Enzon Reports First Quarter 1998 Earnings -- And Records A 22% Increase In Revenues.PISCATAWAY, NJ--(BW HealthWire)--Nov. 17, 1997--Enzon, Inc. (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 \NMS See NetWare Management System. :ENZN) announced today net income of $698,000 or $0.02 per share for the three months ended September 30, 1997 compared to a net loss of $719,000 or $0.03 per share for the comparable quarter in 1996. The increase in net income for the three months ended September 30, 1997 was attributable to a 22% increase in revenues, principally due to $2,500,000 in milestone payments received from the Company's partner, Schering-Plough Corporation for the advancement of PEG-Intron A to Phase III clinical trials and a 13% reduction in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as compared to the three months ended September 30, 1996. Total revenues, which include sales and contract revenues, for the quarter ended September 30, 1997 increased by 22% to $4,670,000 as compared to $3,815,000 reported last year. The increase was due to a $1,111,000 increase in contract revenues for the quarter ended September 30, 1997, which resulted from milestone payments received from Schering-Plough Corporation related to the advancement of PEG- Intron Intron In split genes, a portion that is included in ribonucleic acid (RNA) transcripts but is removed from within a transcript during RNA processing and is rapidly degraded. A into a large scale, Phase III clinical trial. PEG-Intron A is a modified form of Schering-Plough's INTRON(R) A (interferon alfa-2b interferon alfa-2b, recombinant Intron A, Viraferon (UK) Pharmacologic class: Biological response modifier Therapeutic class: Antineoplastic, antiviral Pregnancy risk category C , recombinant), developed by Enzon to have longer-acting properties. INTRON A is a genetically engineered genetically engineered adjective Recombinant, see there anticancer and antiviral agent antiviral agent Antiviral Infectious disease An agent that prevents viral invasion or replication, treats an infection, or thrashes the virus into latency; antivirals may be specific–see below or nonspecific–eg, IFNs, which stimulate host defenses , developed and marketed worldwide by Schering-Plough Corporation. INTRON A generated $524 million in sales in 1996. The worldwide market for alpha interferon is in excess of $1 billion. Under the C a decrease in manufacturing revenue from ONCASPAR(R). The decrease in revenues is a function of the timing of shipments of ONCASPAR to the Company's marketing partner Rhone-Poulence Rorer Pharmaceuticals, Inc (RPR (Resilient Packet Ring) A packet-based protocol that provides fault tolerance and statistical multiplexing for the metropolitan and national SONET and Ethernet networks of the carriers. ). This decrease r ended September 30, 1996. The reduction was primarily due to reduced personnel costs, particularly in the clinical and research administration areas, as part of the Company's continued focus on projects with large revenue potential. The Company's research and development efforts are currently concentrated on the continued development of its third generation PEG Modification technology, Pro Drug/T0 as compared to $1,276,000 for the quarter enbelieves its current cash levels are sufficient to meet anticipated cash requirements for approximately two and one half years."1997 has been the most exciting year since I joined Enzon. We have seen a great deal of success acted around our products and technologies due to the recent progress reported by licensees. The Schering-Plon applying its technologies to enhance the performance of compounds with known therapeutic efficacy. In addition to Schering-Plough Corporation, Enzon has formed strategic alliances with several companies including Alexion Pharmaceuticals, Inc., Baxter Healthcare Corporation, Bristol-Myers Squibb Bristol-Myers Squibb (NYSE: BMY), colloquially referred to as BMS, is a pharmaceutical corporation, formed by a 1989 merger between pharmaceutical companies Bristol-Myers Company, founded in 1887 by William McLaren Bristol and John Ripley Myers in Clinton, NY (both were Company and Eli Lilly Eli Lilly can refer to:
abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. approved products, as well as several products in various stages of clinical development by itself and partners. -0- Except for the historical information herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based upon a number of factors, including without limitation, risks in obtaining and maintaining regulatory approval, market acceptance of and continuing demand for Enzon's products, the impact of competitive products and pricing, the Company's ability to maintain current sales levels of its products and current levels of expenses, and the occurrence of any of a number of unforeseeable Un`fore`see´a`ble a. 1. Incapable of being foreseen. Adj. 1. unforeseeable - incapable of being anticipated; "unforeseeable consequences" unpredictable - not capable of being foretold contingencies beyond the Company's control. -0-
ENZON, INC. AND SUBSIDIARIES
(unaudited)
ntract revenue 2,205,109 1,094,299
Total revenues 4,669,743 3,814,890
Costs and expenses
Cost of sales 604,708 985,989
Research and development
expenses 2,146,969 2,429,771
Selling, general and
administrative expenses 1,328,442 1,276,067
Total ing income (loss) 589,624 (62) 7,935
$0.02 ($0.03)
Weighted average number
of common shares
outstanding
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