Akzo Nobel: Labeled Europe's Fastest Growing Pharmaceutical Company.Business Editors ARNHEM, Netherlands--(BUSINESS WIRE)--Sept. 29, 2000 Akzo Nobel's worldwide Pharma operations are flourishing. Sales and earnings of the pharmaceutical businesses more than doubled in the past five years. The recent acceleration of growth resulted in Akzo Nobel Akzo Nobel is a multinational company, active in the fields of healthcare products, coatings and chemicals. Headquartered in Amsterdam, the Netherlands, the company has activities in more than 80 countries, and employs approximately 62,000 people. being labeled as Europe's fastest growing pharmaceutical company. The company is striving for continued double-digit growth in Pharma, based on its excellent pipeline, strategic acquisitions and collaborations. That was the message delivered today by Akzo Nobel's Chief Financial Officer, Fritz Frohlich, at the Pharma Analysts and Investors Day in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . A similar meeting is being held in London next week. Pharma is generating 42% of Akzo Nobel's profit; the aim is to increase it to more than 50%. This will be achieved by internal growth and responding to opportunities for bolt-on acquisitions and selective alliances. A good example of a profit enhancing alliance is the recent agreement between Organon or·ga·non or or·ga·num n. pl. or·ga·nons or or·ga·nums or or·ga·na 1. An organ. 2. A set of principles for use in scientific investigation. organon pl. organa [Gr.] organ. and French pharmaceutical company Sanofi-Synthelabo for the worldwide marketing and distribution of a potential blockbuster, a new antithrombotic (pentassacharide). The pharmaceutical activities of Akzo Nobel are based on two healthy growth engines: human healthcare and animal healthcare. Over the past five years, sales of the pharmaceutical businesses more than doubled, growing from EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1.7 bln in 1995 to EUR 3.7 bln in 2000. "We strive as passionately as ever to reach new levels of achievement", stated Chief Financial Officer Fritz Frohlich. "We're going for a continued double-digit growth in pharma and are determined to deliver. Our ambitions are based on the leverage of our excellent pipeline, selective acquisitions and collaborations." Frohlich also stressed: "Akzo Nobel will continue to invest in R&D and in the marketplace and will target a ROS ROS, n.pr See reactive oxygen species. margin over the current 20%." The US continues to be a key target growth region for Akzo Nobel's pharmaceutical activities for the coming years. The share of Akzo Nobel Pharma sales derived from the US has already increased in the past five years from 10% in 1995 to 30% in 2000. The audience was told that in the next two years, seven product launches in the field of human healthcare are expected in the US, the biggest pharmaceutical market in the world. These new products include drugs for atherothrombosis, infertility, contraception, hormone replacement therapy Hormone Replacement Therapy Definition Hormone replacement therapy (HRT) is the use of synthetic or natural female hormones to make up for the decline or lack of natural hormones produced in a woman's body. , and the central nervous system (antidepressants Antidepressants Medications prescribed to relieve major depression. Classes of antidepressants include selective serotonin reuptake inhibitors (fluoxetine/Prozac, sertraline/Zoloft), tricyclics (amitriptyline/ Elavil), MAOIs (phenelzine/Nardil), and heterocyclics ). Leverage on excellent pipeline in human healthcare Organon, Akzo Nobel's main human healthcare business, continues to invest 17% of its sales on drug discovery and development programs. Selective collaborations, for example concerning a new antithrombotic jointly developed by Organon and Sanofi-Synthelabo, further enhances the highly promising pipeline. Coupled with the increasing investments in its sales force in the US - currently 1,400 employees - Organon is convinced that it can enlarge its role as the key value driver of Akzo Nobel. A new product in the area of contraception will be the new female contraceptive Nuvaring(R). The US is the first market where this vaginal ring vaginal ring Gynecology An annular contraceptive device inserted in the vagina before coitus, which slowly releases levonorgestrel or progesterone. See Norplant, Pearl index. Cf Female condom. - which gives off a regular, low dose of the known 'pill hormones' during three weeks - will be launched (scheduled in 2001). During the presentations, analysts were also informed about the development of the male pill; the phase IIb trials for the oral contraceptive oral contraceptive n. A pill, typically containing estrogen or progesterone, that prevents conception or pregnancy. Also called birth control pill. for men are about to start. The traditional range of successful contraceptives is being extended with Implanon(R), a single implantable rod which slowly releases progestagen for a three-year period. This highly innovative product was recently introduced in several European countries and is running very well. The contraceptive is to be launched in the US in 2002. The launch of Xyvion(R) - a new drug developed especially for the prevention of osteoporosis - in the US is expected in the first half of 2001. The discussions with the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. on the labeling of Xyvion(R) are ongoing. The antidepressant antidepressant, any of a wide range of drugs used to treat psychic depression. They are given to elevate mood, counter suicidal thoughts, and increase the effectiveness of psychotherapy. Remeron(R) is currently Organon's best selling product. In 2002, when the market protection of Remeron has ended, Organon will strengthen its position in CNS See Continuous net settlement. CNS See continuous net settlement (CNS). firmly through line extensions such as Remeron Soltab(R). The new antidepressant Ariza(R) is now in phase III Noun 1. phase III - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the FDA and FDA submission in the US is expected in the summer of 2001. Akzo Nobel told the analysts - as announced earlier today in a separate press release - that Organon will invest EUR 44 mln (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 38 mln) to prepare two facilities in the United States for the manufacture of its new antithrombotic (pentasaccharide). Top league player in animal healthcare Akzo Nobel is determined to enhance the role of Intervet, its veterinarian veterinarian /vet·er·i·nar·i·an/ (vet?er-i-nar´e-an) a person trained and authorized to practice veterinary medicine and surgery; a doctor of veterinary medicine. vet·er·i·nar·i·an n. business. In this market, with a global size of USD 12 billion, Intervet is now no. 3 world wide, and is recognized for its innovative product development, high quality products, and excellent technical support. Its innovation power allows it to achieve a profitability comparable with human healthcare. Intervet spends above 12% of it sales on R&D, significantly above the industry average. But Akzo Nobel will not rest on its laurels - it is currently increasing the R&D activities in animal pharmaceuticals substantially. Intervet will defend and expand the leading positions in biologicals for livestock and companion animals and aims to become a major player in the new area of aqua health vaccines (e.g. vaccination of prawns and fishes). It is the intention to further expand Intervet's position in the US and Asian markets. Increasing role of biotechnology The role of biotechnology in Akzo Nobel is rapidly increasing. Biotech products such as the infertility treatment Puregon(R) and vaccines in animal healthcare are cases in point. Successful R&D collaborations with several biotech companies are laying the foundations for future success. Diosynth, Akzo Nobel's world class active pharmaceutical ingredients business, is presently investing EUR 60 mln in a major expansion of its biotech-processing base. Note for the editor Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings, and chemicals. Consolidated sales for 1999 (excluding Acordis) totaled some EUR 12 billion (USD 13 billion, GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 8 billion). At the beginning of 2000, the Company employed 68,000 people in 75 countries. Financial results for the third quarter of 2000 will be announced on October 25, 2000. Internet: http://www.akzonobel.com http://www.organon.com http://www.intervet.com http://www.diosynth.com |
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