MedImmune Files Quarterly Report on Form 10-Q for First Quarter 2002
Filing Reflects a $0.01 Per Share Correction to Previously Reported First Quarter 2002 Results
Gaithersburg, MD, May 15, 2002 – MedImmune, Inc. (Nasdaq: MEDI) announced that its Quarterly Report on Form 10-Q filed today for the quarter ended March 31, 2002 reflects a $0.01 per share correction to its previously reported results, reducing cash earnings per diluted share from $0.29 to $0.28.
“The correction pertains to an adjustment to the royalty expense in the quarter for Synagis® (palivizumab) related to a new patent issued to Genentech on December 18, 2001,” stated Gregory S. Patrick, MedImmune's chief financial officer. “This correction does not affect our guidance for the calendar year 2002 or the second quarter of 2002, as stated in our financial results press release on April 25, 2002.”
The correction reflected in the 10-Q includes a $3.6 million increase in MedImmune's cost of sales and a decrease of $1.3 million in tax provision for the 2002 first quarter. This results in a reduction in cash earnings for the 2002 first quarter to $72 million, or $0.28 per diluted share, versus the $74 million, or $0.29 per diluted share, reported by press release on April 25, 2002. Cash earnings for the quarter exclude non-recurring and non-cash items related to the $1.6 billion acquisition of Aviron, completed in January 2002. Including the non-recurring and non-cash items (reflecting actual results as reported under generally accepted accounting principles (GAAP)), MedImmune's net loss for the 2002 first quarter increased to $1.117 billion, or $4.54 per share, from the previously reported net loss of $1.115 billion, or $4.53 per share.
MedImmune is a leading biotechnology company focused on researching, developing and commercializing products to prevent or treat infectious disease, autoimmune disease and cancer. MedImmune currently markets three products, Synagis® (palivizumab), Ethyol® (amifostine) and CytoGam® (cytomegalovirus immune globulin intravenous (human)), and has 11 products in clinical testing. MedImmune employs approximately 1,500 people, is headquartered in Gaithersburg, Maryland, and has additional operations in Frederick, Maryland, as well as Pennsylvania, California, the United Kingdom and the Netherlands. For more information on MedImmune, visit the company's website at www.medimmune.com.
DISCLOSURE NOTICE: The information contained in this document is as of May 15, 2002, and will not be updated as a result of new information or future events. This document contains forward - looking statements regarding MedImmune's future financial performance and business prospects. Those statements involve substantial risks and uncertainties. You can identify those statements by the fact that they contain words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “project” or other terms of similar meaning. Those statements reflect management's current beliefs and are based on numerous assumptions, which MedImmune cannot control and which may not develop as MedImmune expects. Consequently, actual results may differ materially from those projected in the forward - looking statements. Among the factors that could cause actual results to differ materially are: seasonal demand for and continued supply of our principal product, Synagis; whether FluMist receives clearance by the Food and Drug Administration and, if it does, whether it will be successfully launched; availability of competitive products in the market; availability of third-party reimbursement for the cost of our products; effectiveness and safety of our products; exposure to product liability, intellectual property or other types of litigation; foreign currency exchange rate fluctuations; changes in generally accepted accounting principles; growth in costs and expenses; the impact of acquisitions, divestitures and other unusual items; and the risks, uncertainties and other matters discussed in MedImmune's Annual Report on Form 10-K for the year ended December 31, 2001 and in its periodic reports on Forms 10-Q and 8-K (if any) filed with the U.S. Securities and Exchange Commission. MedImmune cautions that RSV disease occurs primarily during the winter months; MedImmune believes its operating results will reflect that seasonality for the foreseeable future. MedImmune is also developing several products (including FluMist) 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.