Chiron Reports 2001 First Quarter Pro-Forma Results of 19 Cents Per Share

Apr 25, 2001, 01:00 ET from Chiron Corporation

    EMERYVILLE, Calif., April 25 /PRNewswire/ --
 Chiron Corporation (Nasdaq:   CHIR) today reported pro-forma income from
 continuing operations of $38 million, or $0.19 per share, for the first
 quarter of 2001, as compared to earnings per share of $0.21 or $40 million,
 reported for the first quarter of 2000.  Pro-forma results exclude special
 items, primarily related to the acquisition of PathoGenesis Corporation and
 revenue from F. Hoffmann-La Roche (Roche) as compensation for past HIV-1 probe
 diagnostic product sales and a one-time license fee.  On an as-reported basis
 Chiron's income from continuing operations was $45 million, or $0.23 per
 share, for the first quarter of 2001.
     "I am pleased with Chiron's first quarter financial results and the
 progress we made during the quarter towards further commercial expansion in
 all three of our businesses," commented Sean Lance, Chiron's chairman and
 chief executive officer.
 
     Overall Results
 
     Net product sales increased by 7 percent to $169 million from $158 million
 in the first quarter of 2000.  Total pro-forma revenues in the first quarter
 of 2001 increased 11 percent to $240 million compared to $217 million for the
 first quarter of 2000.  Equity in earnings of unconsolidated joint businesses
 was unchanged at $16 million in the first quarter.  All other pro-forma
 revenue increased 27 percent to $55 million from $43 million in the first
 quarter of 2000.   Chiron projects pro-forma earnings per share during 2001 to
 be approximately $0.85.
 
     BioPharmaceuticals
 
     BioPharmaceutical net product sales (including royalties for European
 sales of Betaferon(R)) were $88 million, an increase of 82 percent versus
 first quarter of 2000 revenues of $48 million.  The gross profit margin in
 this unit was 77 percent, compared to 67 percent in the first quarter of 2000.
 
     -- Proleukin(R) (aldesleukin, a recombinant form of interleukin-2) sales
        were $20 million compared to sales of $19 million in the first quarter
        of 2000.
     -- TOBI(R) (tobramycin solution for inhalation) sales during the first
        quarter of 2001 were $33 million. Product sales of TOBI(R) were
        included in the BioPharmaceutical financial results beginning in the
        fourth quarter of 2000, following the acquisition of PathoGenesis
        Corporation.
     -- Sales of Betaseron(R) (interferon beta-1b) to Berlex Laboratories, Inc.
        (and its parent company Schering AG) for marketing and resale increased
        7 percent to $20 million from $19 million in the first quarter of 2000.
        Royalties from Schering AG's European sales of Betaferon(R) were
        $10 million in the first quarter of 2001, up 32 percent from the same
        period in 2000. Revenue from European sales of Betaferon(R), sold by
        Schering AG, is recorded separately in royalty revenue.
 
     Vaccines
 
     Vaccine product sales decreased $32 million, or 29 percent, to $78 million
 in the first quarter of 2001, as compared to $110 million recorded during the
 same period in 2000, as this quarter did not include a tender comparable to
 the universal vaccination campaign in the UK. The gross profit margin on
 vaccine products for the first quarter of 2001 was 64 percent as compared to
 73 percent in the first quarter of 2000.
     Chiron sells novel vaccines such as Menjugate(TM) and Fluad(TM) and a
 portfolio of standard pediatric vaccines, primarily in the European market.
 
     -- Sales of Menjugate(TM) in the first quarter of 2001 were $29 million,
        compared to $60 million in the first quarter of 2000.
     -- Revenue from Chiron's other vaccine products was $49 million in the
        first quarter of 2001, comparable to the first quarter of 2000.
 
     Blood Testing
 
     Blood testing revenues in the first quarter of 2001 increased to
 $35 million as compared to $26 million in the first quarter of 2000.  Blood
 testing revenues include product sales to, and Chiron's share of the earnings
 from, its joint immunoassay blood testing business with Ortho-Clinical
 Diagnostics, Inc., a Johnson & Johnson company, revenue from Chiron's nucleic
 acid testing (NAT) business, plus royalties from the Roche interim agreement
 signed last year for probe based blood testing products.
 
