Chiron Revises Full-Year 2004 Pro-Forma Earnings From 70 Cents to 67 Cents Per Share, GAAP Earnings From 32 Cents to 28 Cents Per Share.EMERYVILLE, Calif. -- Chiron Chiron (kī`rŏn), in Greek mythology, centaur, son of Kronos. He was a renowned sage, physician, and prophet. Among his pupils were Hercules, Achilles, Jason, and Asclepius. Will Restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state Second-Quarter and Third-Quarter 2004 Financial Statements 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. (Nasdaq:CHIR CHIR Chiricahua National Monument (US National Park Service) ) today announced that it has revised its fourth-quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. December December: see month. 31, 2004, financial results, previously released on January January: see month. 26, 2005. The company also announced that it will restate its second-quarter and third-quarter 2004 financial statements in connection with a revenue recognition adjustment for certain travel vaccine vaccine Preparation containing either killed or weakened live microorganisms or their toxins, introduced by mouth, by injection, or by nasal spray to stimulate production of antibodies against an infectious agent. sales. Specifically, the company has determined that certain sales of the travel vaccine recorded as revenues in the second quarter of 2004 should not have been recorded as revenue at that time, and that portions of those sales should have been recorded as revenues in the third and fourth quarters of 2004 and possibly in later quarters. The revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. and restatements, which include adjustments to revenues and expenses, and reclassifications of certain balance sheet accounts, were identified during the company's ongoing year-end financial statement review and Section 404 Sarbanes-Oxley review. Chiron also today announced that it has identified three material weaknesses in internal controls over financial reporting as of December 31, 2004, one related to the revenue recognition for certain travel vaccine sales described above, one related to booking of entries to tax accounts, including computational Having to do with calculations. Something that is "highly computational" requires a large number of calculations. errors, and one related to the reporting of legal expense accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. . Chiron will report on its final assessment of its internal controls over financial reporting in its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2004. Chiron's year-end financial statement review and Section 404 Sarbanes-Oxley review are continuing, and there can be no assurance that the company and its external auditors The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. will not identify further material weaknesses. In addition, there can be no assurance that the company will not identify further adjustments to its previously announced financial information. Year-End December 31, 2004, Financial Results For the year ended December 31, 2004, Chiron reported revised pro-forma income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $127 million, or $0.67 per share, a decrease of $0.03 per share from financial results as reported on January 26, 2005. On a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, Chiron reported revised income from continuing operations of $54 million, or $0.28 per share, a decrease of $0.04 per share from financial results as reported on January 26, 2005. Revised revenues for 2004 reflect a decrease of $2.5 million from financial results as reported on January 26, 2005 but remain at $1.7 billion after rounding. Chiron has also identified an additional $5 million in expenses incurred in the year ended December 31, 2004 and not included in the results of operations previously announced on January 26, 2005. Fourth-Quarter 2004 Financial Results For the fourth quarter of 2004, Chiron reported a revised pro-forma loss from continuing operations of $7 million, or a loss of $0.04 per share, consistent with the loss of $0.04 per share reported on January 26, 2005. On a GAAP basis, Chiron reported a revised loss from continuing operations of $23 million, or a loss of $0.12 per share, consistent with the loss of $0.12 per share reported on January 26, 2005. Chiron reported revised revenues for the fourth quarter of 2004 of $434 million, an increase of $6 million from financial results as reported on January 26, 2005. Chiron has also identified an additional $6 million in expenses incurred in the fourth quarter of 2004 and not included in the results of operations previously announced on January 26, 2005. Second-Quarter and Third-Quarter 2004 Financial Results; Unavailability un·a·vail·a·ble adj. Not available, accessible, or at hand. un  a·vail of Registration StatementsChiron will restate the financial statements included in its Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. for each of the second quarter of 2004 and third quarter of 2004. Chiron's previously issued financial statements included in those reports should no longer be relied upon. In addition, the availability of Chiron's registration statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc its 1 5/8% convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. due 2033 and 2 3/4% convertible debentures due 2034 is suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. until such time as Chiron provides the holders with notice that such registration statements are again available. Chiron management