<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 September 30, 1998
Commission File No. 0-19131
MEDIMMUNE, INC.
(Exact name of registrant as specified in its charter)
Delaware 52-1555759
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
35 West Watkins Mill Road, Gaithersburg, MD 20878
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (301)417-0770
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 [ ]
As of September 30, 1998, 26,719,304 shares of Common Stock, par value
$0.01 per share, were outstanding.
<PAGE>
MEDIMMUNE, INC.
Index to Form 10-Q
Part I Financial Page
Item 1. Financial Statements
Balance Sheets 1
Statements of Operations 2
Condensed Statements of Cash Flows 3
Notes to Financial Statements 4-7
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 8-12
Part II Other Information 13-14
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
CytoGam and RespiGam are registered trademarks of the Company and
Synagis is a trademark.
<PAGE>
<TABLE>
<CAPTION>
ITEM 1. FINANCIAL STATEMENTS
MEDIMMUNE, INC.
BALANCE SHEETS
(in thousands, except share data)
<S> <C> <C>
September 30, December 31,
1998 1997
---------- ----------
ASSETS: (Unaudited)
Cash and cash equivalents $ 22,422 $ 29,984
Marketable securities 77,928 20,342
Trade receivables, net 13,199 15,236
Contract receivables, net 2,989 3,064
Inventory, net 24,136 28,857
Other current assets 3,371 2,740
---------- ----------
Total Current Assets 144,045 100,223
Property and equipment, net 69,020 65,254
Inventory-noncurrent 4,434 2,446
Other assets 2,157 2,413
---------- ----------
Total Assets $219,656 $170,336
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Accounts payable $ 2,580 $ 4,535
Accrued expenses 23,596 27,682
Product royalties payable 3,651 6,227
Accrued interest 1,536 2,583
Other current liabilities 2,997 2,633
--------- ----------
Total Current Liabilities 34,360 43,660
Long term debt 83,878 85,363
Other liabilities 1,162 777
---------- ----------
Total Liabilities 119,400 129,800
---------- ----------
Commitments and Contingencies
SHAREHOLDERS' EQUITY:
Preferred stock, $.01 par value; authorized
5,524,525 shares; none issued or outstanding -- --
Common stock, $.01 par value; authorized
120,000,000 shares; issued and outstanding
26,719,304 at September 30, 1998 and
24,444,745 at December 31, 1997 267 244
Paid-in capital 252,676 176,564
Accumulated deficit (152,687) (136,272)
---------- ----------
Total Shareholders' Equity 100,256 40,536
---------- ----------
Total Liabilities and Shareholders' Equity $219,656 $170,336
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
1
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<TABLE>
<CAPTION>
MEDIMMUNE, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands except per share data)
For the For the
three months ended nine months ended
September 30, September 30,
----------------- -----------------
1998 1997 1998 1997
------- ------- ------- -------
<S> <C> <C> <C> <C>
Revenues:
Product sales $ 22,181 $ 10,575 $ 73,224 $ 26,931
Other 1,659 84 34,545 277
-------- -------- -------- --------
Total revenues 23,840 10,659 107,769 27,208
-------- -------- -------- --------
Costs and Expenses:
Cost of sales 6,903 5,258 43,661 13,903
Research and development 5,766 9,342 18,761 33,283
Selling, administrative
and general 14,286 6,603 30,430 17,371
Other operating expenses 8,509 3,094 33,447 3,718
-------- -------- -------- --------
Total expenses 35,464 24,297 126,299 68,275
-------- -------- -------- --------
Operating Loss (11,624) (13,638) (18,530) (41,067)
Interest income 1,615 767 5,176 3,486
Interest expense (1,043) (786) (3,061) (2,607)
-------- -------- -------- --------
Net Loss ($11,052) ($13,657) ($16,415) ($40,188)
======== ======== ======== ========
Loss Per Common Share
basic and diluted ($0.41) ($0.57) ($0.62) ($1.77)
======== ======== ======== ========
Shares Used in Computing
Loss per common share,
basic and diluted 26,655 23,938 26,377 22,718
======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
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<TABLE>
<CAPTION>
MEDIMMUNE, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands) For the
nine months ended
September 30,
1998 1997
-------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ($16,415) ($40,188)
Noncash items:
Depreciation and amortization 2,131 1,774
Amortization of premium on
marketable securities 995 689
Increase in reserve for inventory 10,803 --
Other (1,876) (1,154)
Other changes in assets and liabilities (16,073) (22,019)
-------- --------
Net cash used in operating
activities (20,435) (60,898)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
(Increase) decrease in marketable (58,581) 74,174
securities
Capital expenditures (3,703) ( 31,939)
-------- --------
Net cash (used in)provided by
investing activities (62,284) 42,235
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common
stock and exercise of stock options 76,135 3,379
(Decrease) increase in long term debt (978) 6,170
-------- --------
Net cash provided by financing 75,157 9,549
activities
-------- --------
Net decrease in cash and cash
equivalents (7,562) (9,114)
Cash and cash equivalents at beginning
of period 29,984 12,629
-------- --------
Cash and cash equivalents at end of period $22,422 $3,515
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
MEDIMMUNE, INC.
