Exhibit 99.1
Chiron Reports 2004 First-Quarter Pro-Forma Results of 22 Cents Per Share
24 Percent Increase in Pro-Forma Revenues Over First Quarter 2003
EMERYVILLE, Calif., April 21 /PRNewswire-FirstCall/ -- Chiron Corporation
(Nasdaq: CHIR) today reported pro-forma income from continuing operations of
$43 million, or $0.22 per share, for the first quarter of 2004, compared to
$56 million, or $0.30 per share, for the first quarter of 2003. The decrease
in earnings per share for the first quarter of 2004 as compared to the first
quarter of 2003 was primarily due to two factors: the seasonal impact of the
PowderJect acquisition and the decline in the Betaseron royalty rate. The
impact of these factors was an approximate $0.10 decrease in pro-forma and
GAAP earnings per share. For the quarter, foreign exchange rates, on a pro-
forma basis, resulted in a $0.01 decrease in earnings per share. On a GAAP
basis, Chiron reported income from continuing operations of $27 million, or
$0.14 per share, for the first quarter of 2004, compared to income from
continuing operations of $61 million, or $0.32 per share, for the first
quarter of 2003.
The PowderJect acquisition had a significant impact on earnings per share
for the first quarter of 2004. Revenues of the primary product acquired with
PowderJect, Fluvirin(R) influenza vaccine, are heavily seasonal and are
recognized primarily in the second half of the year; however, costs associated
with PowderJect are incurred throughout the year.
Because of this seasonality, Chiron expects that earnings per share for
the second half of 2004, as a proportion of earnings per share for the year,
will be substantially higher than they were for the second half of 2003. The
company expects the range of pro-forma earnings per share in the second half
of 2004 to be between 75 percent and 80 percent of total earnings per share
for the year. (The company expects the range of GAAP earnings per share in
the second half of 2004 to be between 80 percent and 85 percent of total
earnings per share for the year.)
Chiron management uses pro-forma financial statements to gain an
understanding of the company's operating performance on a comparative basis.
Pro-forma results exclude special items relating to certain acquisitions and
revenues, which may not be indicative of the company's trends or potential
future performance. Please refer to the attached tables at the end of this
document for more detail on these items and a reconciliation to GAAP financial
statements. All references to per-share amounts are per diluted share.
"Chiron continues to execute its strategy and investment agenda and
deliver solid financial returns," said Howard Pien, Chiron's president and
chief executive officer. "We are progressing toward completion of our 20
milestones for growth as outlined at the beginning of the year, with expansion
of our Blood Testing business into the Pacific Rim, continued investment in
flu vaccine production and development, and development plans in our
infectious disease and cancer franchises.
"As we build the foundation for future value with these business
milestones, we are committed to delivering a strong financial performance. We
look forward to an excellent year that, through sound execution, disciplined
science and a steadfast commitment to improving human health, will bring value
to shareholders and further contribute to the detection, prevention and
treatment of diseases worldwide."
Overall Revenues
Total revenues were $380 million for the first quarter of 2004, compared
to $307 million for the first quarter of 2003. Foreign exchange rates
resulted in a five percent increase in total revenues. Net product sales were
$281 million for the first quarter of 2004, compared to $219 million for the
first quarter of 2003.
Blood Testing
Total Blood Testing revenues were $117 million for the first quarter of
2004, compared to $93 million for the first quarter of 2003. Blood Testing
revenues primarily include revenues from the sales of products related to
Chiron's Procleix(R) HIV-1/HCV Assay; revenues related to Chiron's joint
business arrangement for immunodiagnostics with Ortho-Clinical Diagnostics,
Inc. (Ortho), a Johnson & Johnson company; and royalties paid by F. Hoffmann-
La Roche (Roche) related to nucleic acid testing (NAT) blood screening. The
gross profit margin on blood testing products was 43 percent for the first
quarter of 2004, compared to 40 percent for the first quarter of 2003. The
increase was primarily due to the amendment, effective January 1, 2004, to the
worldwide blood screening collaboration agreement with Gen-Probe Incorporated
in order to adopt permanent, fixed revenue shares for each party.
