Schering AG: ongoing dynamic growth

03-Nov-2000

Schering AG (NYSE: SHR), Berlin, continues its record-breaking run. "Net sales rose a total of 25% year on year to approximately €3.4m; and earnings per share rose 30%," said Dr. Giuseppe Vita, Chairman of the Board of Executive Directors of Schering AG, in his speech to the Autumn Press Conference, presenting the figures for the first nine months.

Prof. Dr. Klaus Pohle, Vice-Chairman of the Board of Executive Directors and CFO told journalists: "Net income rose 27% to €269m. Given our strong growth – above all in Therapeutics (+31%) and Diagnostics and Radiopharmaceuticals (+32%) – we can revise our estimate of sales growth for the full financial year to 23%. Net income will show a slightly higher rate of growth." Prof. Pohle was clearly satisfied with the nine-month figures: "Our outstanding performance in the USA, where sales rose 39%, and another excellent showing with of our top-selling product, Betaferon®, are proof of our lasting energy and drive."

We continue making rapid progress in expansion of Schering AG in the USA. Nine-month sales amounted to €750m. Increased volumes accounted for growth of 18% and exchange rate movements for a further 18%. In Japan, sales grew 48% overall to €477m. Excluding acquisitions the increase was 26% with the strong yen accounting for an increase of 20%. In Latin America/Canada; Schering Group sales rose 29% to €345m with volumes expanding 11%. Sales in Europe amounted to €1.51bn – an increase of 14% over the same period last year.

The growth in sales in Fertility Control and Hormone Therapy amounted to 15%. Sales exceeded €1bn in the first nine months. Major contributions to the growth in sales came from Meliane®, a very low-dose oral contraceptive whose sales increased 26%, and Climara®, a hormone patch for the treatment of typical climacteric complaints whose sales saw an increase of 29%. Following approval of our oral contraceptive, Yasmin®, in various European countries, the product, which contains the novel active ingredient, drospirenone, will be launched in Germany in November this year. Sales in the Therapeutics business area rose 31% year on year to €1.06bn. A decisive factor was the dynamic development of sales of Betaferon®. Sales rose 33% to €440m; and our position at the front of the European market for multiple sclerosis preparations was again confirmed. We also recorded a high rate of growth with Fludara®, our treatment for chronic lymphocytic leukemia whose sales rose 36%.

Diagnostics and Radiopharmaceuticals recorded growth of 32%. Sales in the business area rose to €991 Millionen. The recently acquired companies, CIS and Diatide accounted for an increase in sales of 9%. Magnevist®, our contrast medium for magnetic resonance imaging, exhibited strong growth of 26%. Global sales in the Dermatology business area rose 10% to €166m, half of which was due to price adjustments. Approval for the BLU-U™ Blue Light PDT Illuminator in the USA rounds off our Levulan® PDT photodynamic therapy system for the treatment of actinic keratosis. Distribution of the system commenced immediately in the United States.

Given we continue to benefit from the strength of the US dollar and the yen, we can revise our estimate of sales growth for the year 2000 to 23%. Net income will show a slightly higher rate of growth, as it did in the first nine months of the year. With substantial prelaunch marketing expenses for the introduction of new products in the USA, the increase in operating profit will remain lower than the growth in sales. There will be a considerable improvement in the financial result.

https://www.chemeurope.com/en/news/295/schering-ag-ongoing-dynamic-growth.html