Immunex Announces First Quarter 2001 Results

Revenue Up 22%; Earnings Up 24%; Product Sales Up 27%

Manufacturing Capacity Expansion 'On Track' for Mid-2002 Approval



Apr 18, 2001, 01:00 ET from Immunex Corporation

    SEATTLE, April 18 /PRNewswire/ -- Immunex Corporation (Nasdaq: IMNX) today
 reported net income grew 24 percent to $39.8 million for the three months
 ended March 31, 2001, or 7 cents per share.  This compares to net income of
 $32.2 million reported for the first quarter of 2000, or 6 cents per share.
 Revenues for the quarter grew 22 percent, to $217.8 million in 2001 compared
 to $179.0 million for the same period in 2000.  The first quarter 2000
 included a $10 million scheduled payment to the company related to the
 co-promotion agreement on ENBREL(R) (etanercept).
     "Product sales continue to fuel our business expansion, and position the
 company for a record-breaking revenue year," said Ed Fritzky, Immunex chairman
 and CEO.  "With a strong financial position, we are capitalizing on investment
 opportunities in research technology, product development and commercial
 manufacturing assets."
     Total product sales for the quarter were $211.8 million, up 27 percent
 over the prior-year quarter.
     Net factory sales of ENBREL, a leading biologic treatment for rheumatoid
 arthritis, increased 26 percent from the first quarter of 2000, to
 $164.9 million.  First quarter factory sales were impacted by the
 implementation of the ENBREL Enrollment Program.  The ENBREL Enrollment
 Program was initiated to identify and enroll current users of ENBREL because
 growing demand was projected to exceed the current supply.  After
 implementation of the program on January 1, 2001, pharmacies were restricted
 from replenishing existing inventories.  This action resulted in a one-time
 reduction in pharmacy inventory and improved distribution efficiency, which
 will help the company optimize the number of patients able to use ENBREL.  In
 addition, patients filled prescriptions sooner than usual in the
 fourth quarter due to the announcement of the ENBREL Enrollment Program.
     "We believe factory sales of ENBREL in future quarters will more closely
 reflect patient demand -- which is currently about $180 -185 million per
 quarter -- and positions us to grow our sales up to $750 million this year,"
 said Peggy Phillips, Immunex COO and executive vice president.  "We also are
 making excellent progress in meeting our critical path deadlines for the
 manufacturing plant in Rhode Island, an important strategic investment for the
 company."
     Net sales of the company's specialty therapeutics product line grew to
 $46.9 million for the quarter, an increase of 35 percent over the first
 quarter of 2000.  Contributing to the growth were increased sales of
 LEUKINE(R) (sargramostim), an immune system modulator, which were up
 79 percent to $26.1 million in the current quarter compared to the same period
 in 2000.
     Research and development investments totaled $49.2 million in the quarter,
 up from $34.7 million in the first quarter of 2000, as the company has
 increased investment in research, process science and clinical development
 programs to drive future products and product growth.
     "After learning about positive results in the first quarter from our
 Phase III study of ENBREL in psoriatic arthritis, we are moving forward in
 requesting approval from the FDA (U.S. Food and Drug Administration) to market
 ENBREL to people suffering from this devastating disease," said
 Peggy Phillips.  "At the same time, our investments, including the Process
 Development Facility, will help us accelerate our clinical program for the
 IL-1 Receptor Type II, the next Immunex anti-inflammation molecule to enter
 the clinic this year."
     Expenses related to selling, general and administrative (SG&A) activities
 totaled $93.0 million in the quarter compared to $72.3 million in the first
 quarter of 2000.  SG&A expenses include profit-sharing payments to
 co-promotion partner Wyeth-Ayerst Laboratories for ENBREL.  Wyeth-Ayerst is
 the pharmaceutical division of American Home Products Corporation.
     Cash and cash equivalents, including restricted investments, increased by
 $22.5 million during the quarter to $1.63 billion.
     Immunex Corporation is a leading biopharmaceutical company dedicated to
 improving lives through immune system science innovations.
     NOTE:  Except for the historical information contained herein, this news
 release contains forward-looking statements that involve substantial risks and
 uncertainties.  Among the factors that could cause actual results or timelines
 to differ materially are risks associated with research and clinical
 development, regulatory approvals, our supply capabilities and reliance on
 third-party manufacturers, product commercialization, competition, litigation
 and other risk factors listed from time to time in reports filed by Immunex
 with the SEC, including but not limited to risks described under the caption
 "Important Factors That May Affect Our Business, Our Results of Operations and
 Our Stock Price" within our most recently filed Form 10-K.  The
 forward-looking statements contained in this news release represent our
 judgment as of the date of this release.  Immunex undertakes no obligation to
 publicly update any forward-looking statements.
 
