Transition For AHP in 1995; Year-End Results

Sales increases in the fourth quarter of 1995 and the full year at American Home Products were primarily attributed to the turnover of American Cyanamid, which was acquired by AHP in 1994. The integration of American Cyanamid is on or ahead of schedule, according to John Stafford, chairman, president and chief executive. He said "we can look back on 1995 as a year of successful transition." The 1995 fourth quarter included special charges relating to American Cyanamid and other charges for shutdown and discontinuance of operations. Pharmaceutical sales in the quarter amounted to just over $2 billion, up 36% or 11% on a pro forma basis, and for the full year they advanced 45% or 4% on a pro forma basis to $7.5 billion. Other firms reporting financial results are:

Agouron Pharmaceuticals said that its financial position reflects its expanded investment in R&D, the receipt of a $24 million milestone payment and program funding from Japan Tobacco in relation to the development of the anti-HIV agent Viracept (nelfinavir mesylate; see page 19). The company also raised $78.6 million net from a secondary public offering of 3 million shares in September 1995.

At Alza Corporation, results for 1995 and the fourth quarter included a benefit of $7 million from the reversal of a reserve for a patent infringement suit filed by Ciba regarding a nicotine transdermal patch product (Marketletters passim). Royalties and fees in 1995 amounted to $145.5 million, and net sales were $76.9 million. The firm spent $103.4 million of R&D in 1995, up 36% on the previous year.