Genzyme Transgenics Reports First Quarter 2001 Financial Results

Apr 20, 2001, 01:00 ET from Genzyme Transgenics Corporation

    FRAMINGHAM, Mass., April 20 /PRNewswire Interactive News Release/ --
 Genzyme Transgenics Corporation ("GTC") (Nasdaq:   GZTC) today reported
 financial results for the first quarter ended April 1, 2001.  Total net loss
 for the quarter was $3.6 million, or $0.12 per share, compared with
 $3.7 million, or $0.14 per share, for the same quarter last year.
     Revenues from sponsored research and development were $2.9 million for the
 quarter, an 18% decrease from the $3.6 million of first quarter 2000.
 Sponsored research and development revenue in the first quarter 2000 was
 higher due to $0.6 million of milestone revenues earned that quarter.
     Operating expenses increased to $9.6 million in the current quarter from
 $6.7 million in the first quarter 2000.  This increase was primarily due to
 investments in further development of the Company's technology and losses
 associated with recombinant human antithrombin III (rhATIII).  These losses in
 the rhATIII program are related to completion of analysis and documentation in
 the discontinued heparin resistance indication as well as analysis of data
 with respect to potential further development.  While the work with respect to
 potential further development of rhATIII is ongoing, the Company is funding
 all the program activities.  The research investments in technology include
 optimization of purification processes for therapeutic proteins produced in
 milk and continuing research to determine the potential for nuclear transfer,
 the primary technology involved in cloning, to contribute to the development
 of transgenic animals.
     The Company has the financial strength to increase its investments in its
 technology after completing the sale of Primedica Corporation in February,
 increasing its cash and marketable securities to $100 million as of the end of
 the first quarter.  The sale of Primedica also resulted in a gain of
 $2.2 million in the first quarter.  The total net loss for the quarter without
 this gain would have been $5.9 million, or $0.20 per share.
     "GTC continues to expand its relationships and make progress toward its
 business and scientific objectives," stated Sandra Nusinoff Lehrman, M.D.,
 President and Chief Executive Officer.  "We are proud of delivering on our
 expectations to expand existing collaborations and initiate new programs."
     Expanded agreements were established with Centocor and Bristol-Myers
 Squibb in January.  A new program with Atlantic BioPharmaceuticals was
 announced in February.
     The Company expected the first quarter 2001 net loss to be approximately
 $0.12 per share, including the results of the sale of Primedica Corporation.
 The Company continues to expect its net loss per share for 2001 to be between
 $0.50 and $0.55 per share with the net loss for the second quarter expected to
 be approximately $0.20 per share.
     Genzyme Transgenics Corporation expects to discuss these results with
 financial analysts in a web cast conference call at 11:00 a.m. this morning.
 The call may be heard through the Company's web site,
 http://www.transgenics.com.  GTC is a leader in the application of transgenic
 technology to the development and production of monoclonal antibodies and
 other recombinant proteins for therapeutic and biomedical uses.  To date, the
 Company has formed more than a dozen collaboration agreements which provide
 for transgenic production of targeted proteins.
     This press release contains forward-looking statements as defined in the
 Private Securities Litigation Reform Act of 1995, including without limitation
 statements regarding the Company's expectations for charges related to
 rhATIII, investments in technology, and financial results.  Such
 forward-looking statements are subject to a number of risks, uncertainties and
 other factors that could cause actual results to differ materially from future
 results expressed or implied by such statements.  Factors that may cause such
 differences include, but are not limited to, those discussed in Genzyme
 Transgenics Corporation's prospectuses and Forms 10-K, as filed with the
 Securities and Exchange Commission, including the uncertainties associated
 with product development, research into technology and the risks and
 uncertainties associated with dependence upon the actions of partners,
 government and regulatory agencies.
 
 
     GENZYME TRANSGENICS CORPORATION
     Selected Financial Information
     (Unaudited, in thousands except per share amounts)
 
                                                         Three months ended
                                                     April 1,          April 2,
                                                       2001              2000
     Revenues
         Sponsored research and development           $2,934            $3,570
                                                       2,934             3,570
     Costs and operating expenses:
         Research and development:
            Sponsored                                  3,369             2,982
            Proprietary                                1,684               890
         Selling, general and
          administrative                               2,430             1,970
         Equity in loss of Joint Ventures              2,108               856
                                                       9,591             6,698
 
     Loss from continuing operations                  (6,657)           (3,128)
     Other income (expense):
         Interest income                               1,012               553
         Interest expense                               (224)             (314)
 
     Loss from continuing operations                 $(5,869)          $(2,889)
 
     Discontinued operations
         Loss from discontinued contract
          research operations (less
          applicable income taxes of
          $0 and $55)                                     --              (692)
         Gain on disposal of discontinued
          contract research operations                 2,236                --
 
     Net loss                                         (3,633)           (3,581)
 
     Dividend to preferred shareholders                   --               (74)
 
     Net loss available to common
      shareholders                                   $(3,633)          $(3,655)
 
     Net loss per common share
      (basic and diluted)                             $(0.12)           $(0.14)
 
     Weighted average number of shares
      outstanding (basic and diluted)                 29,724            26,008
 
 
                                                     April 1,      December 31,
                                                       2001             2000
 
     Cash and marketable securities                 $100,105           $66,532
     Net assets of discontinued contract
      research operations held for sale                   --            37,272
     Other current assets                              4,084             3,851
     Property and equipment, (net)                    14,468            13,841
     Other assets                                     12,583            12,907
             Total assets                           $131,240          $134,403
 
     Current liabilities                             $18,493           $19,266
     Long-term debt                                      187               223
     Other liabilities                                    66                71
     Stockholders' equity                            112,494           114,843
     Total liabilities and
      stockholders' equity                          $131,240          $134,403
 
