Glaxo Wellcome Sales Rise Fueled By New Products

UK drugmaker Glaxo Wellcome said sales for the year ended December 31,1996, - the first full year reflecting the merger of Glaxo and Wellcome - increased 6% to L8.34 billion ($13.49 billion), and were fueled by new products. Trading profit was up 18% at L3.13 billion while pretax profit increased 18% to L2.96 billion ($4.79 billion). Earnings per ordinary share rose 13% to 56.7 pence.

The results were at the lower end of expectations, but almost exactly in line with forecasts from analysts at BZW Research, who recently put out a positive report on the company. Immediately after the 1996 figures were released but ahead of a meeting with analysts, GW's share price declined by 9 pence.

GW noted that sales excluding its leading antiulcerant Zantac (ranitidine) increased 14% at constant exchange rates, reflecting strong growth in new products (those introduced since 1990); turnover of these was up 50% at L2 billion. Moreover, it added, sales of new products for the first time exceeded those of Zantac, which declined 14%. Ranitidine Form 1 and GW's antiviral Zovirax (aciclovir) face patent expiry in the USA later this year.