J&J U.S. PHARMACEUTICAL SALES GROW 19% TO $986 MIL. YEAR-TO-DATE AND REACH $320 MIL. IN THIRD QUARTER; ALLERGAN THIRD QUARTER DRUG SALES JUMP 17% TO $75.7 MIL.
Sales of Johnson & Johnson pharmaceuticals in the U.S. have increased 18.7% through the first nine months of 1990 to $986 mil., including an 11.1% sales gain in the third quarter to $320 mil. Worldwide, pharmaceutical sales were 22.9% and 23.3% higher, respectively, at $809 mil. and $2.4 bil. for the quarter and the nine months. International markets generated 60% of J&J's pharmaceutical sales versus 40% in the U.S. Overseas pharmaceutical revenues were $489 mil. in the most recent three-month period (a 32.2% increase) and have risen 26.6% to nearly$1.5 bil. so far this year. Noting that more than 50% of its consolidated sales come from outside the U.S., J&J said it "continues to aggressively expand its global reach." The company pointed to Eprex (EPO) as one example of the success of that strategy -- sales of Exprex "more than doubled" during the third quarter in the 41 countries where the product is sold, J&J said. In addition, the nonsedating antihistamine Hismanal (astemezole) is now sold in 116 countries. J&J consumer products, the company's smallest of three business segments, recorded worldwide sales of $1.1 bil. in the quarter, increasing 13.5%, and has generated revenues of $3.3 bil. this year, a 12.9% gain over the same nine months of 1989. Domestic sales of consumer products in the third quarter improved 15.5% to $566 mil., led by "strong sales" of McNeil's Tylenol Gelcaps, Children's Tylenol and Imodium AD, J&J said. The group's female incontinence product, Serenity, also was a major contributor to the group during the quarter; the brand "more than doubled its revenues during the quarter and now holds the number two position in its category," J&J said. Year-to-date, U.S. consumer products sales have risen 7.1% to $1.6 bil. International consumer product sales of $569 mil. in the quarter and $1.7 bil. through nine months, were up 11.6% and 19.1%, respectively. European increases partially offset lower sales in Brazil in the most recent three-month period, J&J explained. Consolidated sales for the third quarter at J&J increased 17.1% over the comparable quarter of 1989, rising to nearly $2.9 bil. International markets generated a 22.1% increase compared to a 12.2% increase in the U.S. Nine-month sales are also up 17.1%, to $8.5 bil. Again, overseas markets generated 20%-plus revenues gains compared to gains approaching 12% domestically. Included in the sales mix are contributions from the professional segment (Ortho Diagnostics, J&J Pediatrics, Vistakon and Ethicon). J&J earnings rose 18.5% to $314 mil. in the quarter and have increased 17.9% so far this year to over $1 bil. Nine-months earnings were reduced by $140 mil. pre-tax ($125 mil. after tax) due to a one-time first quarter charge "for the permanent impairment of certain assets and operations in Latin America, primarily Argentina," J&J pointed out. Allergan Pharmaceuticals recorded sales of $75.7 mil. worldwide in the third quarter, a gain of 17.2%. Through nine months, drug sales have grown 20.5% to $206.9 mil. Feeding growth in the pharmaceuticals segment was "strong practitioner acceptance" of products introduced in the last 12 months, including the topical combination anti-infectives Polytrim and Pred-G. The first-line glaucoma therapy Betagan continues to increase its U.S. market share, Allergan said, and is expanding into new markets outside the U.S. with approvals in several countries during the quarter. Optical segment sales, the largest contributor to Allergan corporate revenues, were essentially flat in the quarter at $94.6 mil. and were $8.5 mil. lower for the nine months at $281.2 mil., a decline of 2.9% from the same period of 1989. Allergan's other three segments, Medical Optics surgical products, Humphrey diagnostic instrumentation and Herbert Labs dermatology business, each showed increases in sales for both the three- and nine-month periods. Consolidated Allergan sales were $222.2 mil., up 7.6% in the quarter, and are 7.2% higher at $638.5 mil. year-to-date. Allergan net income on a pro forma basis of $25.4 mil. was$1.3 mil. lower in the third quarter of 1990 than in the previous year, a decline of 4.9%. Through nine months, earnings were off 16.9% at $56.1 mil., $11.4 mil. below the year-ago period. Prior to July 27, 1989, Allergan operated as part of SmithKline Beckman and was spun off in the SmithKline Beecham merger. Genentech, making its first financial report since Hoffmann-La Roche completed its acquisition of 60% of the company Sept. 7, said Activase (TPA) sales rose 10.6% to $48.2 mil. in the third quarter, while Protropin (human growth hormone) revenues climbed 24.1% to $40.2 mil. in the most recent three months. Genentech's consolidated sales rose 12% to $112.1 mil. for the quarter and are 19.3% higher through nine months at $344.9 mil. As previously forecast, however, the company took a net loss of $133.7 mil. for the three months and $115.2 mil. for the year-to-date. The losses resulted from one-time merger-related expenses. Forest Labs reported double-digit sales and earnings gains for second quarter and first half ended Sept. 30. The company attributed the lion's share of the increases to "particularly strong" sales of Aerobid and Aerochamber, "as the trend toward the use of metered dose inhaled steroids as first-line therapy" for asthma "continues to gain momentum." Sales rose 16.3% in the second quarter to $42.4 mil. and have increased 18.3% through six months to $83.7 mil. Earnings grew by even greater percentages, jumping 20.4% in the three months and 32.6% in the half, to $9.1 mil. and $17.3 mil., respectively. Chart omitted.
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