<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1997
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM __________ TO __________
Commission File Number 0-12406
IMMUNEX CORPORATION
(exact name of registrant as specified in its charter)
Washington 51-0346580
------------------------------ -----------------------------------
State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
51 University Street, Seattle, WA 98101
(Address of principal executive offices)
Registrant's telephone number, including area code (206) 587-0430
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes x No
-------- -------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, $.01 par value 39,642,533
---------------------------- -----------------------------
Class Outstanding at August 6, 1997
<PAGE>
IMMUNEX CORPORATION
QUARTERLY REPORT ON FORM 10-Q
JUNE 30, 1997
TABLE OF CONTENTS
Page No.
--------
PART I. FINANCIAL INFORMATION 3
Item 1. Financial Statements:
a) Consolidated Condensed Balance Sheets -
June 30, 1997 and December 31, 1996 4
b) Consolidated Condensed Statements of Operations -
for the three-month periods ended June 30, 1997
and June 30, 1996 5
c) Consolidated Condensed Statements of Operations -
for the six-month periods ended June 30, 1997
and June 30, 1996 6
d) Consolidated Condensed Statements of Cash Flows -
for the six-month periods ended June 30, 1997
and June 30, 1996 7
e) Notes to Consolidated Condensed Financial Statements 8-9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
10-13
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 14
Item 4. Submission of Matters to a Vote of Security Holders 14
Item 6. Exhibits and Reports on Form 8-K 14
SIGNATURES 15
2
<PAGE>
PART I. FINANCIAL INFORMATION
The consolidated condensed financial statements included herein have been
prepared by Immunex Corporation without audit, according to the rules and
regulations of the Securities and Exchange Commission. Certain information
and footnote disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principles have been omitted
pursuant to such rules and regulations. The financial statements reflect, in
the opinion of management, all adjustments (which include only normal
recurring adjustments) necessary to present fairly the financial position and
results of operations as of and for the periods indicated. The statements
should be read in conjunction with the financial statements and the notes
thereto included in the Company's Annual Report on Form 10-K for the year
ended December 31, 1996.
The results of operations for the six-month period ended June 30, 1997, are
not necessarily indicative of results to be expected for the entire year
ending December 31, 1997.
3
<PAGE>
Item 1. FINANCIAL STATEMENTS
IMMUNEX CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
June 30,
1997 December 31,
(unaudited) 1996
----------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 50,677 $ 23,861
Marketable securities 19,363 -
Accounts receivable, net 21,759 18,428
Inventories 7,758 8,893
Other current assets 2,665 3,429
--------- ---------
Total current assets 102,222 54,611
Property, plant and equipment, net 78,644 80,021
Other assets 37,685 43,155
--------- ---------
$ 218,551 $ 177,787
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 26,571 $ 22,305
Accrued compensation and related items 5,939 4,858
Current portion of long-term obligations 3,287 3,491
Other current liabilities 1,642 843
--------- ---------
Total current liabilities 37,439 31,497
Long-term obligations 8,835 8,580
Shareholders' equity:
Common stock, $.01 par value 678,726 648,475
Guaranty payment receivable from AHP (29,769) (56,000)
Unrealized gain on investment 4,891 9,406
Accumulated deficit (481,571) (464,171)
--------- ---------
Total shareholder's equity 172,277 137,710
--------- ---------
$ 218,551 $ 177,787
--------- ---------
--------- ---------
See accompanying notes.
4
<PAGE>
Item 1. FINANCIAL STATEMENTS (continued)
IMMUNEX CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months Three months
ended ended
June 30, June 30,
1997 1996
------------ ------------
Revenues:
Product sales $ 38,961 $ 35,277
Royalty and contract revenue 4,045 6,339
-------- --------
43,006 41,616
Operating expenses:
Cost of product sales 6,228 6,351
Research and development 26,770 25,338
Selling, general and administrative 19,541 16,747
-------- --------
52,539 48,436
Operating loss (9,533) (6,820)
Other income (expense):
Interest income 1,051 675
Interest expense (160) (96)
Other income, net 1 4
-------- --------
892 583
-------- --------
Loss before income taxes (8,641) (6,237)
Provision for income taxes 58 47
-------- --------
Net loss $ (8,699) $ (6,284)
-------- --------
-------- --------
Net loss per common share $ (0.22) $ (0.16)
-------- --------
-------- --------
Number of shares used for per share
amounts 39,610 39,602
-------- --------
-------- --------
See accompanying notes.
