Printer Friendly

WELLCOME REPORTS SIXTH MONTH FINANCIALS

 RESEARCH TRIANGLE PARK, N.C., March 25 /PRNewswire/ -- The following release was made in London earlier this morning. This is a re-release in the United States for the convenience of the reader. Please note that all references to financial data have been converted to dollars, and that all percentages are based upon pound sterling comparisons.
 The following is a translation into U.S. dollars of the interim announcement which was delivered to the London and New York Stock Exchanges on March 25, 1993. Pounds sterling have been translated into U.S. dollars solely for the convenience of the reader.
 -- Profit and loss account items have been translated at the average exchange rate for the period of 1.54 (half year 1992: 1.77; year 1992: 1.82). Balance sheet items have been translated at the period end exchange rate of 1.42 (half year 1992: 1.76; year 1992: 1.98).
 -- Calculations of the percentage increases are based upon reported sterling figures.
 WELLCOME PLC (NYSE: WEL)
 Interim Results For The Half Year Ended Feb. 27, 1993
 (Unaudited, Pounds Sterling and U.S. Dollars in Millions)
 Period Ended 1st Half 1993 Actual Underlying
 Pounds Sterling U.S.$ Increase Growth
 Group sales from
 continuing operations 1,025 1,579 up 22 pct. up 11 pct.
 ZOVIRAX sales 369 568 up 33 pct. up 17 pct.
 RETROVIR sales 131 202 up 27 pct. up 14 pct.
 Trading margin (in percent) 30.5 30.5 up 3.8 points
 Pre-tax profit 325 500 up 33 pct. up 14 pct.
 Research and development
 for continuing operations 153 236 up 25 pct. up 16 pct.
 Earnings per share 23.2p 0.36 up 33 pct. up 14 pct.
 Interim dividend per share 4.8p 0.07 up 0.8p
 The group has adopted FRS 3 "Reporting Financial Performance" and prior period figures have been restated. To facilitate comparison, percentage changes have been calculated with reference to previously reported figures of pounds sterling 245m and 17.5p for pre-tax profit and earnings per share, respectively.
 Underlying growth excludes the effect of exchange rate movements.
 Sales of Products:
 Sales from continuing operations amounted to $1,579m for the half year ended Feb. 27, 1993, representing underlying growth of 11 percent. Prescription medicines accounted for $1,371m (87 percent) of sales and non-prescription (OTC) medicines for $208m (13 percent). The underlying growth of the prescription medicine business was 13 percent; of this, we estimate that price increases contributed only 1 percent.
 Our leading product, ZOVIRAX (acyclovir), continued to perform well, with sales of $568m, an underlying growth of 17 percent. Sales of RETROVIR (zidovudine), the leading antiviral therapy in the treatment of HIV and AIDS, continued to grow, with sales of $202m, an underlying growth of 14 percent.
 We are making good progress in increasing the number of countries in which our anticonvulsant, LAMICTAL (lamotrigine), is licensed. Approvals have recently been received in Italy and Spain, while, in Germany, the advisory committee has recommended approval and we have entered into a co-promotion agreement with Desitin, a leading German company specializing in epileptic drugs. On March 20, an FDA advisory committee unanimously recommended that LAMICTAL be approved in the United States as add-on therapy for adult epilepsy patients who experience partial seizures despite current therapy.
 Of our other patented prescription products, WELLFERON (interferon alfa-nl (lns)), continues to perform particularly well with sales of $28m, an underlying growth of 54 percent. MEPRON (atovaquone), which was introduced in the United States late last year for second-line treatment of pneumocystis carinii pneumonia in AIDS patients, had sales of $8m.
 A mild cough and cold season in the northern hemisphere, coupled with new competition in the U.S. market, led to static sales of our "Fed" range of products, which are the mainstay of our over-the-counter business.
 Regional Performance:
 Operations in North America accounted for 49 percent of sales from our continuing operations. Sales from continuing operations in the United States were $719m, an underlying growth of 9 percent. The European region accounted for 33 percent of sales, with sales $513m, an underlying growth rate of 10 percent after price reduction in Germany and Italy.
 Sales from continuing operations in Japan were $128m, compared with $103m last year, an underlying increase of 18 percent. In our international region, sales from continuing operations were $169m, compared with $163m last year. This is an increase in underlying terms of 19 percent.
 Research and Development:
 During the 1993 half year, R&D expenditure for continuing operations was $236m, compared with $216m in the first half of 1992. This represents an underlying growth of 16 percent, and 15 percent as a percentage of sales from continuing operations.
 Recently published research has added further credence and support to the potential utility of combination drug therapy in treating advanced HIV disease. Wellcome is currently engaged, in collaboration with other companies developing antiretroviral agents, in investigating various combination regimens. For example, a major three drug therapy trial, evaluating RETROVIR, ddc and WELLFERON is being conducted by us in the USA.
 Financial:
 Trading profit rose from $421m in the first half of 1992 to $481m in this half year, an increase of 31 percent. Our trading margin improved from 26.7 percent to 30.5 percent. Of the 3.8 points increase, approximately 1.5 points can be attributed to changes in exchange rates. The other 2.3 points derive from changes in product mix, continued cost control and further benefits from the disposal of non-core businesses.
 The realignment of exchange rates which followed sterling's withdrawal from the European exchange rate mechanism has had a considerable impact on the 1993 half year results.
 Sterling weakened considerably against a number of major currencies, notably the U.S. dollar, yen and DM. We estimate that, overall, exchange rate movements added 11 percent to our sales and 19 percent to our pre-tax profit.
 During the first half of 1993 our net cash position improved by pounds 41m ($58m) from the 1992 year end to pounds 451m ($640m) at Feb. 27, 1993. Capital expenditure increased by pounds 15m ($21m) compared with the first half of 1992, to pounds 82m ($116m).
 Dividend:
 An interim dividend of 4.8p ($0.07) net per ordinary share will be paid on July 1, 1993 to shareholders on the register at the close of business on April 8, 1993. The ordinary shares are expected to go ex dividend on March 29, 1993.
 American Depositary Receipts ("ADRs"):
 Payment of the interim dividend to ADR holders will be made on July 12, 1993 to holders of record on April 8, 1993.
 The current double taxation convention between the United Kingdom and the United States includes provisions which entitle qualifying U.S. resident ADR holders to a refund of the U.K. tax credit attaching to the dividend, less a 15 percent withholding tax charged on the sum of the dividend and the tax credit. Assuming the reduction in the tax credit on dividends announced in the U.K. budget on March 16, 1993 is implemented, the tax credit would be 20/80ths. For ADR holders able to benefit from these tax arrangements, at the rate of exchange at the close of business (London time) on March 23, 1993, of $1.48 to the pound sterling, the interim dividend would be $0.076 per ADR. The actual exchange rate to be used in determining the dollar payment to ADR holders will be the pound/$ exchange rate on July 1, 1993. Subject to certain limitations, the withholding tax may be treated as foreign income tax that is eligible for credit against the ADR holder's federal income taxes.
 NOTE: Interim Report
 The interim report will be mailed to shareholders on April 14, 1993. Copies will be available to the public at the company's registered office:
 Group Public Relations
 Wellcome plc
 Unicorn House
 P.O. Box 129
 160 Euston Road
 London NW1 2BP
 England
 -0- 3/25/93 R
 /CONTACT: Donald Namm, director of financial relations of Wellcome Plc, 919-248-4264/
 (WEL)


