Glaxo Wellcome Boosted By New Prods; Pretax Up 34%

4 August 1996

Despite declining revenues from its leading antiulcerant Zantac (ranitidine), Glaxo Wellcome posted sales for the six months to end-June of L4.19 billion ($6.53 billion), a rise of 15.7%. Contributing to this advance were sales of new products, which increased by 51% on the like, year-earlier period to L327 million.

Pretax earnings for the period advanced 33.6% to L1.55 million ($1.63 billion) and net income rose 31.7% to L1.04 billion. This resulted in earnings per ordinary share of 29.7 pence, compared with 24.2 pence a year earlier. Net debt for the six months has reduced to L2.74 billion, compared with L3.48 billion in the 1995 term. In fact the net debt, which started at some L6.5 billion borrowings for the acquisition by Glaxo of Wellcome last year, is a further L600 million or so down since the close of the reporting term due to actual receipt of proceeds from the divestiture of the Warner-Lambert joint venture.

The statutory figures include the Wellcome contribution only from March 16. On a pro forma basis including Wellcome for the full six months, sales growth was 6% but trading profit advanced 34% and trading margin improved from 30.7% to 38.8%, which the company sees as a clear reflection of the benefits of the merger.

This article is accessible to registered users, to continue reading please register for free.  A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Login to your account

Become a subscriber

 

£820

Or £77 per month

Subscribe Now
  • Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
  • Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
  • Daily roundup of key events in pharma and biotech.
  • Monthly in-depth briefings on Boardroom appointments and M&A news.
  • Choose from a cost-effective annual package or a flexible monthly subscription
The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK





Today's issue

Company Spotlight