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GENETICS INSTITUTE REPORTS 1993 FINANCIAL RESULTS

 CAMBRIDGE, Mass., Jan. 10 /PRNewswire/ -- Genetics Institute, Inc. (NASDAQ: GENIZ) today reported a net loss of $16,895,000, or $0.81 per share (after preferred dividends of $3,436,000), on revenues of $107,791,000 for the fiscal year ended Nov. 30, 1993. This is compared with a net loss of $36,957,000, or $1.80 per share (after preferred dividends of $4,589,000), on revenues of $87,744,000 last year. The fiscal 1992 net loss includes a charge to earnings of $30,000,000 relating to costs associated with a January 1992 merger transaction involving American Home Products Corporation.
 For the fourth quarter ended Nov. 30, 1993, the company reported a net loss of $335,000 or $0.01 per share, on revenues of $35,143,000. This is compared with a net loss of $2,339,000, or $0.14 (after preferred dividends of $1,146,000) on revenues of $23,475,000 for the same period last year. The company's obligaton to pay preferred dividends ceased in the fourth quarter of 1993 subsequent to the call of its convertible exchangeable preferred stock.
 Genetics Institute ended fiscal 1993 with $294,484,000 in cash and marketable securities and $413,695,000 in shareholders' equity.
 "Our financial results for fiscal 1993 were in line with management expectations," said Garen Bohlin, Genetics Institute's executive vice president and chief financial officer. "Looking ahead to 1994, we expect to continue to increase our investments in research and development particularly for preclinical and clinical activities relating to our three highest priority product candidates: Neumega(TM) rhIL-11, rhBMP-2 and rhIL-12. Although we expect a modest increase in total revenues, our expenses will continue to exceed them, resulting in a loss again in 1994," he continued.
 Genetics Institute is a leading biopharmaceutical firm engaged in the discovery and development of human pharmaceuticals through recombinant DNA and other technologies. The company has a diversified portfolio of licensed and proprietary pharmaceutical products at various stages of development to treat numerous serious medical conditions. Three such products are: Neumega rhIL-11, a potential platelet restorative agent; rhBMP-2, a bone growth factor; and rhIL-12, an immune system modulator.
 American Home Products Corporation (NYSE: AHP) holds a majority interest in Genetics Institute. AHP is a world leader in the marketing and manufacturing of prescription drugs, medical supplies, diagnostics, over-the-counter medicines, and food products.
 GENETICS INSTITUTE, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS
 AND YEARS ENDED NOV. 30, 1993 AND 1992
 (unaudited - in thousands except per share data)
 Three Months Twelve Months
 ended November 30, ended November 30,
 --------------- ---------------
 1993 1992 1993 1992
 ---- ---- ---- ----
 REVENUE:
 Product sales $15,432 $ -- $41,313 $ --
 Royalties 7,292 7,426 26,474 27,306
 Collaborative R&D 12,419 16,049 40,004 60,438
 ------ ------ ------- -------
 Total revenue 35,143 23,475 107,791 87,744
 ------ ------ ------- -------
 OPERATING EXPENSES:
 Cost of sales 7,311 --- 21,454 ---
 Research and development 29,541 26,766 102,058 90,091
 General & administrative 3,673 3,970 19,700 15,996
 Amortization of warrants 223 464 1,084 2,009
 Special charges (primarily
 merger-related) --- --- --- 31,995
 ------ ------ ------- -------
 Total operating expenses 40,748 31,200 144,296 140,091
 ------ ------ ------- -------
 LOSS FROM OPERATIONS (5,605) (7,725) (36,505) (52,347)
 ------- ------ ------- -------
 Other income, net 5,270 5,386 19,610 15,390
 ------ ------ ------ ------
 NET LOSS $(335)$(2,339) $(16,895)$(36,957)
 ======= ====== ======= =======
 Dividends on preferred
 stock $ -- $(1,146) $(3,436) $(4,589)
 ------ ------ ------ ------
 Net loss applicable
 to common shares $(335) $(3,485) $(20,331)$(41,546)
 ====== ====== ======= =======
 WEIGHTED AVG. COMMON
 SHARES OUTSTANDING 26,226 24,372 25,103 23,107
 ====== ====== ====== ======
 NET LOSS PER COMMON SHARE $(0.01) $(0.14) $(0.81) $(1.80)
 ===== ===== ===== =====
 GENETICS INSTITUTE, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEETS
 AS OF NOV. 30, 1993 AND 1992
 (unaudited - in thousands)
 Nov. 30, Nov. 30,
 1993 1992
 ---- ----
 ASSETS
 Cash and marketable securities $294,484 $354,226
 Other current assets 42,340 38,570
 ------ ------
 Total current assets 336,824 392,796
 Property, plant and equipment, net 96,437 60,059
 Other assets 7,476 7,694
 ----- -----
 Total $440,737 $460,549
 ======== ========
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Accounts payable and
 accrued expenses $27,042 $22,264
 Reserve for patent-related damages --- 11,000
 ------ ------
 Total current liabilities 27,042 33,264
 Shareholders' equity 413,695 427,285
 ------- -------
 Total $440,737 $460,549
 -0- 1/10/94
 /CONTACT: Dennis Harp or Gina Brazier, corporate communications, of Genetics Institute, 617-876-1170/
 (GENIZ AHP)


CO: Genetics Institute, Inc.; American Home Products Corporation ST: Massachusetts IN: MTC SU: ERN

DJ -- NE006 -- 0477 01/10/94 10:08 EST
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Date:Jan 10, 1994
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