Faulding Sees Adverse Impact Of Chinese Business

With the exception of China, Australian drugmaker F H Faulding ispleased with the 1996/97 progress of all its businesses. In a statement accompanying its annual profit report, the company said that the Chinese operations had adversely affected its overall performance.

Faulding posted an operating loss of A$5.2 million ($3.8 million) from its operations in China in the year to June 30, 1997, and made an abnormal provision of A$7.5 million for restructuring. The company's consumer manufacturing and marketing activities, especially the results from the Cenovis vitamin production unit which were above pre-acquisition levels, were also positive.

The company pointed to the new product approvals which led to a significant turnaround in its US subsidiary. Future financial results will continue to be highly dependent on Faulding's ability to gain approval for and realize income from the sales of new products to counter ongoing price erosion within the industry, the statement said.