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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 10, 2005
GENENTECH, INC.
Delaware of incorporation) |
1-9813 File Number) |
94-2347624 Identification No.) |
1 DNA Way
South San Francisco, California 94080-4990
(Address of principal executive offices and Zip Code)
Registrant's telephone number, including area code: (650) 225-1000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02. |
RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
On October 10, 2005, Genentech, Inc., a Delaware corporation, issued a press release announcing earnings for the quarter ended September 30, 2005. A copy of the earnings press release is furnished as Exhibit 99.1 to this report.
The attached press release contains both GAAP and non-GAAP financial measures. The non-GAAP financial measures included are net income and earnings per share (or EPS). These non-GAAP financial measures exclude recurring charges related to the redemption of our callable putable common stock on June 30, 1999 (the "Redemption") and litigation-related special items, and their related tax effects. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
The press release includes non-GAAP financial measures because our management uses this information to monitor and evaluate Genentech's operating results and trends on an on-going basis. Our management believes the non-GAAP information is also useful for investors because the amounts relating to the Redemption and push-down accounting and the litigation-related special items that are excluded were the result of transactions that are unusual due to their nature, size or infrequency. Consequently, excluding those items from our operating results provides users of the financial statements an important insight into our operating results and related trends that affect our business. In addition, our management uses non-GAAP financial information and measures internally for operating, budgeting and financial planning purposes.
ITEM 8.01. |
OTHER EVENTS |
A copy of our consolidated statements of income data for the three and nine months ended September 30, 2005, and consolidated balance sheets data at September 30, 2005 prepared in accordance with GAAP is filed as Exhibit 99.2 to this report.
ITEM 9.01. |
FINANCIAL STATEMENTS AND EXHIBITS |
(c) |
Exhibits. |
Exhibit No. |
||
99.1 |
Earnings Press Release of Genentech, Inc. dated October 10, 2005. |
|
99.2 |
Consolidated Statements of Income and Balance Sheets Data |
- 2 -
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GENENTECH, INC.
|
|||
Date: |
October 10, 2005 |
/s/ARTHUR D. LEVINSON |
|
Arthur D. Levinson, Ph.D. |
|||
Date: |
October 10, 2005 |
/s/DAVID A. EBERSMAN |
|
David A. Ebersman |
|||
Date: |
October 10, 2005 |
/s/JOHN M. WHITING |
|
John M. Whiting |
- 3 -
EXHIBIT INDEX
Exhibit No. |
Description |
|
99.1 |
Earnings Press Release of Genentech, Inc. dated October 10, 2005. |
|
99.2 |
Consolidated Statements of Income and Balance Sheets Data |
- 4 -
EXHIBIT 99.1
|
NEWS RELEASE |
||
Media Contact: |
Debra Charlesworth |
(650) 225-2742 |
|
Investor Contact: |
Kathee Littrell |
(650) 225-1034 |
|
http://www.gene.com |
GENENTECH ANNOUNCES THIRD QUARTER 2005 RESULTS
-- Quarterly Non-GAAP EPS Increases 46 Percent to $0.35 --
-- Quarterly Oncology U.S. Product Sales Top $1 Billion
for First Time in Company History --
SOUTH SAN FRANCISCO, Calif. -- October 10, 2005 -- Genentech, Inc. (NYSE: DNA) today announced financial results for the third quarter of 2005. Key results for the third quarter of 2005 included:
"Genentech's first nine months of 2005 have been exceptional, with a string of five consecutive positive Phase III trial results and record product sales and earnings," said Arthur D. Levinson,
- 1 -
Ph.D., Genentech's chairman and chief executive officer. "We are pleased with our continued strong financial results as we enter the last quarter of our 5x5 program."
"For the full year 2005, we are currently expecting year-over-year non-GAAP earnings per share growth of approximately 50 percent," said David Ebersman, senior vice president and chief financial officer.