uses pro-forma financial statements to gain an understanding of the company's operating performance on a comparative basis. Pro-forma amounts exclude certain revenue items and special items relating to certain acquisitions, which may not be indicative indicative: see mood. of the company's trends or potential future performance. Please refer to the tables at the end of this document for more detail on these items and a reconciliation of the pro-forma information to GAAP financial statements. All references to per-share amounts are per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. For revised financial results for the year ended December 31, 2004, and for the fourth quarter of 2004, please refer to the tables at the end of this document or visit our website at www.chiron.com. Chiron intends to file amendments to its Quarterly Reports on Form 10-Q for the quarters ended June June: see month. 30, 2004 and September September: see month. 30, 2004, to include the restated financial statements mentioned above. About Chiron Chiron delivers innovative and valuable products to protect human health by advancing pioneering science across the landscape of biotechnology biotechnology, the use of biological processes, as through the exploitation and manipulation of living organisms or biological systems, in the development or manufacture of a product or in the technological solution to a problem. . The company works to deliver on the limitless promise of science and make a positive difference in people's lives. For more information, please visit www.chiron.com. -- Revised Unaudited Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Consolidated Balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. and Statements of Operations and Pro-forma-to-GAAP Reconciliation, Revised Revenue Summary Sheets, Revised Earnings Per Share Table, and Revised Non-FLUVIRIN(R) Influenza Virus influenza virus n. Any of three viruses of the genus Influenzavirus designated type A, type B, and type C, that cause influenza and influenzalike infections. Vaccine-Related Reconciliation follow --
CHIRON CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (REVISED)
(Unaudited)
(In thousands, except per share data)
Three Months Ended
December 31,
--------------------------------------
2004
--------------------------------------
Pro Forma Pro Forma
Adjusted(1) Adjustments Actual
------------ ------------ ------------
Revenues:
Product sales, net $330,467 $- $330,467
Revenues from joint business
arrangement 25,336 - 25,336
Collaborative agreement
revenues 3,577 - 3,577
Royalty and license fee
revenues 68,177 - 68,177
Other revenues 6,838 - 6,838
------------ ------------ ------------
Total revenues 434,395 - 434,395
------------ ------------ ------------
Operating expenses:
Cost of sales 175,212 - 175,212
Research and development 129,392 - 129,392
Selling, general and
administrative 139,651 - 139,651
Purchased in-process research
and development - - -
Amortization expense - (21,426) 21,426
Other operating expenses 4,804 - 4,804
------------ ------------ ------------
Total operating expenses 449,059 (21,426) 470,485
------------ ------------ ------------
(Loss) income from operations (14,664) 21,426 (36,090)
Loss on disposal of assets (2,092) - (2,092)
Interest expense (6,653) - (6,653)
Interest and other income, net 14,390 - 14,390
Minority interest (385) - (385)
------------ ------------ ------------
(Loss) income from continuing
operations before income taxes (9,404) 21,426 (30,830)
Provision for (benefit of)
income taxes (2,351) 5,356 (7,707)
------------ ------------ ------------
(Loss) income from continuing
operations (7,053) 16,070 (23,123)
============ ============ ============
Gain from discontinued
operations - - -
------------ ------------ ------------
Net (loss) income $(7,053) $16,070 $(23,123)
============ ============ ============
Basic (loss) earnings per share:
(Loss) income from continuing
operations $(0.04) $(0.12)
============ ============
Net (loss) income $(0.04) $(0.12)
============ ============
Diluted (loss) earnings per
share:
(Loss) income from continuing
operations $(0.04) $(0.12)
============ ============
Net (loss) income $(0.04) $(0.12)
============ ============
Shares used in calculating basic
(loss) earnings per share 186,813 186,813
============ ============
Shares used in calculating
diluted (loss) earnings per
share 186,813 186,813
============ ============
Three Months Ended
December 31,
--------------------------------------
2003
--------------------------------------
Pro Forma Pro Forma
Adjusted(2) Adjustments Actual
------------ ------------ ------------
Revenues:
Product sales, net $448,611 $- $448,611
Revenues from joint business
arrangement 28,313 - 28,313
Collaborative agreement
revenues 3,008 - 3,008
Royalty and license fee
revenues 63,605 - 63,605
Other revenues 11,044 - 11,044
------------ ------------ ------------
Total revenues 554,581 - 554,581
------------ ------------ ------------
Operating expenses:
Cost of sales 214,508 - 214,508
Research and development 140,242 - 140,242
Selling, general and
administrative 121,302 - 121,302
Purchased in-process research
and development - 77,400 (77,400)
Amortization expense - (21,230) 21,230
Other operating expenses 3,803 - 3,803
------------ ------------ ------------
Total operating expenses 479,855 56,170 423,685
------------ ------------ ------------
(Loss) income from operations 74,726 (56,170) 130,896
Loss on disposal of assets (25) - (25)
Interest expense (6,581) - (6,581)
Interest and other income, net 7,523 - 7,523
