Chiron Reports Third Quarter 1996 Results.EMERYVILLE, Calif.--(BUSINESS WIRE)--Oct. 24, 1996--Chiron Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CHIR CHIR Chiricahua National Monument (US National Park Service) ) announced today that for the third quarter ended September 30, 1996, the company had net income of $11,778,000 or seven cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. on revenues of $321,549,000 versus a net loss of $145,107,000 or 90 cents per share on revenues of $274,688,000 for the third quarter of 1995, an increase of revenues 17 percent. The results for the third quarter of 1995 include charges of $132.5 million primarily for the write-off of in-process technology related to the acquisition of Viagene, Inc., a gene therapy company, on September 29, 1995, and $16.4 million related to the co-funding of development expenses and the purchase of certain rights for Myotrophin (insulin-like growth factor insulin-like growth factor one of the twenty or so substances, additional to the classic bone-regulating hormones, which exert an effect on bone cell metabolism. See also somatomedin C. ) with Cephalon Ceph´a`lon n. 1. (Zool.) The head. , Inc. For the nine months ended September 30, 1996, Chiron had net income of $39,876,000 or 22 cents per share on revenues of $943,035,000 compared to a net loss of $530,056,000 or $3.30 per share on revenues of $774,685,000 for the first nine months of 1995, an increase in revenues of 22 percent. The per share calculations have been adjusted to reflect an August 2, 1996, 4-for-1 split in Chiron's Common Stock Chiron's results for the first nine months of 1996 include a $12.2 million pretax gain arising from the sale of its 50 percent interest in a generic chemotherapeutics business to its partner Ben Venue Ben Venue is a mountain in the Trossachs area of Scotland. The name Ben Venue is derived from the Gaelic words meaning "the hill of the cave". The summit lies approximately 2 kilometres south-west of the pier at the southern end of Loch Katrine. Laboratories, Inc., effective May 1, 1996. Chiron's results for the first nine months of 1995 include charges totaling $507.0 million primarily resulting from a strategic partnership transaction with Ciba-Geigy Limited; Chiron's acquisition of the IOLAB Surgical Division from Johnson & Johnson and its integration into the operations of Chiron Vision; certain restructuring charges; and the charges related to the acquisition of Viagene Net product sales increased to $240.5 million in the third quarter of 1996 from $230.3 million in the third quarter of 1995. Product sales increased in Chiron's diagnostics, vaccines and ophthalmic businesses, as well as the oncology segment of its therapeutic business. Diagnostic product sales increased to $134.8 million in the third quarter of 1996 from $131.2 million in the third quarter of 1995. Sales of bDNA probe tests, in particular tests to measure HIV viral load HIV viral load AIDS A measure of the amount of HIV RNA in blood, expressed as number of copies/mL of plasma. See AIDS, HIV. , were a major contributor to the increase, reaching $6.1 million in the third quarter of 1996, up from $3.3 million in the third quarter of 1995. Also contributing to the increase was greater assay volume resulting from an expanded menu on ACS (Asynchronous Communications Server) See network access server. immunodiagnostic immunodiagnostic pertaining to diagnosis by immune reactions. systems as well as ongoing penetration of the market for these systems. The increase in diagnostic product sales was dampened by unfavorable foreign currency exchange rates which, when compared to rates for the third quarter of 1995, reduced the increase in diagnostic product sales by approximately $4.4 million. Ophthalmic product sales by Chiron Vision increased to $49.9 million in the third quarter of 1996 from $45.9 million in the third quarter of 1995. Most of the gain resulted from sales of the Vitrasert Implant for treating CMV-retinitis, which was released for marketing in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. in March 1996. Sales of the Vitrasert Implant were $3.3 million in the third quarter of 1996. Oncology product sales by Chiron Therapeutics in the United States and Europe increased to $16.6 million in the third quarter of 1996 from $15.8 million in the third quarter of 1995. Proleukin (aldesleukin) sales were up in both the United States and Europe. Sales fees earned from the sale of Aredia (pamidronate disodium pamidronate disodium Aredia Pharmacologic class: Bisphosphonate, hypocalcemic Therapeutic class: Bone resorption inhibitor Pregnancy risk category C Action) in the United States on behalf of Ciba Pharmaceuticals, which are accounted for in "Other Revenues" increased $5.4 million in the third quarter of 1996 compared to a year ago.Vaccine product sales increased to $21.4 millioin in the third quarter of 1996 from $18.2 million in the third quarter of 1995. Increased sales of oral polio polio: see