Note:
Genentech's non-GAAP net income and non-GAAP earnings per share exclude recurring charges related to the 1999 Roche redemption of Genentech's stock and litigation-related special items. The differences in non-GAAP and GAAP numbers are reconciled in the tables below and on www.gene.com. All share and per share amounts reflect the May 2004 two-for-one split of Genentech common stock.Product Sales
"We are very proud of the strong bio-oncology business that we have built; for the first time in Genentech's history, quarterly oncology U.S. product sales topped one billion dollars," said Ian T. Clark, senior vice president, Commercial Operations. "While our policies only allow our sales force to promote our products for on-label usage, we see increasing use of Avastin in other cancer areas outside of the approved indication of first-line metastatic colorectal cancer, and of Herceptin in the adjuvant setting, also an unapproved use."
For the three months ended September 30, 2005:
- 2 -
Royalties and Contract Revenues
- 3 -
Total Costs and Expenses
The unrestricted cash and investments portfolio totals approximately $4.1 billion as of September 30, 2005. Among other items, the cash balance reflects the receipt of $2 billion from the company's July 2005 debt offering and the use of approximately $929 million related to share repurchase activity in the third quarter. Also in the third quarter, the company paid approximately $585 million to buy out two synthetic lease obligations associated with its Vacaville and South San Francisco facilities.
Clinical Development
"We are making good progress in our efforts with the FDA to establish our filing timelines. We completed two sBLAs for Rituxan in the past quarter and plan to submit additional filings for Lucentis, Herceptin, Rituxan and Avastin within the next nine months," said Susan D. Hellmann, M.D., M.P.H., president of Product Development. "We plan to file sBLAs for Avastin in first-line non-squamous, non-small cell lung cancer and in first-line metastatic breast cancer during the first half of 2006."
- 4 -
Genentech anticipates filing a supplemental Biologics License Application (sBLA) in the first quarter of 2006 for Herceptin in the adjuvant setting based on data from U.S. studies. Genentech announced that, in addition to initiating the Phase III study of Avastin in first-line metastatic ovarian cancer, it completed enrollment in both the Phase I/II second-generation Anti-CD20 study in rheumatoid arthritis and the Phase I BR3-Fc study in rheumatoid arthritis.
Other Company Activity
The company provided additional information on the pending reexamination of the Cabilly, et al. U.S. Patent No. 6,331,415 (Cabilly patent). Genentech estimates that the process leading up to a final Office action or a notice of intent to issue a reexamination certificate from the U.S. Patent and Trademark Office may take from two to 12 months and that any appeals process may take several years. The overall net pre-tax income to Genentech from revenues and expenses related to the Cabilly patent was approximately $20 million for the third quarter of 2005, or approximately $0.01 per share. Genentech believes that the third quarter 2005 Cabillly-related pre-tax income figure represents approximately one-quarter of the full year's expected results, excluding the effects of a one-time licensee payment related to 2004 sales that was recorded in the first quarter of 2005.
In September 2005 the FDA granted approval for the manufacture of Rituxan bulk drug substance at Lonza's Portsmouth, New Hampshire production facility.
Webcast:
Genentech will be offering a live webcast of a discussion by Genentech management of the earnings and other business results on Monday, October 10, 2005, at 2:15 p.m. Pacific Time (PT). The live webcast may be accessed on Genentech's Website at http://www.gene.com. This webcast will be available via the Website until 5:00 p.m. PT on October 24, 2005. A telephonic audio replay of the webcast will be available beginning at 5:15 p.m. PT on October 10, 2005 through 5:15 p.m. PT on October 17, 2005. Access numbers for this replay are: 1-800-642-1687 (U.S./Canada) and 1-706-645-9291 (international); conference ID number is 9678548.
- 5 -
About Genentech:
Genentech is a leading biotechnology company that discovers, develops, manufactures and commercializes biotherapeutics for significant unmet medical needs. A considerable number of the currently approved biotechnology products originated from or are based on Genentech science. Genentech manufactures and commercializes multiple biotechnology products directly in the United States and licenses several additional products to other companies. The company has headquarters in South San Francisco, California and is traded on the New York Stock Exchange under the symbol DNA. For additional information about the company, please visit http://www.gene.com.
