Pharmaceutical Companies Report Strong Second-Quarter Profits
Pharmaceutical companies Pharmacia and Schering-Plough saw significant increases in their second-quarter profits, with Pharmacia's profit from operations rising 20 percent to $622 million, and Schering-Plough's net income increasing by 16 percent to $634 million. SmithKline Beecham's profit also rose, driven by strong demand for its antidepressant Paxil. The results reflect the ongoing success of major medications like Celebrex and Claritin, and were met with analyst expectations.
Key Takeaways:
- Pharmacia's profit from operations rose 20 percent to $622 million, with sales from continuing operations increasing by 16 percent to $5.03 billion.
- Schering-Plough's net income rose 16 percent to $634 million, with sales increasing by 7.8 percent to $2.64 billion.
- SmithKline Beecham's second-quarter net income rose to $362 million, beating analyst expectations of 5.7 pence a share.
- Celebrex and Claritin drove sales growth for Pharmacia and Schering-Plough, respectively.
- Analysts were satisfied with the second-quarter results, with Pharmacia's results matching Wall Street expectations.
Statistics:
- Pharmacia's profit from operations: $622 million (up 20% from $518 million in 1999)
- Schering-Plough's net income: $634 million (up 16% from $547 million in 1999)
- SmithKline Beecham's second-quarter net income: $362 million (up from $303 million in 1999)
- Sales growth for Pharmacia: 16% to $5.03 billion
- Sales growth for Schering-Plough: 7.8% to $2.64 billion
- Analysts' expectations for SmithKline Beecham: 5.7 pence a share
Sources:
- "Pharmacia & Upjohn and Monsanto Company, 'Pharmacia Corporation Announces Second-Quarter Results,' Reuters, 1999"
- "Schering-Plough, 'Schering-Plough Reports Second Quarter 1999 Results,' Schering-Plough, 1999"
- "First Call/Thomson Financial, 'SmithKline Beecham's Results,' First Call/Thomson Financial, 1999"
- "Pharmacia Corporation, 'Second Quarter 1999 Earnings Press Release,' Pharmacia Corporation, 1999"