IDEC Pharmaceuticals Reports First Quarter 2001 Results; Rituxan Sales Increase 115% Over 1Q 2000 and Earnings Increase to $0.12 Per Share

(BW HealthWire) — IDEC Pharmaceuticals Corporation (Nasdaq:IDPH) today announced its financial results for the first quarter ended March 31, 2001. Total revenues for the first quarter were $56.5 million compared to $27.0 million for the first quarter of 2000. Net income was $20.8 million, or $0.12 per share on a diluted basis, compared to a net loss of $4.3 million, or a $0.03 per share net loss on a diluted basis, for the same period in 2000. As discussed in our release for the year ended December 31, 2000, the results for the quarter ended March 31, 2000 have been restated to reflect the adoption of the U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 101 as of January 1, 2000.

Revenues for the first quarter of 2001 included $48.6 million recorded for IDEC’s joint business arrangement with Genentech, Inc. for the commercialization of Rituxan(R) (Rituximab) compared to $21.9 million for the first quarter of 2000. In addition, IDEC received a $5 million milestone payment from Schering AG upon filing of a Marketing Authorization Application for approval of ZEVALIN(TM) in Europe. License fee revenue from milestone payments may vary from quarter to quarter and is dependent upon milestone achievement. All per share amounts for the three months ended March 31, 2000 have been restated to reflect IDEC’s three-for-one stock split in January 2001.

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 first quarter of 2001 were $168.0 million compared to $78.0 million for the same period in 2000.

“We are extremely pleased with the $168.0 million of Rituxan U.S. net sales recorded in the first quarter of 2001,” said William H. Rastetter, IDEC’s chief executive officer. “Compared to the first quarter of 2000, we realized a more than 115 percent increase in U.S. net sales of Rituxan. We believe this sales performance is indicative of Rituxan’s broadening acceptance within the oncology community as a beneficial therapy for non-Hodgkin’s lymphoma.”

Revenues from unconsolidated joint business for the quarter ended March 31, 2001 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 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.

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 2001.

Operating Costs and Expenses

Operating costs and expenses for the first quarter of 2001 increased to $33.2 million from $22.9 million for the first quarter of 2000. The higher 2001 operating expenses are primarily the result of increased clinical testing of our various products under development and completion of our primary development program for ZEVALIN, sales and marketing expenses, personnel expenses and facility expenses, which were offset by decreased manufacturing costs.

IDEC ended the first quarter of 2001 with $781.2 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.

ZEVALIN (TM) BLA Status

IDEC expects to receive notification of a Complete Review Letter on or before May 3, 2001 from the Food and Drug Administration (FDA) on the filing status of its ZEVALIN(TM) Biologics License Application (BLA). In December 2000 the FDA notified IDEC that the ZEVALIN BLA was accepted for filing. IDEC’s partner, Schering A.G., which has marketing rights to ZEVALIN outside the United States, had its Marketing Authorization Application (MAA) for ZEVALIN accepted for review by the European Medicines Evaluation Agency (EMEA) in January 2001.

Clinical Results Reported in IDEC-152

In March 2001, IDEC announced results of a single-dose, placebo-controlled, dose-escalating Phase I trial of its investigational agent IDEC-152, a PRIMATIZED(R) anti-CD23 monoclonal antibody in patients with allergic asthma. In this study 30 patients received either a single intravenous infusion of one of several dosage levels of IDEC-152 or placebo. Substantial reductions in IgE levels were noted in patients treated with IDEC-152, along with an encouraging safety profile. Most adverse events were mild or moderate in severity and were similar to those seen in placebo-controlled patients, including headache, nausea and myalgia (muscle pain). These findings were presented at the 57th Annual Meeting of the American Academy of Allergy, Asthma and Immunology in New Orleans.

Clinical Results Reported in IDEC-114

Also in March 2001, IDEC announced results of a multiple dose, Phase I/II trial of its investigational agent IDEC-114, a PRIMATIZED anti-CD80 (anti-B7-1) monoclonal antibody in patients with moderate to severe psoriasis. In this study, 35 patients received four infusions of IDEC-114 at a variety of dosage levels. Clinical activity was seen in most dosage groups, along with an encouraging safety profile. The majority of adverse events were mild in severity, such as uncomplicated colds, transient chills and mild fatigue. The findings were presented at the 59th Annual Meeting of the American Academy of Dermatology in Washington, DC.

Phase II Psoriasis Study in IDEC-131

In January 2001 IDEC announced it initiated a multi-center, pilot Phase II clinical trial with its investigational agent, IDEC-131, a humanized anti-CD154 (anti-CD40L) monoclonal antibody. The multiple-dose study will evaluate the potential clinical activity and safety of this investigational agent in patients with moderate to severe psoriasis, a T-cell mediated disease.

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 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. As previously announced, interested parties can access a live webcast of management’s discussion of the first quarter 2001 results and a regulatory update on ZEVALIN 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, 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, 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 PRIMATIZED are registered U.S. trademarks of the company. ZEVALIN is a trademark of the company. The company’s headquarters is located at 3030 Callan Road, San Diego, CA 92121.

IDEC Pharmaceuticals’ press releases are available at no charge through Business Wire’s News on Demand Plus. For a menu of IDEC’s current press 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.

IDEC PHARMACEUTICALS CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three months ended March 31, 2001 2000(2) Revenues: Revenues from unconsolidated joint business $ 48,558 $ 21,893 Contract revenues 1,355 3,504 License fees 6,625 1,625 56,538 27,022 Operating costs and expenses: Manufacturing costs -- 2,134 Research and development 22,094 14,722 Selling, general and administrative 11,080 6,077 33,174 22,933 Income from operations 23,364 4,089 Interest income, net 9,723 1,876 Income before income tax provision 33,087 5,965 Income tax provision 12,280 1,018 Income before cumulative effect of accounting change 20,807 4,947 Cumulative effect of accounting change, net of income tax benefit of $487 -- (9,263) Net income (loss) $ 20,807 $ (4,316) Basic earnings (loss) per share(1): Before cumulative effect of accounting change $ 0.14 $ 0.04 Cumulative effect of accounting change -- (0.07) Basic earnings (loss) per share $ 0.14 $ (0.03) Diluted earnings (loss) per share(1): Before cumulative effect of accounting change $ 0.12 $ 0.04 Cumulative effect of accounting change -- (0.07) Diluted earnings (loss) per share $ 0.12 $ (0.03) Shares used in calculation of earnings (loss) per share (1): Basic 147,842 130,347 Diluted 167,167 130,347 (1) Per share data for the three months ended March 31, 2000 have been restated to reflect a three-for-one stock split in January 2001. (2) The results for quarter ended March 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) March 31, December 31, 2001 2000 (unaudited) (audited) Assets Current assets: Cash, cash equivalents and securities available-for-sale $ 635,863 $ 581,338 Other current assets 56,780 49,920 Total current assets 692,643 631,258 Long-term securities available-for-sale 145,351 169,188 Property and equipment, net 51,242 47,514 Investment and other assets 8,692 8,446 Total assets $ 897,928 $ 856,406 Liabilities and Stockholders' Equity Current liabilities $ 23,404 $ 23,045 Non-current liabilities 140,664 138,742 Stockholders' equity 733,860 694,619 Total liabilities and stockholders' equity $ 897,928 $ 856,406

CONTACT:
IDEC Pharmaceuticals Corporation, San Diego