poliomyelitis. and combined measles-mumps-rubella vaccines were the major contributors to the increase. In September 1996, Chiron submitted a product license application to the United States Food and Drug Administration United States Food and Drug Administration (FDA), n.pr a unit of the Public Health Service created to protect the health of the nation against impure and unsafe foods, drugs, and cosmetics. seeking clearance for the marketing of Pertugen, a diphtheria diphtheria (dĭfthēr`ēə), acute contagious disease caused by Corynebacterium diphtheriae (Klebs-Loffler bacillus) bacteria that have been infected by a bacteriophage. It begins as a soreness of the throat with fever. , tetanus tetanus (tĕt`nəs, –ənəs) or lockjaw, acute infectious disease of the central nervous system caused by the toxins of Clostridium tetani. and genetically engineered genetically engineered adjective Recombinant, see there acellular acellular /acel·lu·lar/ (a-sel´u-ler) not cellular in structure. a·cel·lu·lar adj. 1. Containing no cells; not made of cells. 2. Devoid of cells; noncellular. pertussis pertussis: see whooping cough. (DTaP) vaccine for infants and children. In the third quarter, Chiron resumed shipments of Betaseron (Interferon beta-1b interferon beta-1b Betaferon (UK), Betaseron Pharmacologic class: Biological response modifier Therapeutic class: Antiviral, immunoregulator Pregnancy risk category C Action) to Berlex Laboratories IntroductionBerlex Laboratories, Incorporated is a research-based pharmaceutical company headquartered in Montville, New Jersey with operations in Wayne, New Jersey; Bothell, Washington; Seattle, Washington; and Richmond, California. , the U.S. affiliate of Schering AG Germany. Betaseron revenues in the third quarter of 1996 were $16.8 million, split about evenly between initial payments for shipment of product to Berlex, and secondary payments by Schering AG resulting from final sales of the product to customers, compared to revenues of $18.5 million in the third quarter of 1995, primarily from initial payments. Equity in earnings of unconsolidated joint businesses, which consist principally of Chiron's 50 percent share of pretax profit from its blood screening business with Ortho Diagnostic Systems, Inc., increased to $30.1 million in the third quarter from $16.9 million in the third quarter of 1995. Chiron's share of pre-tax profit from the joint businesses with Ortho increased to $29.9 million in the third quarter of 1996 from $15.6 million in the third quarter of 1995. Also included in the operating results from the joint business for the third quarter of 1996 are Chiron's share of royalties of $6.9 million, resulting from a settlement with Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a diversified pharmaceuticals and health care company. It has over 65,000 employees and operates in 130 countries. The corporate headquarters are in Abbott Park, Illinois, a neighborhood of North Chicago, Illinois. related to prior period sales of HIV HIV (Human Immunodeficiency Virus), either of two closely related retroviruses that invade T-helper lymphocytes and are responsible for AIDS. There are two types of HIV: HIV-1 and HIV-2. HIV-1 is responsible for the vast majority of AIDS in the United States. immunodiagnostic tests. Under the terms of the settlement, the Chiron-Ortho Joint business is receiving an ongoing royalty from Abbott based on its sale of products incorporating technology covered by certain Chiron HIV patents. Equity in earnings of unconsolidated joint businesses for the third quarter of 1996 also includes $810,000 for Chiron's 49 percent share of pretax profit from Chiron-Behring, a new vaccines joint venture between Chiron and Behringwerke AG, a unit of Hoechst AG Hoechst AG was a German life-sciences company that became Aventis after its merger with Rhône-Poulenc S.A. in 1999. It has been called "The pharmacy of the world" due to its important role in the world's drug market. , Germany. The results of the venture, Chiron's share of which was acquired in early July, are reported on a one-month lag. Collaborative research agreement revenues increased to $31.2 million in the third quarter of 1996 from $18.3 million in the third quarter of 1995. Chiron received research funding Research funding is a term generally covering any funding for scientific research, in the areas of both "hard" science and technology and social science. The term often connotes funding obtained through a competitive process, in which potential research projects are evaluated and from Ciba of $21.0 million in the third quarter of 1996 compared to $12.0 million in the quarter of 1995. On September 30, 1996 Chiron held cash, cash equivalents and investments in marketable debt securities totaling $129.8 million. During the first nine months of 1996, Chiron consumed a net $94.4 million of cash and investment assets, largely due to investments in equity securities of certain business partners, including the Chiron-Behring vaccines