US Drug Majors See 2nd-Half Double-Digit Growth

For the second quarter of 1996 ended June 30, leading US pharmaceutical companies reported strong sales performance and, in many cases, double-digit percentage growth. Among the best performances were those of Genetics Institute, Pfizer and Johnson & Johnson. Some of the smaller firms, however, did not do so well, as indicated below, and giant Merck & Co saw a slight negative impact from lower margins from its Medco managed care business.

Allergan notes that second-quarter results included special charges for restructuring costs of $34.2 million and asset write-offs of $6.7 million; it also contributed $50 million to Allergan Ligand Retinoid Therapeutics Inc. However, earnings per share for the quarter would have been $0.45 without the ALRT contribution and the special charges, compared to $0.42 in second-quarter 1995. During the quarter, Allergan acquired Laboratorios Frumtos SA of Brazil, whose sales contributed $21.3 million to its pharmaceutical turnover in the first six months.

Amgen said sales of Epogen (epoetin alfa) increased 23% during the second quarter to $264 million, while Neupogen (filgrastim) turnover rose 3% to $255 million.