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GENETICS INSTITUTE REPORTS THIRD QUARTER 1992 FINANCIAL RESULTS

 GENETICS INSTITUTE REPORTS THIRD QUARTER 1992 FINANCIAL RESULTS
 CAMBRIDGE, Mass., Oct. 14, 1992 -- Genetics Institute, Inc. (NASDAQ: GENIZ) today reported net income of $2,843,000, or $0.07 per share (after preferred dividends of $1,146,000), on revenues of $30,411,000 for the third quarter ended August 31, 1992. This is compared with net income of $4,310,000, or $0.21 per share (after preferred dividends of $1,150,000), on revenues of $28,272,000 for the same period last year.
 For the first nine months of 1992, the Company reported a net loss of $34,618,000, or $1.69 per share (after preferred dividends of $3,443,000), on revenues of $64,269,000. This is compared with a net loss of $16,865,000, or $1.40 per share (after preferred dividends of $3,450,000), on revenues of $54,548,000 for the first nine months of 1991.
 Collaborative research and development revenue in the third quarter of fiscal 1992 is comparable to that reported in the third quarter of fiscal 1991, but is significantly higher than reported in the first and second quarters of fiscal 1992. The increase from earlier quarters of fiscal 1992 relates principally to the commencement of a research and development collaboration with Wyeth-Ayerst Laboratories, the pharmaceutical division of American Home Products Corporation, in the area of cellular adhesion proteins. A total of $5,201,000 of revenue from this collaboration was recorded in the third quarter of fiscal 1992, of which $3,500,000 represents one time recognition of pre-collaboration activities. Revenue in the third quarter of fiscal 1992 also benefited from the achievement of technical benchmarks in certain of the Company's other research and development collaborations.
 The third quarter results for 1992 include a special charge of $1,995,000 relating to a loss on sale of the Company's minority investment interest in WelGen, a Rhode Island based manufacturing partnership. The nine month results for 1992 also include a special charge of $30,000,000 primarily associated with expenses incurred in completing a major alliance with American Home Products in January, 1992. Results for the comparable nine month period in 1991 include a February 1991 special charge of $11,000,000 for potential EPO patent-related damages in the U.S.
 "Our financial performance for the first nine months of fiscal 1992 is in line with our expectations," commented Garen Bohlin, Executive Vice President of Genetics Institute. "Continued profitability in the fourth quarter of fiscal 1992 is contingent on FDA marketing approval of Recombinate brand recombinant Factor VIII that is to be sold by the Hyland Division of Baxter Healthcare Corporation," he added.
 Genetics Institute is a leading biopharmaceutical firm engaged in the discovery and development of human pharmaceuticals through recombinant DNA and other technologies. The Company is developing three human pharmaceuticals which it hopes to commercialize in the U.S. in the mid-1990's. These products are now being tested for their potential use in treating serious bone fractures, cancer, the side effects of chemotherapy and infectious disease. The Company's early product discoveries are being developed and commercialized by marketing partners. Recormon and Epogin brands of EPO are on the market in Europe and Japan. Leucomax brand GM-CSF was recommended for approval earlier this month in Europe and awaits U.S. marketing approval. Recombinate brand Factor VIII antihemophilic factor awaits approval in the U.S. and Europe.
 GENETICS INSTITUTE, INC., AND SUBSIDIARIES
 Consolidated Statements of Operations
 (unaudited - in thousands except per share data)
 Three Months Nine Months
 ended August 31 ended August 31
 --------------- ---------------
 1992 1991 1992 1991
 ---- ---- ---- ----
 (Restated)
 REVENUE:
 Collaborative R&D $23,111 $23,728 $44,389 $41,803
 Royalties 7,300 4,544 19,880 12,745
 ------ ------- ------- -------
 Total Revenue 30,411 28,272 64,269 54,548
 ------ ------- ------- -------
 OPERATING EXPENSES:
 Research and Development 24,390 19,995 62,833 52,116
 General & Administrative 4,825 3,599 12,518 9,014
 Ammortization of Warrants 479 1,179 1,545 1,971
 Special Charges (primarily
 merger-related in 1992 &
 patent-related in 1991) 1,995 - 31,995 11,000
 ------ ------ ------- ------
 Total Operating Expenses 31,689 24,773 108,891 74,101
 ------ ------ ------- ------
 INCOME(LOSS)
 FROM OPERATIONS (1,278) 3,499 (44,622) (19,553)
 ------ ------- ------- -------
 Other Income, Net 4,121 811 10,004 2,688
 ------ ------- ------- -------
 NET INCOME (LOSS) $2,843 $4,310 $(34,618) $(16,865)
 ------- ------- -------- -------
 Dividends on Preferred
 Stock $(1,146) $(1,150) $(3,443) $(3,450)
 ------- -------- -------- -------
 Net Income (Loss) Applicable
 to Common Shares $1,697 $3,160 $(38,061) $(20,315)
 ------ ------ -------- -------
 WEIGHTED AVG COMMON
 SHARES OUTSTANDING 24,193 15,250 22,578 14,541
 ------ ------ ------ ------
 NET INCOME (LOSS)
 PER COMMON SHARE $0.07 $0.21 $(1.69) $(1.40)
 GENETICS INSTITUTE, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (unaudited - in thousands)
 August 31, November 30,
 1992 1991
 ASSETS
 Cash and Marketable Securities $331,340 $71,432
 Other Current Assets 68,251 36,357
 ------ ------
 Total Current Assets 399,591 107,789
 Investments in Affiliates 296 26,580
 Property, Plant and Equipment, Net 55,857 50,345
 Other Assets 7,030 7,563
 ----- -----
 $462,774 $192,277
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Accounts Payable and
 Accrued Expenses $22,652 $16,945
 Reserve for Patent-related
 Damages 11,000 11,000
 Total Current Liabilities 33,652 27,945
 Shareholders' Equity 429,122 164,332
 ------- -------
 $462,774 $192,277
 -0- 10/14/92
 /CONTACT: Melinda Lindquist or Gina Price, Corporate Communications
 of Genetics Institute, 617-876-1170/
 (GENIZ) CO: Genetics Institute ST: Massachusetts, South Carolina IN: MTC SU: ERN
 ER


TM -- NE019 -- 9960 10/14/92 14:32 EDT
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