US 3rd Quarter Results Show Strong Growth

The vast majority of US pharmaceutical companies reporting quarterlyfinancial results to September 30, 1997, have announced progress during the period, most notably in terms of sales. The performance of the major companies both last week and this confirm the trend of strong earnings and solid growth.

Allergan, however, noted that worldwide pharmaceutical sales for the first nine months of 1997 were $294.7 million, down 5% on the same period last year, due to the company's inventory reductions in the USA and certain other markets, which reduced wholesaler inventories and sales during the third quarter by $14 million. Pharmaceutical turnover was also negatively impacted by foreign currency changes and a continuing weakness in the base business as a result of product returns and generic competition, which was offset by strong initial acceptance of its treatment for glaucoma, Alphagan (brimonidine) in the USA. It has received marketing approval in 14 countries of the European Union.

Alza Corp says its net loss reflects non-recurring charges of $326.5 million, while expenses for the third quarter included $77 million of the $100 million purchase price for Therapeutic Discovery Corp being allocated to R&D. Revenues from its own-marketed products more than doubled to $14 million, driven once again by the chemoprotectant Ethyol (amifostine) and the antifungal Mycelex (clotrimazole) Troche, which Alza acquired in the USA from Bayer in early July.