<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 MARCH 31, 1998
/ / 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 39,833,390
- ---------------------------------- ---------------------------------------
Class Outstanding at May 11, 1998
<PAGE>
IMMUNEX CORPORATION
QUARTERLY REPORT ON FORM 10-Q
MARCH 31, 1998
TABLE OF CONTENTS
Page No.
--------
PART I. FINANCIAL INFORMATION 3
Item 1. Financial Statements:
Consolidated Condensed Balance Sheets - 4
March 31, 1998 and December 31, 1997
Consolidated Condensed Statements of Operations - 5
for the three-month periods ended March 31, 1998
and March 31, 1997
Consolidated Condensed Statements of Cash Flows - 6
for the three-month periods ended March 31, 1998
and March 31, 1997
Notes to Consolidated Condensed Financial Statements 7-9
Item 2. Management's Discussion and Analysis of Financial 10-13
Condition and Results of Operations
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 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, 1997.
The results of operations for the three-month period ended March 31, 1998, are
not necessarily indicative of results to be expected for the entire year ending
December 31, 1998.
3
<PAGE>
Item 1. FINANCIAL STATEMENTS
IMMUNEX CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
March 31,
1998 December 31,
(unaudited) 1997
----------- ----------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 75,465 $ 66,176
Marketable securities 58,233 20,364
Accounts receivable, net 17,308 17,296
Inventories 7,845 9,031
Other current assets 4,555 3,726
---------- ----------
Total current assets 163,406 116,593
Property, plant and equipment, net 73,714 73,645
Other assets 38,835 37,095
---------- ----------
Total assets $ 275,955 $ 227,333
---------- ----------
---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 32,540 $ 30,924
Accrued compensation and related items 5,588 8,572
Current portion of long-term debt 3,304 3,460
Other current liabilities 2,583 2,588
---------- ----------
Total current liabilities 44,015 45,544
Long-term liabilities 5,722 5,633
Shareholders' equity:
Common stock, $.01 par value 712,635 711,485
Guaranty payment receivable from AHP -- (60,032)
Unrealized gain on investments 2,551 4,646
Accumulated deficit (488,968) (479,943)
---------- ----------
Total shareholders' equity 226,218 176,156
---------- ----------
Total liabilities and shareholders' equity $ 275,955 $ 227,333
---------- ----------
---------- ----------
</TABLE>
See accompanying notes.
4
<PAGE>
Item 1. FINANCIAL STATEMENTS (continued)
IMMUNEX CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
<TABLE>
<CAPTION>
Three months Three months
ended ended
March 31, March 31,
1998 1997
----------- ----------
<S> <C> <C>
Revenues:
Product sales $ 38,816 $ 35,899
Royalty and contract revenue 3,050 3,548
----------- ----------
41,866 39,447
Operating expenses:
Cost of product sales 7,091 6,278
Research and development 26,906 23,962
Selling, general and administrative 18,437 18,358
----------- ----------
52,434 48,598
----------- ----------
Operating loss (10,568) (9,151)
Other income (expense):
Interest income 1,540 658
Interest expense (110) (156)
Other income, net 171 5
----------- ----------
1,601 507
----------- ----------
Loss before income taxes (8,967) (8,644)
----------- ----------
Provision for income taxes 58 57
----------- ----------
Net loss $ (9,025) $ (8,701)
----------- ----------
----------- ----------
Net loss per common share $ (0.23) $ (0.22)
----------- ----------
----------- ----------
Number of shares used for per share amounts 39,734 39,604
----------- ----------
----------- ----------
</TABLE>
See accompanying notes.
