US Biotech Cos Top Earnings At 1st Half

US biotechnology companies Amgen and Genentech both exceeded forecasts with strong sales and record profits for the first six months of 1994. However, the first few pharmaceutical companies to post first-half results have not been as fortunate. Profits have fallen at The Upjohn Company as a result of generic competition, and Eli Lilly, which has made a bid for McKesson's PCS unit (Marketletter July 18 and page 3) has announced unchanged net profits as a result of a variety of factors.

Abbott Laboratories posted strong growth in the second quarter of 1994. Duane Burnham, chairman and chief executive of the company said: "the US launch of Abbott's AxSYM immunodiagnostics system in June is a key example of our commitment to provide innovative products that improve the delivery of health care while reducing its overall cost." The company acknowledged that sales were negatively impacted 1% by the effects of the relatively stronger dollar.

Second-quarter R&D expenses were up 15.4% to $245 million. Worldwide sales of pharmaceutical and nutritional products amounted to $1.17 billion, up 9.3%. Domestic sales of these products accounted for $786 million of the total and international sales were $383 million. Total second-quarter hospital and laboratory product sales were $1.03 billion, up 3.1%. Of this total, domestic sales accounted for $575 million and international sales $460 million. In the first half of the year pharmaceutical and nutritional product sales were $2.39 billion, up 11.2%. Worldwide sales of hospital and laboratory products were $2.03 billion, an increase of 3%.