Enzon Reports Fourth Quarter and Fiscal Year Results for 1999.PISCATAWAY, N.J.--(BUSINESS WIRE)--Sept. 8, 1999-- 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 a net loss of $4,919,000 or $0.14 per share, for the year ended June 30, 1999, compared to a net loss of $3,617,000 or $0.12 per share for fiscal year 1998. The increase in the loss for the year was principally due to a decrease in contract revenue of $2,029,000 from the prior year. The prior year's contract revenue contained a $2,200,000 milestone payment received from Schering-Plough Corporation, Enzon's partner for the PEG-Intron program. Sales of the company's 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 were relatively flat, as a result of decreased ONCASPAR(r) sales due to the previously disclosed ONCASPAR manufacturing problem. During May, the FDA further limited the distribution of ONCASPAR to patients who are hypersensitive hy·per·sen·si·tive adj. Responding excessively to the stimulus of a foreign agent, such as an allergen; abnormally sensitive. hy to other forms of L- asparaginase asparaginase /as·par·a·gin·ase/ (as-par´ah-jin-as?) an enzyme that catalyzes the deamination of asparagine; a preparation is used as an antineoplastic agent in acute lymphoblastic leukemia to reduce availability of asparagine to tumor . Research and development expenses for the year ended June 30, 1999 decreased by 21% to $6,836,000, as compared to $8,654,000 for the year ended June 30, 1998. The reduction was due to a decrease in facility costs as a result of the consolidation of research operations and the elimination of a leased facility, as well as the conclusion of Phase Ib clinical trials for Enzon's hemoglobin-based oxygen-carrier. Research & development expenditures are expected to return to previous levels as PROTHECAN(tm) (PEG- camptothecin) progresses through clinical studies for cancer. In June, Enzon began a Phase I safety trial for PROTHECAN, the first product to utilize Enzon's third generation Pro-Drug/Transport Technology. Selling, general and administrative expenses for the year ended June 30, 1999 increased by 27% to $8,133,000, as compared to $6,426,000 for the prior year. The increase is attributed, in part, to an increase in legal fees related to litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and ongoing arbitration proceedings, increased patent filings and defense costs, as well as costs related to ONCASPAR marketing and distribution associated with the previously disclosed distribution modifications. These marketing and distribution costs distribution costs distribute npl → Vertriebskosten pl were the responsibility of Enzon's marketing partner, Rhone-Poulenc Rorer, during the previous year. For the quarter ended June 30, 1999 Enzon reported a net loss of $1,493,000 or $0.04 per share compared to a net loss of $2,361,000 or $0.08 per share for the same period last year. The improvement in the net loss for the quarter was principally due to the consolidation of research operations and the elimination of a leased research development facility. 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, Pro Drug/Transport technology and Single-Chain Antigen-Binding (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)) protein technology. Enzon has two products on the market, ONCASPAR, which is used to treat Acute Lymphoblastic Leukemia acute lymphoblastic leukemia n. Abbr. ALL Lymphoblastic leukemia occurring mainly in older adults, characterized by rapid onset and progression of symptoms. Also called acute lymphocytic leukemia. (ALL), and ADAGEN a treatment for a form of Severe Combined Immunodeficiency Disease Noun 1. severe combined immunodeficiency disease - a congenital disease affecting T cells that can result from a mutation in any one of several different genes; children with it are susceptible to infectious disease; if untreated it is lethal within the first year or (SCID SCID severe combined immunodeficiency (disease); see under immunodeficiency. SCID abbr. severe combined immunodeficiency SCID severe combined immunodeficiency disease. ), commonly known as the "Bubble Boy Disease". In addition to two FDA approved products, Enzon has several products in various stages of clinical development by itself and with partners, including PEG-Intron with Schering-Plough, which is in Phase III clinical trials 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 for hepatitis C Hepatitis C Definition Hepatitis C is a form of liver inflammation that causes primarily a long-lasting (chronic) disease. Acute (newly developed) hepatitis C is rarely observed as the early disease is generally quite mild. , malignant melanoma Malignant Melanoma Definition Malignant melanoma is a type of cancer arising from the melanocyte cells of the skin. Melanocytes are cells in the skin that produce a pigment called melanin. , chronic myelogenous leukemia Chronic myelogenous leukemia (CML) Also called chronic myelocytic leukemia, malignant disorder that involves abnormal accumulation of white cells in the marrow and bloodstream. Mentioned in: Bone Marrow Transplantation and in combination treatment with Schering-Plough's product Rebetol(r) for the treatment of hepatitis C. Enzon develops and markets products on its own and through strategic alliances, which in addition to Schering-Plough Corporation include 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, 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 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 Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. on file with the SEC, including without limitation, risks in obtaining and maintaining regulatory approval for expanded indications, market acceptance of and continuing demand for Enzon's products and the impact of competitive products and pricing. This release is also available at http://www.enzon.com
ENZON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Years ended June 30, 1999 and 1998
June 30, 1999 June 30, 1998
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Revenues:
Sales $ 12,855,995 $ 12,312,730
Contract revenue 302,212 2,331,302
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Total revenues 13,158,207 14,644,032
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Costs and expenses:
Cost of sales 4,309,956 3,645,281
Research and development expenses 6,835,521 8,653,567
Selling, general and
administrative expenses 8,133,366 6,426,241
------------ ------------
Total costs and expenses 19,278,843 18,725,089
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Operating loss (6,120,636) (4,081,057)
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Other income (expense):
Interest and dividend income 1,145,009 460,922
Interest expense (8,348) (13,923)
Other 64,767 16,925
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1,201,428 463,924
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Net loss ($ 4,919,208) ($ 3,617,133)
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Net loss per common share ($0.14) ($0.12)
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Weighted average number of common
shares outstanding during the period 35,699,133 31,092,369
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ENZON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months ended June 30, 1999 and 1998
June 30, 1999 June 30, 1998
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Revenues:
Sales $ 3,001,557 $ 3,116,470
Contract revenue 222,866 654
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Total revenues 3,224,423 3,117,124
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Costs and expenses:
Cost of sales 666,025 1,265,017
Research and development expenses 1,729,540 2,164,717
Selling, general and
administrative expenses 2,600,657 2,150,440
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Total costs and expenses 4,996,222 5,580,174
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Operating loss (1,771,799) (2,463,050)
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Other income (expense):
Interest and dividend income 271,863 84,008
Interest expense -- (559)
Other 6,696 18,770
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278,559 102,219
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Net loss ($ 1,493,240) ($ 2,360,831)
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Net loss per common share ($0.04) ($0.08)
====== ======
Weighted average number of common
shares outstanding during the period 36,291,562 31,332,271
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