5
<PAGE>
Item 1. FINANCIAL STATEMENTS (continued)
IMMUNEX CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
Three months Three months
ended ended
March 31, March 31,
1998 1997
----------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (9,025) $ (8,701)
Adjustments to reconcile net loss
to net cash used in operating activities:
Depeciation and amortization 4,259 3,944
Cash flow impact of changes to:
Accounts receivable (12) (2,655)
Inventories 1,186 1,132
Accounts payable, accrued liabilities
and other current liabilities (1,373) 1,498
Other current assets (507) 89
----------- ----------
Net cash used in operating activities (5,472) (4,693)
----------- ----------
Cash flows from investing activities:
Purchases of property, plant and equipment (3,151) (2,110)
Proceeds from sales and maturities of
marketable securities 11,054 --
Purchases of marketable securities (49,543) (24,960)
Acquisition of product rights (5,000) --
Other 285 (358)
----------- ----------
Net cash used in investing activities (46,355) (27,428)
----------- ----------
Cash flows from financing activities:
Guaranty payments received from AHP 60,032 56,000
Proceeds from exercise of stock options 1,152 --
Other (68) (15)
----------- ----------
Net cash provided by financing activities 61,116 55,985
----------- ----------
Net increase in cash and cash equivalents 9,289 23,864
Cash and cash equivalents, beginning of period 66,176 23,861
----------- ----------
Cash and cash equivalents, end of period $ 75,465 $ 47,725
----------- ----------
----------- ----------
</TABLE>
See accompanying notes.
6
<PAGE>
IMMUNEX CORPORATION
Notes to Consolidated Condensed Financial Statements
NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION
Immunex Corporation ("Immunex" or the "Company") is a biopharmaceutical company
that discovers, develops, manufactures and markets innovative therapeutic
products for the treatment of human diseases, including 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 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 current market for pharmaceutical products is the United States.
The Company primarily uses wholesale distributors for the sale of its products
to clinics and hospitals.
The condensed consolidated financial statements are prepared in conformity with
generally accepted accounting principles which require management estimates and
assumptions that affect the amounts reported in 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. Marketable securities consist of U.S. government and corporate
obligations.
7
<PAGE>
IMMUNEX CORPORATION
Notes to Consolidated Condensed 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):
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
--------- ------------
<S> <C> <C>
Raw materials $ 988 $ 1,069
Work in process 5,239 5,377
Finished goods 1,618 2,585
--------- ------------
Totals $ 7,845 $ 9,031
--------- ------------
--------- ------------
</TABLE>
DEPRECIATION AND AMORTIZATION
Depreciation of buildings and equipment 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 are included in
research and development expense.
NET LOSS PER COMMON SHARE
The Company adopted Statement of Financial Accounting Standards ("SFAS") No.
128, "Earnings per Share" effective December 31, 1997. However, given the net
loss position of the Company, there are no implications on the calculation of
net loss per common share. Net loss per common share is calculated by dividing
net loss by the weighted average number of common shares.
8
<PAGE>
IMMUNEX CORPORATION
Notes to Consolidated Condensed Financial Statements
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS
As of January 1, 1998, the Company adopted SFAS No. 130, "Reporting
Comprehensive Income". SFAS No. 130 establishes new rules for the reporting
and display of comprehensive income and its components; however, the adoption
of this statement had no impact on the Company's net income or shareholders'
equity. SFAS No. 130 requires unrealized gains or losses on the Company's
available-for-sale securities to be included in comprehensive income. For
quarterly reporting purposes, the following table sets forth the components
of comprehensive loss (in thousands):
<TABLE>
<CAPTION>
Three months Three months
ended ended
March 31, March 31,
1998 1997
----------- ------------
<S> <C> <C>
Net loss $ (9,025) $ (8,701)
Unrealized loss on investments, net of
reclassification adjustment (2,095) (2,616)
----------- ------------
Comprehensive loss $ (11,120) $ (11,317)
----------- ------------
----------- ------------
</TABLE>
9
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
ANDRESULTS OF OPERATIONS
INTRODUCTION
The following discussion of results of operations, liquidity and capital
resources includes certain forward-looking statements made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. The
words "believes," "anticipates," "expects" and similar expressions are intended
to identify such forward-looking statements, but their absence does not mean a
statement is not forward-looking. 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 Immunex Corporation ("Immunex" or 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. Readers are cautioned not to place undue
reliance on these forward-looking statements which speak only as of the date of
this report. The Company undertakes no obligation to publicly release the
result of any revisions to these forward-looking statements that may be made to
reflect events or circumstances after the date of this report or to reflect the
occurrence of unanticipated results.
