Chiron net income up 20 percent for first quarter 1997.EMERYVILLE, Calif.--(BW HealthWire)--April 23, 1997--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) ) reported today that its first-quarter 1997 net income rose 20 percent from the prior year. For the first quarter ended March 31, 1997, Chiron had net income of $15.3 million or nine 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 $330.3 million versus net income of $12.7 million or seven cents per share on revenues of $305.8 million for the first quarter of 1996. While product sales from its business units were up five percent, to $251.1 million, in 1997, income from operations increased by 25 percent primarily because of a significant increase in Chiron's sales fee income from sales of Aredia(R) (pamidronate disodium pamidronate disodium Aredia Pharmacologic class: Bisphosphonate, hypocalcemic Therapeutic class: Bone resorption inhibitor Pregnancy risk category C Action), increased performance from Chiron's joint blood screening business, and increased royalties. Unfavorable currency rates reduced product In model theory, a branch of mathematical logic, the reduced product is a construction that generalizes both direct product and ultraproduct. sales by $10 million compared to rates in effect in the first quarter a year ago. Without the impact of foreign currency, product sales growth would have been 9 percent.Chiron Diagnostics product sales increased to $149.0 million in the first quarter of 1997 from $135.9 million in the first quarter of 1996, including an increase in sales of quantitative bDNA probe tests to $13.2 million in the first quarter of 1997 from $5.8 million in the first quarter a year ago. Also contributing to the quarterly increase in Chiron Diagnostics product sales was increased immunodiagnostic immunodiagnostic pertaining to diagnosis by immune reactions. product sales resulting from greater assay volume compared to a year ago. Unfavorable currency rates reduced diagnostic product sales by $7 million compared to rates in effect in the first quarter of a year ago. Chiron Vision product sales increased to $50.3 million in the first quarter of 1997 from $44.9 million in the first quarter of 1996. Increased sales of excimer lasers A gas laser in which a very short electrical pulse excites a mixture containing a halogen such as fluorine and a rare gas such as argon or krypton. It produces a brief, intense pulse of ultraviolet light. , refractive refractive capacity to refract light. refractive error a difference between the focal length of the cornea and lens, and the length of the eye, resulting in myopia or hyperopia. surgical instruments A surgical instrument is a specially designed tool or device for performing specific actions of carrying out desired effects during a surgery or operation, such as modifying biological tissue, or to provide access or viewing it. and the Vitrasert(TM) Implant were offset by a decline in cataract surgery Cataract Surgery Definition Cataract surgery is a procedure performed to remove a cloudy lens from the eye; usually an intraocular lens is implanted at the same time. Purpose The purpose of cataract surgery is to restore clear vision. product sales. Chiron Therapeutics' sales of oncology oncology /on·col·o·gy/ (ong-kol´ah-je) the sum of knowledge regarding tumors; the study of tumors. on·col·o·gy n. products 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. and Europe increased to $18.7 million in the first quarter of 1997, from $16.2 million in the first quarter of 1996. Unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. of Proleukin(R) (aldesleukin) increased by 17 percent during the quarter. On April 11, Chiron submitted a supplemental Biological License Application (sBLA) 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. (FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. ), seeking clearance to market Proleukin to treat patients with metastatic Metastatic The term used to describe a secondary cancer, or one that has spread from one area of the body to another. Mentioned in: Coagulation Disorders metastatic pertaining to or of the nature of a metastasis. melanoma melanoma: see skin cancer. melanoma Dark-coloured malignant tumour of skin cells that produce the protective skin-darkening pigment melanin. . Chiron's sales fee income resulting from sales of Aredia in the United States on behalf of Novartis AG Novartis AG Swiss pharmaceutical company. It was formed through the 1996 merger of two Swiss firms: Ciba (see Ciba-Geigy) and Sandoz, a chemical company with interests in pharmaceuticals, nutrition, and agriculture. , which is included in "Other Revenues," increased significantly to $12.8 million in the first quarter of 1997, compared to $3.6 million a year ago. Betaseron(R) (interferon beta-1b interferon beta-1b Betaferon (UK), Betaseron Pharmacologic class: Biological response modifier Therapeutic class: Antiviral, immunoregulator Pregnancy risk category C Action) product sales revenues from 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, together with royalty income from Schering AG for product sold in Europe, decreased to $18.0 million in the first quarter of 1997, from $20.9 million in the first quarter of 1996, primarily due to a decline in the volume of shipment to Berlex. Chiron received no royalty income from Schering in the first quarter of 1996. Chiron Vaccines' product sales were $18.5 million in the first quarter of 1997, compared to $20.8 million for the first quarter of 1996. The decrease resulted from lower sales in Italy of its acellular pertussis vaccine acellular pertussis vaccine n. Abbr. DTaP