Zeneca Allays Fears Of Near-Term Product Gap

Zeneca presented details of its product prospects over the the next fewyears at an analysts meeting on December 1, in answer to negative comments recently about a perceived product gap around the turn of the century.

Although the rate of New Chemical Entity introductions appears to be leveling off, the company detailed its plan to grow the business on the back of continued introductions of its most recent products, as well as line extensions which should extend the life cycle of its older products. The market responded favorably to the presentation, and the company's share price rose 60 pence to L19.50 ($32.87), although it dropped back to L19.25 as the Marketletter went to press.

Tom McKillop, chief executive of Zeneca, said that the firm is seeking to double its sales over the next few years, and this will require a rich product flow to support the business. He likened the current situation, with major patent expiries looming in the next few years, as being very similar to the scenario in 1991 when Tenormin (atenolol) was coming off patent. At that time, Tenormin represented over 40% of sales, but by 2001, the current mainstay products Zestril (lisinopril) and Nolvadex (tamoxifen) should only represent 22%.