Underlying Strength In 1st Qtr At SmithKline Beecham

The strength of UK sterling against most currencies had a negativeimpact on the performance of SmithKline Beecham in the first quarter of 1997. However, the firm's results were still slightly ahead of some analysts' expectations, and showed evidence of strong underlying growth.

Jan Leschly, SB's chief executive, commented: "our excellent performance is clear despite the dramatic impact of exchange rate fluctuations. Sales in our pharmaceutical and consumer health care businesses remain strong, driven in both cases by the contribution of new products, including the antidepressant, Seroxat/ Paxil (paroxetine), new pediatric vaccines, and the smoking cessation products Nicorette and Nicoderm."

The firm's trading profit for the quarter was L439 million ($716 million), a rise of 16% if the effect of currency is excluded, or 6% on an actual basis. Underlying sales growth was 7%, comprising gains of 12% for pharmaceutical products, 18% for SB's Consumer Healthcare business, and a 25% decline for other businesses consisting of the pharmacy benefit manager, Diversified Pharmaceutical Services, and Clinical Laboratories.