IDEC Pharmaceuticals Announces U.S. Rituxan Sales of $72.2 Million in Fourth Quarter, 1999, and $262.7 Million for the Full Year

Business Editors & Health/Medical Writers

(BW HealthWire) — Following Genentech Inc.’s year-end and fourth quarter earnings release, IDEC Pharmaceuticals Corporation (Nasdaq:IDPH) today announced that the collaboration between IDEC and Genentech achieved U.S. net sales of Rituxan(R) (Rituximab) totaling $72.2 million for the three months ending December 31, 1999. U.S. net sales of Rituxan for the full year 1999 were $262.7 million compared to $152.1 million for 1998. This level of sales results in a preliminary net income estimate for IDEC of approximately $0.15 per share on a diluted basis for the fourth quarter of 1999 and $0.86 per share on a diluted basis for the full year 1999.
“We continue to be extremely pleased with Rituxan’s performance,” said William R. Rohn, chief operating officer. “Net sales for the past year are up 73 percent compared to 1998, and fourth quarter sales this year are up 48 percent, compared to the fourth quarter last year.”
IDEC’s full financial results for the calendar quarter and fiscal year 1999 are expected to be released on February 2, 2000. IDEC’s operating expenses for the quarter rose significantly primarily due to increased process development and manufacturing-related expenses for Zevalin(TM), IDEC’s investigational radioimmunotherapy. The tax rate for the fourth quarter is estimated to be 5 percent.
In addition to U.S. sales of Rituxan, Genentech recorded during fourth quarter of 1999 $3.1 million of ex-U.S. sales of Rituximab that were shipped 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 recorded with a one-quarter lag. IDEC recognized, during the fourth quarter, $1.5 million in royalties from Roche’s end-user sales during the third quarter. Rituximab 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. 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.
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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 addition to the matters described in this press release, achievement of product development milestone events and future product sales, the timing and success, and cost of product launches and clinical studies, and the level of manufacturing performance may result in period to period fluctuations in IDEC’s revenues and earnings. In addition to these matters, 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, 1998, and Form 10-Q for the quarter ended September 30, 1999, may affect the actual results achieved by IDEC.

IDEC Pharmaceuticals and Rituxan are registered U.S. trademarks of the company. IDEC’s headquarters is located at 11011 Torreyana Road, San Diego, CA 92121.