Drug Sales Boost Sandoz In First Half 1995

Swiss chemical and pharmaceutical company Sandoz reported a sharp rise of 18% in operating income to 1.6 billion Swiss francs ($1.3 billion) in the first six months of 1995. Net profit increased 10% to 1.1 billion francs, and group sales amounted to 8.7 billion francs, up 6% on the 1994 first half. Dynamic volume growth, coupled with efficient cost reduction measures, were said to have lifted the operating margin 18.5%. The half-year performance was better than most drug industry analysts had been expecting.

Sales grew 17% in local currency terms, reflecting a 6% increase in volume and a net acquisition effect of 10%. There was limited impact from price increases, according to the company.

It was noted that pharmaceuticals achieved substantially higher margins due to increased volumes and cost reductions. Pharmaceutical turnover was 3.5 billion francs, up 8% in local currencies, but down 2% when expressed in Swiss francs.