Solid Growth For US Firms Despite Strong $

Reports for the second quarter from leading US drug companies showhealthy sales figures, with particularly solid performances for Merck & Co, Amgen and Schering-Plough, which achieved double-digit percentage growth. Some smaller firms, however, did not fare as well as expected, as indicated below.

Allergan notes that fluctuating foreign currency changes accounted for approximately 50% of the decline in the quarter's earnings per share, and expects this trend to adversely affect earnings for the second half of the year, with turnover outside the USA currently representing 57% of overall sales. Chairman William Shepherd stated: "we are not satisfied with our financial results for the first half of the year," but added that the company was encouraged by the progress being made in its technology portfolio. Allergan is looking to expand beyond the eye and skincare markets and into the area of cancer and metabolic disease.

Alza puts its strong financial performance down to the rise in net sales of chemoprotectant Ethyol (amifostine), with sales up from $3.1 million for the first half of 1996 to $8.6 million. The company also expects increased earnings growth after the recent acquisition of the antifungal Mycelex (clotrimazole) Troche in the USA.