     -- Equity in earnings from the Ortho-Clinical Diagnostics, Inc. joint
        business were $16 million, unchanged from the same prior period.
     -- Sales from the Chiron Procleix(TM) HIV-1/HCV Assay were $8 million in
        the first quarter of 2001 compared to sales of $3 million in the
        comparable prior period.  Chiron announced on March 12, 2001, that the
        U.S. Food and Drug Administration (FDA) accepted for review its
        Biologics License Application (BLA) for the Chiron Procleix(TM) HIV-
        1/HCV Assay.
     -- The Chiron Procleix HIV-1/HCV Assay is currently approved in Austria,
        Australia, France, Germany, Italy, Portugal, Spain, and Singapore, and
        under evaluation in eight other countries in Europe and Asia.
 
     Other Recent Business and Product Development Milestones
 
     -- Granted Organon Teknika a worldwide, semi-exclusive license under the
        company's patents of human immunodeficiency virus (HIV) in assays
        claiming the detection of nucleic acid sequences for use in clinical
        diagnostics, excluding use in blood screening.
     -- Granted Japan Tobacco, Inc. (JT), based in Tokyo, Japan, a
        non-exclusive license for the research, development, and
        commercialization of small molecule therapeutics against a specified
        HCV drug "target" contained in the HCV genome.
     -- Sold its San Diego, California-based fully equipped and staffed gene
        therapy manufacturing facility to Cell Genesys for $4.8 million.  The
        transaction did not include product rights under any of Chiron's gene
        therapy intellectual property or access to its gene therapy development
        programs, including Chiron's Factor VIII program in hemophilia A.
     -- Announced with its marketing partner SkyePharma PLC, clearance from the
        FDA to return DepoCyt(TM) (cytarabine liposome injection) to the
        market.  Chiron holds marketing rights for DepoCyt(TM) in the United
        States.
     -- Announced with its partner Gen-Probe Incorporated, that the Biologics
        License Application (BLA) for the Chiron Procleix(TM) HIV-1/HCV Assay
        for human immunodeficiency virus type 1 (HIV-1) and hepatitis C virus
        (HCV) has been accepted for review by the FDA.  The application was
        previously designated for "Fast Track" review.
     -- Presented the results of its Phase II clinical trial of recombinant
        fibroblast growth factor-2 protein (FGF-2) in peripheral artery disease
        (PAD) at the American Heart Association Scientific Conference on
        Therapeutic Angiogenesis and Myocardial Laser Revascularization and at
        the American College of Cardiology 50th Annual Scientific Session.
     -- Announced with its partner, Ribozyme Pharmaceuticals Inc., the start of
        a Phase II clinical trial to evaluate Angiozyme(TM) as a treatment for
        patients with metastatic  breast, colorectal, lung, renal and melanoma
        cancers.
     -- Named John A. Lambert, 48, as president of Chiron Vaccines.  Based in
        Europe, Mr. Lambert is responsible for the commercial operations of
        Chiron's global vaccine business.
     -- Announced that its board of directors has authorized the repurchase of
        up to an additional five million shares of Chiron's common stock
        through open-market transactions made from time to time over the next
        twelve months. This most recent authorization brings the total shares
        available for repurchase to 7.7 million shares.
 
     1Q01 Earnings Conference Call
 
     Chiron will be holding a conference call and webcast, Wednesday, April 25,
 2001, at 4:45 p.m. EDT. to review its first quarter 2001 results of operations
 and business highlights.  In addition, the company may address forward-looking
 questions concerning business, financial matters and trends affecting the
 company.  To access the live call or the 3-day archive via the internet,
 please logon to http://www.chiron.com . Please connect to the Company's
 website at least 15 minutes prior to the conference call to ensure adequate
 time for any software download that may be needed to hear the webcast.
 Alternatively, please call 888-306-2701 (US) or 706-634-2118 (international).
 Replay is available approximately 2 hours after the call through 11:59 p.m.
 EDT., April 27, 2001.  To access the replay, please call 800-642-1687 (US) or
 706-645-9291 (international). The conference ID number is 703686.
 
