Mixed Results From US Companies In 2nd Qtr

Some of the larger US chemical and pharmaceutical companies, such as Dow Chemical and Du Pont, have seen the best results this quarter for a few years. However, Marion Merrell Dow, in which Dow Chemical holds a majority stake, announced declining earnings.

Baxter International said that its medical specialties business delivered strong sales growth in the second quarter of 1994. "We're right on track in achieving the objectives established last November," stated Vernon Loucks, chairman and chief executive. "The results are a strong indication of our focused attention on cash flow and improving shareholder value and we expect the momentum to continue throughout the second half," he added. Operational cash flow for the first six months of the year was $292 million, which reduced the net debt to capital ratio significantly. International sales in the second quarter were $663 million, up 9%, and representing 29% of total sales. Baxter's domestic sales were $1.7 billion, ahead 4% on the like, year-earlier quarter, the company said.

Biogen (see also page 2) experienced a decline in earnings and revenues in the 1994 second quarter. The company said that the declines were brought about by slower sales in Japan of Intron A (interferon alpha), which is sold under license from the company by Schering-Plough (Marketletter August 1). Biogen said that this was due to price cuts for all interferon alpha products implemented by the Japanese government at the beginning of April. R&D expenses for the first six months of the year amounted to $49.6 million, up 54% as a result of ongoing clinical development efforts for two of its products, interferon beta and hirulog (Marketletter August 1).