U.S. Bioscience announces fourth quarter results.

WEST CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--Feb. 13, 1997--U.S. Bioscience Inc. (AMEX:UBS) Thursday reported a loss of $3,908,900, or $0.17 loss per common share outstanding for the fourth quarter of 1996, compared to earnings of $12,279,600, or $0.60 earnings per common share outstanding for the fourth quarter of 1995, which would have been a loss of $0.19 per common share in the same quarter last year, excluding certain one-time items noted below.

In the fourth quarter of 1995, earnings were affected by a $20 million fee received from ALZA Corp. for the United States marketing and distribution rights for Ethyol(R), the company's cytoprotective agent, which was launched in the United States in April 1996 by ALZA and co-promoted with U.S. Bioscience, as well as certain marketing expenses related to the ALZA agreement and the company's share of European Ethyol launch expenses, totalling $3.9 million.

For the full year, the company reported an operating loss of $9,687,400 or $0.43 loss per common share outstanding, compared to a loss of $237,800 or $0.01 loss per common share for all of 1995, which would have shown an operating loss of approximately $14,037,800 or $0.69 loss per common share, excluding the one-time items noted above.

Product sales for the fourth quarter of 1996 increased 13% over the prior year period due to sales of Ethyol to ALZA. End-market sales of Ethyol in the United States are recorded by ALZA, which reported that sales of Ethyol for the period April 1996, the launch date, through December 1996 were $9.4 million, including approximately $4 million in the fourth quarter, 1996.

Sales of the company's other drug products, Hexalen(R) and NeuTrexin(R), were reduced from the prior year period due to the commitment of sales and marketing resources to the launch of Ethyol in the United States, to new product competitive pressures affecting sales of Hexalen, and to a reduction in the incidence and severity of Pneumocystis carinii pneumonia (PCP) in patients infected with the human immunodeficiency virus (HIV), affecting sales of NeuTrexin.

Licensing, royalty and other income declined to $2.2 million in the fourth quarter of 1996 from $20.1 million in the prior year's quarter due primarily to the inclusion of the $20 million fee received from ALZA in 1995.

The $2.2 million reported in the 1996 period reflects additional milestone payments received from the company's European partner, an affiliate of Schering-Plough Corp., for additional regulatory approvals of Ethyol in Europe.

Operating expenses in the fourth quarter of 1996 increased by $2.7 million, excluding the $3.9 million in one-time charges in the 1995 period, noted above.

The increase was due to higher personnel expenses, higher expenditures related to the company's Phase III clinical trials in Ethyol and NeuTrexin, increased product development expenditures for drug products FddA and AZQ and initial user fees payable to the FDA related to the company's manufacturing facility in The Netherlands.

Cash and investments were $36,676,600 at December 31, 1996.

U.S. Bioscience Inc. (http://www.usbio.com), based in West Conshohocken, is a pharmaceutical company specializing in the development and commercialization of products for patients with cancer and AIDS. -0-

                U.S. BIOSCIENCE INC. - FINANCIAL HIGHLIGHTS

                    Consolidated Statements of Operations

                       Three months ended     Twelve months ended
                            Dec. 31                 Dec. 31
                       1996         1995       1996         1995
                       ----         ----       ----         ----
Revenues
 Net sales         $2,354,900   $2,092,200   $10,785,200  $8,724,000
 Net investment
  income              533,400      296,700     2,335,300   1,223,100
 Licensing, royalty
 and other income   2,249,400   20,084,800     7,343,500  21,398,000
                   ----------   ----------    ----------  ----------
                    5,137,700   22,473,700    20,464,000  31,345,100

Expenses
 Cost of sales        696,700      482,600     2,955,700   2,558,500
 Selling, general and
  administrative
  costs             3,306,800    6,034,800    12,274,800  16,583,400
 Research and
  development costs 4,996,200    3,515,300    14,383,300  12,186,000
 Interest expense      46,900      161,400       537,600     255,000
                   ----------   ----------    ----------  ----------
                    9,046,600   10,194,100    30,151,400  31,582,900

Net income/(loss) $(3,908,900) $12,279,600   $(9,687,400) $ (237,800)

Net income/(loss)
 per common share,
 excluding common
 stock equivalents  $   (0.17)    $   0.60 (A)   $ (0.43)   $  (0.01)

Weighted average
 number of common
 shares outstanding
 excluding common
 stock equivalents 22,825,100   20,539,350(A) 22,395,600  20,436,100

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                     CONDENSED CONSOLIDATED BALANCE SHEETS

                                        Dec. 31,         Dec. 31,
                                          1996             1995
                                          ----             ----
Current assets
 Cash and investments                  $36,676,600      $45,596,200
 Other assets                            6,359,300        9,949,800
                                       -----------      -----------
    Total current assets                43,035,900       55,546,000

Property, plant and equipment            6,075,200        6,334,300
                                       -----------      -----------

    Total assets                       $49,111,100      $61,880,300


Current liabilities                    $ 8,909,600     $ 12,969,000

Long-term liabilities                    3,307,200       20,123,400
                                       -----------      -----------

    Total liabilities                   12,216,800       33,092,400

    Stockholders' equity                36,894,300       28,787,900
                                       -----------      -----------
    Total liabilities and
     stockholders' equity              $49,111,100      $61,880,300
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(A) The weighted average number of shares for the quarter ended
    Dec. 31, 1995, including common stock equivalents which are not
    anti-dilutive, are 23,796,950, resulting in a net income per share
    of 52 cents.

CONTACT: U.S. Bioscience Inc., West Conshohocken

Robert I. Kriebel, Executive Vice President and

Chief Financial Officer, 610/832-0570