Hybritech Reports Loss of $2.4 Million in Fiscal Year

In what could be Hybritech’s last earnings report before it becomes a subsidiary of Eli Lilly & Co., the San Diego-based monoclonal antibody technology company reported a $3.9-million loss for the fourth quarter and a $2.4-million loss for the fiscal year ended Dec. 31.

In February, Hybritech announced an anticipated $3-million net loss for the quarter.

The fourth-quarter loss included an extraordinary loss of $744,000 generated by the planned acquisition of Hybritech by Indianapolis-based Lilly, and $800,000 caused by a tax loss carry-forward.

The company also absorbed costs generated by a patent-infringement suit that Hybritech lost, as well as “certain inventory adjustments.”

Revenues rose 52%, to $16.4 million, for the quarter, and 88%, to $57.8 million, for the year.

New product introductions and increased market shares for existing products boosted product sales by 97%, to $10 million, for the fourth quarter and 130%, to $33.7 million, for the year. Contract revenues rose 10.3%, to $6.4 million, for the quarter and 48%, to $24.1 million, for the year.

A year ago, Hybritech reported $377,000 in net income during the fourth quarter and $1 million in net income for the year--the first-ever annual profit for the 9-year-old company.

Hybritech shareholders will be asked to approve the acquisition by Lilly during a special shareholder meeting Tuesday.

If the acquisition by Lilly is approved, Hybritech shareholders could realize as much as $413 million in cash, convertible notes, warrants for Lilly common shares and contingent payment units, valued by Hybritech at $3 per share, which would be traded on the American Stock Exchange.

The acquisition has already been approved by the Securities & Exchange Commission.