RESULTS OF OPERATIONS
OVERVIEW
For the three months ended March 31, 1998, the Company incurred a net loss
of $9.0 million, versus a net loss of $8.7 million for the comparable prior year
period. Growth in sales of the Company's two lead products, LEUKINE-Registered
Trademark- (sargramostim) and NOVANTRONE-Registered Trademark- (mitoxantrone)
resulted in an increase in product sales during the first quarter of 1998 as
compared to the first quarter of 1997. The improvement in product sales was
offset by increased spending on research and development activities, largely
related to development of ENBREL-TM- (TNFR:Fc) and NUVANCE-TM- (IL-4 Receptor)
which caused the net loss to be larger than the comparable quarter of the prior
year.
REVENUES
Product sales increased to $38.8 million from $35.9 million for the three
months ended March 31, 1998 and 1997, respectively. In January 1997, the
Company launched a liquid formulation of LEUKINE and implemented sales and
marketing programs to promote the improved formulation. Demand for LEUKINE has
increased and for the quarter ended March 31, 1998, sales of LEUKINE increased
to $15.1 million compared to $13.0 million in the first quarter of 1997. Sales
of NOVANTRONE have also improved, totaling $13.4 million for the three-month
period ended March 31, 1998 versus $11.4 million in the comparable prior year
period. In November 1996, the Company received FDA approval to market
NOVANTRONE for use, in combination with steroids, for treatment of patients with
pain related to hormone refractory prostate cancer ("HRPC"). Oncologist's use
of NOVANTRONE as a treatment therapy for HRPC increased from historical levels
beginning in 1997 and have approximated the current quarter sales levels
since the second quarter of 1997.
10
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
Beginning in the second half of 1997, the Company's sales force began
promoting THIOPLEX-Registered Trademark- (thiotepa for injection). THIOPLEX had
not been promoted previously by the Company. Sales of THIOPLEX increased to
$5.8 million during the quarter ended March 31, 1998 from $5.3 million for the
quarter ended March 31, 1997. The growth in sales of LEUKINE, NOVANTRONE and
THIOPLEX were partially offset by decreased sales of leucovorin calcium.
Leucovorin calcium has experienced declining sales volume and selling prices as
a result of generic competition. The decline in sales was accelerated during
1997 following the entry of an additional competitor into the leucovorin calcium
market and as a result, sales of leucovorin calcium decreased to $1.5 million
during the first quarter of 1998, compared to $2.8 million during the first
quarter of 1997. In addition, in December 1997, the Company sold its rights to
certain oncology products in Canada to Lederle Parenterals, Inc., a wholly owned
subsidiary of American Home Products Corporation ("AHP"). Accordingly, the
Company is no longer generating product sales from this business in Canada.
Royalty and contract revenue totaled $3.0 million and $3.5 million for
the three-month periods ended March 31, 1998 and 1997, respectively. The
revenue recognized during the first quarter of 1998 represents the Company's
core revenue stream from royalties and license fees. There were no material
one-time contract revenues or milestones earned during the period. Revenue
recognized during the first quarter of 1997 includes the proceeds from the
sale of the marketing rights for etoposide, a generic oncology product the
Company sold during 1996. Under the terms of an Enbrel Promotion Agreement
("Promotion Agreement") with AHP, the Company can earn $20.0 million upon
acceptance for review of a biologics license application ("BLA") for ENBREL
for advanced rheumatoid arthritis by the FDA and $30.0 million if the BLA is
approved by the FDA. The Company completed the submission of the BLA for
ENBREL to the FDA in May 1998. There can be no assurance that the FDA will
accept the BLA for review or, if accepted, if or when the FDA may approve the
BLA. The Company continually evaluates possible alliances that may generate
incremental revenues. The timing of such additional agreements, if any, and
the revenue recognized therefrom cannot be predicted.
