Enzon Reports First Quarter Results; Strong Sales Momentum For ABELCET And All Other Proprietary Products Marketed by Enzon.Business Editors/Health/Medical Writers 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, 2003 Enzon Pharmaceuticals, 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 first quarter of fiscal year 2004 ended September September: see month. 30, 2003. The company's net income per share for the first quarter of fiscal 2004 was $2.8 million or $0.06 cents 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, versus $12.8 million or $0.29 cents per diluted share for the first quarter of fiscal 2003. The decrease in net income was principally due to decreased royalties from Schering-Plough's PEG-INTRON(R) due to the introduction of a competitive product and increased research and development spending related to the advancement of the company's two late stage development candidates. The decrease was also due to increased income tax expense as the company is now required under GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). to report fully taxed earnings, because the company previously recognized the tax benefits attributable to its approximately $130 million in federal net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. carry forwards. These net operating loss carry forwards remain available to offset income tax payments for the next two to three years. Total revenue in the first quarter of fiscal 2004 was $40.6 million as compared to $25.1 million in the first quarter of fiscal 2003, resulting in a 62 percent increase. This increase was primarily driven by net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight and manufacturing revenue of $16.6 million related to the ABELCET(R) business, which the company acquired in November November: see month. 2002. For the three months ended September 30, 2003, combined sales of the company's other three marketed products ADAGEN(R), ONCASPAR(R), and DEPOCYT(R) were $10 million, a 52 percent increase over sales of $6.6 million in the first quarter of fiscal 2003. ADAGEN sales for the first quarter of fiscal 2004 were $4.6 million versus $3.8 million in the first quarter of fiscal 2003, a 21 percent increase. Sales of ONCASPAR for the first quarter of fiscal 2004 were $4.1 million, a 48 percent increase over sales of $2.8 million in the first quarter of fiscal 2003. Fiscal 2004 first quarter sales of DEPOCYT, marketed through Enzon's specialty sales force, were $1.3 million. The company in-licensed the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. rights to DEPOCYT in January January: see month. 2003. Total royalties for the first quarter of fiscal 2004 were $13.8 million, a 25 percent decrease from royalties of $18.4 million for the first quarter of fiscal 2003. Total royalties for the quarter were made up principally of royalties from sales of PEG-INTRON marketed by Schering-Plough. Research and development expenses increased to $6.6 million in the first quarter of fiscal 2004 from $4.1 million in the same quarter of fiscal 2003. The increase was due to the continued advancement of the company's two late stage compounds, PEG-Camptothecin and ATG ATG antithymocyte globulin. lymphocyte immune globulin (antithymocyte globulin equine, ATG, ATG equine, LIG) Atgam Pharmacologic class: Immunoglobulin Therapeutic class: Immunosuppressant Fresenius S Fresenius may mean:
"All components of our business that we control perform at or better than our expectations," said Arthur J. Higgins, Chairman and Chief Executive Officer of Enzon Pharmaceuticals, Inc. "To highlight the progress in our pipeline we will hold our first Investor R&D Day on November 20th." SG&A expense increased to $11.2 million in the first quarter of fiscal 2004 versus $3.9 million for the first quarter of fiscal 2003 due to the addition of two sales forces that market ABELCET, DEPOCYT AND ONCASPAR. The management of Enzon will be hosting a conference call today, November 6, 2003 at 5:00 PM EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . All interested parties can access the live call using the following information: Domestic Dial-In Number: 800-553-0351 International Dial-In Number: 612-288-0318 Access Code: 702254 Enzon's conference call will also be webcast in a "listen only" mode via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the 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 Thursday, November 6, 2003 at approximately 10:15 pm. This rebroadcast will end on Thursday, November 13, 2003 at midnight. The rebroadcast may be accessed using the following information: Domestic Dial-In Number: 800-475-6701 International Dial-In Number: 320-365-3844 Access Code 702254 Enzon Pharmaceuticals 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 or acquired a number of marketed products, including PEG-INTRON, marketed by Schering-Plough, and ABELCET, which is marketed in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. by Enzon. Enzon's science-focused strategy includes an extensive drug development program that leverages the Company's 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. 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, Enzon's ability to continue to increase ABELCET's share of the antifungal antifungal /an·ti·fun·gal/ (-fung´gal) 1. destructive to fungi, or suppressing their reproduction or growth; effective against fungal infections. 2. an agent that so acts. market and to sustain such increased market share and to successfully market its proprietary products; Enzon's dependence on Schering-Plough's effective marketing of PEG-INTRON; Enzon's ability to clinically advance its PEG-Camptothecin and ATG-Fresenius S programs; Enzon's ability to sustain profitability and positive cash flow; risks in obtaining and maintaining regulatory approval for indications and expanded indications for Enzon's products; market acceptance of and continuing demand for Enzon's products; timing and results of clinical trials and the impact of competitive products and pricing. All information in this press release is as of November 6, 2003, and the Company undertakes no duty to update this information. For further information regarding this press release, please go to Enzon's website homepage at http://www.enzon.com and to Enzon's Investor Relations Investor relations The process by which the corporation communicates with its investors. webpage at http://enzon.com/shareholders.html.
ENZON PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months ended September 30, 2003 and 2002 (Unaudited)
Sept. 30, Sept. 30,
2003 2002
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Revenues:
Net sales $ 24,961 $ 6,566
Manufacturing Revenue 1,604 -
Royalties 13,811 18,417
Contract revenue 268 84
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Total revenues 40,644 25,067
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Costs and expenses:
Cost of sales and manufacturing revenue 10,912 2,514
Research and development expenses 6,551 4,062
Selling, general and administrative expenses 11,209 3,908
Amortization of acquired intangibles 3,358 35
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Total costs and expenses 32,030 10,519
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Operating income 8,614 14,548
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Other income (expense):
Investment income, net 474 3,454
Interest expense (4,957) (4,957)
Other income 307 -
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(4,176) (1,503)
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Income before taxes 4,438 13,045
Income tax provision 1,634 261
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Net income $ 2,804 $ 12,784
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Basic earnings per common share $ 0.06 $ 0.30
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Diluted earnings per common share $ 0.06 $ 0.29
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Weighted average number of common shares issued
and outstanding - basic 43,290 42,980
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Weighted average number of common shares issued
and outstanding and dilutive potential common
shares outstanding 43,629 43,681
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