Enzon Reports Fiscal Year Results for 1997; and improved cash position due to Schering-Plough milestone payments.PISCATAWAY Pis·cat·a·way A community of north-central New Jersey north of New Brunswick. Founded before 1693, it is a manufacturing center. Population: 42,223. , N.J.--(BUSINESS WIRE)--September 8, 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 a net loss of $4,557,000 or $0.16 per share for the year ended June 30, 1997 compared to a net loss of $5,175,000 or $0.20 per share for fiscal year 1996. The decrease in net loss was primarily due to a 9% reduction in total expenses. For the three months ended June 30, 1997 the Company reported a net loss of $1,136,000 or $0.04 per share compared to a net loss of $985,000 or $0.04 per share for the same period last year. The increase in net loss for the quarter ended June 30, 1997 was principally due to a decrease in contract revenues. The decrease in contract revenues was due to the recognition, in the prior year, of a one time gain related to the exercise of Neoprobe Corporation warrants and sale of the underlying stock. The warrants were consideration for a licensing agreement for the Company's Single- Chain Antigen-Binding protein technology. The decrease in contract revenues was offset in part by a 23% increase in sales of the Company's two Food and Drug Administration approved products, ADAGEN and ONCASPAR. Sales for the year ended June 30, 1997 increased by 10% to $11,596,000 due to an increase in ADAGEN sales and increased revenues of ONCASPAR. The increase in ONCASPAR sales was due to increased manufacturing and royalty revenues from the Company's 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. marketing partner, Rhone-Poulenc Rorer Pharmaceuticals, Inc., as well as the commencement of shipments of ONCASPAR to Medac GmbH, the Company's marketing partner in Europe. The increase in sales was offset in part by a decrease in contract revenues resulting from the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. one time gain recognized in the prior year related to the exercise of warrants received from Neoprobe Corporation. Research and development expenses for the year ended June 30, 1997 decreased by 15% to $8,520,000 as compared to $10,124,000 for the year ended June 30, 1996. The decrease was primarily due to a reduction in 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 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 technology, Pro Drug/Transport technology. The Company is currently preparing to file an Investigative New Drug application during the first half of calendar year 1998 for a PEG-modified camptothecin, the first drug to utilize the Pro Drug/Transport technology. PEG-camptothecin is a topo- topo- or top- pref. Place; area: topoanesthesia. 1 inhibitor inhibitor /in·hib·i·tor/ (in-hib´i-tor) 1. any substance that interferes with a chemical reaction, growth, or other biologic activity. 2. to be used in treating cancer. The Company is also conducting Phase Ib clinical trials for its hemoglobin-based oxygen-carrier to be used as an enhancement to radiation therapy and expects the trial to conclude during the quarter ended March 31, 1998. Selling, general and administrative expenses for the year ended June 30, 1997 decreased by 8% to $5,528,000 as compared to $6,011,000 for the year ended June 30, 1996. The decrease was primarily due to staff reductions, as well as other cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. measures taken by the Company. Other income for the year ended June 30, 1997 decreased to $605,000 compared to $1,823,000 in 1996. The decrease was due to the one time recognition during the prior year of $1,313,000 of non-cash other income related to the unused portion of an advance received under the Company's agreement with Sanofi Winthrop Inc. for the development of PEG-SOD. The Company had cash on hand as of June 30, 1997 of $8,316,000 compared to $9,597,000 on hand at March 31, 1997. During August 1997, the Company received $2.5 million in milestone payments from Schering-Plough Corporation (Schering) related to the advancement of PEG-Intron A into a large scale, Phase III clinical trial Noun 1. phase III clinical trial - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the . This product utilizes Enzon's proprietary second generation PEG Modification technology in conjunction with Schering's 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 (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 recombinant /re·com·bi·nant/ (re-kom´bi-nant)1. the new entity (e.g., gene, protein, cell, individual) that results from genetic recombination. 