GAITHERSBURG, Md., April 30 /PRNewswire-FirstCall/ -- MedImmune, Inc. announced today that a 15-percent increase in total revenues and a substantial increase in net income margin drove the company's net earnings for the 2007 first quarter up more than three-fold over the year-ago quarter. In the 2007 quarter, MedImmune's total revenues were $575 million compared to $498 million in the 2006 first quarter. Excluding share-based compensation, the company's net earnings for the 2007 first quarter were $166 million, or $0.69 of diluted earnings per share, compared to $59 million, or $0.23 per diluted share, in the 2006 first quarter. Including share-based compensation and in accordance with Generally Accepted Accounting Principles (GAAP), MedImmune's net earnings in the 2007 first quarter were $160 million, or $0.66 per diluted share, compared to $47 million, or $0.18 per diluted share, in the 2006 first quarter.
Worldwide sales of Synagis(R) (palivizumab) grew nine percent to $507 million in the 2007 first quarter from $463 million last year. In the U.S., sales of Synagis grew by nine percent to $475 million in the 2007 first quarter from $434 million in the 2006 quarter. Sales to our international distributor, Abbott International, were up 12 percent to $32 million in the 2007 first quarter from $29 million in the prior year period. Contributing to total revenues in the 2007 quarter were approximately $26 million in HPV- related revenues, about $14 million higher than anticipated in MedImmune's preliminary results issued on April 9, 2007.
The company also announced today that in light of the proposed merger with AstraZeneca PLC announced last week, the company has elected to cancel its conference call to discuss first quarter 2007 financial results, which was originally scheduled for May 3, 2007. The company will continue to make available its financial information via filings with the U.S. Securities and Exchange Commission.
About MedImmune
MedImmune strives to provide better medicines to patients, new medical options for physicians, rewarding careers to employees, and increased value to shareholders. Dedicated to advancing science and medicine to help people live better lives, the company is focused on the areas of infectious diseases, cancer and inflammatory diseases. With more than 2,500 employees worldwide, MedImmune is headquartered in Maryland. For more information, visit the company's website at http://www.medimmune.com/.
This announcement is neither an offer to purchase nor a solicitation of an offer to sell shares of MedImmune. MedImmune stockholders are urged to read the relevant tender offer documents from AstraZeneca PLC when such become available because they will contain important information that stockholders should consider before making any decision regarding tendering their shares. At the time the offer is commenced, AstraZeneca will file tender offer materials with the U.S. Securities and Exchange Commission, and MedImmune will file a Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the offer. The tender offer materials (including an Offer to Purchase, a related Letter of Transmittal and certain other offer documents) and the Solicitation/Recommendation Statement will contain important information, which should be read carefully before any decision is made with respect to the tender offer. The Offer to Purchase, the related Letter of Transmittal and certain other offer documents, as well as the Solicitation/Recommendation Statement, will be made available for free at the U.S. Securities and Exchange Commission's web site at http://www.sec.gov/, at AstraZeneca's website at http://www.astrazeneca.com/ or at MedImmune's website at http://www.medimmune.com/.
MedImmune, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
Three Months Ended
March 31,
2007 2006
Revenues:
Product sales $ 531.4 $ 491.6
Other revenue 43.4 6.4
Total Revenue 574.8 498.0
Costs and expenses:
Cost of sales 115.5 123.1
Research and development 79.5 87.9
Selling, general and administrative 147.1 211.9
Other operating expenses 0.3 2.7
342.4 425.6
Operating income 232.4 72.4
Interest income, net 12.4 13.0
Gain (loss) on investment activities 9.6 (0.8)
Earnings before income taxes 254.4 84.6
Provision for income taxes 94.4 37.6
Net earnings $ 160.0 $ 47.0
Basic earnings per share $ 0.67 $ 0.19
Shares used in computing basic earnings
per share 237.9 247.9
Diluted earnings per share $ 0.66 $ 0.18
Shares used in computing diluted
earnings per share 241.4 260.0
MedImmune, Inc.
Reconciliation of GAAP Results to Adjusted Results
(in millions, except per share data)
(Unaudited)
Presented in the following table is a reconciliation of reported net
earnings under GAAP to net earnings excluding the impact of employee
share-based compensation expense.
Three Months Ended
March 31,
2007 2006
Item:
Net earnings, as reported (1) $ 160.0 $ 47.0
Share-based compensation expense (2)
Cost of sales (3) 0.8 0.4
Research and development 2.3 3.7
Selling, general and
administrative 4.3 5.6
7.4 9.7
Income taxes (1.2) 2.1
Net earnings, as adjusted $ 166.2 $ 58.8
Basic earnings per share, as reported 0.67 0.19
Diluted earnings per share, as reported 0.66 0.18
Basic earnings per share, as adjusted 0.70 0.24
Diluted earnings per share, as adjusted 0.69 0.23
Shares used to compute earnings per share:
Basic, as reported 237.9 247.9
Diluted, as reported 241.4 260.0
Basic, as adjusted 237.9 247.9
Diluted, as adjusted 241.6 259.7
(1) Prepared in accordance with accounting principles generally accepted
in the United States.
(2) Represents the addback of the noncash employee share-based
compensation expense. Share-based compensation is comprised of
incentive stock options, nonqualified stock options and the discount
on stock purchased by employees.
(3) Share-based compensation included in inventory was $1.4 million at
March 31, 2007 and $0.5 million at March 31, 2006.