Minority interest (329) - (329)
------------ ------------ ------------
(Loss) income from continuing
operations before income taxes 75,314 (56,170) 131,484
Provision for (benefit of)
income taxes 18,828 5,307 13,521
------------ ------------ ------------
(Loss) income from continuing
operations 56,486 (61,477) 117,963
============ ============ ============
Gain from discontinued
operations 3,837 - 3,837
------------ ------------ ------------
Net (loss) income $60,323 $(61,477) $121,800
============ ============ ============
Basic (loss) earnings per share:
(Loss) income from continuing
operations $0.30 $0.63
============ ============
Net (loss) income $0.32 $0.65
============ ============
Diluted (loss) earnings per
share:
(Loss) income from continuing
operations $0.29 $0.59
============ ============
Net (loss) income $0.31 $0.61
============ ============
Shares used in calculating basic
(loss) earnings per share 187,393 187,393
============ ============
Shares used in calculating
diluted (loss) earnings per
share 200,567 205,795
============ ============
Year to Date
December 31,
--------------------------------------
2004
--------------------------------------
Pro Forma Pro Forma
Adjusted(3) Adjustments Actual
------------ ------------ ------------
Revenues:
Product sales, net $1,268,303 $- $1,268,303
Revenues from joint business
arrangement 118,246 - 118,246
Collaborative agreement
revenues 18,044 - 18,044
Royalty and license fee
revenues 289,561 - 289,561
Other revenues 29,201 - 29,201
------------ ------------ ------------
Total revenues 1,723,355 - 1,723,355
------------ ------------ ------------
Operating expenses:
Cost of sales 669,667 - 669,667
Research and development 431,128 - 431,128
Selling, general and
administrative 465,779 - 465,779
Purchased in-process research
and development - (9,629) 9,629
Amortization expense - (84,503) 84,503
Other operating expenses 12,844 - 12,844
------------ ------------ ------------
Total operating expenses 1,579,418 (94,132) 1,673,550
------------ ------------ ------------
Income from operations 143,937 94,132 49,805
Loss on disposal of assets (3,247) - (3,247)
Interest expense (26,093) - (26,093)
Interest and other income, net 56,797 - 56,797
Minority interest (1,968) - (1,968)
------------ ------------ ------------
Income from continuing
operations before income taxes 169,426 94,132 75,294
Provision for income taxes 42,357 21,126 21,231
------------ ------------ ------------
Income from continuing
operations 127,069 73,006 54,063
============ ============ ============
Gain from discontinued
operations 24,854 - 24,854
------------ ------------ ------------
Net income $151,923 $73,006 $78,917
============ ============ ============
Basic earnings per share:
Income from continuing
operations $0.68 $0.29
============ ============
Net income $0.81 $0.42
============ ============
Diluted earnings per share:
Income from continuing
operations $0.67 $0.28
============ ============
Net income $0.80 $0.41
============ ============
Shares used in calculating basic
earnings per share 187,545 187,545
============ ============
Shares used in calculating
diluted earnings per share 190,202 190,202
============ ============
Year to Date
December 31,
--------------------------------------
2003
--------------------------------------
Pro Forma Pro Forma
Adjusted(4) Adjustments Actual
------------ ------------ ------------
Revenues:
Product sales, net $1,345,833 $- $1,345,833
Revenues from joint business
arrangement 108,298 - 108,298
Collaborative agreement
revenues 18,562 - 18,562
Royalty and license fee
revenues 250,142 - 250,142
Other revenues 29,113 (14,413) 43,526
------------ ------------ ------------
Total revenues 1,751,948 (14,413) 1,766,361
------------ ------------ ------------
Operating expenses:
Cost of sales 571,897 - 571,897
Research and development 409,806 - 409,806
Selling, general and
administrative 380,388 - 380,388
Purchased in-process research
and development - (45,300) 45,300
Amortization expense - (56,365) 56,365
Other operating expenses 11,532 - 11,532
------------ ------------ ------------
Total operating expenses 1,373,623 (101,665) 1,475,288
------------ ------------ ------------
Income from operations 378,325 87,252 291,073
Loss on disposal of assets (224) - (224)
Interest expense (19,104) - (19,104)
Interest and other income, net 38,892 - 38,892
Minority interest (1,753) - (1,753)
------------ ------------ ------------
Income from continuing
operations before income taxes 396,136 87,252 308,884
Provision for income taxes 99,034 10,488 88,546
------------ ------------ ------------
Income from continuing
operations 297,102 76,764 220,338
============ ============ ============
Gain from discontinued
operations 6,975 - 6,975
------------ ------------ ------------
Net income $304,077 $76,764 $227,313
============ ============ ============
Basic earnings per share:
Income from continuing
operations $1.59 $1.18
============ ============
Net income $1.63 $1.22
============ ============
Diluted earnings per share:
Income from continuing
operations $1.54 $1.15
============ ============
Net income $1.58 $1.19
============ ============
Shares used in calculating basic
earnings per share 186,835 186,835
============ ============
Shares used in calculating
diluted earnings per share 199,143 193,915
============ ============
(1) Pro Forma Adjusted amounts exclude (a) the amortization expense on
acquired intangible assets related to the acquisitions of
PathoGenesis, Chiron Behring, Pulmopharm and PowderJect
Pharmaceuticals.
