EX-99.2 3 dna-8kex99_2.htm GENENTECH, INC. - EXHIBIT 99.2 Genentech Inc. - Exhibit 99.2

EXHIBIT 99.2

 

GENENTECH, INC.
CONSOLIDATED STATEMENTS OF INCOME DATA
(in thousands, except per share amounts)
(unaudited)
               
               
 

Three Months
Ended June 30,

  

   

2005

      

2004

  

Revenues:

              

   Product sales

$

1,274,115 

    

$

913,366 

  

   Royalties

  

200,321 

      

151,860 

  

   Contract revenue

  

52,443 

      

62,852 

  

      Total operating revenues

  

1,526,879 

      

1,128,078 

  
               

Costs and expenses:

              

   Cost of sales

  

269,481 

      

186,683 

  

   Research and development

  

278,124 

      

212,886 

  

   Marketing, general and administrative

  

356,638 

      

276,654 

  

   Collaboration profit sharing

  

198,798 

      

145,221 

  

   Recurring charges related to redemption

  

34,482 

      

38,209 

  

   Special items:  litigation-related

  

19,527 

      

13,458 

  

      Total costs and expenses

  

1,157,050 

      

873,111 

  
               

Operating margin

  

369,829 

      

254,967 

  
               

Other income, net(1)

  

31,502 

      

15,444 

  
               

Income before taxes

  

401,331 

      

270,411 

  

Income tax provision

  

105,165 

      

99,640 

  

Net income

$

296,166 

    

$

170,771 

  

               

Earnings per share:

              

      Basic

$

0.28 

    

$

0.16 

  

      Diluted

$

0.27 

    

$

0.16 

  

               

Weighted average shares used to compute earnings per share:

              

      Basic

  

1,057,564 

      

1,060,619 

  

      Diluted

  

1,083,841 

      

1,087,087 

  

___________________

(1)

  

"Other income, net" includes interest income and interest expense. In addition, "other income, net" includes realized gains from the sale of certain biotechnology equity securities and write-downs for other-than-temporary impairments in the fair value of certain biotechnology debt and equity securities. For further detail, refer to our web site at www.gene.com.

 

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GENENTECH, INC.
CONSOLIDATED STATEMENTS OF INCOME DATA
(in thousands, except per share amounts)
(unaudited)
               
               
 

Six Months
Ended June 30,

  

   

2005

      

2004

  

Revenues:

              

   Product sales

$

2,460,117 

    

$

1,677,066 

  

   Royalties

  

432,236 

      

305,957 

  

   Contract revenue

  

96,104 

      

120,190 

  

      Total operating revenues

  

2,988,457 

      

2,103,213 

  
               

Costs and expenses:

              

   Cost of sales

  

520,522 

      

301,163 

  

   Research and development

  

521,364 

      

403,231 

  

   Marketing, general and administrative

  

671,852 

      

523,968 

  

   Collaboration profit sharing

  

375,075 

      

271,652 

  

   Recurring charges related to redemption

  

68,964 

      

76,418 

  

   Special items:  litigation-related

  

30,784 

      

26,857 

  

      Total costs and expenses

  

2,188,561 

      

1,603,289 

  
               

Operating margin

  

799,896 

      

499,924 

  
               

Other income, net(1)

  

47,899 

      

37,765 

  
               

Income before taxes

  

847,795 

      

537,689 

  

Income tax provision

  

267,455 

      

190,331 

  

Net income

$

580,340 

    

$

347,358 

  

               

Earnings per share:

              

      Basic

$

0.55 

    

$

0.33 

  

      Diluted

$

0.54 

    

$

0.32 

  

               

Weighted average shares used to compute earnings per share:

              

      Basic

  

1,052,228 

      

1,057,955 

  

      Diluted

  

1,076,519 

      

1,084,618 

  

___________________

(1)

  

"Other income, net" includes interest income and interest expense. In addition, "other income, net" includes realized gains from the sale of certain biotechnology equity securities and write-downs for other-than-temporary impairments in the fair value of certain biotechnology debt and equity securities. For further detail, refer to our web site at www.gene.com.

