Solvay To Increase Pharma Investment

Belgian chemicals and pharmaceuticals company Solvay is to focus onincreasing its drugs presence in the wake of first-half 1997 figures which reveal severe weaknesses in the group's chemicals division. Total first-half operating profit slipped to 10.6 billion Belgian francs ($286 million), down 3.6% on the like, year-earlier period, due to the fall in earnings from alkalis and peroxygens, although this was offset by plastics and pharmaceuticals.

Health care represent 13% of group sales and 19% of operating profit, the shape of the division having been changed by the disposals of Solvay's animal health and enzymes business (Marketletters passim). Stripping out these businesses, underlying comparable pharmaceutical operating profit rose to 2 billion francs, an increase of 18%, a margin of 10% on sales of 20.1 billion francs. Funds from the sale of the animal health business to American Home Products for 14.4 billion francs will be reinvested in the renamed Pharmaceuticals Division.

High Hopes For Luvox Worldwide sales were driven by the company's psychiatric drug fluvoxamine, which totaled 3.7 billion francs, or 18% of overall drugs sales and up 21% on the corresponding period last year. The majority of sales were in the USA, up 49% to $54 million, with only moderate growth in Europe.