Genetics Institute Inc. on Friday reported a net loss of $23.5million, or $1.71 per share, on revenues of $12 million for itsfirst quarter ended Feb. 28.
The results were in line with GI's projections made last monthin the wake of a federal appeals court decision invalidating theCambridge, Mass., companyLs U.S. patent for erythropoietin(EPO).
Genetics Institute common stock (NASDAQ:GENI) closed at $40on Friday, down $1.25.
GI still hopes to come close to breaking even for the remainingthree quarters, exclusive of dividends, said companyspokeswoman Melinda Lindquist. The company projectsrevenues of $80 million to $90 million for the year.
Although GI isn't forecasting specific numbers, Lindquist said itwould be reasonable to project $20 million in royalties on salesof EPO in Japan and Europe and $13 million in contract-relatedrevenues as a result of its bone morphogenic proteindevelopment agreement with Yamanouchi Pharmaceutical Corp.GI reported $4 million in royalties for the quarter, comparedwith no royalties for the first quarter of 1990.
GI took a previously announced one-time charge to earnings of$18.3 million, $11 million of which was in response to loss ofthe EPO patent. An additional $7.3 million charge was taken toaccount for potential losses relating to GI's 4.9 percent equityinvestment in NeoRx Corp.
First quarter ended Feb. 28
(Figures in thousands except per-share data.)
1990 1989 Percent change
Revenues $11,958 8,555 -40Operating expenses 29,170 17,048 -71Operating losses (17,212) (8,493) -103Net income (loss) (23,545) (6,977) -237Net income per share (loss) (1.71) (.57) -200Outstanding shares 14,476 14,175 +2
(c) 1997 American Health Consultants. All rights reserved.