(BW HealthWire) — Following Genentech’s fourth quarter earnings release, IDEC Pharmaceuticals Corporation (Nasdaq: IDPH) today announced that the collaboration between IDEC and Genentech, Inc. achieved U.S. net sales of Rituxan(R) (Rituximab) totaling $134.0 million for the three months ending December 31, 2000. U.S. net sales of Rituxan for the full year 2000 were $424.3 million, compared to $262.7 million for 1999. This level of sales results in a preliminary net income estimate for IDEC of approximately $0.37 per share on a diluted basis for the fourth quarter of 2000 and $0.91 per share on a diluted basis for the full year 2000.
IDEC’s fourth quarter and full year results have been adjusted to reflect implementation of the U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 101.
IDEC’s full financial results for the fourth quarter are expected to be released on January 29, 2001, after the close of market. Following the release, IDEC will conduct a live webcast of a discussion by IDEC management of the financial results between 1:30-2:30 p.m. PST. The webcast will be accessible through a link at IDEC’s website at idecpharm.cdmail.biz and will remain available for 48 hours.
“Sales performance for Rituxan in the fourth quarter and the entire year shows the importance Rituxan has attained after three years of commercialization in the management of certain B cell non-Hodgkin’s lymphomas,” said William R. Rohn, IDEC’s chief operating officer. “Net sales for the past year are up 62 percent compared to 1999, and fourth quarter sales this year are up 86 percent, compared to the fourth quarter last year.”
SAB No. 101 provides that nonrefundable up-front fees received under collaborative agreements be recognized over future periods rather than upon payment. The cumulative effect of changing the accounting policy for the company’s recognition of up-front nonrefundable fees received under collaborative agreements will result in a non-cash charge to earnings of $9.3 million net of tax for the year ended December 31, 2000. Also resulting from the implementation of SAB No. 101, the company will recognize $1.6 million and $6.5 million in license fee revenue for the three months and year ended December 31, 2000, respectively. If IDEC had not been required to implement SAB No. 101, the reported earnings per share estimate on a diluted basis would have been $0.35 and $0.98 per share for the three months and year ended December 31, 2000, respectively.
The net sales of Rituxan reported by Genentech in the fourth quarter included $4.3 million of ex-US sales to its partner F. Hoffmann-La Roche Ltd. IDEC’s royalty revenue on sales of Rituximab outside the U.S. is based on Roche’s end-user sales and is booked with a one-quarter lag. IDEC will recognize, during the fourth quarter of 2000, $2.3 million in royalties from Roche’s end-user sales during the third quarter.
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 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.
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.
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 S-3 filed on November 16, 2000, its Annual Report on Form 10-K for the year ended December 31, 1999 and Form 10-Q for the quarter ended September 30, 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 and Rituxan are registered U.S. trademarks of the company. The company’s headquarters is located at 3030 Callan Road, San Diego, CA 92121.
–30–jf/sd* dw/sd
| CONTACT: | IDEC Pharmaceuticals Incorporated |
|---|