(BW HealthWire) — IDEC Pharmaceuticals Corporation (Nasdaq: IDPH) today announced its financial results for the third quarter ended September 30, 2001. Total revenues for the third quarter ended September 30, 2001 were $69.6 million compared to $42.8 million for the third quarter of 2000. Net income was $27.0 million, or $0.16 per share on a diluted basis, compared to $17.4 million, or $0.11 per share on a diluted basis, for the same period in 2000. As discussed in our release for the year ended December 31, 2000, we adopted the U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 101 in the fourth quarter of fiscal 2000 effective as of January 1, 2000, which resulted in the restatement of the financial results for the three and nine months ended September 30, 2000.
Revenues for the third quarter of 2001 included $68.5 million recorded from IDEC’s joint business arrangement with Genentech, Inc. for the commercialization of Rituxan(R) (Rituximab) compared to $36.8 million for the third quarter of 2000.
“We are very pleased with Rituxan sales growth in the third quarter,” said William R. Rohn, IDEC’s chief operating officer. “We believe the expanded package insert approved in April has stimulated additional dialogue with medical oncologists and hematologists on the expanding utility of Rituxan. Net sales for the quarter rose more than 77 percent over the same quarter last year.”
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 third quarter of 2001 were $205.0 million compared to $115.5 million for the same period in 2000.
Revenues from unconsolidated joint business for the quarter ended September 30, 2001 reflect the financial results from the U.S. marketing of Rituxan by IDEC and Genentech. Revenues from unconsolidated joint business for the third quarter of 2001 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. on the sales of Rituxan outside the United States.
Operating Costs and Expenses
Operating costs and expenses for the third quarter of 2001 increased to $33.7 million from $24.6 million for the third quarter of 2000. Year-to-date operating costs and expenses increased by $28.8 million to $100.0 million in 2001, compared to $71.2 million in 2000. The higher 2001 operating expenses are primarily the result of increased clinical testing for our various products under development, sales and marketing expenses, personnel and facility expenses.
IDEC ended the third quarter of 2001 with $831.2 million in cash, cash equivalents and marketable securities, compared to $750.5 million at December 31, 2000. Increases in cash stem primarily from operations and stock purchases under employee stock plans offset by investments in land and other capital assets.
General Information
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. Hoffmann-La Roche Ltd. has marketing rights to Rituximab outside of the United States and Japan.
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 third quarter 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. 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, such as ZEVALIN, 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, 2000 and Form 10-Q for the quarter ended June 30, 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 Nine months ended Sept. 30, ended Sept. 30, --------------- --------------- 2001 2000(2) 2001 2000(2) ---- ------- ---- ------- Revenues: Revenues from unconsolidated joint business $ 68,525 $ 36,778 $ 175,155 $ 89,973 Contract revenues 1,090 4,400 4,597 13,992 License fees -- 1,625 11,250 4,875 --------- --------- --------- --------- Total revenues 69,615 42,803 191,002 108,840 Operating costs and expenses: Manufacturing costs -- -- -- 2,134 Research and development 20,751 18,008 63,912 49,768 Selling, general and administrative 12,991 6,576 36,125 19,253 --------- --------- --------- --------- 33,742 24,584 100,037 71,155 --------- --------- --------- --------- Income from operations 35,873 18,219 90,965 37,685 Interest income, net 6,977 2,788 24,957 7,053 --------- --------- --------- --------- Income before income tax provision 42,850 21,007 115,922 44,738 Income tax provision (15,893) (3,609) (43,005) (7,718) --------- --------- --------- --------- Income before cumulative effect of accounting change 26,957 17,398 72,917 37,020 Cumulative effect of accounting change, net of income tax benefit of $487 -- -- -- (9,263) --------- --------- --------- --------- Net income $ 26,957 $ 17,398 $ 72,917 $ 27,757====================================Basic earnings per share (1): Before cumulative effect of accounting change $ 0.18 $ 0.13 $ 0.49 $ 0.28 Cumulative effect of accounting change -- -- -- (0.07) --------- --------- --------- --------- Basic earnings per share $ 0.18 $ 0.13 $ 0.49 $ 0.21====================================Diluted earnings per share (1): Before cumulative effect of accounting change $ 0.16 $ 0.11 $ 0.42 $ 0.24 Cumulative effect of accounting change -- -- -- (0.06) --------- --------- --------- --------- Diluted earnings per share $ 0.16 $ 0.11 $ 0.42 $ 0.18====================================Shares used in calculation of earnings per share (1): Basic 152,061 134,856 150,142 132,915 Diluted 167,394 158,628 181,278 157,497 (1) Per share data for the three and nine months ended September 30, 2000 have been restated to reflect a three-for-one stock split in January 2001. (2) The financial results for the three and nine months ended September 30, 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) September 30, December 31, 2001 2000 ------------- ------------ (unaudited) (audited) Assets Current assets: Cash, cash equivalents and securities available-for-sale $ 576,369 $ 581,338 Other current assets 69,598 49,920 ---------- ---------- Total current assets 645,967 631,258 Long-term securities available-for-sale 254,811 169,188 Property and equipment, net 92,981 47,514 Investment and other assets 9,294 8,446 ---------- ---------- Total assets $1,003,053 $ 856,406====================Liabilities and Stockholders' Equity Current liabilities $ 22,445 $ 23,045 Non-current liabilities 144,668 138,742 Stockholders' equity 835,940 694,619 ---------- ---------- Total liabilities and stockholders' equity $1,003,053 $ 856,406====================
CONTACT: IDEC Pharmaceuticals Corp. Connie Matsui, Senior Vice President, Planning & Resource Development 858/431-8656 URL: http://www.businesswire.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page.
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