joint venture, and to capital expenditures. Chiron Corporation Chiron Corporation was a multinational biotechnology firm based in Emeryville, California that was acquired by Novartis International AG on April 20 2006. It had offices and facilities in eighteen countries on five continents. , headquartered in Emeryville, Calif., near San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , is a science-driven healthcare company that combines diagnostic, vaccine, and therapeutic strategies for controlling disease. Chiron participates in four global markets: diagnostic, including immunodiagnostics, critical care diagnostics, and new quantitative probe tests; ophthalmic surgical products for the correction of vision; pediatric pediatric /pe·di·at·ric/ (pe?de-at´rik) pertaining to the health of children. pe·di·at·ric adj. Of or relating to pediatrics. and adult vaccines; and therapeutics, with an emphasis on oncology and infectious diseases infectious diseases: see communicable diseases. . Chiron also has research programs underway in gene therapy and gene transfer, combinatorial transfer, combinatorial chemistry Combinatorial chemistry involves the rapid synthesis or the computer simulation of a large number of different but structurally related molecules. Introduction Synthesis of molecules in a combinatorial fashion can quickly lead to large numbers of molecules. , cardiovascular disease Cardiovascular disease Disease that affects the heart and blood vessels. Mentioned in: Lipoproteins Test cardiovascular disease and critical care. -0-
CHIRON CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1996 1995 1996 1995
Revenues:
Product sales,
net $240,530 $230,311 $729,877 $662,553
Equity in earnings
of unconsolidated
joint businesses 30,073 16,898 75,689 56,436
Collaborative
Agreement Revenues 31,231 18,346 85,792 28,868
Other revenues 19,715 9,133 51,677 26,828
_______ _______ _______ _______
Total revenues 321,549 274,688 943,035 774,685
Expenses:
Cost of sales 107,861 102,513 316,973 301,343
Research and
development 89,921 88,689 265,758 259,649
Selling, general
and administrative 96,782 85,280 287,841 258,539
Write-off of purchased
in-process
technologies -- 132,535 -- 364,951
Costs related to Ciba
transaction -- -- -- 49,478
Restructuring and
reorganization charges -- -- -- 39,055
Other operating
expenses 3,193 3,536 8,793 9,323
Total expenses 297,757 412,553 879,365 1,282,338
_______ _______ _______ ________
Income (loss)
from operations 23,792 (137,865) 63,670 (507,653)
Other expense, net (6,820) (2,781) (5,878) (6,281)
_______ _______ ______ ________
Income (loss) before
income taxes 16,972 (140,646) 57,792 (513,934)
Provision for
income taxes 5,194 4,461 17,916 16,122
_______ _________ ________ __________
Net income (loss) $11,778 $(145,107) $ 39,876 $ (530,056)
Net income (loss)
per share $0.07 ($0.90) $0.22 $(3.30)
Weighted average
number of shares
used in computing
per share amounts 175,848 161,716 177,292 160,840
CHIRON CORPORATION
CONSOLIDATED BALANCE SHEET
(in thousands)
ASSETS
September 30, December 31,
1996 1995
(Unaudited)
Current assets:
Cash and cash equivalents $ 53,967 $ 74,318
Short-term investments in
marketable debt securities 45,080 61,066
______ ______
Total cash and short-term
investments in marketable
debt securities 99,047 135,384
Accounts receivable 340,358 285,779
Inventories 186,786 185,941
Other current assets 54,495 49,899
_______ _______
Total current assets 680,686 637,003
Noncurrent investments in
marketable debt securities 30,752 88,833
Property, plant, equipment
and lease hold improvements, at cost:
Land and buildings 212,488 208,233
Laboratory, production and
office equipment 365,864 292,828
Lease hold improvements 113,693 95,472
Construction in progress 52,313 62,046
_______ _______
744,358 658,579
Less accumulated depreciation
and amortization 193,612 140,761
Net property, plant, equipment
and lease hold improvements 550,746 517,818
Purchased technology, net 75,175 80,600
Other intangible assets, net 80,036 71,571
Investments in equity securities
and affiliated companies 189,452 54,359
Other assets 61,409 40,014
__________ _________
$1,668,256 $1,490,198
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 76,821 $ 81,081
Accrued compensation and
related expenses 51,698 56,994
Short-term borrowings 137,178 50,036
Current portion of unearned revenue 21,525 20,838
Taxes payable 34,281 27,551
Other current liabilities 141,794 132,095
_______ _______
Total current liabilities 463,297 368,595
Long-term debt 420,044 413,248
Other noncurrent liabilities 37,478 35,943
Stockholders' equity:
Common stock 1,700 417
Additional paid-in capital 1,763,227 1,727,711
Accumulated deficit (1,047,823) (1,087,699)
Cumulative foreign currency
translation adjustment (2,093) 721
Unrealized gain from investments 32,426 31,262
Total stockholders' equity 747,437 672,412
_________ __________
$ 1,668,256 $1,490,198
CONTACT: Chiron Corporation Larry Kurtz, 510/601-2476 |
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