Zantac Sales Slide 4% At Glaxo Wellcome

Glaxo Wellcome's chairman and chief executive Sir Richard Sykes announced last week that the integration of the two firms was proceeding successfully and that there was healthy growth from the firm's new products. However, there are doubts among industry observers that once Zantac (ranitidine) and the group's antiviral Zovirax (aciclovir) come off patent in the next few years earnings growth will slow.

Sir Richard believes that GW's new products will be able to sustain earnings growth. He said that sales of products launched since 1990 increased 43%, contributing $407 million ($621.7 million) - more than three times the decline in sales of the firm's blockbuster antiulcerant Zantac (ranitidine). Zantac's turnover on a pro forma basis was L2.55 billion, down 4%; volumes declined 2%. This represents 28% of total sales, he said, compared with 31% in 1994 on a pro forma basis.

Pro Forma Sales For 1995 Constant Sales Growth Reported Exchange Rates -------------------------------------------------------------------------- Volume +4 +4 Price -1 -1 Exchange +1 - Total +4 +3 Total Excluding Zantac +8 +7 --------------------------------------------------------------------------