Asta Medica Holds Line Despite Health Reform

Degussa's drug making subsidiary Asta Medica has succeeded in reducing the impact of the German government's health reform measures on sales, through a program of rationalization, the company reports.

World sales remained unchanged in 1994 at 1.4 billion Deutschemarks ($911.3 million), with groups sales rising 5.3% to 1.35 billion marks as the group expanded. Group pretax profits rose 19.2% to 89.3 million marks and net profits increased 22.7% to 54 million marks - almost the record level of two years earlier. Company chairman Rolf Kramer has said the figures are more the result of cost-cutting than of any change in the German pharmaceutical market.

Given the poor climate in which drugmakers have to operate, Asta has decided to defer its application for a stock exchange listing. There will be an additional reduction in the workforce in the current year and production will be further concentrated, with a unit in Frankfurt closing.