Merger Almost Complete At GW

The integration of Glaxo and Wellcome is virtually complete, according to deputy chairman and chief executive Sir Richard Sykes, speaking at the firm's annual general meeting on May 16 in London, UK. "The new company is operating as one and is now a reality...we are now I believe the right size, in good shape to grow, and large enough to continue to generate the funds we need to invest in future new technologies," he said. GW's R&D spend has been increased to L1.2 billion per year.

Commenting on the first four months of trading in 1996, Sir Colin Corness, GW's chairman, said that sales were L2.8 billion ($4.2 billion), up 11%, or 9% at constant exchange rates. Growth was affected by a decline of 10% in sales of the antiulcerant Zantac (ranitidine), "however, I am pleased to report that the sales of group products other than Zantac have increased 17% in constant exchange rate terms," added Sir Colin.

Zantac Sales As Low As 10%? Sir Richard was keen that generic competition to Zantac be kept in perspective. He said: "in many of our markets full patent protection for Zantac will continue beyond 1997." The key point, he stressed, was that Zantac's sales as a proportion of total group sales are diminishing rapidly. Immediately prior to the bid for Wellcome, Zantac represented over 40% of Glaxo's sales. "We now expect that Zantac sales which may be materially affected by generic competition in mid-1997 could then be as low as 10% of the group's total sales," he added.