For information on Genentech's latest business and product development events please refer to http://www.gene.com/gene/news/press-releases/index.jsp.
This press release contains forward-looking statements regarding the timeframe of potential FDA filings for Lucentis, Herceptin, Rituxan and Avastin; growth in non-GAAP EPS for 2005; and expected 2005 Cabilly-related income. Actual results could differ materially. Among other things, the timeframe for potential FDA filings could be affected by product safety, efficacy or manufacturing issues, additional time requirements to achieve study endpoints or for data analysis or filing preparation, need for additional clinical studies, and FDA actions or delays; and Cabilly-related income could be affected by sales growth of our licensees' products and our own products, the outcome of the re-examination or other related legal proceedings, and fluctuations in tax rates; the growth of new oncology products and indications may be affected by variables such as demand, penetration, reimbursement and duration of use; and non-GAAP EPS growth could be affected by all of the foregoing and by failure to receive FDA approv al; competition, pricing, the ability to supply product, product withdrawals, new product approvals and launches, achieving sales revenue consistent with internal forecasts, unanticipated expenses such as litigation or legal settlement expenses or equity securities write-downs, costs of sales, R&D expenses, fluctuations in royalties and contract revenues, and fluctuations in interest rates. Genentech disclaims, and does not undertake, any obligation to update or revise any forward-looking statements in this press release.
# # #
- 6 -
GENENTECH, INC. (unaudited) |
||||||||||||||||||
Three Months |
||||||||||||||||||
2005 |
2004 |
|||||||||||||||||
GAAP (1) |
Difference |
Non-GAAP (2) |
GAAP (1) |
Difference |
Non-GAAP (2) |
|||||||||||||
Revenues: |
||||||||||||||||||
Product sales |
$ |
1,450,979 |
$ |
1,450,979 |
$ |
1,005,511 |
$ |
1,005,511 |
||||||||||
Royalties |
237,777 |
237,777 |
153,942 |
153,942 |
||||||||||||||
Contract revenue |
63,066 |
63,066 |
43,191 |
43,191 |
||||||||||||||
Total operating revenues |
1,751,822 |
1,751,822 |
1,202,644 |
1,202,644 |
||||||||||||||
Costs and expenses: |
||||||||||||||||||
Cost of sales |
230,127 |
230,127 |
165,990 |
165,990 |
||||||||||||||
Research and development |
328,850 |
328,850 |
234,086 |
234,086 |
||||||||||||||
Marketing, general and administrative |
349,323 |
349,323 |
264,648 |
264,648 |
||||||||||||||
Collaboration profit sharing |
219,591 |
219,591 |
151,894 |
151,894 |
||||||||||||||
Recurring charges related to redemption |
27,191 |
$ |
(27,191) |
(3) |
- |
34,534 |
$ |
(34,534) |
(3) |
- |
||||||||
Special items: litigation-related |
13,507 |
(13,507) |
(4) |
- |
13,419 |
(13,419) |
(4) |
- |
||||||||||
Total costs and expenses |
1,168,589 |
(40,698) |
1,127,891 |
864,571 |
(47,953) |
816,618 |
||||||||||||
Operating margin |
583,233 |
40,698 |
623,931 |
338,073 |
47,953 |
386,026 |
||||||||||||
Other income, net(5) |
22,391 |
- |
22,391 |
23,510 |
- |
23,510 |
||||||||||||
Income before taxes |
605,624 |
40,698 |
646,322 |
