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SQUIBB'S CAPOTEN/CAPOZIDE SALES IN SECOND QUARTER NEARLY DOUBLE TO $71 MIL., WITH MONTHLY NEW Rxs OVER 100,000; MARION CARDIZEM SALES "APPROACHING $129 MIL."

Executive Summary

Worldwide sales of Squibb's Capoten/Capozide line were up 87% to $71 mil. during the second quarter of 1985 ended June 30 compared with the same period in 1984. The company said that in the U.S., "new prescriptions of Capoten are running at a rate in excess of 100,000 per month." Noting that FDA's early July expansion of Capoten labeling to all degrees of hypertension will make the drug available to "significantly" more U.S. patients, Squibb Chairman Richard Furlaud added that the firm expects continued growth in Capoten sales even when other angiotensin converting enzyme (ACE) inhibitor products are approved by FDA. Pointing out that competitive ACE inhibitor products are already on the market in Europe, Furland said that "it appears that the market for ACE inhibitors is expanding as a result of competitive activity." Capoten/Capozide sales in Western Europe, Squibb said, were up 68% in the second quarter. Squibb's cardiovascular sales, headed by Capoten and the beta blocker Corgard were up 49% to $108.2 mil. during the second quarter compared to the same period in 1984. Corgard sales were ahead 73% to $37.2 mil., the firm indicated. The performance of the cardiovascular drugs pushed Squibb's overall pharmaceutical group sales up 10% during the quarter to $291.5 mil. Worldwide volume in other pharmaceuticals "increased compared to last year," Squibb noted. "Azactam, Squibb's new injectable monobactam antibiotic, has been approved for marketing in Italy, Germany, Ireland and Greece," Furlaud said. Approval in the Netherlands is expected "in the near future," while approval in the U.S. and the U.K. is expected "by the end of the year," the company declared. For the quarter, Squibb corporate sales were $474.6 mil., up 8%0 from $440.6 mil. in the second quarter last year. Net income was $52.3 mil., ahead 11% from $47.1 mil. in 1984. For the six months, sales of $927.7 mil. were up 7% from $869.5 mil. in the first half of 1984. Net income increased 13% to $94.6 mil. from $84 mil. last year. Cardizem's Share Of Calcium Channel Blocker Market Is 33%, Rxs Up "Nearly 60% In FY 1985 Sales from Marion's calcium channel blocker Cardizem are up 80% over fiscal 1984 and will approach $120 mil. in the fiscal year ended June 30, the company said. "Cardizem, indicated for angina and currently being studied for other cardiovascular conditions, continued to have a major impact on sales and to gain market share among calcium channel blockers in terms of prescriptions written," Marion stated. "Total market share for Cardizem is currently 33%, reflecting a prescription growth rate of nearly 60% for the past year." For the fourth quarter, Marion reported a 24% gain in sales volume to $84.5 mil. and a 51.7% jump in net earnings to $10.6 mil. For the full fiscal year, Marion sales were up 30.6% to $295 mil. accompanied by a 50.5% increase in net income to $36.2 mil. "These record sales and profit levels are the result of several key factors, including the consistent growth of Cardizem (diltiazem), a significant increase in sales of Carafate (sucralfate), and the success of the national advertising programs in the Consumer Products division," Marion President and CEO Fred Lyons noted. The company embarked on a national television advertising campaign for Os-Cal during the fourth quarter, stressing the importance of calcium in preventing osteoporosis. Os-Cal sales are up 45% from FY 1984 to approximately $35 mil., the firm indicated. The firm also has a national ad campaign under way for its Gaviscon antacid. Marion's antiulcer agent Carafate "also showed substantial sales growth during the quarter and year," the firm said. "With sales growth of 35% in fiscal 1985, Carafate now holds a 6% share of the total antiulcer prescriptions written, compared with 4% one year earlier. "Higher sales of cephalosporin antibiotics and Dyazide. . . were contributors to quarterly performance," SmithKline President Henry Wendt said, "as were sales increases in Eye and Skin Care Products and Clinical Laboratory Services." SmithKline Beckman's second quarter sales volume was up 8% to $770.7 mil. and was accompanied by a net earnings gain of 1% to $121.4 mil. The firm's ethical pharmaceutical sales were up 3.9% to $389.7 mil. during the second quarter ended June 30, while clinical labs div. sales jumped 49.7% to $87.5 mil. and eye and skin care sales volume increased 15.7 to $68.4 mil., SmithKline reported. Wendt cited two factors that "moderated" the firm's quarterly results. "The first was heavy trade stocking of Tagamet during the first quarter," Wendt noted, "which led to lower U.S. sales of the ulcer medication during the quarter ended June 30." However, first half Tagamet sales are up over 1984, he added. "The second factor was a higher estimated tax rate, 31% in 1985 compared to 28.3% in 1984," Wendt said. He noted that the second quarter 1984 tax rate included a tax reduction "resulting from enactment of the 1984 Deficit Reduction Act, which exempted certain earnings of the company's Domestic lnternatl. Sales Corporations from income taxes." Wendt also pointed out that trade shipments of Ridaura began in June. The SmithKline exec said that the medical community's reception of the oral gold compound "has been encouraging. A "more favorable product mix, continued control of costs, and a decline in the effective corporate tax rate to 45% from 45.9%" contributed to Sterling's 7.8% second quarter net earnings gain to $33.1 mil., Sterling President John Pietruski noted. Sterling's sales for the quarter edged up .8% to $453.6 mil. Sterling's U.S. Rx drug sales "were at last year's levels" during the quarter, the firm reported. However, the company said that physician usage of intravenous Inocor for congestive heart failure "continues to grow." Also, Sterling noted that product sampling to physicians for its aerosol bronchodilator Tornalate began during the quarter. "While still very early in the introductory phase of this drug," Sterling said, "initial acceptance has been encouraging." One of FDA's several approvals in late December 1984, Tornalate was introduced to the U.S. market in March. Sterling's proprietary product sales were "modestly ahead of last year in the face of continued strong competition in the U.S. over-the-counter analgesics market," the firm said. Beginning last summer, Sterling's OTC analgesic franchise has had to face the additional competitive challenge of the ibuprofen products, Advil and Nuprin. Rich-Vicks reported that its health care products division, "helped by the successful launch of Formula 44M cough medicine," achieved record sales during fiscal 1985 ended June 30. Also, RichVicks noted that its Vicks cough cold product line "positively benefited" from the severe cold and flu season during the firm's third quarter. Overall, Rich-Vicks' sales for the year were down 4.4% to $1.22 bil., which includes a 9.2% sales decline during the fourth quarter to $263.9 mil. Fourth quarter net earnings were off 28% to $11.3 mil., leveling off net income growth for the year at $72.2 mil., up .4%. Rich-Vicks President James Scott cited two factors contributing to reduced sales in FY 1985: continued unfavorable currency translation and "sharply" declining sales at its Vidal Sassoon division. Chart omitted.

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