CONDENSED NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
General
The financial information presented as of September 30, 1998, and for the
periods ended September 30, 1998 and 1997, is unaudited. In the opinion of
the Company's management, the financial information contains all
adjustments (which consist only of normal recurring adjustments) necessary
for a fair presentation of such financial information.
Inventory
Inventory net of reserves, consists of the following (in thousands):
<TABLE>
<CAPTION>
<S> <C> <C>
September 30, December 31,
1998 1997
------------- -------------
Raw Materials $ 9,944 $14,503
Work in Process 13,352 12,990
Finished Goods 5,274 3,810
------ ------
28,570 31,303
Less noncurrent inventory (4,434) (2,446)
------ ------
$24,136 $28,857
====== ======
</TABLE>
The Company has purchased plasma and other raw materials for use in
production in the Company's Frederick manufacturing facility, which is
subject to FDA licensure and approval. Due to the uncertainty surrounding
the likelihood and timing of FDA approval, this inventory has been
classified as noncurrent in the accompanying balance sheet.
As a result of the June 1998 FDA approval of the Company's second
generation RSV product, Synagis, and the expected market acceptance of
Synagis, the Company reserved approximately $9.2 million against its
RespiGam inventory in the second quarter of 1998, as no further product
sales are expected to result from this inventory in the foreseeable future.
The remaining RespiGam plasma inventory of $3.6 million has been written
down to the value the Company expects to recover upon sale to third
parties. Should the Company be unable to sell the plasma at its net book
value, a further adjustment in a subsequent quarter may be necessary.
Finished goods at September 30, 1998 and December 31, 1997 include
approximately $1.6 million and $0.8 million, respectively, of by-products
4
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that result from the production of the Company's principal products at one
of its contract manufacturers and are held for resale. As of September 30,
1998, minimal sales of these by-products have occurred. The September 30,
1998 balance is net of a reserve of $1.6 million.
Property and Equipment
Property and equipment, stated at cost, consists of the following (in
thousands):
<TABLE>
<CAPTION>
<S> <C> <C>
September 30, December 31,
1998 1997
---------- -----------
Land $ 1,521 $ 1,521
Building and building improvements 4,179 --
Leasehold improvements 11,866 11,042
Laboratory equipment 10,688 9,355
Office furniture, computers, and 5,715 4,377
equipment
Construction in progress 47,261 49,040
-------- --------
81,230 75,335
Less accumulated depreciation and (12,210) (10,081)
amortization
-------- --------
$69,020 $65,254
======== ========
</TABLE>
Property and equipment at September 30, 1998 and December 31, 1997 includes
$4.5 million and $2.4 million, respectively, of capitalized interest
related to the design and construction of the Company's manufacturing
facility in Frederick, Maryland. Construction of the manufacturing facility
is substantially complete and validation activities are ongoing. The
Company will continue to capitalize costs, primarily capitalized interest,
related to the facility for at least the next 12 months. The portions of
the facility that are subject to inspection and approval by the FDA will be
placed in service and depreciation will commence upon receipt of such
approval.
Earnings per Share
The Company computes earnings (loss) per share in accordance with Statement
of Financial Accounting Standards ("SFAS") No. 128, "Earnings Per Share."