                                IMMUNEX CORPORATION
                         CONSOLIDATED STATEMENTS OF INCOME
                      (in thousands except per share amounts)
 
                                                         Three months ended
                                                              March 31,
                                                         2001           2000
     Revenues:
       Product sales                                 $211,846       $166,698
       Royalty and contract revenue                     5,993         12,340
                                                      217,839        179,038
 
     Operating expenses:
       Cost of product sales                           58,783         47,803
       Research and development                        49,207         34,700
       Selling, general and administrative             92,961         72,300
                                                      200,951        154,803
 
     Operating income                                  16,888         24,235
 
     Other income (expense):
       Interest income                                 25,081         11,011
       Interest expense                                  (14)        (3,434)
       Other income, net                                4,907            773
                                                       29,974          8,350
 
     Income before income taxes                        46,862         32,585
 
     Provision for income taxes                         7,029            424
 
     Net income                                       $39,833        $32,161
 
     Net income per common share
       Basic                                            $0.07          $0.06
       Diluted                                          $0.07          $0.06
 
     Number of shares used for per share amounts
       Basic                                          541,266        497,256
       Diluted                                        575,902        544,357
 
 
 
 
                                IMMUNEX CORPORATION
                       CONSOLIDATED CONDENSED BALANCE SHEETS
                                   (in thousands)
 
                                                    March 31,   December 31,
                                                         2001           2000
 
     Assets:
       Current assets                              $1,010,670     $1,756,281
       Property, plant and equipment, net             173,312        174,049
       Restricted cash and investments                765,837             --
       Other assets                                   109,191        109,043
 
       Total assets                                $2,059,010     $2,039,373
 
     Liabilities and shareholders' equity:
       Current liabilities                           $166,638       $200,441
       Long-term obligations                              787            796
       Shareholders' equity                         1,891,585      1,838,136
 
     Total liabilities and shareholders' equity    $2,059,010     $2,039,373
 
 
                                IMMUNEX CORPORATION
                  CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                   (in thousands)
 
                                                       Three Months Ended
                                                              March 31,
                                                         2001           2000
 
     Operating Activities:
 
       Net income                                     $39,833        $32,161
       Depreciation and amortization                    6,687          5,004
       Tax benefit from stock option plans              5,828             --
       Change in working capital and other           (29,141)       (12,025)
 
       Net cash provided by operations                 23,207         25,140
 
     Investing and Financing Activities:
 
       Purchases of property, plant and equipment    (14,903)       (17,789)
       Net purchases of investments                 (553,408)       (59,730)
       Other investing and financing activities         1,277         44,577
 
       Net cash used in investing
        and financing activities                    (567,034)       (32,942)
 
     Net decrease in cash and cash equivalents     $(543,827)       $(7,802)
 
 
 
 

SOURCE Immunex Corporation
    SEATTLE, April 18 /PRNewswire/ -- Immunex Corporation (Nasdaq: IMNX) today
 reported net income grew 24 percent to $39.8 million for the three months
 ended March 31, 2001, or 7 cents per share.  This compares to net income of
 $32.2 million reported for the first quarter of 2000, or 6 cents per share.
 Revenues for the quarter grew 22 percent, to $217.8 million in 2001 compared
 to $179.0 million for the same period in 2000.  The first quarter 2000
 included a $10 million scheduled payment to the company related to the
 co-promotion agreement on ENBREL(R) (etanercept).
     "Product sales continue to fuel our business expansion, and position the
 company for a record-breaking revenue year," said Ed Fritzky, Immunex chairman
 and CEO.  "With a strong financial position, we are capitalizing on investment
 opportunities in research technology, product development and commercial
 manufacturing assets."
     Total product sales for the quarter were $211.8 million, up 27 percent
 over the prior-year quarter.
     Net factory sales of ENBREL, a leading biologic treatment for rheumatoid
 arthritis, increased 26 percent from the first quarter of 2000, to
 $164.9 million.  First quarter factory sales were impacted by the
 implementation of the ENBREL Enrollment Program.  The ENBREL Enrollment
 Program was initiated to identify and enroll current users of ENBREL because
 growing demand was projected to exceed the current supply.  After
 implementation of the program on January 1, 2001, pharmacies were restricted
 from replenishing existing inventories.  This action resulted in a one-time
 reduction in pharmacy inventory and improved distribution efficiency, which
 will help the company optimize the number of patients able to use ENBREL.  In
 addition, patients filled prescriptions sooner than usual in the
 fourth quarter due to the announcement of the ENBREL Enrollment Program.
     "We believe factory sales of ENBREL in future quarters will more closely
 reflect patient demand -- which is currently about $180 -185 million per
 quarter -- and positions us to grow our sales up to $750 million this year,"
 said Peggy Phillips, Immunex COO and executive vice president.  "We also are
 making excellent progress in meeting our critical path deadlines for the
 manufacturing plant in Rhode Island, an important strategic investment for the
 company."
     Net sales of the company's specialty therapeutics product line grew to
 $46.9 million for the quarter, an increase of 35 percent over the first
 quarter of 2000.  Contributing to the growth were increased sales of
 LEUKINE(R) (sargramostim), an immune system modulator, which were up
 79 percent to $26.1 million in the current quarter compared to the same period
 in 2000.
     Research and development investments totaled $49.2 million in the quarter,
 up from $34.7 million in the first quarter of 2000, as the company has
 increased investment in research, process science and clinical development
 programs to drive future products and product growth.
     "After learning about positive results in the first quarter from our
 Phase III study of ENBREL in psoriatic arthritis, we are moving forward in
 requesting approval from the FDA (U.S. Food and Drug Administration) to market
 ENBREL to people suffering from this devastating disease," said
 Peggy Phillips.  "At the same time, our investments, including the Process
 Development Facility, will help us accelerate our clinical program for the
 IL-1 Receptor Type II, the next Immunex anti-inflammation molecule to enter
 the clinic this year."
     Expenses related to selling, general and administrative (SG&A) activities
 totaled $93.0 million in the quarter compared to $72.3 million in the first
 quarter of 2000.  SG&A expenses include profit-sharing payments to
 co-promotion partner Wyeth-Ayerst Laboratories for ENBREL.  Wyeth-Ayerst is
 the pharmaceutical division of American Home Products Corporation.
     Cash and cash equivalents, including restricted investments, increased by
 $22.5 million during the quarter to $1.63 billion.
     Immunex Corporation is a leading biopharmaceutical company dedicated to
 improving lives through immune system science innovations.
     NOTE:  Except for the historical information contained herein, this news
 release contains forward-looking statements that involve substantial risks and
 uncertainties.  Among the factors that could cause actual results or timelines
 to differ materially are risks associated with research and clinical
 development, regulatory approvals, our supply capabilities and reliance on
 third-party manufacturers, product commercialization, competition, litigation
 and other risk factors listed from time to time in reports filed by Immunex
 with the SEC, including but not limited to risks described under the caption
 "Important Factors That May Affect Our Business, Our Results of Operations and
 Our Stock Price" within our most recently filed Form 10-K.  The
 forward-looking statements contained in this news release represent our
 judgment as of the date of this release.  Immunex undertakes no obligation to
 publicly update any forward-looking statements.
 