OPERATING EXPENSES
Cost of product sales was $7.1 million, or 18.3% of product sales and
$6.3 million, or 17.5% of product sales for the quarters ended March 31, 1998
and 1997, respectively. The increase in the cost of product sales percentage
reflects incremental royalties payable with respect to net sales of LEUKINE
in 1998. In January 1998, the Company reached a settlement with the
remaining party to an ongoing GM-CSF patent interference proceeding. In
accordance with the settlement, beginning in January 1998, the Company began
incurring additional royalties payable on net sales of LEUKINE. As part of
the resolution of the GM-CSF patent interference, the Company made a one-time
payment of $5.0 million to Genetics Institute, Inc. ("G.I."), a wholly owned
subsidiary of AHP. The $5.0 million payment was capitalized as a cost of
acquired product rights and is being amortized to expense over the estimated
life of the LEUKINE franchise. In addition, the costs of a production lot of
LEUKINE that failed quality control review during the current year quarter
were charged to cost of product sold. The increase in the cost of sales
percentage was partially offset by a favorable change in the mix of product
sales during the first quarter of 1998.
11
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
Research and development expense increased to $26.9 million from $24.0
million for the three months ended March 31, 1998 and 1997, respectively.
The increase is due primarily to increased spending on clinical studies for
ENBREL and the costs of preparing the BLA submission for ENBREL. In
addition, spending on development of NUVANCE has increased as the Company has
progressed with early stage clinical trials of NUVANCE for treatment of
asthma and expanded manufacturing activity for production of clinical
requirements of the product. Increased spending on ENBREL and NUVANCE was
partially offset by a decrease in clinical expenses for LEUKINE due to the
completion of certain studies during 1997 and the completion of development
work for paclitaxel injection, a generic form of TAXOL-Registered Trademark-.
Spending on research and development activities is expected to increase
further during 1998 as the Company continues development of ENBREL and as
clinical studies for NUVANCE and MOBIST-TM- (Flt3-L) expand. In addition, in
April 1998, the Company announced that it had reacquired the ex-North
American rights to IL-4 receptor, IL-1 receptor and IL-7 receptor for $10.0
million from Hoechst Marion Roussel Inc. ("HMR"), the cost of which will be a
research and development expense in the second quarter of 1998.
Selling, general and administrative expense totaled $18.4 million for
both of the three-month periods ended March 31, 1998 and 1997. Selling
expenses decreased moderately from the level incurred during the first
quarter of 1997. While the Company continues to actively promote LEUKINE and
NOVANTRONE through its selling and marketing activities, in the first quarter
of 1997, the Company implemented certain programs intended to capitalize on
the expanded label indication for NOVANTRONE and the launch of a liquid
formulation of LEUKINE. Selling expense reductions in the 1998 first quarter
were offset by an increase in spending in connection with patent procurement
and patent defense activities and continued growth in spending on information
systems. The Company intends to begin certain pre-launch activities for
ENBREL in the second quarter of 1998 and these expenses are expected to
increase as the year progresses. Accordingly, selling, general and
administrative expenses are expected to increase from current levels for the
remainder of 1998.
OTHER INCOME (EXPENSE)
Interest income increased to $1.5 million from $0.7 million for quarters
ended March 31, 1998 and 1997, respectively. The improvement reflects an
increase in funds available for investment purposes and the interest earned
therefrom. The increase in the Company's cash and marketable securities is
due primarily to the receipt of $56.0 million in February 1997 and $60.0
million in February 1998 from AHP as settlement of the revenue shortfall
obligations for 1996 and 1997, respectively. AHP was required to make
payments to the Company if revenues from certain products did not meet
established annual amounts ("Revenue Guaranty") through December 31, 1997.
