US Drug & Biotech Firms Post Quarterly Results

A number of US pharmaceutical and larger biotechnology companiescontinue to report revenue gains along with net losses as product development progresses.

Advanced Tissue Sciences reported that revenues for the second quarter of 1997 included $450,000 in sales for its first therapeutic product Dermagraft, a human-based temporary covering for severe burns which was launched three months ago (Marketletter April 21). During the quarter, the company borrowed $1.7 million under the terms of its joint venture agreement with Smith & Nephew in order to develop tissue-engineered cartilage for orthopedic applications. ATS and S&N have also announced plans to launch Dermagraft in the UK in October and in several other northern European countries before the end of 1997

Amylin noted that its revenue increases for the six months ended June 30, 1997, were a result of an increase in Johnson & Johnson's one-half share of collaboration development expenses and a $3.0 million license fee payment in the second quarter related to J&J exercising its option to broaden the scope of its collaboration. In addition, J&J has provided the company with a $57.1 million development loan facility. The increased revenues were offset partially by significant operating expenses, with R&D costs rising to $17.6 million, up 3%. This was primarily due to expanded development of pramlintide, with the aim of improving glucose control for people with diabetes.