Forex Impacts Sales At Pfizer, Merck And S-P

The strength of the US dollar has had a negative impact on sales andearnings for some of the USA's major drug companies in the first quarter of 1997. Major currencies, in particular the yen, weakened significantly against the US dollar.

Pfizer's sales advanced 12% in the quarter to just over $3 billion, which was impacted by a 1.8% negative effect from foreign exchange rates. There was a 1.4% positive impact from prices in the quarter. The firm noted that at current exchange rates, foreign exchange would have a 2%-3% negative effect on sales and income growth for the year.

At Merck & Co, growth of turnover in the 1997 first quarter was up 23% to $5.6 billion. The company said foreign exchange reduced sales growth by 1%, and at Schering-Plough, a strong dollar versus most major currencies meant that sales growth was negatively impacted by 3%. The firm's first-quarter revenues were $1.6 billion, up 13%.