     About Chiron
     Chiron Corporation, headquartered in Emeryville, California, is a leading
 biotechnology company that participates in three global healthcare markets:
 biopharmaceuticals, vaccines, and blood testing. The company is applying an
 integrated scientific approach to the development of innovative products for
 preventing and treating cancer and infection.  For more information about
 Chiron, visit the company's web site at www.chiron.com
     NOTE:  Proleukin, Menjugate, Fluad, and Procleix are trademarks of Chiron
 Corporation. TOBI is a trademark of PathoGenesis, a wholly owned subsidiary of
 Chiron Corporation.  Betaseron and Betaferon are trademarks of Schering AG.
 DepoCyt is a trademark of SkyePharma PLC.  Angiozyme is a trademark of
 Ribozyme Pharmaceuticals.
     This news release contains forward-looking statements that involve risks
 and uncertainties. A full discussion of the company's operations and financial
 condition, including factors that may affect its business and future
 prospects, is contained in documents the company files with the SEC, such as
 forms 10-Q and 10-K. These documents identify important factors that could
 cause the company's actual performance to differ from current expectations,
 including the outcome of clinical trials, regulatory review, manufacturing
 capabilities and marketing effectiveness.
     In line with the new SEC Rule FD, we do not undertake an obligation to
 update the forward-looking information we are giving today.
 
 
     CHIRON CORPORATION
     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     (Unaudited)
     (In thousands, except per share data)
 
                                               Three Months Ended
                                                     March 31,
                                                 2001               2000
                                        Pro Forma     Actual       Actual
                                        Adjusted (A)
 
     Revenues:
       Product sales, net               $168,840     $168,840    $157,606
       Equity in earnings of
        unconsolidated joint
        businesses                        15,625       15,625      15,718
       Collaborative agreement
        revenues                           9,061        9,061       6,794
       Royalty and license
        fee revenues                      42,176       62,176      30,989
       Other revenues                      3,889        3,889       5,638
 
         Total revenues                  239,591      259,591     216,745
 
     Operating expenses:
       Cost of sales                      54,930       54,930      51,251
       Research and development           84,732       84,732      70,990
       Selling, general and
        administrative                    58,803       58,803      50,911
       Amortization expense                1,950       11,547       2,124
       Restructuring and
        reorganization
        charge reversals                      --           --        (371)
       Other operating expenses            2,183        2,183       2,698
 
         Total operating expenses        202,598      212,195     177,603
 
     Income from operations               36,993       47,396      39,142
 
     Gain (loss) on sale of assets         2,426        2,426        (224)
     Interest expense                       (398)        (398)     (5,026)
     Other income, net                    18,056       18,056      24,470
     Minority interest                      (219)        (219)       (201)
 
     Income from continuing
      operations before
      income taxes                        56,858       67,261      58,161
     Provision for income taxes           19,036       22,518      18,077
 
     Income from continuing
      operations                          37,822       44,743      40,084
 
     Gain on disposal of
      discontinued operations                 --           --         152
 
     Net income                          $37,822      $44,743     $40,236
 
     Basic earnings per share:
       Income from continuing
        operations                         $0.20        $0.24       $0.22
       Net income                          $0.20        $0.24       $0.22
 
     Diluted earnings per share:
       Income from continuing
        operations                         $0.19        $0.23       $0.21
       Net income                          $0.19        $0.23       $0.21
 
     Shares used in calculating
      basic earnings per share           189,403      189,403     180,314
 
     Shares used in calculating
      diluted earnings per share         195,009      195,009     196,613
 
 
     (A) Pro Forma Adjusted amounts exclude:  (a) amortization expense on
 goodwill and acquired identifiable intangible assets related to the
 PathoGenesis acquisition and (b) compensation for past HIV diagnostic product
 sales in Europe.
 
 
     CHIRON CORPORATION
     CONDENSED CONSOLIDATED BALANCE SHEETS
     (Unaudited)
     (In thousands)
 
                                                March 31,    December 31,
                                                  2001           2000
 
     Assets
     Current assets:
       Cash and short-term investments          $655,160       $701,611
       Accounts receivable, net                  202,182        218,946
       Current portion of
        notes receivable                           5,631          6,179
       Inventories                               118,014        108,713
       Other current assets                       87,441         67,109
         Total current assets                  1,068,428      1,102,558
     Noncurrent investments in
      marketable debt securities                 213,925        149,925
     Property, plant, equipment and
      leasehold improvements, net                304,809        313,203
     Other noncurrent assets                     840,412        892,390
         Total assets                         $2,427,574     $2,458,076
 
     Liabilities and stockholders' equity
     Current liabilities                        $386,770       $413,856
     Long-term debt                                2,760          3,039
     Noncurrent unearned revenue                  40,291         41,677
     Other noncurrent liabilities                111,082        115,397
     Minority interest                             3,249          3,025
     Put options                                  22,477             --
     Stockholders' equity                      1,860,945      1,881,082
         Total liabilities and
          stockholders' equity                $2,427,574     $2,458,076
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X17914866
 