Basic earnings (loss) per share is computed based on the weighted average
number of common shares outstanding during the period. Diluted earnings
5
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(loss) per share is computed based on the weighted average shares
outstanding and the dilutive common stock equivalents outstanding during
the period. The dilutive effect of convertible debt is measured using the
"if converted" method. The dilutive effect of stock options is measured
using the treasury stock method. Common stock equivalents are not included
in periods where there is a loss as they are anti-dilutive. No
reconciliation of the numerators and denominators is provided, as the
Company reported a loss for the periods and the inclusion of common stock
equivalents would be anti-dilutive.
Income Taxes
No provision for income taxes has been recorded for the nine months ended
September 30, 1998 because of the loss for the nine months and the
existence of net operating loss carry forwards and tax credit carry
forwards of $159 million. The Company's deferred tax asset has been reduced
by a full valuation allowance due to uncertainty of its realization.
Reversal of the allowance will occur if and when it is determined to be
more likely than not that the Company will be able to realize all or a
portion of the tax benefits of its carry forwards. In future quarters, the
Company will review the impact, if any, that the introduction of Synagis
will have on the need for a full valuation allowance. Should all such
deferred tax assets be recognized, the Company expects that its effective
tax rate in future periods will approximate the applicable statutory rates.
New Accounting Pronouncements
Comprehensive Income
Effective January 1, 1998, the Company adopted SFAS No. 130, "Reporting
Comprehensive Income." SFAS No. 130 requires additional reporting with
respect to certain changes in assets and liabilities that previously were
included in shareholders' equity. The Company has no comprehensive income
items to report for the current presentation.
Segment Reporting
SFAS No. 131, "Disclosures about Segments of an Enterprise and Related
Information," requires financial and descriptive information with respect
to operating segments of an entity based on the way management
disaggregates the entity for making internal operating decisions. The
Company will begin making the required disclosures with financial
statements for the period ending December 31, 1998.
Derivative Instruments and Hedging Activities
In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities". SFAS No. 133 establishes accounting
and reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts and for hedging
activities. SFAS No. 133 requires companies to recognize all derivatives as
either assets or liabilities, with the instruments measured at fair value.
The accounting for changes in fair value, gains or losses, depends
6
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on the intended use of the derivative and its resulting designation. The
statement is effective for all fiscal quarters of fiscal years beginning
after June 15, 1999. The Company will adopt SFAS No. 133 by January 1,
2000. Because of the Company's minimal use of derivatives, management does
not anticipate that the adoption of SFAS No. 133 will have a material
effect on the earnings or financial position of the Company.
Subsequent Event
On November 11, 1998, the Company's Board of Directors voted to declare a
two-for-one stock split of the Company's common stock payable in the form
of a 100 percent stock dividend. Stockholders of record as of December 15,
1998, will receive one additional share for each share of stock owned. The
dividend will be distributed on December 31, 1998.
7
<PAGE>
ITEM 2.
MEDIMMUNE, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
The increase in product sales to $22.2 million in third quarter 1998 from
$10.6 million in third quarter 1997, is principally due to the initial
sales of Synagis which commenced in September 1998, and totaled $17.0
million. Due to the seasonality of RSV disease, which principally occurs
from October through April each year, these initial sales primarily
represent stocking by wholesalers and distribution in advance of the
season. No sales of RespiGam were recorded in third quarter 1998 versus
$7.0 million in third quarter 1997, reflecting the shift in customer demand
from RespiGam to Synagis for prevention of RSV disease. CytoGam sales
increased 49% to $5.4 million from $3.6 million in third quarter 1997
reflecting a 35% increase in domestic units sold, a 247% increase in
international units sold, as well as two price increases since July 1997.
Other revenues in the 1998 third quarter of $1.7 million primarily reflect
funding from SmithKline Beecham for development of a human papillomavirus
vaccine.
Gross margins improved to 69% in third quarter 1998 versus 50% in third
quarter 1997. Gross margins in 1998 were favorably impacted by Synagis
sales which carry a significantly lower per unit cost than the Company's
plasma-derived products.