(2) Pro Forma Adjusted amounts exclude (a) the amortization expense on
acquired intangible assets related to the acquisitions of
PathoGenesis, Chiron Behring, Pulmopharm and PowderJect
Pharmaceuticals and (b) purchased in-process research and development
related to the PowderJect Pharmaceuticals acquisition. Note that in
Q4'03, there was a purchase price allocation adjustment to the
purchased in-process research and development related to the
PowderJect Pharmaceuticals acquisition, upon completion of strategic
assessments of the value of certain research and development projects.
The adjustment reduced purchased in-process research and development
by $77.4 million.
(3) Pro Forma Adjusted amounts exclude (a) the amortization expense on
acquired intangible assets related to the acquisitions of
PathoGenesis, Chiron Behring, Pulmopharm and PowderJect
Pharmaceuticals and (b) the purchased in-process research and
development related to the Sagres acquisition.
(4) Pro Forma Adjusted amounts exclude: (a) the Biogen and Serono
settlements in connection with the McCormick patents owned by
Schering's U.S. subsidiary, Berlex Laboratories, (b) purchased
in-process research and development related to the PowderJect
Pharmaceuticals acquisition and (c) the amortization expense on
acquired intangible assets related to the acquisitions of
PathoGenesis, Chiron Behring, Pulmopharm and PowderJect
Pharmaceuticals.
Note: Due to rounding, quarterly earnings (loss) per share amounts may
not sum fully to yearly earnings per share amounts.
CHIRON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (REVISED)
(Unaudited)
(In thousands)
December 31, December 31,
2004 2003
------------- -------------
Assets
Current assets:
Cash and short-term investments $603,621 $538,482
Accounts receivable, net 392,788 382,933
Current portion of notes receivable - 1,479
Inventories, net 221,154 199,625
Other current assets 167,154 135,130
------------- -------------
Total current assets 1,384,717 1,257,649
Noncurrent investments in marketable debt
securities 409,421 560,292
Property, plant, equipment and leasehold
improvements, net 799,415 689,750
Other noncurrent assets 1,702,644 1,687,478
------------- -------------
Total assets $4,296,197 $4,195,169
============= =============
Liabilities and stockholders' equity
Current liabilities $425,138 $436,913
Long-term debt 936,652 926,709
Capital lease 156,952 157,677
Noncurrent unearned revenue 26,175 45,564
Other noncurrent liabilities 140,226 176,944
Minority interest 9,350 7,002
Stockholders' equity 2,601,704 2,444,360
------------- -------------
Total liabilities and stockholders'
equity $4,296,197 $4,195,169
============= =============
CHIRON CORPORATION
SUPPLEMENTAL SCHEDULE OF COMPUTATION OF EARNINGS (LOSS) PER SHARE
(REVISED)
(Unaudited)
(In thousands, except per share data)
Three Months Ended
December 31,
2004 2003
------------------- -------------------
Pro Forma Pro Forma
Adjusted Actual Adjusted Actual
------------------- -------------------
Computation for earnings (loss)
per share - continuing
operations
Income (loss) (Numerator):
Income (loss) from continuing
operations $(7,053) $(23,123) $56,486 $117,963
Plus: Interest on 1.625%
convertible debentures, net
of taxes - - 1,574 1,574
Plus: Interest on Liquid
Yield Option Notes, net of
taxes - - - 1,767
--------- --------- --------- ---------
Income (loss) from continuing
operations, plus impact from
assumed conversions $(7,053) $(23,123) $58,060 $121,304
=======================================
Shares (Denominator):
Weighted-average common
shares outstanding 186,813 186,813 187,393 187,393
Effect of dilutive securities:
Stock options and
equivalents - - 5,868 5,868
1.625% convertible
debentures - - 7,306 7,306
Liquid Yield Option Notes - - - 5,228
