Enzon Reports First Quarter Results; Revenues Double Over the Prior Year.Business & Health Editors BRIDGEWATER Bridgewater, town (1990 pop. 21,249), Plymouth co., E Mass.; inc. 1656. Manufacturing includes shoes and metal products. Its iron foundry industry dates from colonial times. Bridgewater State College and a state prison are there. , N.J.--(BUSINESS WIRE)--Nov. 6, 2002 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 :ENZN) announced today its financial results for the quarter ended September September: see month. 30, 2002, the first quarter of Enzon's fiscal year (FY) 2003. The Company reported net income of $12.8 million, or $0.29 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 the quarter ended September 30, 2002, as compared to $4.2 million or $0.10 per diluted share, for the same period in FY 2002. "We are very pleased that once again Enzon's earnings have come in ahead of market expectations," said Arthur Arthur, king of Britain: see Arthurian legend. Arthur king and hero of Scotland, Wales, and England. [Arthurian Legend: Parrinder, 28] See : Heroism J. Higgins Higgins may refer to: People with the surname Higgins:
The increase in net income was principally due to increased royalties earned on sales of PEG-INTRON(R). Total royalties increased to $18.3 million during the first quarter of FY 2003, as compared to $7.0 million for the same period in FY 2002. In October October: see month. 2001, our marketing partner, Schering-Plough launched PEG-INTRON and REBETOL Rebetol® Ribavirin, see there combination therapy in the U.S. for the treatment of chronic hepatitis Chronic hepatitis Long lasting inflammation of the liver due to viruses or other causes. Mentioned in: Tube Compression of the Esophagus and Stomach chronic hepatitis C. Combined sales of the Company's other two 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. approved products, ONCASPAR(R) and ADAGEN(R), increased by 31 percent to $6.7 million in the first quarter of FY 2003, as compared to $5.1 million for the same period in FY 2002. This increase was primarily due to increased ADAGEN sales as a result of an increase in ADAGEN patients. ONCASPAR sales increased due to the Company's June 2002 reacquisition of its rights to market and distribute ONCASPAR(R) for certain territories that had been previously licensed to Aventis (NYSE NYSE See: New York Stock Exchange : AVE). Cost of sales, as a percentage of sales, for the first quarter of FY 2003 increased to 38 percent as compared to 27 percent for the comparable quarter of the previous year. The increase was due to the Company's reacquisition of ONCASPAR and the corresponding 25 percent royalty that is payable to Aventis on ONCASPAR sales in the reacquired territories. Research and development expenses for the first quarter of FY 2003 increased by $565,000 or 16 percent to $4.1 million, as compared to $3.5 million for the first quarter of FY 2002. The increase was due primarily to increased research and development expenditures related to the advancement of the Company's preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. and clinical PEG peg 1. To fix the price of a new security issue during the issuance period through buying and selling it in the open market in order to ensure that the price in the secondary market will not fall below the offering price. product pipeline, as well as increased personnel and expenditures related to the Company's commitment to strengthen its research and development organization. Research and development expenses are expected to increase significantly as the Company continues the clinical advancement of its PEG product pipeline and continues to strengthen its internal development capabilities. The Company is currently conducting Phase II clinical studies for PROTHECAN(R) (PEG-camptothecin), Phase I clinical trials Noun 1. phase I clinical trial - a clinical trial on a few persons to determine the safety of a new drug or invasive medical device; for drugs, dosage or toxicity limits should be obtained phase I for PEG-paclitaxel, and preclinical studies preclinical studies, n.pl a term used to describe research done before a clinical study. May be laboratory or epidemiologic research. for additional PEG enhanced products. Selling, general and administrative expenses for the first quarter of FY 2003 decreased by $180,000 or 4 percent to $3.9 million, as compared to $4.1 million for the first quarter of FY 2002. This decrease was primarily due to costs recorded in the prior year associated with the review of certain strategic transactions. The decrease in prior year expenditures was substantially offset by increased sales and marketing costs for ONCASPAR resulting from the Company's reacquisition of ONCASPAR from Aventis. During the first quarter of FY 2003, interest income decreased by $2.7 million to $3.5 million, as compared to $6.2 million for the first quarter of FY 2002, as a result of the continued decline in investment grade interest rates. As of September 30, 2002, Enzon had total cash and interest-bearing investments of $494 million, as compared to $485 million as of June 30, 2002. Company management of Enzon will be hosting a conference call today at 9:45AM EST EST electroshock therapy. EST abbr. electroshock therapy to discuss the financial results for the quarter ended September 30, 2002. All interested parties can access the live call using the following information:
Domestic Dial-In Number: 877-407-3140
International Dial-In Number: 201-689-8320
Access Code: ENZON
Enzon's conference call will also be webcast in a "listen only" mode via the internet at http://www.vcall.com. Additionally, for those parties unable to listen at the time of Enzon's conference call, a rebroadcast will be available following the call from November 6, 2002 at approximately 12:00PM EST. This rebroadcast will end on November 13, 2002 at 11:59PM EST. The rebroadcast may be accessed using the following information:
Domestic Dial-In Number: 877-660-6853
International Dial-In Number: 201-612-7415
Account Number: 1628
Conference I.D. Number: 46247
Enzon is a biopharmaceutical company dedicated to the discovery, development and commercialization of therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. to treat life-threatening diseases. The Company has developed three marketed products, including PEG-INTRON(R), marketed by Schering-Plough. Enzon's product-focused strategy includes an extensive drug development program that leverages the Company's PEG modification and single-chain antibody (SCA (Single Connector Attachment) An 80-pin plug and socket used to connect peripherals. With a SCSI drive, it rolls three cables (power, data channel and ID configuration) into one connector for fast installation and removal. (R)) technologies. Internal research and development efforts are complemented by strategic transactions that provide access to additional products, projects, and technologies. Enzon has several drug candidates in various stages of development, independently and with partners. Except for the historical information herein, the matters discussed in this news release include forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that may involve a number of risks and uncertainties. Actual results may vary significantly based upon a number of factors, which are described in the Company's 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. , Form 10-Q's and Form 8-K's on file with the SEC, including without limitation, regulatory risks such as risks in obtaining and maintaining regulatory approval for indications and expanded indications, risks that Enzon will not outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the sector, risks related to research and development costs and capabilities, market acceptance of and continuing demand for Enzon's products and the impact of increased competition, competitive products and pricing. This release is also available at http://www.enzon.com
ENZON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months ended September 30, 2002 and 2001
(Unaudited)
September September
30, 30,
2002 2001
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Revenues:
Net sales $6,657,630 $5,081,490
Royalties 18,325,838 6,987,313
Contract revenue 83,600 74,899
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Total revenues 25,067,068 12,143,702
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Costs and expenses:
Cost of sales 2,514,414 1,390,861
Research and development expenses 4,061,898 3,497,157
Selling, general and administrative expenses 3,942,515 4,122,111
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Total costs and expenses 10,518,827 9,010,129
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Operating income 14,548,241 3,133,573
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Other income (expense):
Interest and dividend income 3,452,960 6,178,299
Interest expense (4,957,165) (4,994,129)
Other 408 (1,192)
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(1,503,797) 1,182,978
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Earnings before income taxes 13,044,444 4,316,551
Income taxes 260,889 86,331
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Net income $12,783,555 $4,230,220
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Basic earnings per common share $0.30 $0.10
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Diluted earnings per common share $0.29 $0.10
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Weighted average number of common shares
issued and outstanding 42,980,073 42,122,284
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Weighted average number of common shares
issued and outstanding and dilutive potential
common shares 43,680,756 43,922,829
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