361,583 |
47,953 |
409,536 |
||||||||||||
Income tax provision |
246,211 |
16,280 |
262,491 |
130,709 |
19,181 |
149,890 |
||||||||||||
Net income |
$ |
359,413 |
$ |
24,418 |
$ |
383,831 |
$ |
230,874 |
$ |
28,772 |
$ |
259,646 |
||||||
Earnings per share: |
||||||||||||||||||
Basic |
$ |
0.34 |
$ |
0.02 |
$ |
0.36 |
$ |
0.22 |
$ |
0.03 |
$ |
0.25 |
||||||
Diluted |
$ |
0.33 |
$ |
0.02 |
$ |
0.35 |
$ |
0.21 |
$ |
0.03 |
$ |
0.24 |
||||||
Weighted average shares used to compute |
||||||||||||||||||
Basic |
1,060,539 |
1,060,539 |
1,055,140 |
1,055,140 |
||||||||||||||
Diluted |
1,086,964 |
1,086,964 |
1,077,093 |
1,077,093 |
||||||||||||||
___________________
(1) |
||
(3) |
Represents the amortization of other intangible assets related to the 1999 redemption of Genentech's Special Common Stock. |
|
(4) |
Represents accrued interest and bond costs in Q3 2005 and 2004 related to the City of Hope trial judgment. |
|
(5) |
"Other income, net" includes interest income, interest expense, net 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. |
|
Our 2005 non-GAAP EPS estimate does not include recurring charges related to the 1999 redemption of our stock by Roche, which are estimated to be approximately $123 million on a pretax basis in 2005. In addition, the 2005 non-GAAP EPS estimate does not include litigation-related special items for accrued interest and associated bond costs on the City of Hope judgment and net amounts paid on other litigation settlements, which were approximately $44 million through the third quarter of 2005 and currently estimated to be approximately $58 million on a pretax basis in 2005. Our 2005 GAAP EPS would include the redemption-related recurring charges and the litigation-related special items as well as any other potential special charges related to existing or future litigation or its resolution, or changes in accounting principles, all of which may be significant. |
- 7 -
GENENTECH, INC. (unaudited) |
||||||||||||||||||
Nine Months |
||||||||||||||||||
2005 |
2004 |
|||||||||||||||||
GAAP (1) |
Difference |
Non-GAAP (2) |
GAAP (1) |
Difference |
Non-GAAP (2) |
|||||||||||||
Revenues: |
||||||||||||||||||
Product sales |
$ |
3,911,095 |
$ |
3,911,095 |
$ |
2,682,577 |
$ |
2,682,577 |
||||||||||
Royalties |
670,014 |
670,014 |
459,899 |
459,899 |
||||||||||||||
Contract revenue |
159,170 |
159,170 |
163,381 |
163,381 |
||||||||||||||
Total operating revenues |
4,740,279 |
4,740,279 |
3,305,857 |
3,305,857 |
||||||||||||||
Costs and expenses: |
||||||||||||||||||
Cost of sales |
750,649 |
750,649 |
467,153 |
467,153 |
||||||||||||||
Research and development |
850,215 |
850,215 |
637,317 |
637,317 |
||||||||||||||
Marketing, general and administrative |
1,021,174 |
1,021,174 |
788,616 |
788,616 |
||||||||||||||
Collaboration profit sharing |
594,666 |
594,666 |
423,546 |
423,546 |
||||||||||||||
Recurring charges related to redemption |
96,155 |
$ |
(96,155) |
(3) |
- |
110,952 |
$ |
(110,952) |
(3) |
- |
||||||||
Special items: litigation-related |
44,291 |
(44,291) |
(4) |
- |
40,276 |
(40,276) |
(4) |
- |
||||||||||
Total costs and expenses |
3,357,150 |
(140,446) |
3,216,704 |
2,467,860 |
(151,228) |
