HMR helps soften blow as Hoechst profits slide

The performance of its pharmaceuticals business was again the onlybright spot in the second quarter of 1999 for Hoechst, which suffered in what it described as a difficult economic environment. Total group sales slipped 2% to 4.6 billion euros ($4.92 billion), while operating profit slumped 63% to 128 million euros, and net losses of 188 million euros were posted as the firm was dragged down by its industrial businesses.

However, its pharmaceutical arm, Hoechst Marion Roussel, enjoyed a successful quarter. Sales rose 8% to 1.87 billion euros, while operating profit more than doubled to 622 million euros, as many of its newer products continued to perform well. Most notable among these were the antihistamine Allegra (fexofenadine), which rose 56% to 399 million Deutschemarks ($222.2 million), and the oral antidiabetic Amaryl (glimepiride), sales of which increased 77% to 113 million marks. HMR noted that its antirheumatic drug Arava (leflunomide) had turnover of 48 million marks, while Copaxone (glatiramer acetate), which is co-marketed with Israel's Teva for multiple sclerosis, climbed 97% to 63 million marks.

Sales of HMR's Cardizem (diltiazem) family of products remained stable at 372 million marks but the company said this figure is likely to decrease significantly in the next few quarters, as Andrx Corp's generic version of Cardizem CD is now on the market in the USA (Marketletter June 21).