A diphtheria, tetanus, pertussis vaccine containing two or more antigens but no whole cells. . Sales of Chiron-Behring, a new vaccines joint venture formed in July 1996 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, were $37 million in the first quarter of 1997. Chiron's share of the after-tax operating results in the Chiron-Behring joint venture was minimal for the first quarter of 1997, and is included in "Equity in Earnings of Unconsolidated Joint Businesses." Equity in earnings of unconsolidated joint businesses, which consists principally of Chiron's 50 percent share of the pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern profit from its blood screening business with Ortho Diagnostic Systems Inc., increased to $25.2 million in the first quarter of 1997 from $23.6 million in the first quarter of 1996. The 1996 amount included $1.2 million from Chiron's 50 percent interest in a generic chemotherapeutics business that Chiron sold 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., in May 1996. Chiron's share of the pretax profit from the joint business with Ortho increased to $25.1 million in the first quarter of 1997 from $22.5 million in the first quarter of 1996. During the first quarter of 1997, Chiron and Ortho announced that their joint business has been awarded a contract to provide 100 percent of the reagents, systems and support required by the American Red Cross American Red Cross: see Red Cross. for viral disease blood screening. Collaborative research agreement revenues decreased to $26.8 million in the first quarter of 1997 from $31.4 million in the first quarter of 1996. Chiron recognized 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 Novartis of $15.8 million in the first quarter of 1997 compared to $16.0 million in the first quarter of 1996. Additionally and separately, Chiron recognized $3.8 million of revenues during the first quarter of 1997 as part of the November 1996 agreement with Novartis related to royalty-bearing licenses to certain patent rights related to HSV-tk in the field of gene therapy. On March 31, 1997, Chiron held cash, cash equivalents and investments in marketable debt securities totaling $141.3 million, an increase of $12.4 million since December 31, 1996. 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. is a science-driven, market-directed healthcare company that combines diagnostic, vaccine and therapeutic strategies for controlling disease. -0-
Chiron Corporation
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31, March 31,
1997 1996
Revenues:
Product sales, net $ 251,129 $ 239,822
Equity in earnings of unconsolidated
joint businesses 25,214 23,608
Collaborative agreement revenues 26,848 31,414
Other revenues 27,092 10,907
-------- --------
Total revenues 330,283 305,751
-------- --------
Expenses:
Cost of sales 108,332 101,979
Research and development 91,705 84,048
Selling, general and administrative 96,606 92,330
Other operating expenses 3,279 3,107
-------- --------
Total expenses 299,922 281,464
-------- --------
Income from operations 30,361 24,287
Other expense, net (8,133) (5,818)
-------- --------
Income before income taxes 22,228 18,469
Provision for income taxes 6,892 5,725
-------- --------
Net income $ 15,336 $ 12,744
======== ========
Net income per share $ 0.09 $ 0.07
======== ========
Weighted average number of shares
used in computing per share amounts 176,610 178,485
======== ========
Chiron Corporation
Consolidated Balance Sheets
(In thousands)
March 31, Dec. 31,
1997 1996
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 99,335 $ 68,114
Short-term investments in marketable
debt securities 27,944 38,694
-------- --------
Total cash and short-term investments 127,279 106,808
Accounts receivable 327,306 351,971
Inventories 181,286 180,534
Other current assets 63,448 57,455
-------- --------
Total current assets 699,319 696,768
Noncurrent investments in marketable
debt securities 14,001 22,027
Property, plant, equipment and leasehold
improvements, at cost:
Land and buildings 231,760 231,998
Laboratory, production and office
equipment 385,934 381,421
Leasehold improvements 116,092 114,282
Construction in progress 75,895 69,120
-------- --------
809,681 796,821
Less accumulated depreciation and
amortization (227,795) (213,217)
-------- --------
Net property, plant, equipment and
leasehold improvements 581,886 583,604
Purchased technology, net 63,165 65,592
Other intangible assets, net 73,182 76,669
Investments in equity securities and
affiliated companies 183,592 184,328
Other assets 63,270 59,682
-------- --------
$ 1,678,415 $ 1,688,670
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 81,768 $ 96,157
Accrued compensation and related
expenses 44,506 56,695
Short-term borrowings 143,090 137,467
Current portion of unearned revenue 33,542 19,638
Taxes payable 36,530 33,407
Other current liabilities 128,137 129,805
-------- --------
Total current liabilities 467,573 473,169
Long-term debt 391,688 419,589
Other noncurrent liabilities 29,420 31,057
-------- --------
Total liabilities 888,681 923,815
Stockholders' equity:
Common stock 1,724 1,707
Additional paid-in capital 1,789,914 1,774,406
Accumulated deficit (1,017,218) (1,032,554)
Cumulative foreign currency
translation adjustment (18,288) (6,318)
Unrealized gain from investments 34,562 28,574
Notes receivable from stock sales (960) (960)
-------- ---------
Total stockholders' equity 789,734 764,855
-------- ---------
$ 1,678,415 $ 1,688,670
========= =========
CONTACT: Chiron Corporation Larry Kurtz, 510/923-2476 (Vice President, Corporate Communications) |
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