Enzon Reports Second Quarter Financial Results; Sales of Marketed Products Continue to Drive Revenue Growth.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)--Feb. 4, 2004 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 quarter ended December December: see month. 31, 2003, the second quarter of Enzon's fiscal year (FY) 2004. The Company's net income for the second quarter of FY 2004 was $2.3 million, or $0.05 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, as compared to a net loss of $15.2 million or $0.35 cents per diluted share for the second quarter of FY 2003. The net loss for the second quarter of FY 2003 included a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $27.2 million, related to the write down of the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of the Company's investment in Nektar If you want to read about Czech Republic's beer Nektar. Nektar is a 1970s English progressive rock band based in Germany. History The band formed in Hamburg, Germany in 1969, members included Englishmen Roye Albrighton on guitars and vocals, Allan "Taff" 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. . Total product sales for the four products marketed by the Company, ABELCET(R), ADAGEN(R), DEPOCYT(R), and ONCASPAR(R), increased by $19.9 million or 255% to $27.7 million, as compared to $7.8 million for the prior year's comparable quarter. This increase was primarily driven by an increase in North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. ABELCET sales to $18.0 million for the second quarter of FY 2004, as compared to $589,000 for the second quarter of FY 2003. In November November: see month. 2002, Enzon acquired the North American ABELCET business from Elan (Emulated LAN) A virtual LAN in the ATM world. See LANE and virtual LAN. Elan - ["Top-down Programming with Elan", C.H.A. Koster, Ellis Horwood 1987]. Corporation, plc. During the quarter, the Company also recorded $2.2 million in manufacturing revenue related to the ABELCET business. ADAGEN sales for the second quarter of FY 2004 were $4.0 million versus $4.1 million in the second quarter of FY 2003. Sales of ONCASPAR for the second quarter of FY 2004 increased by $1.3 million or 42% to $4.4 million, as compared to $3.1 million for the second quarter of FY 2003. Sales of DEPOCYT were $1.3 million for the second quarter of FY 2004. In January January: see month. 2003, the Company in-licensed the North American rights to DEPOCYT from SkyePharma PLC. "We are pleased to report continued execution on all fronts of our business that we control," commented 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:
adj. Of, for, or involving a short period of time in the near future. milestones driven by the recent addition of Onco TCS (Transportation Control System) A widely used integrated information system for railroad transportation developed by the Missouri Pacific Railroad Company in the late 1960s and early 1970s. It was later implemented by Union Pacific when the companies merged. to our pipeline. Our ability to in-license one of the industry's most exciting late-stage 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. compounds is a direct result of Enzon's successful transformation from a royalty-based company into a fully integrated biopharmaceutical company that is a partner of choice." Total royalties for the second quarter of FY 2004 decreased by $11.4 million or 50%, to $11.5 million, as compared to $22.9 million for the second quarter of FY 2003. Total royalties for the quarter were made up principally of royalties from sales of PEG-INTRON(R) marketed by Schering-Plough. The decrease was due to the introduction of a competing pegylated 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, product, as well as the prior year benefiting from previously wait-listed patients initiating therapy. Research and development expenses increased by $1.7 million or 30% to $7.4 million in the second quarter of FY 2004, as compared to $5.7 million for the same quarter of FY 2003. The increase was due to the continued advancement of the Company's internal R&D programs, including the Company's two late-stage programs, Pegamotecan (previously referred to as 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:
gas·tric adj. Of, relating to, or associated with the stomach. and gastroesophageal gastroesophageal /gas·tro·esoph·a·ge·al/ (-e-sof?ah-je´al) 1. pertaining to the stomach and esophagus. 2. proceeding from the stomach to the esophagus. junction cancers. This study was initiated based on the positive interim data yielded from the Company's ongoing Phase 2 trial for the treatment of gastric and gastroesophageal cancers. The Company believes that if this trial yields results that are similar to the interim Phase 2 data, Pegamotecan may be eligible for accelerated approval under Subpart H of the Food and Drug Act for the treatment of these cancers. Selling, general, and administrative expenses increased to $11.5 million in the second quarter of FY 2004 versus $7.4 million for the second quarter of FY 2003. This increase was due to the Company's acquisition of the North American rights to ABELCET in November 2002, which included the hiring of a North American sales force. The management of Enzon will be hosting a conference call today, February 4, 2004 at 5:00 PM EST EST electroshock therapy. EST abbr. electroshock therapy . All interested parties can access the live call using the following information: Domestic Dial-In Number: 888-428-4480 