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GENETICS INSTITUTE REPORTS FIRST QUARTER 1993 FINANCIAL RESULTS

 CAMBRIDGE, Mass., April 12 /PRNewswire/ -- Genetics Institute, Inc. (NASDAQ: GENIZ) today reported a net loss of $2,202,000, or $0.14 per share (after preferred dividends of $1,146,000), on revenues of $25,130,000 for the first quarter ended February 28, 1993. The first quarter 1993 results compare with a net loss of $32,492,000, or $1.73 per share, (after preferred dividends of $1,150,000), on revenues of $18,002,000 for first quarter 1992. The first quarter 1992 results include a special charge of $30,000,000 relating primarily to costs associated with a major alliance with American Home Products Corporation in January, 1992.
 First quarter results include $8,389,000 of product sales of bulk rAHF to Ba?<ter Healthcare Corporation. Baxter initiated its first commercial sales of the finished product, Recombinate rAHF, in late December 1992. The Company's first quarter product sales revenue includes $3,926,000 in manufacturing profits relating to shipments of bulk rAHF to Baxter made prior to the December 1992 commercial approval date. Such pre-commercial shipments were originally billed to Baxter at cost and were included in collaborative research and development revenue in prior year financial results. Separately, the Company expects a decision within the next several months in an action against Baxter in which the Rorer Group, Inc. alleges that the sale and manufacture of Recombinate rAHF infringes a patent licensed to Rorer. An unfavorable outcome in this legal proceeding that includes damages, an injunction or other monetary payments could have a material adverse effect on the Company's future results of operations.
 "Our financial results for the first quarter of 1993 were generally in line with management expectations" said Garen Bohlin, Genetics Institute's Executive Vice President and Chief Financial Officer. "The net loss resulted from an expanding investment in both research and product development. Two of the Company's lead product candidates (rhBMP-2 and rhIL-11) entered human clinical trials during the second half of 1992 and two new candidates (rhIL-12 and Factor IX) were advanced from research to development during the first quarter of 1993. This expansion in product development activities along with continuing significant investment in our discovery research programs is expected to result in a net loss for fiscal 1993 as a whole," he continued.
 Genetics Institute (NASDAQ: GENIZ) 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, including treatments for anemia, hemophilia, cancer, infectious disease, bone damage, heart disease, inflammatory conditions and immune system disorders.
 American Home Products Corporation (NYSE: AHP) holds a majority interest in Genetics Institute. AHP is a world leader in 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 ended
 February 28, 1993 and February 29, 1992
 (unaudited - in thousands except per share data)
 Three Months Three Months
 ended Feb. 28 ended Feb. 29
 1993 1992
 Product Sales $8,389 $ ---
 Royalties 6,021 6,142
 Collaborative R&D 10,720 11,860
 Total Revenue 25,130 18,002
 OPERATING EXPENSES:
 Cost of Sales 2,785 -
 Research &
 Development 23,835 18,569
 General &
 Administrative 5,083 3,598
 Amortization
 of Warrants 413 408
 Special Charge
 (primarily
 merger-related) --- 30,000
 Total Operating
 Expenses 32,116 52,575
 LOSS FROM OPERATIONS (6,986) (34,573)
 Other Income, Net 4,784 2,081
 NET LOSS (2,202) (324?92)
 Dividends on
 Preferred Stock (1,146) (1,150)
 Net Loss Applicable
 to Common Shares $(3,348) $(33,642)
 WEIGHTED AVG.
 COMMON SHARES
 OUTSTANDING 24,424 19,394
 NET LOSS PER COMMON
 SHARE $ (.14) $(1.73)
 GENETICS INSTITUTE, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEETS
 AS OF FEBRUARY 28, 1993 AND NOVEMBER 30, 1992
 (unaudited - in thousands)
 February 28, November 30,
 1993 1992
 ASSETS
 Cash and Marketable
 Securities $343,827 $354,226
 Other Current
 Assets 45,403 38,570
 Total Current
 Assets 389,230 392,796
 Property, Plant
 and Equipment, Net 63,943 60,059
 Other Assets 6,769 7,694
 $459,942 $460,549
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Accounts Payable &
 Accrued Expenses $23,487 $ 22,264
 Reserve for
 Patent-related
 Damages 11,000 11,000
 Total Current
 Liabilities 34,487 33,264
 Shareholders'
 Equity 425,455 427,285
 Total $459,942 $460,549
 -0- 4/12/93
 /CONTACT: Dennis Harp or Gina Price of Genetics Institute, 617-876-1170/
 (GENIZ)


CO: Genetics Institute ST: Massachusetts IN: MTC SU: ERN

TM -- NE004 -- 4698 04/12/93 10:35 EDT
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Date:Apr 12, 1993
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