LILLY ORAL ANTIBIOTIC SALES ADVANCE ON CECLOR GAINS IN SECOND QUARTER AS PROFITS JUMP 20%; MERCK, AMERICAN HOME, UPJOHN CITE INTERNATIONAL RESULTS
Paced by Ceclor, Lilly's oral antibiotic sales helped lift the firm's volume 16% in the second quarter to just over $1 bil., Lilly announced July 10. Net income for the three months ended June 30 increased at a faster rate, 20%, to $150.3 mil. "Worldwide sales of pharmaceutical products were the significant contributors to the excellent second-quarter results," Chairman Richard Wood noted. "Sales of the company's oral antibiotic products were the primary contributors to the growth of the pharmaceutical business, even though sales of Keflex in the U.S. were lower due to generic competition." Wood referred specifically to Ceclor, which he said "continues to show exceptionally strong gains in the U.S. as well as international markets." The firm also reported that sales of injectable antibiotic products increased over the comparable 1986 period as did worldwide sales of its recombinant insulin product Humulin. In addition, sales of Dobutrex increased significantly, Lilly said. The company's biotech subsidiary, Hybritech, reported a 23% increase in sales for the period, with operating profits up 37% to $15.9 mil. At the end of the quarter, Hybritech settled its patent suit with Monoclonal Antibodies. Under the agreement, Hybritech receives $2.3 mil. in damages and grants Monoclonal Antibodies a one-year license to its monoclonal sandwich assay patent. Other Lilly business units showing sales increases during the quarter were medical instruments, agricultural chemicals and animal health products, the company noted. Sales by the firm's Elizabeth Arden cosmetics business, however, were "slightly lower." During the quarter, Lilly announced it was continuing to consider the sale of Arden. "Discussions with potential purchasers are proceeding as planned," Lilly said. Citing growth in pharmaceutical markets abroad and a more favorable currency exchange rate than a year ago, the company also reported strong operating results for the first half of 1987. Six-month volume increased 11% to $2.1 bil., while net income jumped 19% to $355.5 mil. Three other U.S.-based multinational firms -- Merck, American Home Products and Upjohn -- also identified the falling U.S. dollar as a positive contributor to sales and earnings increases in the second quarter of 1987. Merck reported three-month sales of $1.2 bil., an increase of 24% over the comparable 1986 period. Net income jumped 36% to $235.1 mil. For the six months ended June 30, volume climbed 23% to $2.4 bil., while profits rose 36% to $436.3 mil. "Sales outside the U.S. accounted for 51% of sales for the first six months, compared with 48% for the same period last year," Merck Chairman Roy Vagelos noted. "The effect of stronger foreign currencies relative to the U.S. dollar also was favorable, adding seven percentage points to the first-half sales growth." American Home said that sales of health care products increased 8% for the second quarter and 11% for the first half of 1987. "The increases are due to the contribution of Chesebrough-Pond's Hospital Products Division which was purchased by Sherwood Medical on Oct. 31, and increased foreign pharmaceutical sales," the company said. Corporate sales were up 2% in the respective periods, to $1.2 bil. and $2.5 bil., while income increased 8% to $196 mil. and 9% to $412 mil. Xanax and Halcion "experienced excellent performances" in the second quarter, Upjohn reported, and contributed to a 13% in worldwide pharmaceutical sales. Micronase, the oral antidiabetic agent, "led all major products in rate of sales growth." Total U.S. sales for the three months rose 5% to $419 mil. Foreign sales, however, increased 26% to $246 mil. "The consolidated sales increase resulted from a 5% increase in volume, a 5% increase in price and a 2% increase from foreign currency translation," Upjohn explained. Chart omitted.
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