US Quarterly Results Show Improvements

The majority of the US pharmaceutical and biotechnology companies reporting quarterly financial results have announced progress during the reporting period, some financial and some clinical. In addition, results from major drug firms, such as Merck & Co, confirm the trend of strong earnings and robust sales in the 1996 third quarter (Marketletters passim).

Agouron Pharmaceuticals' loss for the first quarter ended September 30, 1996 was greater than had been expected by industry analysts. The firm is making increasing investment in its clinical development and commercialization of its anti-HIV agent Viracept (nelfinavir mesylate). First-quarter R&D expenditure was $29.6 million, compared with $12.5 million a year earlier.

Barr Laboratories, a US generics company, saw net income and earnings per share decline in its fiscal first quarter ended September 30, 1996. The decrease was attributed to the rise in tamoxifen's share of the firm's overall product mix, price competition on certain Barr-manufactured products, and a 27% increase in R&D spending. Sales volume continued to grow, noted Bruce Downey, chairman, president and chief executive. He said that highlights of the quarter included investment of $4.5 million in construction of additional manufacturing capacity in both the firm's New York and Virginia operations. The firm received four new product approvals during the quarter, two of which are exclusive to Barr. There was a 23% rise in demand for tamoxifen, used in the treatment of breast cancer.