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GENETICS INSTITUTE REPORTS THIRD QUARTER 1993 FINANCIAL RESULTS

 CAMBRIDGE, Mass., Sept. 23 /PRNewswire/ -- Genetics Institute, Inc. (NASDAQ: GENIZ) today reported a net loss of $5,548,000, or 26 cents per share (after preferred dividends of $1,144,000), on revenues of $26,073,000 for the third quarter ended Aug. 31, 1993. This is compared with net incm?e of $2,843,000, or 7 cents per share (after preferred dividends of $1,146,000), on revenues of $30,411,000 for the same period last year.
 For the first nine months of 1993, the company reported a net loss of $16,560,000, or 81 cents per share (after preferred dividends of $3,436,000), on revenues of $72,648,000. This is compared with 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 for the first nine months of 1992. The 1992 first nine months net loss included special charges of $31,995,000 relating primarily to costs associated with the acquisition by American Home Products Corporation of a 60 percent interest in the company in January 1992.
 "The third quarter and nine month losses for fiscal 1993 were consistent with our expectations," said Garen Bohlin, Genetics Institute's executive vice president and chief financial officer. "During the third quarter of 1992, the company earned an unusually high level of collaborative research and development revenue resulting in the only quarterly profit realized by the company in the past two fiscal years," explained Bohlin. "With five product candidates presently under development and several expanding discovery research programs, we expect to incur operating losses for the next few years while we remain in this significant research and development investment phase," he concluded.
 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, including treatments for anemia, hemophilia, cancer, bone damage, heart disease, inflammatory conditions and immune system disordeH?ome Products Corporation (NYSE: AHP) hol ds 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 NINE MONTHS ENDED AUG. 31, 1993 AND 1992
 (unaudited - in thousands except per share data)
 Three Months Nine Months
 ended Aug. 31, ended Aug. 31,
 --------------- ---------------
 1993 1992 1993 1992
 ---- ---- ---- ----
 REVENUE:
 Product Sales $9,072 $ -- $25,881 $ --
 Royalties 6,683 7,300 19,182 19,880
 Collaborative R&D 10,318 23,111 27,585 44,389
 ------ ------ ------- -------
 Total Revenue 26,073 30,411 72,648 64,269
 ------ ------ ------- -------
 OPERATING EXPENSES:
 Cost of Sales 5,998 -- 14,143 --
 Research and Development 25,416 24,390 72,517 62,833
 General & Administrative 4,438 4,825 16,027 12,518
 Amortization of Warrants 177 479 861 1,545
 Special Charges
 (primarily merger-related) -- 1,995 -- 31,995
 ------ ------ ------- -------
 Total Operating Expenses 36,029 31,689 103,548 108,891
 ------ ------ ------- -------
 LOSS FROM OPERATIONS (9,956) (1,278) (30,900) (44,622)
 ------- ------ ------ ------
 Other Income, Net 4,408 4,121 14,340 10,004
 ------ ------ ------ ------
 NET INCOME (LOSS) $(5,548) $2,843 $(16,560) $(34,618)
 ======= ====== ======= =======
 Dividends on Preferred
 Stock $(1,144) $(1,146) $(3,436) $(3,443)
 ------ ------ ------ ------
 Net Income (Loss)
 Applicable to Common
 Shares $(6,692) $1,697 $(19,996) $(38,061)
 ====== ====== ======= =======
 WEIGHTED AVG. COMMON
 SHARES OUTSTANDING 25,320 24,193 24,728 22,578
 ====== ====== ====== ======
 NET INCOME (LOSS)
 PER COMMON SHARE $(0.26) $0.07 $(0.81) $(1.69)
 ===== ==== ====== =====
 GENETICS INSTITUTE, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEETS
 AS OF AUG. 31, 1993 AND NOV. 30, 1992
 (unaudited - in thousands)
 Aug. 31, Nov. 30,
 1993 1992
 ---- ----

 ASSETS
 Cash and Marketable Securities $324,150 $354,226
 Other Current Assets 33,882 38,570
 ------ ------
 Total Current Assets 358,032 392,796
 Property, Plant and Equipment, Net 77,199 60,059
 Other Assets 7,278 7,694
 ----- -----
 Total $442,509 $460,549
 ======== ========
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Accounts Payable and
 Accrued Expenses $30,753 $22,264
 Reserve for Patent-related
 Damages -- 11,000
 ------ ------
 Total Current Liabilities 30,753 33,264
 Shareholders' Equity 411,756 427,285
 ------- -------
 Total $442,509 $460,549
 ======== ========
 -0- 9/23/93
 /CONTACT: Dennis Harp or Gina Brazier, corporate communications, of Genetics Institute, 617-876-1170/
 (GENIZ AHP)


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

DJ-CM -- NE006 -- 5131 09/23/93 10:45 EDT
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Date:Sep 23, 1993
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