CO: Burroughs Wellcome Co. ST: North Carolina IN: MTC SU: ERN

TM-LD -- NY007R -- 9427 03/25/93 09:27 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 25, 1993
Words:1354
Previous Article:COLONIAL MUNICIPAL INCOME TRUST REPORTS FIRST QUARTER EARNINGS
Next Article:REUTERS ADVANCES DIVIDEND PAYMENT FOLLOWING U.K. BUDGET
Topics:


Related Articles
BURROUGHS WELLCOME HELPS PHARMACIES REBUILD INVENTORIES AFTER LOS ANGELES' KING RIOTS
WELLCOME REPORTS SIXTH MONTH FINANCIALS
WELLCOME PLC SECOND INTERIM RESULTS
CYTRX CORPORATION ANNOUNCES 1994 SIX MONTH RESULTS
COURT OF APPEALS UPHOLDS BURROUGHS WELLCOME PATENTS ON AZT; ONE ISSUE RETURNED TO TRIAL COURT
TRIANGLE PHARMACEUTICALS COMPLETES FINANCING; NEW FIRM, LED BY EX-WELLCOME R&D HEAD DR. DAVID BARRY
Biota Announces Zanamivir Will Enter Phase III Clinical Trials in May 1997
Proposed Merger of Glaxo Wellcome and SmithKline Beecham Creating the Global Leader in Pharmaceuticals.
/FIRST AND FINAL ADD -- Proposed Merger of Glaxo Wellcome, SmithKline Beecham/.
CATTLE & SHEEP VACCINE 'GIVEN TO IRISH BABIES' Minister asks drugs company to probe alleged 'mix-up'.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters