Rhone-Poulenc Rorer Beats 1st-Qtr Forecasts

Rhone-Poulenc Rorer's performance exceeded the expectations of analysts at Goldman Sachs, who are strongly reiterating their moderate outperformer rating of the company.

First-quarter sales were $1.3 billion, up 8%. Net income was $74 million, an increase of 4% and earnings per share advanced 6% to 55 cents, or 31% after adjustments for gains on asset sales in the first quarter of 1995. Results are restated on a pro forma basis to include the impact of the Centeon joint venture and the acquisitions of Fisons and Applied Immune Sciences (Marketletters passim).

Quarterly sales growth was led by cardiovascular and respiratory products, according to the firm. In the USA, sales advanced 11%, led by antithrombosis agent Clexane/Lovenox (enoxaparin), antiasthmatic agent Azmacort (triamcinolone), and DDAVP (desmopressin), used to treat urinary incontinence. In France, sales were helped by a strong flu season towards the end of 1995, advancing 1.4%. And in the rest of Europe turnover grew 11.5%. Lovenox also performed well in this region, along with Imovane (zopiclone). In Japan, the antacid Maalox had strong sales, as did Albuminar (albumin).