MedImmune Net Earnings Grow 126 Percent in First Quarter
Company Sets New Records for Revenues and Sales of Synagis®
First Quarter 2000 Highlights
- Net Earnings Reach $0.80 Per Diluted Share vs. $0.38 in 1999
- Total Revenues Increase 46 Percent to $198 Million
- Worldwide Sales of Synagis Jump 52 Percent to $176 Million
Gaithersburg, MD, April 19, 2000 -- MedImmune, Inc. (Nasdaq: MEDI) today reported that total revenues grew 46 percent in the first quarter 2000 to $198.3 million from $135.5 million in the 1999 first quarter. Nearly all revenues for both periods were derived from product sales, which showed strong improvement quarter over quarter, primarily driven by increases in sales of Synagis (palivizumab), the company's flagship product used to prevent serious lower respiratory tract disease caused by respiratory syncytial virus (RSV) in pediatric patients at high risk of RSV infection. Sales of Synagis grew 52 percent in the first quarter of 2000, totaling $176.2 million ($171.7 million in the U.S.) versus $116.2 million ($114.7 million in the U.S.) in the first quarter of 1999. Also contributing to product revenue for the 2000 first quarter were $10.0 million in sales of CytoGam® (Cytomegalovirus Immune Globulin Intravenous (Human)), $5.0 million in Ethyol® (amifostine) revenues, and $4.5 million from other product sales. In the 1999 first quarter, sales of CytoGam totaled $9.7 million, Ethyol revenues totaled $4.8 million, and other product sales totaled $2.7 million. Other revenues, primarily comprised of research funding, increased 26 percent in the first quarter 2000 to $2.6 million from $2.0 million in first quarter 1999.
“At the end of the first quarter of 2000, we have again exceeded our goals for sales of Synagis. Worldwide sales of the drug during this season, its second season of use, have thus far reached $352 million, a 55-percent increase from last year's total of $227 million,” said Wayne T. Hockmeyer, Ph.D., chairman and chief executive officer. “Most importantly, we are pleased that Synagis has now been used to protect over 150,000 infants from viral pneumonia and bronchiolitis caused by respiratory syncytial virus since its launch in September 1998.”
Net earnings for the 2000 first quarter grew 126 percent to $58.0 million, or $0.80 per diluted share, from net earnings of $25.7 million, or $0.38 per diluted share, in the 1999 first quarter. Gross margins in the 2000 first quarter were 77 percent compared to 75 percent in the 1999 first quarter. Selling, general and administrative costs rose to $50.7 million in the 2000 first quarter from $40.9 million in the 1999 first quarter, due primarily to an increase in co-promotion expenses for Synagis in the United States. Research and development expenses increased to $15.5 million in the 2000 quarter from $13.8 million in 1999 quarter primarily due to an increase in the number of currently active clinical trials. Other operating expenses decreased to $2.3 million in first quarter 2000 from $5.9 million in first quarter 1999, reflecting decreased start-up costs for MedImmune's manufacturing facility in Frederick, Maryland.
Cash and marketable securities at March 31, 2000 increased to $452.4 million from $270.4 million at December 31, 1999. The increase was principally generated through operations.
Dr. Hockmeyer added: “In addition to our financial success in the first quarter, we continue to make excellent progress in moving new product candidates through the research and development pipeline and toward the market. We now have eight products in various stages of clinical testing and look forward to our busiest year ever in new product development.”
Synagis® is a humanized monoclonal antibody marketed for the prevention of serious lower respiratory tract disease caused by respiratory syncytial virus in pediatric patients at high risk of RSV disease (www.medimmune.com/medimmune/products/synagispi.htm). Ethyol® is an intravenous cytoprotective agent marketed for the reduction of both cumulative renal toxicity associated with repeated administration of cisplatin in patients with advanced ovarian cancer or non-small cell lung cancer (“NSCLC”) and moderate to severe xerostomia in patients undergoing post-operative radiation treatment for head and neck cancer, where the radiation port includes a substantial portion of the parotid (see full prescribing information at www.medimmune.com/medimmune/products/ethyol.htm). CytoGam® is an intravenous immune globulin enriched in antibodies against cytomegalovirus (CMV) and is marketed for the prophylaxis against CMV disease associated with transplantation of kidney, lung, liver, pancreas, and heart (see full prescribing information at www.medimmune.com/medimmune/products/cytopi1.htm).
MedImmune, Inc. is a fully integrated biotechnology company focused on developing and marketing products that address medical needs in areas such as infectious disease, immune regulation and cancer. Headquartered in Gaithersburg, Maryland, MedImmune has manufacturing facilities in Frederick, Maryland and Nijmegen, the Netherlands, and an oncology subsidiary in West Conshohocken, Pennsylvania.
This announcement may contain, in addition to historical information, certain forward-looking statements that involve risks and uncertainties. Such statements reflect management's current views and are based on certain assumptions. Actual results could differ materially from those currently anticipated as a result of a number of factors, including risks and uncertainties discussed in the company's filings with the U.S. Securities and Exchange Commission. MedImmune cautions that RSV disease occurs primarily during the winter months; the company believes its operating results will reflect that seasonality for the foreseeable future. The company is also developing several products for potential future marketing. There can be no assurance that such development efforts will succeed, that such products will receive required regulatory clearance or that, even if such regulatory clearance were received, such products would ultimately achieve commercial success.
2000 Q1 Condensed Statements of Operations & Condensed Balance Sheets