2,316,632 |
||||||||||||
Operating margin |
1,383,129 |
140,446 |
1,523,575 |
837,997 |
151,228 |
989,225 |
||||||||||||
Other income, net(5) |
70,290 |
- |
70,290 |
61,274 |
- |
61,274 |
||||||||||||
Income before taxes |
1,453,419 |
140,446 |
1,593,865 |
899,271 |
151,228 |
1,050,499 |
||||||||||||
Income tax provision |
513,666 |
56,178 |
569,844 |
321,040 |
60,491 |
381,531 |
||||||||||||
Net income |
$ |
939,753 |
$ |
84,268 |
$ |
1,024,021 |
$ |
578,231 |
$ |
90,737 |
$ |
668,968 |
||||||
Earnings per share: |
||||||||||||||||||
Basic |
$ |
0.89 |
$ |
0.08 |
$ |
0.97 |
$ |
0.55 |
$ |
0.08 |
$ |
0.63 |
||||||
Diluted |
$ |
0.87 |
$ |
0.08 |
$ |
0.95 |
$ |
0.53 |
$ |
0.09 |
$ |
0.62 |
||||||
Weighted average shares used to compute |
||||||||||||||||||
Basic |
1,055,028 |
1,055,028 |
1,057,006 |
1,057,006 |
||||||||||||||
Diluted |
1,080,921 |
1,080,921 |
1,082,081 |
1,082,081 |
||||||||||||||
___________________
(1) |
Reflects operating results in accordance with U.S. generally accepted accounting principles (or GAAP). |
|
(2) |
Non-GAAP amounts exclude litigation-related special items and recurring charges related to the 1999 redemption of Genentech's Special Common Stock, net of tax effects. |
|
(3) |
Represents the amortization of other intangible assets related to the 1999 redemption of Genentech's Special Common Stock. |
|
(4) |
Represents accrued interest and bond costs in 2005 and 2004 related to the City of Hope trial judgment, and net amounts paid in 2005 related to other litigation settlements. |
|
(5) |
"Other income, net" includes interest income, interest expense, net 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. |
|
2005 Reconciliation of GAAP and Non-GAAP EPS |
- 8 -
GENENTECH, INC. (unaudited) |
||||||
September 30, |
||||||
2005 |
2004 |
|||||
Selected balance sheet data: |
||||||
Cash, cash equivalents and short-term investments |
$ |
2,905,543 |
$ |
1,760,164 |
||
Accounts receivable - product sales, net |
509,465 |
548,555 |
||||
Accounts receivable - royalties, net |
264,179 |
193,650 |
||||
Accounts receivable - other, net |
189,341 |
143,622 |
||||
Inventories |
621,389 |
559,920 |
||||
Long-term marketable debt and equity securities |
1,242,866 |
1,310,422 |
||||
Property, plant and equipment, net |
3,128,089 |
1,922,313 |
||||
Goodwill |
1,315,019 |
1,315,019 |
||||
Other intangible assets |
587,911 |
677,049 |
||||
Long-term assets |
1,030,842 |
774,435 |
||||
Total assets |
12,099,306 |
9,408,360 |
||||
Total current liabilities |
1,354,938 |
1,106,656 |
||||
Total liabilities |
4,376,048 |
2,441,064 |
||||
Total stockholders' equity |
7,723,258 |
6,967,566 |
||||
Year-to-date: |
||||||
Capital expenditures |
$ |
1,106,930 |
$ |
418,214 |
||
Total GAAP(1) depreciation and amortization expense |
275,632 |
259,583 |
||||
Less: redemption related amortization expense(3) |
(96,155) |
(110,952) |
||||
Non-GAAP(2) depreciation and amortization expense |
$ |
179,477 |
$ |
148,631 |
||
___________________
(1) |
In accordance with U.S. generally accepted accounting principles (or GAAP). |
|
(2) |
Non-GAAP amounts exclude amortization of other intangible assets related to the 1999 redemption of Genentech's Special Common Stock. |