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SOURCE Genzyme Transgenics Corporation
    FRAMINGHAM, Mass., April 20 /PRNewswire Interactive News Release/ --
 Genzyme Transgenics Corporation ("GTC") (Nasdaq:   GZTC) today reported
 financial results for the first quarter ended April 1, 2001.  Total net loss
 for the quarter was $3.6 million, or $0.12 per share, compared with
 $3.7 million, or $0.14 per share, for the same quarter last year.
     Revenues from sponsored research and development were $2.9 million for the
 quarter, an 18% decrease from the $3.6 million of first quarter 2000.
 Sponsored research and development revenue in the first quarter 2000 was
 higher due to $0.6 million of milestone revenues earned that quarter.
     Operating expenses increased to $9.6 million in the current quarter from
 $6.7 million in the first quarter 2000.  This increase was primarily due to
 investments in further development of the Company's technology and losses
 associated with recombinant human antithrombin III (rhATIII).  These losses in
 the rhATIII program are related to completion of analysis and documentation in
 the discontinued heparin resistance indication as well as analysis of data
 with respect to potential further development.  While the work with respect to
 potential further development of rhATIII is ongoing, the Company is funding
 all the program activities.  The research investments in technology include
 optimization of purification processes for therapeutic proteins produced in
 milk and continuing research to determine the potential for nuclear transfer,
 the primary technology involved in cloning, to contribute to the development
 of transgenic animals.
     The Company has the financial strength to increase its investments in its
 technology after completing the sale of Primedica Corporation in February,
 increasing its cash and marketable securities to $100 million as of the end of
 the first quarter.  The sale of Primedica also resulted in a gain of
 $2.2 million in the first quarter.  The total net loss for the quarter without
 this gain would have been $5.9 million, or $0.20 per share.
     "GTC continues to expand its relationships and make progress toward its
 business and scientific objectives," stated Sandra Nusinoff Lehrman, M.D.,
 President and Chief Executive Officer.  "We are proud of delivering on our
 expectations to expand existing collaborations and initiate new programs."
     Expanded agreements were established with Centocor and Bristol-Myers
 Squibb in January.  A new program with Atlantic BioPharmaceuticals was
 announced in February.
     The Company expected the first quarter 2001 net loss to be approximately
 $0.12 per share, including the results of the sale of Primedica Corporation.
 The Company continues to expect its net loss per share for 2001 to be between
 $0.50 and $0.55 per share with the net loss for the second quarter expected to
 be approximately $0.20 per share.
     Genzyme Transgenics Corporation expects to discuss these results with
 financial analysts in a web cast conference call at 11:00 a.m. this morning.
 The call may be heard through the Company's web site,
 http://www.transgenics.com.  GTC is a leader in the application of transgenic
 technology to the development and production of monoclonal antibodies and
 other recombinant proteins for therapeutic and biomedical uses.  To date, the
 Company has formed more than a dozen collaboration agreements which provide
 for transgenic production of targeted proteins.
     This press release contains forward-looking statements as defined in the
 Private Securities Litigation Reform Act of 1995, including without limitation
 statements regarding the Company's expectations for charges related to
 rhATIII, investments in technology, and financial results.  Such
 forward-looking statements are subject to a number of risks, uncertainties and
 other factors that could cause actual results to differ materially from future
 results expressed or implied by such statements.  Factors that may cause such
 differences include, but are not limited to, those discussed in Genzyme
 Transgenics Corporation's prospectuses and Forms 10-K, as filed with the
 Securities and Exchange Commission, including the uncertainties associated
 with product development, research into technology and the risks and
 uncertainties associated with dependence upon the actions of partners,
 government and regulatory agencies.
 
 
     GENZYME TRANSGENICS CORPORATION
     Selected Financial Information
     (Unaudited, in thousands except per share amounts)
 
                                                         Three months ended
                                                     April 1,          April 2,
                                                       2001              2000
     Revenues
         Sponsored research and development           $2,934            $3,570
                                                       2,934             3,570
     Costs and operating expenses:
         Research and development:
            Sponsored                                  3,369             2,982
            Proprietary                                1,684               890
         Selling, general and
          administrative                               2,430             1,970
         Equity in loss of Joint Ventures              2,108               856
                                                       9,591             6,698
 
     Loss from continuing operations                  (6,657)           (3,128)
     Other income (expense):
         Interest income                               1,012               553
         Interest expense                               (224)             (314)
 
     Loss from continuing operations                 $(5,869)          $(2,889)
 
     Discontinued operations
         Loss from discontinued contract
          research operations (less
          applicable income taxes of
          $0 and $55)                                     --              (692)
         Gain on disposal of discontinued
          contract research operations                 2,236                --
 
     Net loss                                         (3,633)           (3,581)
 
     Dividend to preferred shareholders                   --               (74)
 
     Net loss available to common
      shareholders                                   $(3,633)          $(3,655)
 
     Net loss per common share
      (basic and diluted)                             $(0.12)           $(0.14)
 
     Weighted average number of shares
      outstanding (basic and diluted)                 29,724            26,008
 
 
                                                     April 1,      December 31,
                                                       2001             2000
 
     Cash and marketable securities                 $100,105           $66,532
     Net assets of discontinued contract
      research operations held for sale                   --            37,272
     Other current assets                              4,084             3,851
     Property and equipment, (net)                    14,468            13,841
     Other assets                                     12,583            12,907
             Total assets                           $131,240          $134,403
 
     Current liabilities                             $18,493           $19,266
     Long-term debt                                      187               223
     Other liabilities                                    66                71
     Stockholders' equity                            112,494           114,843
     Total liabilities and
      stockholders' equity                          $131,240          $134,403
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X06057240
 
 SOURCE  Genzyme Transgenics Corporation