Visit Incyte
Home | This Week's Contents  |  C&EN ClassifiedsSearch C&EN Online

 
e-business
Millennium Special Report
C&EN 75th Anniversary Issue
 
Related Stories
DRUG EARNINGS REMAIN STABLE
[C&EN, Feb. 26, 2001]
Fourth-Quarter Earnings Plunge
[C&EN, February 21, 2001]

New Drugs To Market
[C&EN, February 5, 2001]

AT LAST INVESTORS LIKE CHEMICALS
[C&EN, January 15, 2001]

Related Sites
Abbott Laboratories
Eli Lilly
Johnson & Johnson
Pfizer
Schering-Plough
E-mail this article to a friend
Print this article
E-mail the editor
 
 
 
 
 
 
 Table of Contents
 C&EN Classifieds
 News of the Week
 Cover Story
 Editor's Page
 Business
 Government & Policy
 Science/Technology
 Concentrates
  Business
  Government & Policy
  Science/Technology
 Education
 ACS News
 Calendars
 Books
 Digital Briefs
 ACS Comments
 Career & Employment
 Special Reports
 Letters
 Awards
 People
 Newscripts
 Nanotechnology
 What's That Stuff?
 Pharmaceutical Century

 Hot Articles
 Safety  Letters
 Chemcyclopedia

 Back Issues

 How to Subscribe
 Subscription Changes
 About C&EN
 Copyright Permission
 E-mail webmaster
NEWS OF THE WEEK
BUSINESS
April 23,
 2001
Volume 79, Number 17
CENEAR 79 17 pp. 10
ISSN 0009-2347
[Previous Story] [Next Story]

DRUG EARNINGS: A BRIGHT SPOT
Early first-quarter results from major U.S. firms are generally healthy

ANN THAYER

The earnings outlook for the drug industry looks relatively bright, judging by first-quarter reports from a few major U.S. pharmaceutical producers. These early results show that the industry is on track to come out ahead of chemicals and other business sectors that are bearing the weight of the economic slowdown.

Sales and earnings were up for four of five drug firms reporting so far: Abbott Laboratories, Eli Lilly, Johnson & Johnson, and Pfizer. The exception was Schering-Plough, which reported a 3% decrease in sales and 10% drop in earnings compared with the first quarter of 2000. Manufacturing problems limited supply of some products and thus sales.

Pfizer, the industry leader since its acquisition of Warner-Lambert last year, reported sales up 7% and net earnings up 34%, excluding merger-related charges. Including these one-time costs, net earnings were slightly less but well ahead of a $204 million loss in 2000.

Eli Lilly had strong double-digit increases--sales up 14% and net earnings up 17%--excluding the impact of Y2K-related sales. Taking these additional sales into account, sales in the first quarter of 2001 rose just 10%, while earnings fell nearly 5%.

Abbott's sales and earnings both increased 6% before one-time charges. It completed the purchase of BASF's drug business in March. Including a $1.02 billion charge for acquiring in-process R&D, net earnings were down 86% to $96 million.

J&J, with 41% of its sales outside the U.S., complained, as did the others, of the negative effect of the relatively strong dollar. Unfavorable exchange rates cut 3% off the firm's sales growth, reducing it to 7%. Still, drugmakers can't cry too much. Their industry is largely recession-proof: Consumers need its products in good times and bad.

[Previous Story] [Next Story]



Top


Chemical & Engineering News
Copyright © 2001 American Chemical Society


Visit Atofina
Home | Table of Contents | News of the Week | Cover Story
Business | Government & Policy | Science/Technology
Chemical & Engineering News
Copyright © 2001 American Chemical Society - All Right Reserved
1155 16th Street NW • Washington DC 20036 • (202) 872-4600 • (800) 227-5558


CASChemPortChemCenterPubs Page