Enzon Reports Third Quarter Results and Increased Sales of 10%.PISCATAWAY, N.J.--(BUSINESS WIRE)--May 18, 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 $1,727,000 or $0.06 per share for the three months ended March 31, 1998 compared to a net loss of $1,992,000 or $0.07 per share for the comparable quarter in 1997. The decreased net loss was attributable to a 10% increase in 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 over the prior year's levels. For the nine months ended March 31, 1998, the Company reported a net loss of $1,256,000 or $0.05 per share compared to a net loss of $3,421,000 or $0.13 per share for the same period last year. The decreased net loss for the nine months ended March 31, 1998 was attributable to an 18% increase in total revenues principally due to an increase in contract revenues. Contract revenues for the nine months ended March 31, 1998 increased to $2,331,000 as compared to $1,131,000 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 August 1997 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 . 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 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. ), developed by Enzon to have longer-acting properties. INTRON A is a genetically engineered genetically engineered adjective Recombinant, see there anti-cancer and anti-viral agent, developed and marketed worldwide by Schering-Plough Corporation. Sales of INTRON A by Schering Plough plough: see plow. were $598 million in 1997. 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, is in excess of $1 billion. Under the Company's licensing agreement with Schering-Plough, 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 royalties on product sales and has the exclusive right to manufacture PEG-Intron A for the U.S. market. Revenues for the quarter ended March 31, 1998 increased by 10% over the prior year due to increased sales of the Company's products. The increase in sales was principally due to an increase in ADAGEN(R) sales, resulting from an increase in patients receiving the drug. "The third quarter performance for the company has been indicative of the steady progress the company has made this year on all fronts. Sales growth of the in-line products increased 10%, and all of our research projects, as well as those of our strategic partners, continue to advance," said Peter G. Tombros, Enzon's president and chief executive officer. Research and Development expenses for the quarter ended March 31, 1998 increased by 14% to $2,356,000 as compared to $2,073,000 for the quarter ended March 31, 1997. The increase in research and development expenses is primarily due to increased costs related to the production of PEG-Campthothecin in preparation for the filing of an Investigational New Drug (IND) Application. PEG-Campthothecin, or Prothecan(tm), is a 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. modified version of Camptothecin, a topo-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. , that utilizes the Company's third generation PEG-Modification technology. Selling, General and Administrative expenses for the quarter ended March 31, 1998 increased by 7% to $1,449,000, as compared to $1,356,000 for the same period in 1997. The increase is due to an increase in personnel costs, as well as costs related to the search for an additional Business Development Executive. 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 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. In addition to Schering-Plough Corporation, Enzon has formed strategic alliances with several 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, 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 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 March 31, 1998 and 1997
(unaudited)
Three Months Ended
March 31, 1998 March 31,1997
------------------ ------------------
Revenues
Sales $ 2,591,785 $ 2,350,113
Contract revenue 18,039 31,758
----------- -----------
Total revenues 2,609,824 2,381,871
----------- -----------
Costs and expenses
Cost of sales 640,874 1,070,822
Research and development
expenses 2,356,143 2,073,030
Selling, general and
administrative expenses 1,449,117 1,356,249
---------- -----------
Total costs and expenses 4,446,134 4,500,101
---------- -----------
Operating loss (1,836,310) (2,118,230)
Other income (expense)
Interest and dividend income 111,351 113,641
Interest expense (2,459) (2,613)
Other - 15,413
---------- ------------
108,892 126,441
---------- ------------
Net loss ($1,727,418) ($1,991,789)
---------- ------------
Net loss per
common share ($0.06) ($0.07)
---------- ------------
Weighted average number
of common shares
outstanding
during the period 31,200,750 29,798,374
ENZON, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. STATEMENTS OF OPERATIONS Nine Months Ended March 31, 1998 and 1997 (unaudited) Nine Months Ended March 31, 1998 March 31,1997 ------------------ ------------------ Revenues Sales $ 9,196,260 $ 8,624,679 Contract revenue 2,330,648 1,131,067 ----------- ----------- Total revenues 11,526,908 9,755,746 ----------- ----------- Costs and expenses Cost of sales 2,380,264 3,051,136 Research and development expenses 6,488,850 6,482,864 Selling, general and administrative expenses 4,275,801 4,085,861 ---------- ----------- Total costs and expenses 13,144,915 13,619,861 ---------- ----------- Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. (1,618,007) (3,864,115) Other income (expense) Interest and dividend income 376,914 433,552 Interest expense (13,364) (14,213) Other (1,845) 23,528 ---------- ------------ 361,705 442,867 ---------- ------------ Net loss ($1,256,302) ($3,421,248) ---------- ------------ Net earnings (loss) per common share ($0.05) ($0.13) ---------- ------------ Weighted average number of common shares outstanding during the period 31,012,402 28,462,602 CONTACT: ENZON, Inc. Kenneth J. Zuerblis Vice President, Finance and Chief Financial Officer (732) 980-4717 |
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