Pfizer saves Schwarz from dip into the red

Payments under a licence agreement between US giant Pfizer and German drugmaker Schwarz Pharma for the latter's incontinence drug fesoterodine have added 79.5 million euros ($101.3 million) to the revenue side for the second quarter of 2006 and prevented Schwarz, on its own admission, from posting a 13.3-million euro loss.

Operating profits for the first half of 2006 increased to 67.0 million euros from 39.0 million euros in the like, year-earlier period. Net earnings rose from 2.1 million euros to 37.3 million euros. Group sales were affected by strong generics competition in the USA and a difficult market environment in several European countries. Half-year turnover fell 1.1% to 483.4 million euros and was below most analysts' expectations.

Schwarz' management maintains that sales for the full year will turn out at about 900.0 million euros, with earnings hovering around the zero line. The company says it is focused for the present on its high spending on R&D on its own neurological candidate drug products. Considerable store is also being set on its new Parkinson's disease treatment Neupro (rotigotine), which is already on a number of European markets. The drug generated first-half sales of 2.0 million euros. Turnover is expected to peak at some 350.0 million euros and it is hoped that the product will be launched in the USA (where Neupro will be refiled with the Food and Drug Administration in August) in first half 2007.