Research, development and clinical spending decreased 38% to $5.8 million
in this year's quarter from $9.3 million in last year's quarter. Expenses
in 1997 included costs of concluding the Company's 1,502 patient Phase 3
Synagis clinical trial. Selling, administrative and general expenses
increased to $14.3 million in this year's quarter versus $6.6 million in
the 1997 quarter, an increase of 116%. Expenses in 1998 include increased
marketing and selling expenses as well as co-promotion expenses to the Ross
Products Division of Abbott Laboratories all in connection with the launch
of Synagis which commenced during the 1998 third quarter. Marketing,
selling and co-promotion expenses for Synagis are expected to continue to
be higher than those for RespiGam or CytoGam.
Other operating expenses of $8.5 million in the 1998 period increased from
$3.1 million in the 1997 period, reflecting costs incurred for start-up at
the Company's manufacturing facility in Frederick, Maryland, and costs
related to scale-up of production of Synagis at a third-party manufacturer
and production at the Company's Gaithersburg Manufacturing and Development
Facility ("GMDF"). Expenses in the 1998 quarter also include a $1.5 million
8
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milestone payment to a third-party contract manufacturer. The Company
expects to continue to incur significant start-up costs for the remainder
of 1998 and 1999.
Interest income of $1.6 million was earned in the 1998 third quarter,
compared to $0.8 million in the third quarter of 1997 reflecting higher
cash balances available for investment, partially offset by a decrease in
interest rates which lowered the overall portfolio yield. Interest expense
of $1.0 million and $0.8 million was incurred in the 1998 and 1997
quarters, respectively, reflecting primarily interest due on the Company's
convertible debt, net of capitalized interest. Interest expense in the
1998 period also includes interest on an equipment financing line that was
first drawn down in third quarter 1997.
The net loss in the 1998 third quarter was $11.1 million, or $0.41 basic
and diluted loss per share. Shares used in computing basic and diluted
loss per share were 26.7 million. The net loss for the third quarter of
1997 was $13.7 million, or $0.57 basic and diluted loss per share, on 23.9
million shares.
Quarterly financial results may vary significantly due to seasonality of
Synagis product sales, fluctuation in sales of CytoGam, milestones,
research funding and expenditures for research, development and marketing
programs. Synagis sales are expected to occur primarily during, and in
proximity to, the RSV season, which typically occurs between October and
April in the United States.
As a result of the FDA approval of Synagis, customers may request that
RespiGam vials they previously purchased be returned to the Company for
refund or exchanged for Synagis vials, resulting in a possible reduction of
previously recorded revenues. Currently such rights of product return do
not exist and thus would be at the Company's discretion. The magnitude of
such reduction, if any, cannot be determined at this time and would be
impacted by factors, including but not limited to, market acceptance of
Synagis and continued demand for RespiGam.
NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
Total revenues for the nine months ended September 30, 1998 were $107.8
million compared to $27.2 million for the 1997 period, a 296%
increase. Product sales of $73.2 million in the 1998 nine months increased
172% from $26.9 million in the 1997 nine months. Synagis sales commenced in
September 1998 and totaled $17.0 million. CytoGam sales increased 72% from
$13.9 million in the 1997 period to $23.8 in the 1998 period reflecting a
63% increase in units sold and two price increases since July 1997. In
addition to growth in the core business for CytoGam, the increase in
CytoGam sales includes product substitution occurring as a result of the
current worldwide shortage of standard intravenous immune globulin ("IVIG")
products. The duration of this shortage and continued impact, if any, on
9
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CytoGam sales cannot be determined at this time. RespiGam sales in the 1998
period of $32.3 million reflect sales prior to the FDA approval of Synagis,
most of which occurred in the first quarter of 1998. RespiGam sales in the
1997 nine months were $13.1 million and were limited by supply. Other
revenues in the 1998 period of $34.5 million reflect research funding and
milestone payments of $19.0 million from SmithKline Beecham related to the
agreement signed in December 1997 for development of a human papillomavirus
vaccine and a $15 million milestone payment from Abbott Laboratories
received upon FDA approval of Synagis in June 1998.
