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/C O R R E C T I O N -- RHONE-POULENC RORER/

 In PH009, Rhone-Poulenc Rorer Chairman And CEO Robert E. Cawthorn Issues Message To RPR Shareholders, moved Tuesday, Dec. 21, some figures in the second and third lines of tables A. and B. under section "III. OPERATING COST SAVINGS OBJECTIVES: ACHIEVED AND NEXT STEPS" were transposed when originally transmitted.
 The complete, correct release follows:
 RHONE-POULENC RORER CHAIRMAN AND CEO ROBERT E. CAWTHORN
 ISSUES MESSAGE TO RPR SHAREHOLDERS
 COLLEGEVILLE, Pa., Dec. 21 /PRNewswire/ -- Senior management of Rhone-Poulenc Rorer (NYSE: RPR) met with investors and analysts Friday, Dec. 17, in New York City to: (I.) update the 1993 financial picture; (II.) provide guidance on the Company's earnings outlook for 1994, 1995 and beyond; (III.) summarize the Company's historical cost savings achievements and highlight future cost savings objectives; (IV.) update the status of three short-term new product opportunities; and (V.) discuss strategic business issues.
 The following was issued today by Rhone-Poulenc Rorer's Chairman and CEO Robert E. Cawthorn:
 I would like to take this opportunity to provide you with a synopsis of this meeting and to communicate management's view on the business fundamentals at RPR.
 The 1990's so far has been a period of change: first, for RPR, beginning with the merger and second, for the industry as a whole. For the balance of the decade we will see many more changes and those changes will take place at an accelerated pace. For this reason it is vital that we address today the challenges and more importantly the opportunities of tomorrow.
 Since the 1990 merger of Rorer and the human pharmaceutical business of Rhone-Poulenc, RPR has delivered outstanding earnings growth. And as you will see for 1993, the underlying growth of the business was not bad. In fact, it was good. We are proud of this record, even if three years ago we thought we could deliver more!
 The next step is to continue to build for the future. Next year, 1994, will be a transition year, one in which certain investments, particularly in new products and new technologies, will increase. At the same time the Company will continue, and increase the intensity of, its aggressive cost cutting program on all other costs. Growth in 1995 and beyond will be driven by the achievement of operating cost objectives and the success of new products.
 I would now like to summarize the key points presented at the December 17 meeting:
 I. 1993 FINANCIAL UPDATE
 Guidance on the Company's earnings outlook was provided by Patrick Langlois, Senior Vice-President and Chief Financial Officer.
 For 1993 on a reported basis EPS should be slightly down from 1992's reported EPS of $3.10 due to the one-time impact of the recent decision to eliminate year-end trade incentives to wholesalers (Sales impact: $60 - $70 million; EPS impact: $.25 - $.30 cents). Comparing 1993 adjusted EPS on the same basis as 1992 (i.e., after elimination of non-recurring items) performance in 1993 should be good. Adjusted 1993 EPS should grow 10% to 15% compared to 1992's adjusted EPS in spite of the impact of the contracting market in Germany and Italy (Sales impact: $200 million; EPS impact: $.35 to $.40).
 II. FINANCIAL OUTLOOK -- 1994, 1995 AND BEYOND
 1994's earnings should show moderate growth versus 1993's reported earnings, but should increase only slightly over 1993's adjusted EPS. Although the Company's 1994 earnings outlook is cautious, key positive fundamentals are projected including sales growth faster than the market on a constant currency basis; continued improvement in gross margin of .5% to 1% of sales despite global pricing pressures; and aggressive control of overall costs. These savings, however, will be offset by the Company's strategic decision to invest in the development and launch of new products and new technologies. (The 1993/1994 earnings outlook is outlined in a chart at the end of this letter.)
 The above steps should position RPR for earnings growth in 1995 and beyond increasing to 10% or more depending on achievement of planned profitability from the cost savings objectives and the success of new products which are described below.
