Enzon Reports Second Quarter Results and Sales Increase of 16%.PISCATAWAY, N.J.--(BUSINESS WIRE)--Feb. 17, 1998--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 $227,000 or $0.01 per share for the three months ended December 31, 1997 compared to a net loss of $711,000 or $0.03 per share for the comparable quarter in 1996. The decreased net loss was attributed to a 16% increase in sales of the Company's 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, ADAGEN(R) and ONCASPAR(R), over the prior year's levels. For the six months ended December 31, 1997, the Company reported net income of $471,000 or $0.01 per share compared to a net loss of $1,429,000 or $0.05 per share for the same period last year. The increase in net income for the six months ended December 31, 1997 was attributed to a 21% increase in total revenues. Contract revenues for the six months ended December 31, 1997 increased by 110% to $2,313,000, compared to $1,099,000 for the prior year. The increase in contract revenues was due to an increase in milestone payments received from Schering-Plough Corporation related to the advancement of PEG-Intron A to 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 in 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. patients. PEG-Intron A is a modified form of Schering-Plough'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. (R) 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), developed by Enzon. Schering-Plough has reported that the PEG modified product has the potential to offer reduced dosing from three times a week to once a week, which will improve patient compliance and convenience. In addition, Schering-Plough is working to demonstrate improved efficacy and safety for PEG-Intron A. Additional trials have recently begun to include several other indications. INTRON A is a genetically engineered genetically engineered adjective Recombinant, see there anticancer anticancer,n a medicine or substance used to treat cancer. and antiviral agent antiviral agent Antiviral Infectious disease An agent that prevents viral invasion or replication, treats an infection, or thrashes the virus into latency; antivirals may be specific–see below or nonspecific–eg, IFNs, which stimulate host defenses , developed and marketed worldwide by Schering-Plough. 1996 sales of INTRON A were $524 million, which is approximately half of the $1 billion 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. Under the Company's licensing agreement, Enzon is entitled to royalties on product sales and has the right to become Schering-Plough's exclusive manufacturer of PEG-Intron A for the U.S. market. Revenues for the quarter ended December 31, 1997 increased by 19% over the prior year due to increased sales of the Company's products. Sales increased by 16% to $4,140,000 compared to $3,554,000 for the prior year. The sales increase was a result of an increase in ADAGEN patients, as well as a rise in ONCASPAR revenues, due to increased royalties from the Company's U.S. marketing partner for ONCASPAR, Rhone-Poulenc Rorer Pharmaceuticals Inc.(RPR (Resilient Packet Ring) A packet-based protocol that provides fault tolerance and statistical multiplexing for the metropolitan and national SONET and Ethernet networks of the carriers. ). "We are very pleased with the continued growth of ONCASPAR in the U.S., which is a result of RPR's clinical and marketing development efforts," said Peter G. Tombros, Enzon's president and chief executive officer. "Future sales of ONCASPAR should also be positively influenced by the recent approval of ONCASPAR in Canada for pediatric pediatric /pe·di·at·ric/ (pe?de-at´rik) pertaining to the health of children. pe·di·at·ric adj. Of or relating to pediatrics. 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. indications." Research and Development expenses for the quarter ended December 31, 1997 remained relatively unchanged at $1,986,000 compared to $1,980,000 for the quarter ended December 31, 1996. The Company's research and development efforts continue to focus on projects with large revenue potential, including the development of the Company's third generation PEG Modification technology, Pro Drug/Transport technology, and the development of the Company's hemoglobin-based oxygen-carrier, which is nearing completion of a Phase Ib clinical trial in cancer patients receiving radiation therapy. Selling, General and Administrative expenses for the quarter ended December 31, 1997 remained relatively flat at $1,498,000, compared to $1,454,000 for the same period in 1996, as a result of the Company's continued 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. programs. 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. Enzon's research activities, primarily in the area of oncology, are focused on applying its technologies to enhance the performance of compounds with known therapeutic efficacy. In addition to Schering-Plough Corporation and Rhone-Poulenc Rorer, Pharmaceuticals Inc., Enzon has formed strategic alliances with other companies including 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 and 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 of and continuing demand for Enzon's products, the impact of competitive products and pricing, the Company's ability to maintain current sales levels of its products and current levels of expenses, and 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 beyond the Company's control. -0-
ENZON, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended December 31, 1997 and 1996
(unaudited)
Three Months Ended
December 31, December 31,
1997 1996
Revenues
Sales $ 4,139,841 $ 3,553,975
Contract revenue 107,500 5,010
Total revenues 4,247,341 3,558,985
Costs and expenses
Cost of sales 1,134,682 994,325
Research and development
expenses 1,985,738 1,980,063
Selling, general and
administrative expenses 1,498,242 1,453,545
Total costs and expenses 4,618,662 4,427,933
Operating loss (371,321) (868,948)
Other income (expense)
Interest and dividend income 150,763 162,770
Interest expense (4,467) (4,847)
Other (1,783) 180
---------- --------
144,513 158,103
Net loss ($226,808) ($710,845)
Net loss per
common share ($0.01) ($0.03)
Weighted average number
of common shares
outstanding
during the period 30,975,856 27,882,828
-0-
ENZON, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Six Months Ended December 31, 1997 and 1996
(unaudited)
Six Months Ended
December 31, December 31,
1997 1996
Revenues
Sales $ 6,604,475 $ 6,274,566
Contract revenue 2,312,609 1,099,309
Total revenues 8,917,084 7,373,875
Costs and expenses
Cost of sales 1,739,390 1,980,314
Research and development
expenses 4,132,707 4,409,834
Selling, general and
administrative expenses 2,826,684 2,729,612
Total costs and expenses 8,698,781 9,119,760
Operating income (loss) 218,303 (1,745,885)
Other income (expense)
Interest and dividend income 265,563 319,911
Interest expense (10,905) (11,600)
Other (1,845) 8,115
---------- ---------
252,813 316,426
Net income (loss) $471,116 ($1,429,459)
Net earnings (loss) per
common share $0.01 ($0.05)
Weighted average number
of common shares
outstanding
during the period 30,918,228 27,794,716
CONTACT: Enzon, Inc. http://www.enzon.com Kenneth J. Zuerblis Vice President, Finance and Chief Financial Officer 732/980-4717 |
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