|
(3) |
Represents the amortization of other intangible assets related to the 1999 redemption of Genentech's Special Common Stock. |
- 9 -
GENENTECH, INC. (unaudited) |
||||||
Three Months |
||||||
2005 |
2004 |
|||||
Net U.S. Product Sales |
||||||
Rituxan |
$ |
456,227 |
$ |
393,000 |
||
Herceptin |
215,148 |
126,300 |
||||
Avastin |
325,156 |
183,003 |
||||
Growth Hormone |
88,585 |
84,931 |
||||
Thrombolytics |
57,903 |
52,867 |
||||
Pulmozyme |
46,593 |
39,816 |
||||
Xolair |
81,550 |
53,856 |
||||
Raptiva |
20,887 |
16,265 |
||||
Tarceva |
73,222 |
- |
||||
Total U.S. product sales |
1,365,271 |
950,038 |
||||
Net product sales to collaborators |
85,708 |
55,473 |
||||
Total Product Sales |
$ |
1,450,979 |
$ |
1,005,511 |
||
Nine Months |
||||||
2005 |
2004 |
|||||
Net U.S. Product Sales |
||||||
Rituxan |
$ |
1,347,125 |
$ |
1,144,813 |
||
Herceptin |
497,205 |
352,996 |
||||
Avastin |
773,695 |
354,134 |
||||
Growth Hormone |
275,570 |
256,896 |
||||
Thrombolytics |
160,105 |
147,133 |
||||
Pulmozyme |
137,482 |
114,340 |
||||
Xolair |
227,183 |
127,332 |
||||
Raptiva |
58,803 |
35,971 |
||||
Tarceva |
190,993 |
- |
||||
Total U.S. product sales |
3,668,161 |
2,533,615 |
||||
Net product sales to collaborators |
242,934 |
148,962 |
||||
Total Product Sales |
$ |
3,911,095 |
$ |
2,682,577 |
||
- 10 -
EXHIBIT 99.2
GENENTECH, INC. (unaudited) |
|||||||
Three Months |
|||||||
2005 |
2004 |
||||||
Revenues: |
|||||||
Product sales |
$ |
1,450,979 |
$ |
1,005,511 |
|||
Royalties |
237,777 |
153,942 |
|||||
Contract revenue |
63,066 |
43,191 |
|||||
Total operating revenues |
1,751,822 |
1,202,644 |
|||||
Costs and expenses: |
|||||||
Cost of sales |
230,127 |
165,990 |
|||||
Research and development |
328,850 |
234,086 |
|||||
Marketing, general and administrative |
349,323 |
264,648 |
|||||
Collaboration profit sharing |
219,591 |
151,894 |
|||||
Recurring charges related to redemption |
27,191 |
34,534 |
|||||
Special items: litigation-related |
13,507 |
13,419 |
|||||
Total costs and expenses |
1,168,589 |
864,571 |
|||||
Operating margin |
583,233 |
338,073 |
|||||
Other income, net(1) |
22,391 |
23,510 |
|||||
Income before taxes |
605,624 |
361,583 |
|||||
Income tax provision |
246,211 |
130,709 |
|||||
Net income |
$ |
359,413 |
$ |
230,874 |
|||
Earnings per share: |
|||||||
Basic |
$ |
0.34 |
$ |
0.22 |
|||
Diluted |
$ |
0.33 |
$ |
0.21 |
|||
Weighted average shares used to compute earnings per share: |
|||||||
Basic |
1,060,539 |
1,055,140 |
|||||
Diluted |
1,086,964 |
1,077,093 |
|||||
___________________
(1) |
"Other income, net" includes interest income, interest expense, net 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. |
- 1 -
GENENTECH, INC. (unaudited) |
|||||||
Nine Months |
|||||||
2005 |
2004 |
||||||
Revenues: |
|||||||
Product sales |
$ |
3,911,095 |
$ |
2,682,577 |
|||
Royalties |
670,014 |
459,899 |
|||||
Contract revenue |
159,170 |
163,381 |
|||||
Total operating revenues |
4,740,279 |
3,305,857 |
|||||
Costs and expenses: |
|||||||
Cost of sales |
750,649 |
467,153 |
|||||
Research and development |
850,215 |
637,317 |
|||||
Marketing, general and administrative |
1,021,174 |