 

SOURCE Chiron Corporation
    EMERYVILLE, Calif., April 25 /PRNewswire/ --
 Chiron Corporation (Nasdaq:   CHIR) today reported pro-forma income from
 continuing operations of $38 million, or $0.19 per share, for the first
 quarter of 2001, as compared to earnings per share of $0.21 or $40 million,
 reported for the first quarter of 2000.  Pro-forma results exclude special
 items, primarily related to the acquisition of PathoGenesis Corporation and
 revenue from F. Hoffmann-La Roche (Roche) as compensation for past HIV-1 probe
 diagnostic product sales and a one-time license fee.  On an as-reported basis
 Chiron's income from continuing operations was $45 million, or $0.23 per
 share, for the first quarter of 2001.
     "I am pleased with Chiron's first quarter financial results and the
 progress we made during the quarter towards further commercial expansion in
 all three of our businesses," commented Sean Lance, Chiron's chairman and
 chief executive officer.
 
     Overall Results
 
     Net product sales increased by 7 percent to $169 million from $158 million
 in the first quarter of 2000.  Total pro-forma revenues in the first quarter
 of 2001 increased 11 percent to $240 million compared to $217 million for the
 first quarter of 2000.  Equity in earnings of unconsolidated joint businesses
 was unchanged at $16 million in the first quarter.  All other pro-forma
 revenue increased 27 percent to $55 million from $43 million in the first
 quarter of 2000.   Chiron projects pro-forma earnings per share during 2001 to
 be approximately $0.85.
 
     BioPharmaceuticals
 
     BioPharmaceutical net product sales (including royalties for European
 sales of Betaferon(R)) were $88 million, an increase of 82 percent versus
 first quarter of 2000 revenues of $48 million.  The gross profit margin in
 this unit was 77 percent, compared to 67 percent in the first quarter of 2000.
 
     -- Proleukin(R) (aldesleukin, a recombinant form of interleukin-2) sales
        were $20 million compared to sales of $19 million in the first quarter
        of 2000.
     -- TOBI(R) (tobramycin solution for inhalation) sales during the first
        quarter of 2001 were $33 million. Product sales of TOBI(R) were
        included in the BioPharmaceutical financial results beginning in the
        fourth quarter of 2000, following the acquisition of PathoGenesis
        Corporation.
     -- Sales of Betaseron(R) (interferon beta-1b) to Berlex Laboratories, Inc.
        (and its parent company Schering AG) for marketing and resale increased
        7 percent to $20 million from $19 million in the first quarter of 2000.
        Royalties from Schering AG's European sales of Betaferon(R) were
        $10 million in the first quarter of 2001, up 32 percent from the same
        period in 2000. Revenue from European sales of Betaferon(R), sold by
        Schering AG, is recorded separately in royalty revenue.
 
     Vaccines
 
     Vaccine product sales decreased $32 million, or 29 percent, to $78 million
 in the first quarter of 2001, as compared to $110 million recorded during the
 same period in 2000, as this quarter did not include a tender comparable to
 the universal vaccination campaign in the UK. The gross profit margin on
 vaccine products for the first quarter of 2001 was 64 percent as compared to
 73 percent in the first quarter of 2000.
     Chiron sells novel vaccines such as Menjugate(TM) and Fluad(TM) and a
 portfolio of standard pediatric vaccines, primarily in the European market.
 
     -- Sales of Menjugate(TM) in the first quarter of 2001 were $29 million,
        compared to $60 million in the first quarter of 2000.
     -- Revenue from Chiron's other vaccine products was $49 million in the
        first quarter of 2001, comparable to the first quarter of 2000.
 
     Blood Testing
 
     Blood testing revenues in the first quarter of 2001 increased to
 $35 million as compared to $26 million in the first quarter of 2000.  Blood
 testing revenues include product sales to, and Chiron's share of the earnings
 from, its joint immunoassay blood testing business with Ortho-Clinical
 Diagnostics, Inc., a Johnson & Johnson company, revenue from Chiron's nucleic
 acid testing (NAT) business, plus royalties from the Roche interim agreement
 signed last year for probe based blood testing products.
 
