Enzon Reports Second Quarter Fiscal Year 1999 Earnings.PISCATAWAY, N.J.--(BUSINESS WIRE)--Feb. 12, 1999--Enzon, Inc. (Nasdaq:ENZN) announced today a net loss of $850,000 or $0.03 per share for the three months ended December 31, 1998 compared to a net loss of $227,000 or $0.01 per share for the same period in fiscal year (FY) 1998. Sales for the three months ended December 31, 1998 were $3,782,000, as compared to $4,140,000 for the same period last year, reflecting a 9% decrease in sales. The decrease in sales was due to a decrease in ONCASPAR(R) shipments for the quarter, resulting from a previously reported temporary change in the labeling and distribution of the product caused by a previously disclosed manufacturing problem. Research and development expenses for the quarter ended December 31, 1998 decreased by 7% to $1,848,000 as compared to $1,986,000 for the quarter ended December 31, 1997. The reduction was primarily due to the conclusion of Phase Ib clinical trials for Enzon's hemoglobin- based oxygen-carrier which is being studied as a radiosensitizer in cancer patients receiving radiation therapy. Research & development expenditures are expected to return to previous levels when PEG-camptothecin moves into clinical studies for cancer. PEG-camptothecin is the first product to utilize Enzon's third generation Pro-Drug/Transport Technology. Selling, general and administrative expenses for the quarter ended December 31, 1998 increased by $610,000 to $2,108,000, as compared to $1,498,000 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 as well as increased patent filing and defense costs. For the six months ended December 31, 1998, Enzon reported a net loss of $1,985,000 or $0.06 per share compared to net income of $471,000 or $0.01 per share for the same period last year. The increased net loss for the six months ended December 31, 1998 was principally due to the timing of milestone payments received under Enzon's licensing agreement for PEG-Intron A with Schering-Plough Corporation ("Schering-Plough"). During the prior year, Enzon recognized $2,200,000 in milestone payments received as a result of Schering-Plough advancing PEG-Intron A into its first 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 . 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". Enzon's research activities are focused 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. . In addition to 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, Enzon has several products in various stages of clinical development by itself and with partners, including PEG-Intron A with Schering-Plough, which is in Phase III clinical trials 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 plough: see plow. Corporation, include Alexion Pharmaceuticals, Inc., Baxter Healthcare Corporation, Bristol- Myers Squibb 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 CONDENSED STATEMENTS OF OPERATIONS
Three Months ended December 31, 1998 and 1997
(Unaudited)
December 31, 1998 December 31, 1997
Revenues:
Sales $3,782,411 $4,139,841
Contract revenue
15,510 107,500
Total revenues 3,797,921 4,247,341
Costs and expenses:
Cost of sales 1,028,945 1,134,682
Research and development
expenses 1,847,565 1,985,738
Selling, general and
administrative expenses 2,108,376 1,498,242
Total costs and expenses 4,984,886 4,618,662
Operating income (loss) (1,186,965) (371,321)
Other income (expense):
Interest and dividend income 300,315 150,763
Interest expense (2,619) (4,467)
Other 39,104 (1,783)
336,800 144,513
Net income (loss) ($850,165) ($226,808)
Net income (loss) per common
share ($0.03) ($0.01)
Weighted average number of
common shares outstanding
during the period 35,611,863 30,975,856
ENZON, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Six Months ended December 31, 1998 and 1997
(Unaudited)
December 31, 1998 December 31, 1997
Revenues:
Sales $6,718,113 $6,604,475
Contract revenue 67,475 2,312,609
Total revenues 6,785,588 8,917,084
Costs and expenses:
Cost of sales 2,338,796 1,739,390
Research and development
expenses 3,422,911 4,132,707
Selling, general and
administrative expenses 3,643,655 2,826,684
Total costs and expenses 9,405,362 8,698,781
Operating income (loss) (2,619,774) 218,303
Other income (expense):
Interest and dividend income 602,881 265,563
Interest expense (8,055) (10,905)
Other 39,834 (1,845)
634,660 252,813
Net income (loss) ($1,985,114) 471,116
Net income (loss) per
common share ($0.06) $0.01
Weighted average number of
common shares outstanding
during the period 35,181,937 30,918,228
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