Galenica Margins Under Pressure

Leading Swiss drug wholesaler Galenica says it is seeking to secure profitability through further rationalization as the downward pressure on drug prices intensifies competition. Group profits for 1995 are expected to be maintained at 1994 levels. Sales in first-quarter 1995 rose 5%.

Group sales in 1994 rose 3.7% to 1.2 billion Swiss francs ($1.06 billion), with distribution accounting for 1.05 billion francs (+3.6%). Drug production was worth 58.2 million francs (-3.2%) and operating profits remained stable in 1994; the drug distribution unit posted operating profit of 12.3 million francs, but group profits halved to 24.9 million francs.