5
<PAGE>
Item 1.FINANCIAL STATEMENTS (continued)
IMMUNEX CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Six Months Six Months
ended ended
June 30, June 30,
1997 1996
------------ ------------
Revenues:
Product sales $ 74,860 $ 67,298
Royalty and contract revenue 7,593 16,069
-------- --------
82,453 83,367
Operating expenses:
Cost of product sales 12,514 11,611
Research and development 50,724 50,308
Selling, general and administrative 37,899 34,735
-------- --------
101,137 96,654
-------- --------
Operating loss (18,684) (13,287)
Other income (expense):
Interest income 1,709 1,089
Interest expense (316) (152)
Other income, net 6 11
-------- --------
1,399 948
-------- --------
Loss before income taxes (17,285) (12,339)
-------- --------
Provision for income taxes 115 111
-------- --------
Net loss $(17,400) $(12,450)
-------- --------
-------- --------
Net loss per common share $ (0.44) $ (0.31)
-------- --------
-------- --------
Number of shares used for per share amounts 39,610 39,602
-------- --------
-------- --------
See accompanying notes.
6
<PAGE>
Item 1. FINANCIAL STATEMENTS (continued)
IMMUNEX CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands, except per share amounts)
(unaudited)
Six Months Six Months
ended ended
June 30, June 30,
1997 1996
------------ ------------
Cash flows from operating activities:
Net loss $(17,400) $(12,450)
-------- --------
Adjustments to reconcile net loss to
net cash used in operating
activities:
Depreciation and amortization 7,788 7,519
Cash flow impact of changes to:
Accounts receivable (3,330) (4,987)
Inventories 1,135 (530)
Accounts payable, accrued
liabilities and other current
liabilities 6,146 (8,250)
Other current assets 764 (2,337)
-------- --------
Net cash used in operating
activities (4,897) (21,035)
-------- --------
Cash flows from investing activities:
Purchases of property, plant and
equipment (4,824) (2,940)
Purchases of marketable securities (24,960) -
Proceeds from maturities of marketable
securities 5,655 -
Other (691) (661)
-------- --------
Net cash used in investing activities (24,820) (3,601)
-------- --------
Cash flows from financing activities:
Guaranty payments received from AHP 56,000 45,288
Other 533 (309)
-------- --------
Net cash provided by financing
activities 56,533 44,979
-------- --------
Net increase in cash and cash equivalents 26,816 20,343
Cash and cash equivalents, beginning
of period 23,861 20,437
-------- --------
Cash and cash equivalents, end of period $ 50,677 $ 40,780
-------- --------
-------- --------
See accompanying notes.
7
<PAGE>
IMMUNEX CORPORATION
Notes to Consolidated Financial Statements
NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION
Immunex Corporation (the "Company") is a biopharmaceutical company that
discovers, develops, manufactures and markets human therapeutic products to
treat cancer, infectious diseases and immunological disorders.
The Company operates in a highly regulated and competitive environment. The
manufacturing and marketing of pharmaceutical products requires approval from
and is subject to ongoing oversight by the United States Food and Drug
Administration ("FDA")in the United States and by comparable agencies in
other countries. Obtaining approval for a new therapeutic product is never
certain and may take several years and involve expenditure of substantial
resources. Competition in researching, developing and marketing
pharmaceutical products is intense. Any of the technologies covering the
Company's existing products or products under development could become
obsolete or diminished in value by discoveries and developments of other
organizations.