-- Sales related to the Procleix(R) System were $62 million for the first
quarter of 2004, compared to sales of $42 million for the first quarter
of 2003. The increase was primarily due to revenues from the
investigation-only use of the Procleix(R) West Nile Virus Assay in the
United States, market share gains in the United States and continued
penetration into several markets abroad.
-- Revenues from Chiron's joint business arrangement with Ortho were
$30 million for the first quarter of 2004, compared to $26 million for
the first quarter of 2003. The increase was primarily due to increased
profitability.
-- Royalties paid by Roche related to NAT blood screening were $15 million
for the first quarter of 2004, compared to $14 million for the first
quarter of 2003.
Vaccines
Vaccines net product sales were $86 million for the first quarter of 2004,
compared to $68 million for the first quarter of 2003. The gross profit
margin on vaccines products was 33 percent for the first quarter of 2004,
compared to 49 percent for the first quarter of 2003. The decrease was
primarily due to the acquisition of PowderJect, as a portion of the facilities
acquired was not active in flu vaccine production for a significant part of
the first quarter. In addition, the product mix was heavily influenced by the
shift of Encepur(TM) vaccine for tick-borne encephalitis sales to the fourth
quarter of 2003 from the first quarter of 2004.
-- Sales of flu vaccines were $8 million for the first quarter of 2004,
compared to $4 million for the first quarter of 2003. The increase was
primarily due to additional sales of Fluvirin(R) influenza vaccine, the
flu vaccine that Chiron acquired with PowderJect, to the U.S. Centers
for Disease Control and Prevention.
-- Sales of Menjugate(R) conjugate vaccine against meningococcal C disease
were $5 million for the first quarter of 2004, compared to $8 million
for the first quarter of 2003, with the decrease primarily due to the
timing of outbreaks and vaccination programs in various geographies.
-- Sales of Chiron's travel vaccines were $23 million for the first
quarter of 2004, compared to $26 million for the first quarter of 2003.
Travel vaccines include Encepur(TM) vaccine for tick-borne
encephalitis, Arilvax(TM) vaccine for yellow fever, Dukoral(TM) vaccine
for cholera, and RabAvert(R) vaccine for rabies. The decrease was
primarily due to timing of sales of Encepur, as a portion of sales
shifted to the fourth quarter of 2003 from the first quarter of 2004,
and was partially offset by sales of Arilvax and Dukoral, which Chiron
acquired with PowderJect.
-- Sales of Chiron's pediatric and other vaccines products were
$50 million for the first quarter of 2004, compared to $30 million for
the first quarter of 2003, with the increase primarily due to tender
sales of pediatric vaccines, particularly polio vaccines, and increased
sales following the PowderJect acquisition.
BioPharmaceuticals
The BioPharmaceuticals division reported net product sales and
Betaferon(R) interferon beta-1b royalties of $140 million for the first
quarter of 2004, compared to $116 million for the first quarter of 2003. The
gross profit margin on biopharmaceutical products was 76 percent for the first
quarter of 2004, compared to 79 percent for the first quarter of 2003. The
decrease was primarily due to a combination of a decline in the royalty rate
related to the sale of Betaseron that took effect in the fourth quarter of
2003, pursuant to Chiron's agreement with Schering, and increased costs
associated with the new pre-filled diluent syringe for Betaseron(R) interferon
beta-1b.
-- TOBI(R) tobramycin solution for inhalation sales were $53 million for
the first quarter of 2004, compared to $41 million for the first
quarter of 2003, with the increase primarily due to increased patient
demand, price increases, the benefit of foreign exchange rates and
wholesaler ordering patterns.
-- Proleukin(R) (aldesleukin) interleukin-2 sales were $32 million for the
first quarter of 2004, compared to $26 million for the first quarter of
2003, with the increase primarily due to price increases and wholesaler
ordering patterns.