--------- --------- --------- ---------
Weighted-average common
shares outstanding, plus
impact from assumed
conversions 186,813 186,813 200,567 205,795
=======================================
Basic earnings (loss) per share
from continuing operations $(0.04) $(0.12) $0.30 $0.63
========= ========= ========= =========
Diluted earnings (loss) per
share from continuing
operations $(0.04) $(0.12) $0.29 $0.59
========= ========= ========= =========
Computation for earnings (loss)
per share - net income (loss)
Income (loss) (Numerator):
Net income (loss) $(7,053) $(23,123) $60,323 $121,800
Plus: Interest on 1.625%
convertible debentures, net
of taxes - - 1,574 1,574
Plus: Interest on Liquid
Yield Option Notes, net of
taxes - - - 1,767
--------- --------- --------- ---------
Net income (loss), plus
impact from assumed
conversions $(7,053) $(23,123) $61,897 $125,141
=======================================
Shares (Denominator):
Weighted-average common
shares outstanding 186,813 186,813 187,393 187,393
Effect of dilutive securities:
Stock options and
equivalents - - 5,868 5,868
1.625% convertible
debentures - - 7,306 7,306
Liquid Yield Option Notes - - - 5,228
--------- --------- --------- ---------
Weighted-average common
shares outstanding, plus
impact from assumed
conversions 186,813 186,813 200,567 205,795
=======================================
Basic earnings (loss) per share $(0.04) $(0.12) $0.32 $0.65
========= ========= ========= =========
Diluted earnings (loss) per
share $(0.04) $(0.12) $0.31 $0.61
========= ========= ========= =========
CHIRON CORPORATION
SUPPLEMENTAL SCHEDULE OF COMPUTATION OF EARNINGS PER SHARE (REVISED)
(Unaudited)
(In thousands, except per share data)
Year to Date
December 31,
2004 2003
------------------ -------------------
Pro Forma Pro Forma
Adjusted Actual Adjusted Actual
------------------ -------------------
Computation for earnings per
share - continuing operations
Income (Numerator):
Income from continuing
operations $127,069 $54,063 $297,102 $220,338
Plus: Interest on 1.625%
convertible debentures, net
of taxes - - 2,638 2,638
Plus: Interest on Liquid Yield
Option Notes, net of taxes - - 7,027 -
--------- -------- --------- ---------
Income from continuing
operations, plus impact from
assumed conversions $127,069 $54,063 $306,767 $222,976
======================================
Shares (Denominator):
Weighted-average common shares
outstanding 187,545 187,545 186,835 186,835
Effect of dilutive securities:
Stock options and
equivalents 2,657 2,657 4,339 4,339
1.625% convertible
debentures - - 2,740 2,740
Liquid Yield Option Notes - - 5,228 -
Put options - - 1 1
--------- -------- --------- ---------
Weighted-average common
shares outstanding, plus
impact from assumed
conversions 190,202 190,202 199,143 193,915
======================================
Basic earnings per share from
continuing operations $0.68 $0.29 $1.59 $1.18
========= ======== ========= =========
Diluted earnings per share from
continuing operations $0.67 $0.28 $1.54 $1.15
========= ======== ========= =========
Computation for earnings per
share - net income
Income (Numerator):
Net income $151,923 $78,917 $304,077 $227,313
Plus: Interest on 1.625%
convertible debentures, net
of taxes - - 2,638 2,638
Plus: Interest on Liquid Yield
Option Notes, net of taxes - - 7,027 -
--------- -------- --------- ---------
Net income $151,923 $78,917 $313,742 $229,951
======================================
Shares (Denominator):
Weighted-average common shares
outstanding 187,545 187,545 186,835 186,835
Effect of dilutive securities:
Stock options and
equivalents 2,657 2,657 4,339 4,339
1.625% convertible
debentures - - 2,740 2,740
Liquid Yield Option Notes - - 5,228 -
Put options - - 1 1
--------- -------- --------- ---------