The Company's market for pharmaceutical products is the United States, Canada
and Puerto Rico. The Company has arrangements with Wyeth-Ayerst Canada, Inc.
and Wyeth-Ayerst Laboratories Puerto Rico, Inc. for distribution and sale of
its pharmaceutical products in Canada and Puerto Rico, respectively.
Products are sold primarily to wholesalers, oncology distributors, clinics
and hospitals in the United States.
The financial statements are prepared in conformity with generally accepted
accounting principles which require management estimates and assumptions that
affect the amounts reported on the financial statements and accompanying
notes. Actual results could differ from those estimates.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the accounts of the Company and
its wholly owned subsidiaries. All significant intercompany accounts and
transactions have been eliminated in consolidation.
CASH EQUIVALENTS
Cash equivalents consist principally of deposits in money market accounts
available on demand or securities with purchased maturities of 90 days or
less.
MARKETABLE SECURITIES
Marketable securities are classified as available-for-sale and are stated at
fair value. At June 30, 1997, the Company had an unrealized gain of $58,000.
Marketable securities consist of United States government and corporate
obligations.
8
<PAGE>
IMMUNEX CORPORATION
Notes to Consolidated Financial Statements
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
INVENTORIES
Inventories are stated at the lower of cost, using a weighted-average method,
or market. The components of inventories are as follows (in thousands):
June 30, December 31,
1997 1996
-------- ------------
Raw materials $ 1,400 $ 2,453
Work in process 3,437 2,689
Finished goods 2,921 3,751
-------- --------
Totals $ 7,758 $ 8,893
-------- --------
-------- --------
DEPRECIATION AND AMORTIZATION
Depreciation of buildings, equipment and capital leases is calculated using
the straight-line method over the estimated useful lives of the related
assets which range from 3 to 31.5 years. Leasehold improvements are
amortized on a straight-line basis over the lesser of the estimated useful
life or the term of the lease. The costs of acquiring leasehold interests
are amortized over the remaining term of the lease.
REVENUES
Product sales are recognized when product is shipped. The Company performs
ongoing credit evaluations of its customers and does not require collateral.
Product sales are recorded net of reserves for estimated chargebacks,
returns, discounts, Medicaid rebates and administrative fees. The Company
maintains reserves at a level which management believes is sufficient to
cover estimated future requirements.
Revenues received under royalty, licensing and contract manufacturing
agreements are recognized based on the terms of the underlying contractual
agreements. Expenses related to the performance of contract manufacturing
services by the Company are included in research and development expense.
NET LOSS PER COMMON SHARE
Net loss per common share is calculated by dividing net loss by the weighted
average number of common shares outstanding.
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS
In February 1997, the Financial Accounting Standards Board issued Statement
No. 128, "Earnings per Share," which is required to be adopted on December
31, 1997. The adoption of Statement No. 128 will require the presentation of
Basic Loss per Share and Diluted Loss per Share in the Company's Consolidated
Statements of Operations. Basic Loss per Share is expected to equal Diluted
Loss per Share for the period ending December 31, 1997.
In June 1997, the Financial Accounting Standards Board issued Statement No.
130, "Reporting Comprehensive Income," which is effective for periods
beginning after December 15, 1997. Statement No. 130 establishes standards
for reporting comprehensive income and its components. The adoption of
Statement No. 130 will increase disclosure only and will have no impact on
the Company's financial position or results of operations.
9
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
INTRODUCTION
The following discussion of results of operations, liquidity and
capital resources includes certain forward-looking statements. The words
"believes," "anticipates," "expects" and similar expressions are intended to
identify such forward-looking statements. Such statements are based on
current expectations and are subject to certain risks and uncertainties that
could cause actual results to differ materially from those anticipated by the
statements made by the Company. Certain risk factors have been identified
which could affect the Company's actual results and are described in the
Company's latest Annual Report on Form 10-K filed with the Securities and
Exchange Commission.
RESULTS OF OPERATIONS
OVERVIEW
For the three and six months ended June 30, 1997, the Company
incurred net losses of $8.7 million and $17.4 million, respectively, versus
net losses of $6.3 million and $12.5 million in the comparable 1996 periods.