-- Sales of Betaseron(R) interferon beta-1b for injection, marketed in
Europe as Betaferon(R), to Berlex, Inc., (and its parent company
Schering AG) for marketing and resale were $30 million for the first
quarter of 2004, compared to $29 million for the first quarter of 2003.
The sales pattern was essentially level because the contractual decline
in the royalty rate related to the sale of Betaseron, pursuant to
Chiron's agreement with Schering, and changes in ordering patterns were
offset by increased patient demand, price increases, and the benefit of
foreign exchange rates. Royalties from Schering AG's European sales of
Betaferon were $14 million for the first quarter of 2004, compared to
$14 million for the first quarter of 2003. The royalty pattern was
essentially level because the decline in Betaferon royalties, pursuant
to Chiron's agreement with Schering, was offset by increased patient
demand, price increases, and the benefit of foreign exchange rates.
Pipeline and Products Update
Chiron has seen recent advances in franchises across all three of its
business units and expects continued progress throughout 2004.
Blood Testing
Chiron expects to expand its leadership in blood testing through new
assays, new geographies, greater market penetration and expansion into blood
safety.
-- In February, Chiron announced the initiation of U.S. clinical trials of
the Procleix(R) Ultrio(TM) Assay, for the simultaneous detection of
HIV-1, hepatitis C virus (HCV) and hepatitis B virus (HBV) in donated
blood, plasma, organs and tissue, on the Procleix TIGRIS(R) system, a
key enabling technology for individual donor testing. Chiron, in
collaboration with its partner Gen-Probe Incorporated, expects to
complete the clinical trials for TIGRIS in the second half of 2004 and
to file submissions to the U.S. Food and Drug Administration (FDA) for
TIGRIS and the Procleix Ultrio Assay later in the year.
-- Chiron recently won a contract for the Procleix(R) HIV-1/HCV Assay with
a major blood center in Korea, accounting for approximately a third of
the nation's annual donations.
Vaccines
Chiron Vaccines development is focused on its meningococcal franchise and
flu cell-culture technology.
-- Chiron is on track to initiate a Phase III trial this year for its flu
cell-culture vaccine for European registration. The company also
recently filed an investigational new drug application (IND) for
flu cell-culture in the United States and has begun the dialogue with
the FDA on development plans in the United States.
-- Chiron recently broke ground for the $100 million expansion of its
Liverpool Fluvirin(R) influenza vaccine production facility, which will
enable further increases in future production following the record
increases experienced last year and additional increases projected for
this year.
-- Chiron advanced its establishment of commercial operations for vaccines
in the United States, appointing a head of the business and positioning
it to support strategies for both the flu vaccine and meningococcal
vaccines franchises.
-- In the development of vaccines for the five primary serogroups that
cause meningococcal disease, Chiron recently began clinical trials for
its broad-coverage meningococcal B vaccine.
BioPharmaceuticals: Infectious Disease
Chiron continues to build its portfolio of products to treat and prevent
infectious disease. This franchise leverages a significant global commercial
infrastructure.
-- Chiron is currently meeting with investigators for its Phase III trial
for tifacogin in patients with severe community-acquired pneumonia and
plans to initiate the trial in May.
-- Chiron will meet with the FDA in May to discuss the registration path
for cyclosporine solution for inhalation (CSI) as a potential treatment
for lung transplant rejection.
-- With its partner, Cubist Pharmaceuticals, Chiron soon expects to reach
a decision to determine the regulatory path forward for daptomycin in
the European Union, in which Chiron has commercial rights.
-- Chiron is investing to expand its TOBI franchise in its study of the
dry-powder formulation delivered with a hand-held device, which the
company is developing in collaboration with Nektar Therapeutics.
Chiron now plans to use commercial product and the commercial device in
its upcoming Phase III trial, which the company anticipates will delay
the start of the trial from the end of 2004 to the beginning of 2005,
with minimal anticipated effect on the product launch date.