Weighted-average common
shares outstanding, plus
impact from assumed
conversions 190,202 190,202 199,143 193,915
======================================
Basic earnings per share $0.81 $0.42 $1.63 $1.22
========= ======== ========= =========
Diluted earnings per share $0.80 $0.41 $1.58 $1.19
========= ======== ========= =========
CHIRON CORPORATION
Supplemental Revenue Summary (Pro Forma) (Revised)
USD $ (in thousands)
----------------------------------------------------------------------
Current Prior Change
Quarter Quarter from Change
Q4 2004 Q3 2004 Prior QTR %
----------------------------------------------------------------------
Product Sales
Blood Testing
Ortho $7,904 $7,098 $806 11.4%
NAT 63,705 63,629 76 0.1%
-------------------------------------
Total Blood Testing 71,609 70,727 882 1.2%
Vaccines
Flu Vaccines 44,015 93,486 (49,471) (52.9)%
Meningococcus Vaccines 9,309 8,865 444 5.0%
Travel Vaccines (TBE, Rabies,
Arilvax and Dukoral) 21,159 26,434 (5,275) (20.0)%
Pediatric/Other Vaccines 57,656 44,491 13,165 29.6%
-------------------------------------
Total Vaccines 132,139 173,276 (41,137) (23.7)%
Biopharmaceuticals:
Proleukin 30,713 31,739 (1,026) (3.2)%
TOBI 53,276 55,734 (2,458) (4.4)%
Betaseron(a) 33,639 35,171 (1,532) (4.4)%
Other 9,091 8,902 189 2.1%
-------------------------------------
Total Biopharmaceuticals 126,719 131,546 (4,827) (3.7)%
TOTAL PRODUCT SALES $330,467 $375,549 $(45,082) (12.0)%
=====================================
Revenues From Joint Business
Arrangement $25,336 $34,017 $(8,681) (25.5)%
Collaborative Agreement Revenues 3,577 4,124 (547) (13.3)%
Royalty and License Fees 68,177 111,396 (43,219) (38.8)%
Other Revenues 6,838 4,450 2,388 53.7%
-------------------------------------
TOTAL REVENUES $434,395 $529,536 $(95,141) (18.0)%
-------------------------------------
Gross Margins
Blood Testing 40% 43% (3)%
Vaccines 29% 11% 18%
Biopharmaceuticals 70% 67% 3%
-------------------------------------
TOTAL GROSS MARGINS 47% 36% 11%
-------------------------------------
----------------------------------------------------------------------
(a) Excludes Betaferon Royalty $12,798 $13,374 $(576) (4.3)%
----------------------------------------------------------------------
----------------------------------------------------------------------
Year Ago Change
Quarter from Change
Q4 2003 Prior Year %
----------------------------------------------------------------------
Product Sales
Blood Testing
Ortho $8,625 $(721) (8.4)%
NAT 58,299 5,406 9.3%
-------------------------------------
Total Blood Testing 66,924 4,685 7.0%
Vaccines
Flu Vaccines 141,142 (97,127) (68.8)%
Meningococcus Vaccines 33,672 (24,363) (72.4)%
Travel Vaccines (TBE, Rabies,
Arilvax and Dukoral) 27,850 (6,691) (24.0)%
Pediatric/Other Vaccines 58,974 (1,318) (2.2)%
-------------------------------------
Total Vaccines 261,638 (129,499) (49.5)%
Biopharmaceuticals:
Proleukin 29,852 861 2.9%
TOBI 49,307 3,969 8.0%
Betaseron(a) 36,148 (2,509) (6.9)%
Other 4,742 4,349 91.7%
-------------------------------------
Total Biopharmaceuticals 120,049 6,670 5.6%
TOTAL PRODUCT SALES $448,611 $(118,144) (26.3)%
=====================================
Revenues From Joint Business
Arrangement $28,313 $(2,977) (10.5)%
Collaborative Agreement Revenues 3,008 569 18.9%
Royalty and License Fees 63,605 4,572 7.2%
Other Revenues 11,044 (4,206) (38.1)%
-------------------------------------
TOTAL REVENUES $554,581 $(120,186) (21.7)%
-------------------------------------
Gross Margins
Blood Testing 38% 2%
Vaccines 49% (20)%
Biopharmaceuticals 66% 4%
-------------------------------------
TOTAL GROSS MARGINS 52% (5)%
-------------------------------------
----------------------------------------------------------------------
(a) Excludes Betaferon Royalty $16,658 $(3,860) (23.2)%