Product sales levels have increased during 1997 due primarily to growth in
the Company's two lead products, NOVANTRONE-Registered Trademark-
(mitoxantrone) and LEUKINE-Registered Trademark- (sargramostim). The
increase in product sales during 1997 has been more than offset by a decrease
in license fee income and contract manufacturing revenue combined with
increased expenditures related to the Company's developmental research
activities and spending for selling and marketing programs.
REVENUES
Product sales increased to $39.0 million from $35.3 million and to
$74.9 million from $67.3 million for the three and six months ended June 30,
1997 and 1996, respectively. The increase reflects growth in sales of
NOVANTRONE and LEUKINE. In November 1996, the Company received an expanded
label indication for NOVANTRONE for use in the treatment of patients with
pain related to hormone refractory prostate cancer. In January 1997, the
Company launched a multi-dose liquid formulation of LEUKINE. Sales and
marketing programs intended to capitalize on these opportunities were
implemented for both products. The Company believes that both products have
become more widely accepted in the market, resulting in increased sales
levels. For the three and six-month periods ended June 30, 1997, sales of
NOVANTRONE totaled $13.2 million and $24.6 million, respectively, versus $9.9
million and $17.8 million for the comparable 1996 periods. Sales of LEUKINE
totaled $12.5 million and $25.5 million for the three and six months ended
June 30, 1997, respectively, compared to $13.1 million and $23.8 million for
the 1996 three and six-month periods. LEUKINE sales for the second quarter
of 1996 were higher than the current period due primarily to increased
purchases by distributors in response to discounts offered on initial
purchases of a new package configuration launched in June 1996. For the six
months ended June 30, 1997, sales of leucovorin calcium totaled $5.7 million,
which approximated the 1996 sales level. In June 1997, a competitor received
FDA approval to market a 350 mg vial of leucovorin calcium. This vial size
was the one remaining leucovorin calcium product the Company markets which
did not have direct competition. As a result of this approval, the Company
expects sales of leucovorin calcium to decrease significantly from current
levels.
10
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
Royalty and contract revenue in the current year has declined from
prior year levels, totaling $4.0 million and $7.6 million for the three and
six months ended June 30, 1997, respectively, compared to $6.3 million and
$16.1 million for the three and six months ended June 30, 1996. The decrease
is due primarily to decreased license fee income and contract manufacturing
revenue during the current year. In the first quarter of 1996, the Company
entered into two license agreements under which the Company recognized
license fee income of $4.5 million. In addition, in the first half of 1996,
the Company was receiving quarterly payments of $1.0 million from American
Home Products Corporation ("AHP") to retain the international rights to
ENBREL-TM- (TNFR-Fc). This agreement was revised in July 1996 and as a
result, the payments ceased effective July 1, 1996. Under the new agreement,
Immunex and AHP are sharing the costs of developing ENBREL in North America
and Europe. Due to internal manufacturing needs for the development and
manufacturing of its clinical and preclinical product candidates, the Company
ceased initiating new contract manufacturing arrangements in 1996. For the
six months ended June 30, 1996, the Company recognized revenue under such
agreements totaling approximately $2.8 million. No related revenue has been
earned during 1997, nor is expected to be earned for the foreseeable future.
OPERATING EXPENSES
Cost of product sales was $6.2 million, or 16.0% of product sales
and $6.4 million, or 18.0% of product sales for the quarters ended June 30,
1997 and 1996, respectively. For the six months ended June 30, 1997 and
1996, cost of product sales was $12.5 million, or 16.7% of product sales and
$11.6 million, or 17.3% of product sales, respectively. The decrease in the
cost of sales percentage during both the 1997 three and six-month periods is
due primarily to a favorable change in the product mix to include a
relatively higher percentage of the Company's products with relatively lower
production costs. This was partially offset by an increase in period
manufacturing costs charged to cost of product sales during 1997 as compared
to the prior year periods.
