Genetics Institute Reports $6.1 Million Quarterly Profit
CAMBRIDGE, Mass. (AP) _ Genetics Institute Inc. reported Monday it earned $6.1 million in the fourth quarter of its fiscal year, but a company executive predicted the company would lose money in fiscal 1992.
The biotechnology firm’s profits for the three-month period that ended Nov. 30, equaled 32 cents per share. In the same period in 1990, the company lost $3.68 million, or 34 cents per share.
Revenue in the quarter totaled $28 million, more than double the $13.2 million reported in the same period the previous year.
″We do not expect to be profitable in fiscal 1992 because we plan to significantly increase our research and development expenses over the next year,″ said Garen Bohlin, chief financial officer.
For fiscal 1991, the company lost $14.1 million, or $1.05 per share, compared with a loss of $28.3 million, or $2.04 per share, for fiscal 1990.Revenue for the fiscal recent year totaled $82.5 million, compared with $40.3 million the previous fiscal year.
Part of the annual loss was due to $11 million Genetics Insitute set aside to cover potential damages in its loss of a patent infringement suit brought by Amgen Inc. A federal appeals court has ruled that Amgen held the patent for erythropoietin, or EPO, which enables the human body to make red blood cells.
The loss of the suit precipitated Genetics Insitute’s agreement to sell a 60 percent stake to American Home Products Corp. for $666 million, the company said. That deal goes before shareholders on Thursday.