The payment received in February 1998 was the final AHP Revenue Guaranty
payment.
12
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
LIQUIDITY AND CAPITAL RESOURCES
Cash, cash equivalents and marketable securities totaled $133.7 million
and $86.5 million at March 31, 1998 and December 31, 1997, respectively. In
February 1998, the Company received $60.0 million from AHP as payment of the
1997 Revenue Guaranty. 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. During the first three months of 1998,
the Company utilized its cash reserves to fund operating activities and
investment in plant and equipment. Operating activities used cash of $5.5
million and investments in plant and equipment totaled $3.2 million. In
addition, as discussed above, the Company made a one-time payment of $5.0
million to G.I. as part of the resolution of the GM-CSF patent interference
settlement in January 1998.
In April 1998, the Company acquired certain property in the vicinity of
its corporate headquarters for possible development and relocation of its
corporate offices and research facilities. The cost of the property totaled
approximately $15 million.
Spending on selling and marketing activities is expected to increase
beginning in the second quarter of 1998 as the Company accelerates certain
pre-launch activities for ENBREL. The Company is working with AHP, under the
terms of the Promotion Agreement for ENBREL, to coordinate the sales,
marketing, distribution, customer service and other necessary systems to
support sales of ENBREL in the United States, if and when it is approved by
the FDA. Under the terms of the Promotion Agreement, AHP will be responsible
for a majority of the pre-launch commercial expenses. The Company will incur
additional costs related to the development of the Company's infrastructure
to support the possible launch and sale of ENBREL, that will not be shared by
AHP. The Company has also made orders of launch inventory of ENBREL from the
contract manufacturer utilized by the Company to manufacture ENBREL and
expects to be invoiced for these orders beginning in mid-1998. Certain risk
factors have been identified that could affect the Company's ability to
commercialize ENBREL and are described in the "Risk Factors" section in the
Company's latest Annual Report on Form 10-K filed with the Securities and
Exchange Commission. Accordingly, any amounts recorded as launch inventory
of ENBREL and any related purchase commitments are subject to risk until such
uncertainties are resolved. In addition, in April 1998, the Company
reacquired the ex-North American rights to IL-4 receptor, IL-1 receptor and
IL-7 receptor for $10.0 million from HMR. These cash outflows may be offset
by certain milestones the Company can earn under the terms of the Promotion
Agreement with AHP, as discussed above, including $20.0 million upon
acceptance for review of a BLA for ENBREL for advanced rheumatoid arthritis
by the FDA and $30.0 million if the BLA is approved by the FDA. 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 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, 1997.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibit 27 Financial Data Schedule
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: May 14, 1998 /s/ Edward V. Fritzky
------------------- ----------------------------------
Edward V. Fritzky
Chairman and Chief Executive Officer
(Principal Executive Officer)
Date: May 14, 1998 /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 MARCH 31, 1998, AND THE CONSOLIDATED STATEMENT
OF OPERATIONS FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 1998, AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 75,465
<SECURITIES> 58,233
<RECEIVABLES> 15,549
<ALLOWANCES> 792
<INVENTORY> 7,845
<CURRENT-ASSETS> 163,406
<PP&E> 130,290
<DEPRECIATION> 56,576
<TOTAL-ASSETS> 275,955
<CURRENT-LIABILITIES> 44,015
<BONDS> 0
0
0
<COMMON> 712,635
<OTHER-SE> (486,417)
<TOTAL-LIABILITY-AND-EQUITY> 275,955
<SALES> 38,816
<TOTAL-REVENUES> 41,866
<CGS> 7,091
<TOTAL-COSTS> 52,434
<OTHER-EXPENSES> 1,717
<LOSS-PROVISION> 54
<INTEREST-EXPENSE> 110
<INCOME-PRETAX> (8,967)
<INCOME-TAX> 58
<INCOME-CONTINUING> (9,025)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (9,025)
<EPS-PRIMARY> (0.23)
<EPS-DILUTED> (0.23)
</TABLE>
