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IMMUNEX REPORTS SECOND QUARTER RESULTS

 SEATTLE, July 23 /PRNewswire/ -- Immunex Corp. (NASDAQ: IMNX) today reported financial results for the period ending June 30, 1993. Because the merger of Immunex and Lederle Oncology Corp., a unit of American Cyanamid Co. (NYSE: ACY), was effective on June 1, these results reflect operation of the old Immunex for two months and of the newly-combined company for a single month (June 1993).
 The net loss for the one-month period totaled $346.4 million, or $9.59 per share, which includes one-time charges of $346.4 million for purchase of in-process research and development and other expenses related to the merger.
 "We are pleased that without the extraordinary charges in June, the new Immunex reported a net loss of only $67,000, nearly breaking even, in its first month of operation," explained Stephen A. Duzan, Immunex chairman. "As is normal with a transaction like this merger, the financial results of the quarter are presented in an unusual format, reflecting the effect of merger accounting rules and the impact of merger-related expenses. Because the results of the old and new Immunex cannot be combined, historical comparisons are not meaningful, and more important, the results do not yet represent the potential of the combined businesses.
 "The new company represents a synergy of research expertise and marketing experience in the field of cancer drug development. In the six weeks since the merger, we have successfully integrated our people, products and systems. A larger sales force, a more extensive line of oncology products and synergies in our research and development efforts will increase the opportunities for new Immunex."
 Net product sales totaled $26.6 million for the three-month period of 1993. Sales of LEUKINE(R) (Sargramostim), Immunex's white blood cell stimulant, totaled $11.3 million in the second quarter, compared to $6.5 million for the same period a year ago, and $8.5 million in the first quarter of 1993. This reflects record growth for the product of 74 percent year-over-year and 33 percent quarter-to-quarter.
 Second quarter sales of licensed cancer products also increased, totaling $6.9 million, compared to $6.0 from the same period a year ago, and $6.2 million in the first quarter of 1993.
 On June 2, Immunex began selling the six cancer products that were contributed to the new company through its merger with the Cyanamid unit. Sales of these products totaled approximately $7.2 million, reflecting sales for only the month of June. For comparison purposes, sales of these products totaled $19.0 million in the second quarter 1993, compared to $20.0 million for the same period in 1992, and $21.6 million for the first quarter of 1993. Generic competition and wholesaler inventory adjustments continued to affect sales of these products in the second quarter, but to a less significant degree than was seen in the first quarter of 1993 when sales were down 18 percent year-over-year.
 Under the terms of the revenue guarantee provisions of the governance agreement, Cyanamid is obligated to contribute cash or other product revenues to Immunex if sales of contributed products do not achieve agreed-upon amounts from the date of merger in 1993 and each of the years through 1997. For the seven months ending Dec. 31, 1993, the revenue agreed upon for the contributed products is approximately $70 million.
 Research and development expenses for the one-month period reflect payments made to Cyanamid for new oncology drug research that is being conducted under a collaboration between Immunex and Cyanamid. Immunex's contribution to the oncology research program will total $17.5 million for 1993. Sales, general and administrative expenses reflect payments for marketing, distribution and certain other services provided to Immunex under a services agreement with Cyanamid.
 Cash and marketable securities at the end of June totaled $36.8 million. This balance is expected to decline in the third quarter due to an expected increase in accounts receivable and inventory investment. Therefore, the company has obtained a line of credit of approximately $25 million to meet near-term working capital requirements.
 Immunex is a biopharmaceutical company focused on the discovery, development, manufacture and marketing of products to treat cancer and autoimmune disease.
 IMMUNEX CORP.
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (in thousands)
 June 30, Dec. 31,
 1993 1992
 Assets:
 Current assets $ 71,170 $ 118,726
 Property, plant and equipment, net 100,081 96,993
 Other assets 53,880 20,071
 Total assets $ 225,131 $ 235,790
 Liabilities and stockholders' equity:
 Current liabilities $ 43,881 $ 78,109
 Long-term debt and other obligations 23,123 23,694
 Stockholders' equity 158,127 133,987
 Total liabilities and
 stockholders' equity $ 225,131 $ 235,790
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (in thousands except per share amounts)
 Period Period
 Three months
 April 1, 1993 to June 2, 1993 to ended
 June 1, 1993 June 30, 1993 June 30, 1


993
 Revenues:
 Product sales $ 11,507 $ 15,066 $ 26,573
 Revenue under
 contractual
 arrangements 635 348 983
 Interest 205 193 398
 12,347 15,607 27,954
 Costs and expenses:
 Cost of product
 sales 3,917 3,799
 Research and
 development 13,060 6,274
 Selling, general and
 administrative 9,415 5,506
 Interest 119 95
 Compensation expense
 related to stock
 option plan
 modifications 25,624 --
 Merger-related
 costs 14,830 --
 In-process research
 and development -- 346,359
 66,965 362,033
 Net loss $(54,618) $(346,426)
 Net loss per
 share $ (3.55) $ (9.59)
 Number of shares
 used for per
 share amounts 15,406 36,136
 -0- 7/23/93
 /CONTACT: Valoree Dowell of Immunex Corp., 206-587-0430/
 (IMNX ACY)


CO: Immunex Corp. ST: Washington IN: MTC SU: ERN

JH -- SE004 -- 5003 07/23/93 08:51 EDT
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Date:Jul 23, 1993
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