International Dial-In Number: 612-288-0318 Access Code: 716656 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 Wednesday, February 4 2004 at approximately 10:15 PM EST. This rebroadcast will end on Wednesday, February 11, 2004 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 716656 Enzon Pharmaceuticals is a biopharmaceutical company dedicated to the discovery, development and commercialization of therapeutics to treat life-threatening diseases. The Company has developed or acquired a number of marketed products, including PEG-INTRON(R), marketed by Schering-Plough, and ABELCET(R), ONCASPAR(R), ADAGEN(R), and DEPOCYT(R), which are all 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's hospital and oncology sales forces. Enzon's science-focused strategy includes an extensive drug development program that leverages the Company's macromolecular mac·ro·mol·e·cule n. A very large molecule, such as a polymer or protein, consisting of many smaller structural units linked together. Also called supermolecule. engineering technology platforms, including 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. There are 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. contained herein that are not based on historical fact, including without limitation statements containing the words "believes," "may," "plans," "will," "estimates," "continue," "anticipates," "intends," "expects," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from the future results, events or developments discussed above. Such factors include the risk that Onco-TCS may not receive regulatory approval from the 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. , as well as those described in Enzon'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. and Forms 10-Q on file with the SEC, such as Enzon's ability to successfully launch and market Onco-TCS, 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, including, without limitation, the ongoing clinical trials of Pegamotecan for the treatment of gastric and gastroesophageal cancers; the risk that the FDA may not deem Pegamotecan eligible for accelerated approval under Subpart H of the Food and Drug Act; and the impact of competitive products and pricing. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. All information in this press release is as of February 4, 2004 and the Company undertakes no duty to update this information. For further information regarding this press release, please go to Enzon's website 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 December 31, 2003 and 2002
(In thousands, except per share data)
(Unaudited)
December December
31, 31,
2003 2002
----------------------
Revenues:
Net sales $27,711 $7,811
Manufacturing revenue 2,187 733
Royalties 11,547 22,903
Contract revenue 253 50
------- --------
Total revenues 41,698 31,497
------- --------
Costs and expenses:
Cost of sales and manufacturing revenue 11,825 4,265
Research and development expenses 7,388 5,692
Selling, general and administrative expenses 11,478 7,397
Amortization of acquired intangibles 3,358 1,293
Write-down of carrying value of investments - 27,237
------- --------
Total costs and expenses 34,049 45,884
------- --------
Operating income (loss) 7,649 (14,387)
------- --------
Other income (expense):
Investment income, net 706 4,345
Interest expense (4,957) (4,957)
Other income, net 101 -
------- --------
(4,150) (612)
------- --------
Income (loss) before taxes 3,499 (14,999)
Income tax provision 1,180 245
------- --------
Net income (loss) $2,319 ($15,244)
======== =========
Basic earnings (loss) per common share $0.05 ($0.35)
======== =========
Diluted earnings (loss) per common share $0.05 ($0.35)
======== =========
Weighted average number of common shares
issued and outstanding - basic 43,307 43,011
======== =========
Weighted average number of common shares
issued and outstanding and dilutive potential
common shares outstanding 43,586 43,011
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ENZON PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Six Months ended December 31, 2003 and 2002
(In thousands, except per share data)
(Unaudited)
December December
31, 31,
2003 2002
----------------------
Revenues:
Net sales $52,672 $14,377
Manufacturing revenue 3,791 733
Royalties 25,358 41,321
Contract revenue 521 134
------- -------
Total revenues 82,342 56,565
------- -------
Costs and expenses:
Cost of sales and manufacturing revenue 22,737 6,779
Research and development expenses 13,939 9,754
Selling, general and administrative expenses 22,687 11,305
Amortization of acquired intangibles 6,716 1,328
Write-down of carrying value of investments - 27,237
------- -------
Total costs and expenses 66,079 56,403
------- -------
Operating income 16,263 162
------- -------
Other income (expense):
Investment income, net 1,180 7,798
Interest expense (9,914) (9,914)
Other income, net 408 -
------- -------
(8,326) (2,116)
------- -------
Income (loss) before taxes 7,937 (1,954)
Income tax provision 2,814 506
------- -------
Net income (loss) $5,123 ($2,460)
======= ========
Basic earnings (loss) per common share $0.12 ($0.06)
======= ========
Diluted earnings (loss) per common share $0.12 ($0.06)
======= ========
Weighted average number of common shares
issued and outstanding - basic 43,298 42,995
======= ========
Weighted average number of common shares
issued and outstanding and dilutive potential
common shares outstanding 43,591 42,995
======= ========
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