Excellent Results For Medeva In 1994

Medeva has shown again that it is capable of strong growth; the UK company's pretax profits in 1994 rose 35% to L64.2 million ($102.1 billion), and sales were up 20% to L240 million. Earnings per share advanced 24% to 14.6 pence. The company's US unit, MD Pharmaceutical, achieved a sales increase of 89% for its product methyl-phenidate, which is used to treat attention deficit disorders, and drove 1994 sales growth. Also another US unit, International Medication Systems, reversed the losses it experienced in 1993, and has been successful in promoting higher added-value products.

Bernard Taylor, Medeva's chairman, emphasized the company's success in 1994 in securing new products which are in the late stages of development, a key component of Medeva's strategy. He reiterated that this reduces the company's risk associated with the conventional research and development route and ensures a relatively low R&D cost base.

Medeva's R&D spend of L17.9 million in 1994 represented around 7% of sales. This compares with 6% in 1993. The increase is attributed to higher spending on the development of vaccines and the clinical costs of the Abbreviated New Drug Application submission for a metered-dose inhaler version of albuterol (see page 23).