     -- Equity in earnings from the Ortho-Clinical Diagnostics, Inc. joint
        business were $16 million, unchanged from the same prior period.
     -- Sales from the Chiron Procleix(TM) HIV-1/HCV Assay were $8 million in
        the first quarter of 2001 compared to sales of $3 million in the
        comparable prior period.  Chiron announced on March 12, 2001, that the
        U.S. Food and Drug Administration (FDA) accepted for review its
        Biologics License Application (BLA) for the Chiron Procleix(TM) HIV-
        1/HCV Assay.
     -- The Chiron Procleix HIV-1/HCV Assay is currently approved in Austria,
        Australia, France, Germany, Italy, Portugal, Spain, and Singapore, and
        under evaluation in eight other countries in Europe and Asia.
 
     Other Recent Business and Product Development Milestones
 
     -- Granted Organon Teknika a worldwide, semi-exclusive license under the
        company's patents of human immunodeficiency virus (HIV) in assays
        claiming the detection of nucleic acid sequences for use in clinical
        diagnostics, excluding use in blood screening.
     -- Granted Japan Tobacco, Inc. (JT), based in Tokyo, Japan, a
        non-exclusive license for the research, development, and
        commercialization of small molecule therapeutics against a specified
        HCV drug "target" contained in the HCV genome.
     -- Sold its San Diego, California-based fully equipped and staffed gene
        therapy manufacturing facility to Cell Genesys for $4.8 million.  The
        transaction did not include product rights under any of Chiron's gene
        therapy intellectual property or access to its gene therapy development
        programs, including Chiron's Factor VIII program in hemophilia A.
     -- Announced with its marketing partner SkyePharma PLC, clearance from the
        FDA to return DepoCyt(TM) (cytarabine liposome injection) to the
        market.  Chiron holds marketing rights for DepoCyt(TM) in the United
        States.
     -- Announced with its partner Gen-Probe Incorporated, that the Biologics
        License Application (BLA) for the Chiron Procleix(TM) HIV-1/HCV Assay
        for human immunodeficiency virus type 1 (HIV-1) and hepatitis C virus
        (HCV) has been accepted for review by the FDA.  The application was
        previously designated for "Fast Track" review.
     -- Presented the results of its Phase II clinical trial of recombinant
        fibroblast growth factor-2 protein (FGF-2) in peripheral artery disease
        (PAD) at the American Heart Association Scientific Conference on
        Therapeutic Angiogenesis and Myocardial Laser Revascularization and at
        the American College of Cardiology 50th Annual Scientific Session.
     -- Announced with its partner, Ribozyme Pharmaceuticals Inc., the start of
        a Phase II clinical trial to evaluate Angiozyme(TM) as a treatment for
        patients with metastatic  breast, colorectal, lung, renal and melanoma
        cancers.
     -- Named John A. Lambert, 48, as president of Chiron Vaccines.  Based in
        Europe, Mr. Lambert is responsible for the commercial operations of
        Chiron's global vaccine business.
     -- Announced that its board of directors has authorized the repurchase of
        up to an additional five million shares of Chiron's common stock
        through open-market transactions made from time to time over the next
        twelve months. This most recent authorization brings the total shares
        available for repurchase to 7.7 million shares.
 
     1Q01 Earnings Conference Call
 
     Chiron will be holding a conference call and webcast, Wednesday, April 25,
 2001, at 4:45 p.m. EDT. to review its first quarter 2001 results of operations
 and business highlights.  In addition, the company may address forward-looking
 questions concerning business, financial matters and trends affecting the
 company.  To access the live call or the 3-day archive via the internet,
 please logon to http://www.chiron.com . Please connect to the Company's
 website at least 15 minutes prior to the conference call to ensure adequate
 time for any software download that may be needed to hear the webcast.
 Alternatively, please call 888-306-2701 (US) or 706-634-2118 (international).
 Replay is available approximately 2 hours after the call through 11:59 p.m.
 EDT., April 27, 2001.  To access the replay, please call 800-642-1687 (US) or
 706-645-9291 (international). The conference ID number is 703686.
 
