Chile's Leading Drugmaker Plans For Growth

In terms of both volume and value of sales, Laboratorio Chile SA is Chile's largest pharmaceutical company, and it is now looking for growth elsewhere, particularly in nearby Argentina and Peru, which have recently opened up their markets to foreign companies.

Laboratorio Chile was established in 1896, nationalized in 1939 and reprivatized in 1988. Last year it made a public offering of 1.8 million American Depository Receipts on the New York Stock Exchange, which increased average trading in the stock three-fold, notes Bear Stearns' David Molowa.

The company's sales in 1993 amounted to approximately $49.5 million, a 3% rise on the previous year. However, due to higher marketing and administrative costs, earnings declined 8% to $7.9 million. For the first nine months of 1994, the latest figures available, Laboratorio Chile saw sales increase 7% to $44.4 million and earnings improve 16% to $8.8 million.