788,616 |
|||||
Collaboration profit sharing |
594,666 |
423,546 |
|||||
Recurring charges related to redemption |
96,155 |
110,952 |
|||||
Special items: litigation-related |
44,291 |
40,276 |
|||||
Total costs and expenses |
3,357,150 |
2,467,860 |
|||||
Operating margin |
1,383,129 |
837,997 |
|||||
Other income, net(1) |
70,290 |
61,274 |
|||||
Income before taxes |
1,453,419 |
899,271 |
|||||
Income tax provision |
513,666 |
321,040 |
|||||
Net income |
$ |
939,753 |
$ |
578,231 |
|||
Earnings per share: |
|||||||
Basic |
$ |
0.89 |
$ |
0.55 |
|||
Diluted |
$ |
0.87 |
$ |
0.53 |
|||
Weighted average shares used to compute earnings per share: |
|||||||
Basic |
1,055,028 |
1,057,006 |
|||||
Diluted |
1,080,921 |
1,082,081 |
|||||
___________________
(1) |
"Other income, net" includes interest income, interest expense, net 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. (unaudited) |
||||||
September 30, |
||||||
2005 |
2004 |
|||||
Selected balance sheet data: |
||||||
Cash, cash equivalents and short-term investments |
$ |
2,905,543 |
$ |
1,760,164 |
||
Accounts receivable - product sales, net |
509,465 |
548,555 |
||||
Accounts receivable - royalties, net |
264,179 |
193,650 |
||||
Accounts receivable - other, net |
189,341 |
143,622 |
||||
Inventories |
621,389 |
559,920 |
||||
Long-term marketable debt and equity securities |
1,242,866 |
1,310,422 |
||||
Property, plant and equipment, net |
3,128,089 |
1,922,313 |
||||
Goodwill |
1,315,019 |
1,315,019 |
||||
Other intangible assets |
587,911 |
677,049 |
||||
Long-term assets |
1,030,842 |
774,435 |
||||
Total assets |
12,099,306 |
9,408,360 |
||||
Total current liabilities |
1,354,938 |
1,106,656 |
||||
Total liabilities |
4,376,048 |
2,441,064 |
||||
Total stockholders' equity |
7,723,258 |
6,967,566 |
||||
Year-to-date: |
||||||
Capital expenditures |
$ |
1,106,930 |
$ |
418,214 |
||
Total depreciation and amortization expense |
275,632 |
259,583 |
- 3 -
GENENTECH, INC. (unaudited) |
||||||
Three Months |
||||||
2005 |
2004 |
|||||
Net U.S. Product Sales |
||||||
Rituxan |
$ |
456,227 |
$ |
393,000 |
||
Herceptin |
215,148 |
126,300 |
||||
Avastin |
325,156 |
183,003 |
||||
Growth Hormone |
88,585 |
84,931 |
||||
Thrombolytics |
57,903 |
52,867 |
||||
Pulmozyme |
46,593 |
39,816 |
||||
Xolair |
81,550 |
53,856 |
||||
Raptiva |
20,887 |
16,265 |
||||
Tarceva |
73,222 |
- |
||||
Total U.S. product sales |
1,365,271 |
950,038 |
||||
Net product sales to collaborators |
85,708 |
55,473 |
||||
Total Product Sales |
$ |
1,450,979 |
$ |
1,005,511 |
||
Nine Months |
||||||
2005 |
2004 |
|||||
Net U.S. Product Sales |
||||||
Rituxan |
$ |
1,347,125 |
$ |
1,144,813 |
||
Herceptin |
497,205 |
352,996 |
||||
Avastin |
773,695 |
354,134 |
||||
Growth Hormone |
275,570 |
256,896 |
||||
Thrombolytics |
160,105 |
147,133 |
||||
Pulmozyme |
137,482 |
114,340 |
||||
Xolair |
227,183 |
127,332 |
||||
Raptiva |
58,803 |
35,971 |
||||
Tarceva |
190,993 |
- |
||||
Total U.S. product sales |
3,668,161 |
2,533,615 |
||||
Net product sales to collaborators |
242,934 |
148,962 |
||||
Total Product Sales |
$ |
3,911,095 |
$ |
2,682,577 |
||
- 4 -
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