     About Chiron
     Chiron Corporation, headquartered in Emeryville, California, is a leading
 biotechnology company that participates in three global healthcare markets:
 biopharmaceuticals, vaccines, and blood testing. The company is applying an
 integrated scientific approach to the development of innovative products for
 preventing and treating cancer and infection.  For more information about
 Chiron, visit the company's web site at www.chiron.com
     NOTE:  Proleukin, Menjugate, Fluad, and Procleix are trademarks of Chiron
 Corporation. TOBI is a trademark of PathoGenesis, a wholly owned subsidiary of
 Chiron Corporation.  Betaseron and Betaferon are trademarks of Schering AG.
 DepoCyt is a trademark of SkyePharma PLC.  Angiozyme is a trademark of
 Ribozyme Pharmaceuticals.
     This news release contains forward-looking statements that involve risks
 and uncertainties. A full discussion of the company's operations and financial
 condition, including factors that may affect its business and future
 prospects, is contained in documents the company files with the SEC, such as
 forms 10-Q and 10-K. These documents identify important factors that could
 cause the company's actual performance to differ from current expectations,
 including the outcome of clinical trials, regulatory review, manufacturing
 capabilities and marketing effectiveness.
     In line with the new SEC Rule FD, we do not undertake an obligation to
 update the forward-looking information we are giving today.
 
 
     CHIRON CORPORATION
     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     (Unaudited)
     (In thousands, except per share data)
 
                                               Three Months Ended
                                                     March 31,
                                                 2001               2000
                                        Pro Forma     Actual       Actual
                                        Adjusted (A)
 
     Revenues:
       Product sales, net               $168,840     $168,840    $157,606
       Equity in earnings of
        unconsolidated joint
        businesses                        15,625       15,625      15,718
       Collaborative agreement
        revenues                           9,061        9,061       6,794
       Royalty and license
        fee revenues                      42,176       62,176      30,989
       Other revenues                      3,889        3,889       5,638
 
         Total revenues                  239,591      259,591     216,745
 
     Operating expenses:
       Cost of sales                      54,930       54,930      51,251
       Research and development           84,732       84,732      70,990
       Selling, general and
        administrative                    58,803       58,803      50,911
       Amortization expense                1,950       11,547       2,124
       Restructuring and
        reorganization
        charge reversals                      --           --        (371)
       Other operating expenses            2,183        2,183       2,698
 
         Total operating expenses        202,598      212,195     177,603
 
     Income from operations               36,993       47,396      39,142
 
     Gain (loss) on sale of assets         2,426        2,426        (224)
     Interest expense                       (398)        (398)     (5,026)
     Other income, net                    18,056       18,056      24,470
     Minority interest                      (219)        (219)       (201)
 
     Income from continuing
      operations before
      income taxes                        56,858       67,261      58,161
     Provision for income taxes           19,036       22,518      18,077
 
     Income from continuing
      operations                          37,822       44,743      40,084
 
     Gain on disposal of
      discontinued operations                 --           --         152
 
     Net income                          $37,822      $44,743     $40,236
 
     Basic earnings per share:
       Income from continuing
        operations                         $0.20        $0.24       $0.22
       Net income                          $0.20        $0.24       $0.22
 
     Diluted earnings per share:
       Income from continuing
        operations                         $0.19        $0.23       $0.21
       Net income                          $0.19        $0.23       $0.21
 
     Shares used in calculating
      basic earnings per share           189,403      189,403     180,314
 
     Shares used in calculating
      diluted earnings per share         195,009      195,009     196,613
 
 
     (A) Pro Forma Adjusted amounts exclude:  (a) amortization expense on
 goodwill and acquired identifiable intangible assets related to the
 PathoGenesis acquisition and (b) compensation for past HIV diagnostic product
 sales in Europe.
 
 
     CHIRON CORPORATION
     CONDENSED CONSOLIDATED BALANCE SHEETS
     (Unaudited)
     (In thousands)
 
                                                March 31,    December 31,
                                                  2001           2000
 
     Assets
     Current assets:
       Cash and short-term investments          $655,160       $701,611
       Accounts receivable, net                  202,182        218,946
       Current portion of
        notes receivable                           5,631          6,179
       Inventories                               118,014        108,713
       Other current assets                       87,441         67,109
         Total current assets                  1,068,428      1,102,558
     Noncurrent investments in
      marketable debt securities                 213,925        149,925
     Property, plant, equipment and
      leasehold improvements, net                304,809        313,203
     Other noncurrent assets                     840,412        892,390
         Total assets                         $2,427,574     $2,458,076
 
     Liabilities and stockholders' equity
     Current liabilities                        $386,770       $413,856
     Long-term debt                                2,760          3,039
     Noncurrent unearned revenue                  40,291         41,677
     Other noncurrent liabilities                111,082        115,397
     Minority interest                             3,249          3,025
     Put options                                  22,477             --
     Stockholders' equity                      1,860,945      1,881,082
         Total liabilities and
          stockholders' equity                $2,427,574     $2,458,076
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X17914866
 
 SOURCE  Chiron Corporation