BioPharmaceuticals: Oncology
Chiron's oncology franchise has three dimensions: immune-based therapies,
monoclonal antibodies and novel cancer agents.
-- Chiron announced a collaborative agreement with XOMA Ltd. for the
development and commercialization of antibody products for the
treatment of cancer. Chiron has successfully identified a number of
potential targets and expects the agreement to help generate antibodies
against those targets and accelerate their advancement through the
development process.
-- Chiron is initiating a new Phase II study of Proleukin(R) (aldesleukin)
for injection plus rituximab in rituximab-naive patients with low-grade
non-Hodgkin's lymphoma to determine the combination's potential in
patients receiving rituximab for the first time.
-- Chiron has had an abstract accepted for the American Society of
Clinical Oncology (ASCO) meeting, to be held June 5-8 in New Orleans,
to detail the objective, durable responses found in a specific
sub-population of patients in its existing Phase II trial of Proleukin
plus rituximab in patients with low-grade non-Hodgkin's lymphoma who
have failed rituximab therapy.
-- Chiron discontinued further development of tezacitabine, a
next-generation nucleoside analog, based on an analysis of the data
from a Phase II trial in patients with gastroesophageal cancer.
Other Recent Business Milestones
Other recent business activities underline the value of Chiron's products
and intellectual property and the strength of its leadership.
-- Chiron announced the appointment of Rino Rappuoli, Ph.D., to the
position of chief scientific officer (CSO). Dr. Rappuoli joined Chiron
as head of European vaccines research in 1992 with the acquisition of
Italian vaccines company Sclavo SpA, where he served as head of
research and development. Dr. Rappuoli is co-founder of the field of
cellular microbiology, a discipline combining cell biology and
microbiology, and has pioneered the genomic approach to vaccine
development termed "reverse vaccinology."
-- Chiron was listed at number 769 on the Fortune 1000 list for 2003, up
from its debut at number 912 in 2002.
1Q04 Earnings Conference Call
Chiron will hold a conference call and webcast on Wednesday, April 21,
2004, at 4:45 p.m. EDT to review its first-quarter 2004 results of operations
and business highlights. In addition, the company may address forward-looking
questions concerning business, financial matters and trends affecting the
company.
To access either the live call or the one-week archive, please log on to
http://www.chiron.com/webcast . Please connect to the website at least 15
minutes prior to the conference call to ensure adequate time to download any
necessary software. Alternatively, please call 800-374-0907 from the United
States or Canada or 706-643-3367 from other locations. Replay is available
approximately two hours after the completion of the call through 11:55 p.m.
EDT, Wednesday, April 28, 2004. To access the replay, please call 800-642-
1687 from the United States or Canada or 706-645-9291 from other locations.
The conference ID number is 6631837.
About Chiron
Through its global Blood Testing, Vaccines and BioPharmaceuticals
businesses, Chiron Corporation addresses human suffering with more than 50
diverse products to detect, prevent and treat disease worldwide. The
company's consistent success comes from its pioneering science, skill in
delivering innovations in biotechnology and disciplined business approach.
Chiron believes that science has the power to improve people's lives and
harnesses that power to transform public health.
This year, Chiron Vaccines celebrates 100 years of advancing medicine with
the anniversary of two founding companies. In 1904, Emil von Behring and
Achille Sclavo independently started companies in Germany and Italy,
respectively, dedicated to the research, development and manufacture of
vaccines to protect humanity from infectious disease. As the fifth-largest
vaccine manufacturer in the world, Chiron remains dedicated to the legacies of
von Behring and Sclavo to prevent disease and develop new vaccines to improve
human health globally.