Research and development expense increased to $26.8 million from
$25.3 million and to $50.7 million from $50.3 million for the three and
six-month periods ended June 30, 1997 and 1996, respectively. The progress
the Company has made with ENBREL, both in the clinic and in the manufacturing
process, has resulted in increased levels of spending during the current year
periods. The Company initiated several clinical studies for ENBREL during
the second quarter of 1997 in addition to those clinical studies already
underway. In addition, the Company has been working with a contract
manufacturer for the production of clinical material and the production
scale-up of ENBREL to estimated commercial quantities. In July 1996, the
Company and AHP revised their agreements related to research and development
of new oncology products and development of ENBREL. As a result of the
revised agreements, the Company's funding obligation for AHP's oncology
research and development decreased to $8.1 million for the first half of 1997
compared to $13.0 million for the first half of 1996. The companies have
established joint project management systems and are sharing the costs of
developing ENBREL and Flt3-Ligand in North America and Europe. These cost
sharing agreements have resulted in a net expense reduction for Immunex
during the first six months of 1997. The Company intends to invest
substantial resources into the development and commercialization of ENBREL.
As a result, research and development expense is expected to increase from
current levels.
11
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
Selling, general and administrative expense for the three and six
months ended June 30, 1997 totaled $19.5 million and $37.9 million,
respectively, versus $16.7 million and $34.7 million for the comparable 1996
periods. Expense levels have increased during the 1997 three and six-month
periods due primarily to costs of certain selling and marketing programs
intended to capitalize on the expanded label indication for NOVANTRONE and a
multi-dose liquid formulation approval for LEUKINE. The Company has also
experienced increased expenses associated with strengthening its patent
position with respect to its existing products and product pipeline and has
increased its spending on information technology. Selling, general and
administrative expense levels in 1996 include certain costs not incurred in
1997. These expenses consist of costs related to the adoption of certain
employee retention programs, investment banking and legal fees following
AHP's November 1995 offer to purchase all outstanding shares of the Company's
common stock. In addition, in 1996, the Company was incurring legal defense
costs associated with litigation between the Company and Cistron
Biotechnology, Inc. ("Cistron"). This litigation was settled in November
1996.
OTHER INCOME (EXPENSE)
Other income improved moderately during the comparable three and
six-month periods ended June 30, 1997 and 1996 due to an increase in interest
income. The Company's funds available for investment purposes increased
substantially following the receipt of $56.0 million from AHP in February
1997 as settlement of the 1996 revenue shortfall obligation. The increase in
interest income was partially offset by increased interest expense. The
increase in interest expense represents the imputed interest on the deferred
portion of the Cistron settlement obligation.
LIQUIDITY AND CAPITAL RESOURCES
Cash, cash equivalents and marketable securities totaled $70.0
million and $23.9 million at June 30, 1997 and December 31, 1996,
respectively. In February 1997, the Company received $56.0 million from AHP
as settlement of the 1996 revenue shortfall obligation. These funds were
added to the Company's cash reserves and are held in a variety of interest
bearing instruments including government and corporate obligations and money
market funds. During the first six months of 1997, the Company utilized its
cash reserves to fund operating activities and investments in plant and
equipment. Operating activities used cash of $4.9 million and investments in
plant and equipment utilized an additional $4.8 million.
The Company is currently evaluating certain property in the
vicinity of its corporate headquarters for possible development and
relocation of its corporate offices and research facilities. The Company has
entered into a purchase and sale agreement for the property which, as
currently amended, expires in late 1997, and the Company has completed
initial environmental impact and other studies with respect to such property.
There remain certain contingencies that are expected to be completed prior
to the expiration of the purchase and sale agreement. If the Company moves
forward with this project, expenditures for land and related closing costs
are expected to total approximately $15.0 million.