 

- 2 -

 

GENENTECH, INC.
CONSOLIDATED BALANCE SHEET DATA
(in thousands)
(unaudited)
     
     
 

June 30,

  

 

2005

  

2004

  

Selected balance sheet data:

            

Cash, cash equivalents and short-term investments

$

2,010,541 

  

$

1,619,134 

  

Accounts receivable - product sales, net

  

509,971 

    

445,076 

  

Accounts receivable - royalties, net

  

238,714 

    

189,513 

  

Accounts receivable - other, net

  

165,133 

    

136,593 

  

Inventories

  

600,863 

    

527,649 

  

Long-term marketable debt and equity securities

  

901,052 

    

1,414,663 

  

Property, plant and equipment, net

  

2,792,106 

    

1,740,423 

  

Goodwill

 

1,315,019 

    

1,315,019 

  

Other intangible assets

  

603,956 

    

710,644 

  

Long-term assets

  

998,673 

    

817,906 

  

Total assets

  

10,546,610 

    

9,083,774 

  

Total current liabilities

  

1,141,735 

    

862,201 

  

Total liabilities

  

2,566,605 

    

2,198,740 

  

Total stockholders' equity

  

7,980,005 

    

6,885,034 

  
             

Year-to-date:

            

Capital expenditures

$

729,810 

  

$

196,633 

  
             
             

Total depreciation and amortization expense

  

181,454 

    

178,520 

  

 

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GENENTECH, INC.
NET PRODUCT SALES DETAIL
(in thousands)
(unaudited)
     
 

Three Months
Ended June 30,

  

 

2005

  

2004

  

Net US Sales:

            

   Rituxan

$

450,348 

  

$

390,005 

  

   Herceptin

  

152,427 

    

118,001 

  

   Avastin

  

245,685 

    

133,004 

  

   Growth Hormone

  

97,116 

    

88,000 

  

   Thrombolytics

  

51,635 

    

50,001 

  

   Pulmozyme

  

46,906 

    

36,509 

  

   Xolair

  

80,370 

    

43,623 

  

   Raptiva

  

21,271 

    

13,415 

  

   Tarceva

  

70,186 

    

- 

  

      Total US Sales

$

1,215,944 

  

$

872,558 

  

             

Net Sales to Collaborators:

            

   Rituxan

$

32,013 

  

$

34,661 

  

   Herceptin

  

(1,767)

    

(319)

  

   Avastin

  

3,557 

    

- 

  

   Growth Hormone

  

799 

    

413 

  

   Thrombolytics

  

1,663 

    

1,543 

  

   Pulmozyme

  

7,886 

    

4,457 

  

   Xolair

  

1,722 

    

53 

  

   Raptiva

  

3,629 

    

- 

  

   Enbrel

  

8,669 

    

- 

  

      Total Sales to Collaborators

$

58,171 

  

$

40,808 

  

      Total Net Product Sales

$

1,274,115 

  

$

913,366 

  

     
 

Six Months
Ended June 30,

  

 

2005

  

2004

  

Net US Sales:

            

   Rituxan

$

890,898 

  

$

751,813 

  

   Herceptin

  

282,057 

    

226,696 

  

   Avastin

  

448,540 

    

171,131 

  

   Growth Hormone

  

186,984 

    

171,965 

  

   Thrombolytics

  

102,202 

    

94,266 

  

   Pulmozyme

  

90,889 

    

74,524 

  

   Xolair

  

145,633 

    

73,476 

  

   Raptiva

  

37,916 

    

19,706 

  

   Tarceva

  

117,771 

    

- 

  

      Total US Sales

$

2,302,890 

  

$

1,583,577 

  

             

Net Sales to Collaborators:

            

   Rituxan

$

65,063 

  

$

73,483 

  

   Herceptin

  

9,121 

    

4,449 

  

   Avastin

  

15,189 

    

- 

  

   Growth Hormone

  

3,019 

    

1,918 

  

   Thrombolytics

  

4,666 

    

3,502 

  

   Pulmozyme

  

15,649 

    

9,874 

  

   Xolair

  

5,056 

    

263 

  

   Raptiva

  

11,099 

    

- 

  

   Enbrel

  

28,365 

    

- 

  

      Total Sales to Collaborators

$

157,227 

  

$

93,489 

  

      Total Net Product Sales

$

2,460,117 

  

$

1,677,066 

  

 

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