This news release contains forward-looking statements, including
statements regarding sales growth, product development initiatives, new
product indications, new product marketing, acquisitions, and in- and
out-licensing activities, that involve risks and uncertainties and are subject
to change. A full discussion of the company's operations and financial
condition, including factors that may affect its business and future
prospects, is contained in documents the company has filed with the SEC,
including the form 10-K for the year ended December 31, 2003, and will be
contained in all subsequent periodic filings made with the SEC. These
documents identify important factors that could cause the company's actual
performance to differ from current expectations, including the outcome of
clinical trials, regulatory review and approvals, manufacturing capabilities,
intellectual property protections and defenses, stock-price and interest-rate
volatility, and marketing effectiveness. In particular, there can be no
assurance that Chiron will increase sales of existing products, successfully
develop and receive approval to market new products, or achieve market
acceptance for such new products. There can be no assurance that Chiron's
out-licensing activities will generate significant revenue, nor that its
in-licensing activities will fully protect it from claims of infringement by
third parties. In addition, the company may engage in business opportunities,
the successful completion of which are subject to certain risks, including
shareholder and regulatory approvals and the integration of operations.
Consistent with SEC Regulation FD, we do not undertake an obligation to
update the forward-looking information we are giving today.
NOTE: Arilvax, Dukoral, Encepur, Fluvirin, Menjugate, Procleix,
Proleukin, RabAvert, TOBI and Ultrio are trademarks of Chiron Corporation.
Betaseron and Betaferon are trademarks of Schering AG. TIGRIS is a registered
trademark of Gen-Probe Incorporated.
CHIRON CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
2004
Pro Forma Pro Forma
Adjusted (1) Adjustments Actual
Revenues:
Product sales, net $281,066 $-- $281,066
Revenues from joint business
arrangement 30,361 -- 30,361
Collaborative agreement revenues 6,515 -- 6,515
Royalty and license fee revenues 54,792 -- 54,792
Other revenues 6,938 -- 6,938
Total revenues 379,672 -- 379,672
Operating expenses:
Cost of sales 126,701 -- 126,701
Research and development 98,410 -- 98,410
Selling, general and administrative 104,740 -- 104,740
Amortization expense -- (21,332) 21,332
Other operating expenses 2,116 -- 2,116
Total operating expenses 331,967 (21,332) 353,299
Income from operations 47,705 21,332 26,373
Interest expense (5,925) -- (5,925)
Interest and other income, net 16,074 -- 16,074
Minority interest (620) -- (620)
Income from continuing operations
before income taxes 57,234 21,332 35,902
Provision for income taxes 14,309 5,334 8,975
Income from continuing operations 42,925 15,998 26,927
Gain from discontinued operations 12,845 -- 12,845
Net income $55,770 $15,998 $39,772
Basic earnings per share:
Income from continuing operations $0.23 $0.14
Net income $0.30 $0.21
Diluted earnings per share:
Income from continuing operations $0.22 $0.14
Net income $0.28 $0.21
Shares used in calculating basic
earnings per share 187,809 187,809
Shares used in calculating diluted
earnings per share 207,816 191,999
2003
Pro Forma Pro Forma
Adjusted (2) Adjustments Actual
Revenues:
Product sales, net $218,620 $-- $218,620
Revenues from joint business
arrangement 26,452 -- 26,452
Collaborative agreement revenues 4,114 -- 4,114
Royalty and license fee revenues 53,424 -- 53,424
Other revenues 4,012 (14,413) 18,425
Total revenues 306,622 (14,413) 321,035
Operating expenses:
Cost of sales 85,589 -- 85,589
Research and development 82,130 -- 82,130
Selling, general and administrative 73,042 -- 73,042
Amortization expense -- (7,613) 7,613
Other operating expenses 1,691 -- 1,691
Total operating expenses 242,452 (7,613) 250,065
Income from operations 64,170 (6,800) 70,970
Interest expense (3,462) -- (3,462)
Interest and other income, net 14,318 -- 14,318
Minority interest (400) -- (400)
Income from continuing operations
before income taxes 74,626 (6,800) 81,426
Provision for income taxes 18,657 (1,700) 20,357
Income from continuing operations 55,969 (5,100) 61,069
Gain from discontinued operations 1,426 -- 1,426
Net income $57,395 $(5,100) $62,495
Basic earnings per share:
Income from continuing operations $0.30 $0.33
Net income $0.31 $0.33
Diluted earnings per share:
Income from continuing operations $0.30 $0.32
Net income $0.30 $0.33
Shares used in calculating basic
earnings per share 186,649 186,649
Shares used in calculating diluted
earnings per share 189,687 189,687
(1) Pro Forma Adjusted amounts exclude the amortization expense on
acquired intangible assets related to the acquisitions of
PathoGenesis, Chiron Behring, Pulmopharm and PowderJect
Pharmaceuticals.