12
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
The Company is utilizing a contract manufacturer for the production
of certain Phase III clinical trial supplies of ENBREL and intends to utilize
the same contract manufacturer for the production of commercial quantities of
ENBREL. The scale-up of production of ENBREL to commercial quantities has
been successfully completed by the contract manufacturer. Based on the
successful scale-up and development of ENBREL to date, the Company has
initiated steps in an effort to ensure that inventory of ENBREL is available
to meet the Company's expected initial commercial requirements. Completion
of these steps is expected to require significant investments by the Company.
There can be no assurance that any inventory of ENBREL which may be
purchased by the Company to meet its initial commercial requirements will be
sold, since there is no assurance that ENBREL will be approved by the FDA.
Operating activities are expected to result in the continued use of
cash. Existing cash reserves are believed to be sufficient to support the
Company's operating requirements, planned capital expenditures and the
property acquisition discussed above, for the remainder of 1997. The Company
expects to receive its final payment under the AHP revenue guaranty in early
1998, the maximum amount of which is $60.0 million. Existing funds, combined
with the final AHP revenue guaranty payment, will be used to fund operations
including the anticipated purchase of commercial inventory of ENBREL in 1998.
Beyond 1998, the Company intends to rely on accumulated cash reserves and
cash generated from operations, which will be highly dependent on the
Company's successful development and commercialization of ENBREL and its
other products and technology.
13
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
The description of legal proceedings is incorporated by reference
to Item 3 of the Company's Annual Report on Form 10-K for the fiscal year
ended December 31, 1996.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
An annual meeting of the Company's Shareholders ("Shareholders") was held on
Wednesday, April 30, 1997 ("Annual Meeting"). Of the 39,604,121 shares
outstanding as of the record date, March 7, 1997, there were 36,943,971
shares or 93.28% of the total shares eligible to vote represented in person
or proxy.
One matter was submitted to a vote of shareholders at the Annual Meeting.
Nine directors were elected to serve for a term of one year or until their
successors are elected and qualify, as follows:
For Withheld
---------- --------
Edward V. Fritzky 36,812,669 131,302
Joseph J. Carr 36,810,039 133,932
Kirby L. Cramer 36,812,681 131,290
Robert A. Essner 36,810,539 133,432
Richard L. Jackson 36,812,456 131,515
John E. Lyons 36,810,431 133,540
Edith W. Martin 36,811,226 132,745
Peggy V. Phillips 36,811,246 131,725
Douglas E. Williams 36,812,219 131,752
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
a) EXHIBITS
None
b) REPORTS ON FORM 8-K
None
14
<PAGE>
SIGNATURES
Pursuant to requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
IMMUNEX CORPORATION
Date: August 7, 1997 /s/ Edward V. Fritzky
------------------------------------
Edward V. Fritzky
Chairman and Chief Executive Officer
(Principal Executive Officer)
Date: August 7, 1997 /s/ Douglas G. Southern
------------------------------------
Douglas G. Southern
Senior Vice President, Chief Financial
Officer and Treasurer
(Principal Financial and Accounting
Officer)
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 1997, AND THE CONSOLIDATED STATEMENT
OF OPERATIONS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 1997, AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 50,677
<SECURITIES> 19,363
<RECEIVABLES> 31,353
<ALLOWANCES> 9,594
<INVENTORY> 7,758
<CURRENT-ASSETS> 2,665
<PP&E> 122,883
<DEPRECIATION> 44,239
<TOTAL-ASSETS> 218,552
<CURRENT-LIABILITIES> 37,439
<BONDS> 0
0
0
<COMMON> 678,726
<OTHER-SE> 506,449
<TOTAL-LIABILITY-AND-EQUITY> 218,552
<SALES> 74,860
<TOTAL-REVENUES> 82,453
<CGS> 12,514
<TOTAL-COSTS> 101,137
<OTHER-EXPENSES> 6
<LOSS-PROVISION> 103,671
<INTEREST-EXPENSE> 316
<INCOME-PRETAX> (17,285)
<INCOME-TAX> 115
<INCOME-CONTINUING> (17,400)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (17,400)
<EPS-PRIMARY> (0.44)
<EPS-DILUTED> (0.44)
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