----------------------------------------------------------------------
CHIRON CORPORATION
Supplemental YTD Revenue Summary (Pro Forma) (Revised)
USD $ (in thousands)
----------------------------------------------------------------------
Twelve Months Ended
December 31, Change from Change
2004 2003 Prior Year %
----------------------------------------------------------------------
Product Sales
Blood Testing
Ortho $27,844 $28,391 $(547) (1.9)%
NAT 249,809 200,066 49,743 24.9%
-------------------------------------------
Total Blood Testing 277,653 228,457 49,196 21.5%
Vaccines
Flu Vaccines 153,413 332,428 (179,015) (53.9)%
Meningococcus Vaccines 27,739 65,548 (37,809) (57.7)%
Travel Vaccines (TBE,
Rabies, Arilvax and
Dukoral) 96,864 87,831 9,033 10.3%
Pediatric/Other Vaccines 200,948 192,511 8,437 4.4%
-------------------------------------------
Total Vaccines 478,964 678,318 (199,354) (29.4)%
Biopharmaceuticals:
Proleukin 129,377 115,075 14,302 12.4%
TOBI 212,876 172,047 40,829 23.7%
Betaseron(a) 130,572 124,936 5,636 4.5%
Other 38,861 27,000 11,861 43.9%
-------------------------------------------
Total Biopharmaceuticals 511,686 439,058 72,628 16.5%
TOTAL PRODUCT SALES $1,268,303 $1,345,833 $(77,530) (5.8)%
===========================================
Revenues From Joint
Business Arrangement $118,246 $108,298 $9,948 9.2%
Collaborative Agreement
Revenues 18,044 18,562 (518) (2.8)%
Royalty and License Fees 289,561 250,142 39,419 15.8%
Other Revenues 29,201 29,113 88 0.3%
-------------------------------------------
TOTAL REVENUES $1,723,355 $1,751,948 $(28,593) (1.6)%
-------------------------------------------
Gross Margins
Blood Testing 42% 41% 1%
Vaccines 24% 53% (29)%
Biopharmaceuticals 72% 72% 0%
-------------------------------------------
TOTAL GROSS MARGINS 47% 58% (11)%
-------------------------------------------
----------------------------------------------------------------------
(a) Excludes Betaferon
Royalty $51,564 $63,768 $(12,204) (19.1)%
----------------------------------------------------------------------
CHIRON CORPORATION
Non-FLUVIRIN(R) Influenza Virus Vaccine-Related Reconciliation
for 2004 press release (Revised)
USD $ (in thousands, except percentages)
----------------------------------------------------------------------
Current Year Change
Year Ago from Change
2004 2003 Prior Year %
----------------------------------------------------------------------
TOTAL PRODUCT SALES $1,268,303 $1,345,833 $(77,530) (6)%
Fluvirin vaccine sales 2,255 219,240 (216,985) (99)%
-----------------------------------------
TOTAL PRODUCT SALES,
Excluding Fluvirin vaccine
sales $1,266,048 $1,126,593 $139,455 12%
=========================================
TOTAL VACCINES PRODUCT
SALES $478,964 $678,318 $(199,354) (29)%
Fluvirin vaccine sales 2,255 219,240 (216,985) (99)%
-----------------------------------------
TOTAL VACCINES PRODUCT
SALES, Excluding Fluvirin
vaccine sales $476,709 $459,078 $17,631 4%
=========================================
FLU VACCINES PRODUCT SALES $153,413 $332,428 $(179,015) (54)%
Fluvirin vaccine sales 2,255 219,240 (216,985) (99)%
-----------------------------------------
FLU VACCINES PRODUCT SALES,
Excluding Fluvirin vaccine
sales $151,158 $113,188 $37,970 34%
=========================================
Vaccines Gross Margin
Vaccines product sales $478,964
Cost of sales 363,243
-----------
Gross Margin $115,721
===========
Gross Margin % 24%
Vaccines Gross Margin,
excluding Fluvirin charge
of $91,300 and remediation
costs of $2,600
Vaccines product sales $478,964
Cost of sales, excluding
Fluvirin charge of $91,300
and remediation costs of
$2,600 269,343
-----------
Gross Margin $209,621
===========
Gross Margin % 44%
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