Immunex discloses off-sheet liability

SEATTLE – Immunex Corp., which is building and developing a complex in West Greenwich for the production of the rheumatoid arthritis drug Enbrel, which is still waiting for final FDA approval, disclosed that it has taken on an off-balanced sheet liability of up to $671 million through a real estate lease. The previously undisclosed lease was described in the company’s annual report. Immunex, which has agreed to be bought out by its principal rival, Amgen, Inc., disclosed in a filing with the Securities and Exchange Commission that it was using a so-called synthetic lease, which keeps real estate liabilities off the company’s books for construction of a $750 million research center in Seattle, Bloomberg News reported. But until the disclosure in its annual report, Immunex had not acknowledged the size of the liability it incurred through its lease. The recent Enron Corp. controversy has drawn attention to any off-balance sheet liabilities that companies incur, which critics say creates a false picture for investors of the company’s financial condition. Bloomberg News quoted an Amgen spokesperson as saying the company was searching for alternative methods for financing the Seattle project.