Strong Fundamentals On Show At Zeneca

As the rumor mill continues to grind out potential partners for Zeneca, the UK biosciences group showed off its strong fundamentals as an independent company by announcing profit growth of 21% in the first six months of 1996 (Marketletter August 12).

Analysts at BZW Research found no surprises emerging from the trading patterns revealed with interim results, despite figures coming in higher than expected. They are keeping their forecast for the full year unchanged, with pretax profits expected at L1.05 billion ($1.6 billion). The analysts note that for the full year, comparisons will be less favorable for both agrochemicals and pharmaceuticals, where high levels of investment in new products will continue to exert pressure on margins.

Zeneca is expected to have positive short-term news regarding products. Sir David Barnes, chief executive, said that the firm expects to meet its original target of approval and launch of Accolate (zafirlukast) in the USA this year. A US Food and Drug Administration advisory committee had requested additional data earlier this year. Sir David said discussions are progressing with a number of European regulatory authorities, and in Japan Phase III trials of Accolate should start this fall.