Improvement At Sandoz in 1994 1st Half

Sandoz of Switzerland achieved an increase in operating income for the first six months of 1994 of 7% to 1.36 billion Swiss francs ($1.05 billion), driven by an improvement in margins, according to the company. Net income was ahead 2% to just over 1 billion francs, despite unexpectedly strong currency and interest rate fluctuations. These had a negative impact on net financial income.

Consolidated sales advanced 2% to 8.22 billion francs, up 2% in Swiss franc terms or 8% when expressed in local currencies. Volume growth of 4.6% and an acquisition-related rise of 2.9% both contributed to the sales growth. Sandoz said that there was little scope for price increases. There was a negative impact of 5.2% arising from the translation of sales in foreign currencies, resulting in an increase of 2.3% in Swiss franc terms.

The pharmaceutical division achieved sales growth of 3% in local currency terms, or 4% if the divestments are taken into consideration. Products that had particularly strong growth were the immunosuppressant Sandimmun (ciclosporin), the antifungal agent Lamisil (terbinafine), the antipsychotic agent Clozaril/Leponex (clozapine) and the anticancer agent Sandostatin (octreotide).