,767 ---------- ---------- ---------- ---------- Total operating costs and expenses 41,503 27,668 141,540 98,823 ---------- ---------- ---------- ---------- Income from operations 40,172 18,174 131,137 55,859 Interest income, net 5,510 6,435 30,467 13,488 ---------- ---------- ---------- ---------- Income before income tax provision and cumulative effect of accounting change 45,682 24,609 161,604 69,347 Income tax provision 16,940 4,221 59,945 11,939 ---------- ---------- ---------- ---------- Income before cumulative effect of accounting change 28,742 20,388 101,659 57,408 Cumulative effect of accounting change, net of income tax benefit of $487 -- -- -- (9,263) ---------- ---------- ---------- ---------- Net income $28,742 $20,388 $101,659 $48,145========================================Basic earnings per share (1): Before cumulative effect of accounting change $0.19 $0.14 $0.67 $0.43 Cumulative effect of accounting change -- -- -- (0.07) ---------- ---------- ---------- ---------- Basic earnings per share $0.19 $0.14 $0.67 $0.36 Diluted earnings per share (1): Before cumulative effect of accounting change $0.16 $0.12 $0.59 $0.36 Cumulative effect of accounting change -- -- -- (0.06) ---------- ---------- ---------- ---------- Diluted earnings per share $0.16 $0.12 $0.59 $0.30 Shares used in calculation of earnings per share (1): Basic 152,579 141,301 150,756 134,880 Diluted 182,283 164,614 181,481 159,310 (1) Per share data for the three and twelve months ended December 31, 2000 have been restated to reflect a three-for-one stock split in January 2001. (2) The financial results for the three and twelve months ended December 31, 2000 have been restated to reflect the adoption of Staff Accounting Bulletin No. 101 as of January 1, 2000. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) December 31, December 31, 2001 2000 --------------- ---------------- (unaudited) (audited) Assets Current assets: Cash, cash equivalents and securities available-for-sale $ 623,823 $ 581,338 Other current assets 76,220 49,920 --------------- ---------------- Total current assets 700,043 631,258 Long-term securities available-for-sale 242,784 169,188 Property and equipment, net 108,588 47,514 Investment and other assets 89,801 8,446 --------------- ---------------- Total assets $ 1,141,216 $ 856,406===============================Liabilities and Stockholders' Equity Current liabilities $ 35,289 $ 23,045 Non-current liabilities 149,448 138,742 Stockholders' equity 956,479 694,619 --------------- ---------------- Total liabilities and stockholders' equity $ 1,141,216 $ 856,406===============================
CONTACT: IDEC Pharmaceuticals Corporation, San Diego Vince Reardon, Director, Corporate Communications 858/431-8656
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