2. pertaining or relating to such an entity. See also under DNA. ). Schering reported sales of $524 million for Intron A in 1996. The worldwide market for alpha interferon interferon (ĭn'tərfēr`ŏn), any of a group of proteins produced by cells in the body in response to an attack by a virus. A cell infected by a virus releases minute amounts of interferons, which attach themselves to neighboring cells, products is estimated to exceed $1 billion. Enzon is entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to $3 million in additional milestone payments, royalties on product sales and has the option to become Schering's exclusive manufacturer of PEG-Intron A for the United States market. "We are entering a very exciting time. Schering's rapid advancement of PEG-Intron A has validated val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. our second generation PEG Modification technology," said Peter G. Tombros, president and chief executive officer. "I am also pleased to report that the milestone payments from Schering enhance our cash position, providing financial resources to further develop our third generation PEG technology." The Company believes its current cash levels are sufficient to meet anticipated cash requirements, based on current spending levels, for approximately two and a half years. The previous statement is forward-looking in nature. Enzon is a biopharmaceutical company developing advanced 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. for life-threatening diseases through the application of its proprietary drug delivery and targeting technologies, PEG Modification and 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) proteins. Enzon's research activities, primarily in the area 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. , are focused on applying its technologies to enhance the performance of compounds with known therapeutic efficacy. Enzon has formed strategic alliances with several global pharmaceutical companies including 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, Eli Lilly Eli Lilly can refer to:
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, including without limitation, risks in obtaining and maintaining regulatory approval, market acceptance, the impact of competitive products and pricing, the Company's ability to maintain current sales levels of its products and current levels of expenses or 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 Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. beyond the Company's control. -0-
ENZON, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended June 30, 1997 and 1996
Three Months Ended
June 30, 1997 June 30,1996
_________________ ________________
Revenues
Sales $ 2,971,306 $ 2,421,314
Contract revenue - 1,268,850
___________ ___________
Total revenues 2,971,306 3,690,164
___________ ___________
Costs and expenses
Cost of sales 789,062 452,779
Research and development
expenses 2,037,502 2,572,450
Selling, general and
administrative expenses 1,442,313 1,798,261
___________ ___________
Total costs and expenses 4,268,877 4,823,490
___________ ___________
Operating loss (1,297,571) (1,133,326)
Other income (expense)
Interest and dividend income 150,832 149,517
Interest expense (678) (133)
Other 11,640 (715)
___________ ___________
161,794 148,669
___________ ___________
Net loss ($1,135,777) ($984,657)
___________ ___________
Net loss per
common share ($0.04) ($0.04)
___________ ___________
Weighted average number
of common shares
outstanding
during the period 30,791,101 27,705,497
-0-
ENZON, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Years Ended June 30, 1997 and 1996
Years Ended
June 30, 1997 June 30, 1996
__________________ __________________
Revenues
Sales $11,595,985 $10,501,985
Contract revenue 1,131,067 2,179,296
___________ ___________
Total revenues 12,727,052 12,681,281
___________ ___________
Costs and expenses
Cost of sales 3,840,198 3,545,341
Research and development
expenses 8,520,366 10,123,525
Selling, general and
administrative expenses 5,528,174 6,010,639
___________ ___________
Total costs and expenses 17,888,738 19,679,505
___________ ___________
Operating loss (5,161,686) (6,998,224)
Other income (expense)
Interest and dividend income 584,384 449,855
Interest expense (14,891) (12,886)
Other 35,168 1,385,976
___________ ___________
604,661 1,822,945
___________ ___________
Net loss ($4,557,025) ($5,175,179)
___________ ___________
Net loss per
common share ($0.16) ($0.20)
___________ ___________
Weighted average number
of common shares
outstanding
during the period 29,045,605 26,823,142
CONTACT: Kenneth J. Zuerblis Vice President, Finance and Chief Financial Officer (732) 980-4717 http://www.enzon.com |
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