Cost of sales for the 1998 nine months increased 214% to $43.7 million from
$13.9 million in the 1997 nine months reflecting a 131% increase in units
sold and $12.1 million related to the write down of RespiGam inventory and
by-product inventory. Additionally, cost of sales in 1998 includes a credit
for previously recorded royalties expected to be due to MHRI. Excluding the
impact of the RespiGam write down and the credit for royalty adjustments,
the gross margins for the 1998 nine months improved to 53% from 48% in the
1997 period. The improved gross margins reflect the change in the product
mix towards Synagis which has a lower cost per unit than CytoGam or
RespiGam.
Research and development expenses of $18.8 million in the 1998 nine months
decreased 44% from $33.3 million in the 1997 nine months. Expenses in 1998
include a $0.5 million milestone due to a third party upon FDA approval of
Synagis. Expenses in 1997 include the costs of conducting the Company's
1,502 patient Phase 3 Synagis clinical trial, with no such large scale
Phase 3 trials in the 1998 period.
Selling, general and administrative expenses were $30.4 million and $17.4
million for the 1998 and 1997 periods, respectively, an increase of 75%.
The 1998 nine months include co-promotion expenses due to the Ross Products
Division of Abbott Laboratories, the profit split with AHP for their share
of the RespiGam profits, and expenses for the third quarter 1998 launch of
Synagis. Expenses in 1997 are net of $2.7 million of reimbursement from
AHP for its share of RespiGam product line loss as computed under the terms
of the agreement.
Other operating expenses in the 1998 period of $33.4 million increased from
$3.7 million in the 1997 period. Expenses in 1998 include a $10.3 million
charge for the buy down of certain Synagis royalty obligations prior to FDA
approval, a $1.5 million milestone payment due to a third-party contract
manufacturer as well as start-up costs for the Company's manufacturing
facility and costs related to scale-up of production of Synagis at a third-
party manufacturer and at the Company's GMDF.
Interest income of $5.2 million and $3.5 million was recorded in the 1998
and 1997 nine months, respectively, a 48% increase, reflecting higher cash
balances available for investment partially offset by lower interest rates
which decreased the overall portfolio yield.
10
<PAGE>
Interest expense of $3.1 million in the 1998 period versus $2.6 million in
the 1997 period reflects primarily interest on the Company's convertible
debt, net of capitalized interest, as well as interest on equipment
financing.
The net loss in the 1998 nine months was $16.4 million, or $0.62
basic and diluted loss per share versus $40.2 million in the 1997 nine
months, or $1.77 basic and diluted loss per share. Shares used in computing
basic and diluted loss per share in the 1998 and 1997 periods were 26.4
million and 22.7 million, respectively.
LIQUIDITY AND CAPITAL RESOURCES
Cash and marketable securities at September 30, 1998 were $100.4 million
compared to $50.3 million at 1997 year end. Net cash used in operating
activities in the nine months ended September 30, 1998 was $20.4 million,
reflecting primarily a decrease in accounts payable and accrued expenses
and the net loss for the nine months. Capital expenditures of $3.7 million,
net of capitalized interest, for the nine months were primarily for lab
equipment and facilities expansion at the Company's Gaithersburg
headquarters. The Company expects inventory to grow significantly during
1998, as it purchases Synagis inventory from its third party manufacturer
for the RSV season. In January 1998, the Company completed a private
placement of 1.7 million shares of common stock to three institutional
investors for net proceeds of $66.3 million. The Company also sold 83,410
shares of stock to SmithKline Beecham in first quarter 1998 for proceeds of
$5.0 million. The Company's existing funds at September 30, 1998, together
with funds expected to be generated from product sales and investment
income are expected to provide sufficient liquidity to meet the anticipated
needs of the business for the foreseeable future, absent the occurrence of
any unforeseen events.
YEAR 2000 READINESS
The Company is in the process of completing a review of its internal and
external systems for Year 2000 readiness. The Company has identified those
internal information technology systems and equipment or devices that it
believes are dependent on compliance with Year 2000 programming (including
embedded systems) and is currently in the process of determining whether
these systems and equipment are Year 2000 ready. Additionally, the Company
has compiled a list of all third parties with whom the Company has material
relationships and is in the process of seeking information from these third
parties regarding their state of readiness for Year 2000 compliance. The
Company considers many of its relationships with third parties to be of a
material nature, such that if these third parties are unable to become Year
2000 compliant, the Company would be adversely affected. These
relationships encompass many areas that affect the Company's ability to do
business including but not limited to third party manufacturers,
11
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distributors, customers, suppliers, public utility companies, and financial
institutions.
