Turnaround For Genetics Institute In First Qarter

Genetics Institute, a subsidiary of American Home Products, has announced a turnaround in its business in the first quarter of 1995. A loss of $10 million in the first quarter of 1994 has grown into net income in the 1995 first quarter of almost $6 million.

"This $5.7 million in reported net income...results principally from two sources - increased sales of recombinant human Factor VIII bulk drug substance (rhAHF) to Baxter Healthcare Corporation and a $12.5 million initial license fee relating to our recently announced North American rhBMP-2 collaboration in spinal reconstruction with the Sofomor Danek Group," said Patrick Gage, GI's chief operating officer. "Sales of rhAHF to Baxter in the first quarter of 1995 totaled $23.9 million compared with $13 million in the first quarter of 1994 and $9 million in the fourth quarter of 1994. However, we will not realize further licensing revenue from Sofamor Danek in 1995," added Dr Gage.

GI and the Johns Hopkins University have entered into a cooperative agreement to form a new company, MetaMorphix. The new company will discover, develop and commercialize genetically-related molecules involved in regulating cell growth and differentiation (see page 20).