....Nutrition Downturn And Currency Holds Sandoz Back

Sales at Sandoz for first-quarter 1996 (excluding divestitures) were 3.98 billion Swiss francs ($3.22 billion), a rise of 2% in Swiss franc terms and an increase of 6% in local currencies. A particularly strong performance was seen in the pharmaceutical division, where sales improved 4% (9% in local currencies) to 1.84 billion francs.

Notable sales growth was seen for: the ciclosporin immunosuppressants Sandimmun and Neoral (up 14% in local currencies); the antischizophrenia product Leponex/Clozaril (clozapine, +21%); the antifungal Lamisil (terbinafine, +11%); the osteoporosis product Miacalcic (calcitonin, +9%); and the lipid-lowerer Lescol (fluvastatin) launched in 1994, which showed "outstanding performance," the company said, with sales rising 123% in local currencies. In the USA, the growth of pharmaceutical sales was above average, commented Sandoz, particularly in nonprescription medicines. The company also noted "dynamic growth" in the UK and Canada, but said that in Japan, "the forthcoming round of price cuts dampened sales." Sandoz notes that some 40% of patients in the USA were switched from Sandimmun to Neoral within six months. Moreover, Sandoz Pharma signed two agreements for the new anti-Parkinson's disease drug entacapone and the wound-healing product Graftskin.

In the nutrition business, clinical nutrition posted strong growth in all key markets. Sales of health foods in Europe and the Ovaltine brand in Southeast Asia were also encouraging. However, the traditional baby and infant food nutrition market in the USA was affected by strong competition and price pressures. Nevertheless, Gerber maintained its leading position, and good sales growth was seen in international markets as well as with Gerber Graduates products.