The Company anticipates that sometime before the end of 1998, an assessment
will have been made of the status of most of the Company's internal systems
and equipment. Once this list is compiled, it will be prioritized for
corrective actions and costs to correct will be estimated. Corrective
actions, if needed, may include the purchase of new information technology
applications, purchase of new equipment or devices, and identification of
alternative suppliers. The costs for these corrective actions, if any,
cannot be determined at this time. A contingency plan may need to be
established if the corrective actions, if any, cannot be completed by the
end of 1999. Such a plan has not yet been developed. At this time, the
Company is unable to determine whether the Year 2000 issue will have a
material adverse effect on the Company's results of operations, liquidity
or financial position.
There can be no assurances: 1) that the Company will be able to identify
all aspects of its business that are subject to Year 2000 problems,
including issues of its customers or suppliers, 2) that the Company's
software vendors, third parties and others will be correct in their
assertions that they are Year 2000 ready, and 3) that the Company's
estimate of the cost of systems preparation for Year 2000 readiness will
prove ultimately to be accurate.
____________________
THE STATEMENTS IN THIS QUARTERLY REPORT THAT ARE NOT DESCRIPTIONS OF
HISTORICAL FACTS ARE FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS REFLECT
MANAGEMENT'S CURRENT VIEWS, ARE BASED ON CERTAIN ASSUMPTIONS AND ARE
SUBJECT TO RISKS AND UNCERTAINTIES, INCLUDING BUT NOT LIMITED TO,
REGULATORY APPROVAL TIMING, PRODUCT DEMAND AND MARKET ACCEPTANCE RISKS,
PATENT AND INTELLECTUAL PROPERTY RISKS, YEAR 2000 RISKS, THE EARLY STAGE OF
PRODUCT DEVELOPMENT AND RELIANCE ON THIRD-PARTY MANUFACTURERS INCLUDING,
BUT NOT LIMITED TO, CAPACITY AND SUPPLY CONSTRAINTS, PRODUCTION YIELDS,
REGULATORY APPROVAL TIMING AND FOREIGN EXCHANGE RISKS, AS WELL AS OTHER
RISKS DETAILED IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION. ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE CURRENTLY
ANTICIPATED AS A RESULT OF THE FOREGOING OR OTHER FACTORS.
12
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PART II
OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
None
(b) Reports on Form 8-K:
<TABLE>
<CAPTION>
<C> <S>
Report Date Event reported
7/17/98 Biotransplant and MedImmune Report
Phase II Results of BTI-322 to Treat
Graft-Versus-Host Disease in
Transplant Patients
7/24/98 MedImmune Revenues Increase Over 400
Percent in First Half
8/12/98 Abbott Laboratories and MedImmune
Announce Submission of Application for
European Marketing Approval of Synagis
9/9/98 FDA Approves Additional Manufacturing
Facility for MedImmune's Synagis
9/9/98 Phase 3 Results for MedImmune's
Synagis Published in Pediatrics
9/16/98 MedImmune and Chiron Enter Agreement
on Vaccine Adjuvant Technology
9/16/98 MedImmune Appoints Melvin Booth
President & Chief Operating Officer
</TABLE>
13
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SIGNATURES
Pursuant to the 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.
MEDIMMUNE, INC.
(Registrant)
Date: November 13, 1998 /s/David M. Mott
Vice Chairman and Chief Financial Officer
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MEDIMMUNE,
INC'S QUARTERLY REPORT ON FORM 10-Q FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FILING.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 22,422
<SECURITIES> 77,928
<RECEIVABLES> 16,188
<ALLOWANCES> 0
<INVENTORY> 24,136
<CURRENT-ASSETS> 144,045
<PP&E> 69,020
<DEPRECIATION> 0
<TOTAL-ASSETS> 219,656
<CURRENT-LIABILITIES> 34,360
<BONDS> 83,878
0
0
<COMMON> 267
<OTHER-SE> 99,989
<TOTAL-LIABILITY-AND-EQUITY> 219,656
<SALES> 73,224
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</TABLE>