(2) Pro Forma Adjusted amounts exclude (a) the amortization expense on
acquired intangible assets related to the acquisitions of
PathoGenesis, Chiron Behring and Pulmopharm and (b) revenues from the
Biogen and Serono settlements in connection with the McCormick patents
owned by Schering's U.S. subsidiary, Berlex Laboratories.
CHIRON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
March 31, Dec. 31,
2004 2003
Assets
Current assets:
Cash and short-term investments $550,471 $538,482
Accounts receivable, net 369,508 382,933
Current portion of notes receivable 1,489 1,479
Inventories, net 236,299 199,625
Other current assets 147,721 135,130
Total current assets 1,305,488 1,257,649
Noncurrent investments in marketable debt
securities 535,022 560,292
Property, plant, equipment and leasehold
improvements, net 707,790 689,750
Other noncurrent assets 1,688,577 1,687,478
Total assets $4,236,877 $4,195,169
Liabilities and stockholders' equity
Current liabilities $397,830 $436,913
Long-term debt 929,780 926,709
Capital lease 157,615 157,677
Noncurrent unearned revenue 40,393 45,564
Other noncurrent liabilities 196,631 176,944
Minority interest 7,877 7,002
Stockholders' equity 2,506,751 2,444,360
Total liabilities and stockholders'
equity $4,236,877 $4,195,169
CHIRON CORPORATION
SUPPLEMENTAL SCHEDULE OF COMPUTATION OF EARNINGS PER SHARE
(Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
2004 2003
Pro Forma Pro Forma
Adjusted Actual Adjusted Actual
Computation for earnings per share
- continuing operations
Income (Numerator):
Income from continuing operations $42,925 $26,927 $55,969 $61,069
Plus: Interest on 1.625% convertible
debentures, net of taxes 1,570 -- -- --
Interest on Liquid Yield
Option Notes, net of taxes 1,760 -- -- --
Income from continuing operations,
plus impact from assumed
conversions $46,255 $26,927 $55,969 $61,069
Shares (Denominator):
Weighted-average common shares
outstanding 187,809 187,809 186,649 186,649
Effect of dilutive securities:
Stock options and equivalents 4,190 4,190 3,038 3,038
1.625% convertible debentures 7,306 -- -- --
Liquid Yield Option Notes 8,511 -- -- --
Weighted-average common shares
outstanding, plus impact from
assumed conversions 207,816 191,999 189,687 189,687
Basic earnings per share from
continuing operations $0.23 $0.14 $0.30 $0.33
Diluted earnings per share from
continuing operations $0.22 $0.14 $0.30 $0.32
Computation for earnings per share -
net income
Income (Numerator):
Net income $55,770 $39,772 $57,395 $62,495
Plus: Interest on 1.625% convertible
debentures, net of taxes 1,570 -- -- --
Interest on Liquid Yield
Option Notes, net of taxes 1,760 -- -- --
Net income, plus impact from assumed
conversions $59,100 $39,772 $57,395 $62,495
Shares (Denominator):
Weighted-average common shares
outstanding 187,809 187,809 186,649 186,649
Effect of dilutive securities:
Stock options and equivalents 4,190 4,190 3,038 3,038
