New drugs cure SmithKline's Tagamet blues
Friday 24 February 1995
While sales of Tagamet fell by £200m in 1994, turnover from new drugs, led by the Paxil/ Seroxat anti-depressant, climbed 74 per cent to £810m.
This performance, coupled with acquisitions, helped SmithKline to beat most analysts' forecasts with a rise in underlying pre-tax profits from £1.22bn to £1.271bn for 1994. The shares - already buoyed by US clearance to market Havrix, the world's first hepatitis A vaccine - gained 18p to 497p.
Steve Plagg, analyst at NatWest Markets, said total sales of £6.49bn, up from £6.16bn, were in line with expectations, but trading profits, up from £1.08bn to £1.24bn, came in stronger than forecast.
"The latter can be attributed to stronger than expected performance in hepatitis B vaccine Energix-B and Clinical Laboratories. We continue to advise our clients to be fully weighted in the stock," he said.
Analysts were also heartened by the US clearance for Havrix, which was launched in the UK two years ago and is now on sale in 35 countries.
Stated taxable profits were £691m, depressed by £580m of restructuring charges. The one-off cost, which had been expected and should be paid back in three years, follows the purchase of Sterling and comprised £243m for reorganising the supply chain, £320m for integrating the business, and £17m for integrating research and development.
Jan Leschly, chief executive of SmithKline, which is raising the fourth interim dividend from 3.3p to 3.9p, said: "Our financial objectives were accomplished in large measure through growing sales of new products." Earnings per share, excluding exceptional costs, were 8.7p, up from 8.5p.
Paxil, known as Seroxat outside the US, saw worldwide sales advance 124 per cent to £333m. This, and buoyant sales of the Relafen arthritis medicine and the Kytril anti-nausea drug helped pharmaceutical sales in the US to rise by 7 per cent.
Excluding Tagamet, sales in the US grew by 17 per cent. "We are very pleased with what is happening in pharmaceuticals," said Mr Leschly.
- 1 Rihanna 'nude photos' claims emerge on 4Chan as hacking scandal continues
- 2 Frank Lampard equalises for Manchester City against Chelsea: how Twitter reacted
- 4 Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
- 5 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
350 skinny dippers brave Northumberland seas for record attempt at mass naked swim
Rihanna 'nude photos' claims emerge on 4Chan as hacking scandal continues
Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
Jennifer Lawrence leaked 4Chan sex video branded 'fake' by forum users
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Scottish independence referendum: A nation divided against itself
Scotland could still declare independence – even without referendum, says Alex Salmond
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
iJobs Money & Business
Up to £80000: Saxton Leigh: My client, a large commodities broker, is looking ...
£80 - 100k + Bonus: Guru Careers: A COO / Chief Operating Officer is needed to...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...