Genetics Institute Inc. on Monday reported a net profit for the fourth quarter endedNov. 30 and a loss for the year. Both had been expected.
Despite two consecutive profitable quarters last year, GI (NASDAQ:GENI) said it expectsa loss this year due to significant increases in R&D expenses. “Much of thisexpected increase relates to accelerating activities involving our three prioritydevelopment-stage products, M-CSF, BMP-2 and IL-11,“ said Garen Bohlin, executivevice president and chief financial officer.
GI won’t have estimates of R&D expenditures for the year, or how these willaffect earnings, until the company releases its first-quarter numbers, said spokeswomanMelinda Lindquist.
The Cambridge, Mass., company hopes to receive Food and Drug Administration marketingapproval for its Factor VIII product early this year, she said. Possible approval of itsGM-CSF “is more of a question mark.“
For the year, GI had a net loss of $10.7 million, or $1.05 per share, on revenues of$82.6 million. The loss included an $11 million first-quarter charge for potentialpatent-related damages involving erythropoietin. For the 1990 fiscal year, the company hada net loss of $24.5 million, or a $2.04 per share, on revenues of $40.4 million.
The fourth-quarter profit was $6.1 million, or 32 cents, on revenues of $28 million.Figures included about $9 million in benchmark payments from Schering-Plough Corp. onmilestones achieved in the development of M-CSF and IL-11.
Royalty revenue grew to $18.4 million for the year, compared with $8.2 million in 1990.
GI shares rose 38 cents to $39.25 on Monday.