Major US Drug Cos Post Strong Results In 3rd Qtr

The majority of the major pharmaceutical companies in the USA have announced strong improvements in the third quarter of 1996. However, there were some exceptions including Warner-Lambert. Analysts commented that managed care programs now seem to be helping the sales of drug firms, instead of hurting them.

Allergan's financial results for the third quarter of 1996 included a special charge for restructuring costs of $28.5 million and asset write-offs of $300,000. Net of tax, the special charges reduced earnings by $0.31 per share. Excluding the special charges, EPS for the quarter were $0.57, an increase of 8%. Sales in the third quarter of 1996 would have risen 7% excluding the impact of foreign currency changes. In the first nine months, the increase in turnover would have been 11% excluding the foreign exchange impact.

Alza said that royalties and fees for the third quarter of 1996 grew to $39 million, compared to $35.5 million as a result of increased royalties on Duragesic (fentanyl) and Glucotrol XL (glipizide). Despite lower sales of Procardia XL (nifedipine), said the firm, royalties on the product were essentially flat compared with the like, year-earlier period due to a higher effective royalty rate.