                                IMMUNEX CORPORATION
                         CONSOLIDATED STATEMENTS OF INCOME
                      (in thousands except per share amounts)
 
                                                         Three months ended
                                                              March 31,
                                                         2001           2000
     Revenues:
       Product sales                                 $211,846       $166,698
       Royalty and contract revenue                     5,993         12,340
                                                      217,839        179,038
 
     Operating expenses:
       Cost of product sales                           58,783         47,803
       Research and development                        49,207         34,700
       Selling, general and administrative             92,961         72,300
                                                      200,951        154,803
 
     Operating income                                  16,888         24,235
 
     Other income (expense):
       Interest income                                 25,081         11,011
       Interest expense                                  (14)        (3,434)
       Other income, net                                4,907            773
                                                       29,974          8,350
 
     Income before income taxes                        46,862         32,585
 
     Provision for income taxes                         7,029            424
 
     Net income                                       $39,833        $32,161
 
     Net income per common share
       Basic                                            $0.07          $0.06
       Diluted                                          $0.07          $0.06
 
     Number of shares used for per share amounts
       Basic                                          541,266        497,256
       Diluted                                        575,902        544,357
 
 
 
 
                                IMMUNEX CORPORATION
                       CONSOLIDATED CONDENSED BALANCE SHEETS
                                   (in thousands)
 
                                                    March 31,   December 31,
                                                         2001           2000
 
     Assets:
       Current assets                              $1,010,670     $1,756,281
       Property, plant and equipment, net             173,312        174,049
       Restricted cash and investments                765,837             --
       Other assets                                   109,191        109,043
 
       Total assets                                $2,059,010     $2,039,373
 
     Liabilities and shareholders' equity:
       Current liabilities                           $166,638       $200,441
       Long-term obligations                              787            796
       Shareholders' equity                         1,891,585      1,838,136
 
     Total liabilities and shareholders' equity    $2,059,010     $2,039,373
 
 
                                IMMUNEX CORPORATION
                  CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                   (in thousands)
 
                                                       Three Months Ended
                                                              March 31,
                                                         2001           2000
 
     Operating Activities:
 
       Net income                                     $39,833        $32,161
       Depreciation and amortization                    6,687          5,004
       Tax benefit from stock option plans              5,828             --
       Change in working capital and other           (29,141)       (12,025)
 
       Net cash provided by operations                 23,207         25,140
 
     Investing and Financing Activities:
 
       Purchases of property, plant and equipment    (14,903)       (17,789)
       Net purchases of investments                 (553,408)       (59,730)
       Other investing and financing activities         1,277         44,577
 
       Net cash used in investing
        and financing activities                    (567,034)       (32,942)
 
     Net decrease in cash and cash equivalents     $(543,827)       $(7,802)
 
 
 
 SOURCE  Immunex Corporation