1.625% convertible debentures 7,306 -- -- --
Liquid Yield Option Notes 8,511 -- -- --
Weighted-average common shares
outstanding, plus impact from
assumed conversions 207,816 191,999 189,687 189,687
Basic earnings per share $0.30 $0.21 $0.31 $0.33
Diluted earnings per share $0.28 $0.21 $0.30 $0.33
CHIRON CORPORATION
Supplemental Revenue Summary (Pro Forma)
USD $ (in thousands)
Current Prior Change
Quarter Quarter from Change
Q1 2004 Q4 2003 Prior QTR %
Product Sales
Blood Testing
Ortho $6,234 $8,625 $(2,391) (27.7)%
NAT 61,886 58,299 3,587 6.2%
Total Blood Testing 68,120 66,924 1,196 1.8%
Vaccines
Flu Vaccines 7,705 141,142 (133,437) (94.5)%
Meningococcus Vaccines 4,549 33,672 (29,123) (86.5)%
Travel Vaccines (TBE, Rabies,
Arilvax and Dukoral) 23,010 27,850 (4,840) (17.4)%
Pediatric/Other Vaccines 51,182 58,974 (7,792) (13.2)%
Total Vaccines 86,446 261,638 (175,192) (67.0)%
Biopharmaceuticals:
Proleukin 31,868 29,852 2,016 6.8%
TOBI 52,524 49,307 3,217 6.5%
Betaseron* 30,136 36,148 (6,012) (16.6)%
Other 11,972 4,742 7,230 152.5%
Total Biopharmaceuticals 126,500 120,049 6,451 5.4%
TOTAL PRODUCT SALES $281,066 $448,611 $(167,545) (37.3)%
Revenues From Joint Business
Arrangement $30,361 $28,313 $2,048 7.2%
Collaborative Agreement Revenues 6,515 3,008 3,507 116.6%
Royalty and License Fees 54,792 63,605 (8,813) (13.9)%
Other Revenues 6,938 11,044 (4,106) (37.2)%
TOTAL REVENUES $379,672 $554,581 $(174,909) (31.5)%
Gross Margins
Blood Testing 43% 38% 5%
Vaccines 33% 49% (16)%
Biopharmaceuticals 76% 66% 10%
TOTAL GROSS MARGINS 55% 52% 3%
* Excludes Betaferon Royalty $13,807 $16,658 $(2,851) (17.1)%
Year Ago Change
Quarter from Change
Q1 2003 Prior Year %
Product Sales
Blood Testing
Ortho $6,408 $(174) (2.7)%
NAT 42,123 19,763 46.9%
Total Blood Testing 48,531 19,589 40.4%
Vaccines
Flu Vaccines 4,253 3,452 81.2%
Meningococcus Vaccines 7,538 (2,989) (39.7)%
Travel Vaccines (TBE, Rabies,
Arilvax and Dukoral) 25,700 (2,690) (10.5)%
Pediatric/Other Vaccines 30,913 20,269 65.6%
Total Vaccines 68,404 18,042 26.4%
Biopharmaceuticals:
Proleukin 25,983 5,885 22.6%
TOBI 40,734 11,790 28.9%
Betaseron* 29,300 836 2.9%
Other 5,668 6,304 111.2%
Total Biopharmaceuticals 101,685 24,815 24.4%
TOTAL PRODUCT SALES $218,620 $62,446 28.6%
Revenues From Joint Business
Arrangement $26,452 $3,909 14.8%
Collaborative Agreement Revenues 4,114 2,401 58.4%
Royalty and License Fees 53,424 1,368 2.6%
Other Revenues 4,012 2,926 72.9%
TOTAL REVENUES $306,622 $73,050 23.8%
Gross Margins
Blood Testing 40% 3%
Vaccines 49% (16)%
Biopharmaceuticals 79% (3)%
TOTAL GROSS MARGINS 61% (6)%
* Excludes Betaferon Royalty $13,966 $(159) (1.1)%
SOURCE Chiron Corporation
-0- 04/21/2004
/CONTACT: Chiron Corporate Communications & Investor Relations, Media,
+1-510-923-6500, or Investors, +1-510-923-2300 /
/Web site: http://www.chiron.com /
(CHIR)
CO: Chiron Corporation
ST: California
IN: BIO MAC MTC
SU: ERN ERP CCA