Upjohn Moving Towards Long-term Growth

A good operating performance in the first quarter of 1995 is a sign that the Upjohn Company of the USA is "weathering the storm" and "making good progress towards strengthening prospects for long-term growth and enhanced shareholder value," chairman and chief executive John Zabriskie told shareholders at the annual meeting last week.

"We are a very sound company. In spite of a reduction of $400 million in sales of high-margin products as a result of generic competition, our 1994 earnings performance was 5% to 10% better than external expectations. First-quarter 1995 earnings also exceeded external expectations, reflecting strong operating performance in international markets, continued focus on controlling costs and the recognition of revenue related to the termination of a product co-marketing agreement" (see page 6), said Mr Zabriskie. He added that short-term achievements were not enough and that long-term shareholder value is the firm's goal.

Five key strategies were said to be behind achieving this aim: re-engineering and improving the company's cost structure; meeting customer needs; further globalization, focusing R&D on unmet medical needs; and setting well-defined financial targets.