 III. OPERATING COST SAVINGS OBJECTIVES: ACHIEVED AND NEXT STEPS
 Michel de Rosen, new President and Chief Operating Officer, summarized RPR's successful historical operating cost performance and additional cost cutting objective for the future as follows:
 A. OPERATING COSTS SAVINGS: ACHIEVED
 1990-1993
 Operating Costs as a Percent of Sales
 1990 1993 Improvement
 Cost of Goods plus
 Operating Expenses: 88% 83%
 Of which R&D 11% 14%
 Total 77% 69% 8 percentage
 points
 An improvement of 8% of sales or about $320 million was achieved including merger synergies of about $200 million. While this achievement is notable, we are confident that we can do more. We are going to focus a lot of energy on how we can not only be leaner, not only reduce costs, but also be more decentralized, to empower people. We are convinced that we will have to accelerate the pace of change and to do that it is much better to have a decentralized organization. We have, therefore, established the following cost savings objective:
 B. OPERATING COST SAVINGS: NEXT STEPS
 1996/1997 Objective
 Operating Costs as a Percent of Sales
 1993 1996/1997 Improvement
 Cost of Goods plus
 Operating Expenses 83% 80%
 Of which R&D 14% 15%
 Total 69% 65% 4 Percentage
 Points
 Achievement of this objective should result in further annual cost savings of about $200 million.
 IV. NEW PRODUCTS - THREE EXAMPLES OF NEW PRODUCT OPPORTUNITIES
 In addition to the achievement of these cost savings objectives, new products will also drive growth in 1995 and beyond.
 Dr. Kim Lamon, Senior Vice-President of Worldwide Clinical Development, described three short-term new product opportunities. Granocyte, co-developed for Europe with Chugai initially for chemotherapy-induced neutropenia and now under development for other indications is the only human identical glycosylated recombinant G-CSF. The product has just been launched in four European countries and launch in 1994 is expected in several other European countries, including France, Germany, the U.K. and Spain. Granocyte is seen as having significant sales potential since the only major competitive product in Europe has achieved sales of about $150 million after less than two years on an as-yet not fully developed market.
 Zagam, an antibiotic product, is the only quinolone shown to be effective in upper as well as lower respiratory tract infections, urinary tract and skin and soft tissue infections. It is expected to compete in a growing $10 billion segment of the oral anti-infective market. In community acquired pneumonia, sinusitis and chronic bronchitis, Zagam has demonstrated at least as high efficacy as the best reference drugs (including macrolides and beta lactams). Zagam's efficacy to-date in streptococcus pneumonia is particularly significant since there is a growing resistance of this bacteria to present therapies.
 Zagam has been filed for registration in six European countries including France where it will be launched in 1994; the filing target in the U.S. is 1995. RPR's marketing rights have recently been extended by Zagam's developer, Dainippon, to over 70 countries in South America, the Middle East and Southeast Asia. It was recently launched by our partner in Japan, where initial acceptance has been good.
 Taxotere, an anti-cancer agent, is the first RPR product to have benefited from the global clinical development and regulatory plan established at the time of the merger. Dr. Lamon announced that worldwide filing for registration in breast and lung cancer indications is scheduled during the third quarter 1994. In Phase II studies involving a limited number of patients, Taxotere to-date has the highest reported response rates in untreated breast cancer, pre-treated breast cancer and non-small cell lung cancer.
 Those results have been obtained with a one hour infusion often on an outpatient basis and without the use of G-CSF. Although edema has been reported as a side-effect, there are indications that pre-treatment with other agents may prevent this.
 In Phase II studies Taxotere has shown the following response rates: In untreated breast cancer, Taxotere has reported response rates of 65% to 76% compared to reported results of other cancer agents of 30% to 41%. In previously treated breast cancer patients, reported response rates are 40% to 67% compared to reported results of other cancer agents of 21% to 40%. In untreated non-small cell lung cancer, reported response rates are 24% to 33% compared to reported results of other cancer agents of 14% to 27%.
 Note that the products described above are only three examples of new product opportunities.
 V. STRATEGIC OPPORTUNITIES AND ISSUES
 But beyond offering new products, the successful companies will be those that can seize the new opportunities presented by today's rapidly changing environment, and I feel that with the merger now behind it, RPR is better positioned organizationally and financially to implement its next global strategies.
 Mr. de Rosen outlined several of these, including: First, to increase the critical mass of the prescription business, particularly in two of RPR's fastest growing markets, the United States and Japan. It is the Company's intention to accomplish this through a combination of internal growth and alliances.
 Second, for OTC, where the Company is exploring potential alliances, the competitive position in the United States and Europe must be increased. Third, in France, where the Company is the clear market leader, RPR intends to leverage this leadership position to support continued growth. Finally, for R&D, where he said, "New products are good, but new products coming faster are even better, " the Company is accelerating the pace of innovation for new products and new technologies.
 CONCLUSION
 In conclusion, a word about emerging technologies, where we believe we can take a leadership position particularly in cell and gene therapy. The recently announced CellPro transaction shows other companies' strategic interest in the field and confirms our feeling that we made an excellent investment in what we consider to be the leader in cell therapy, Applied Immune Sciences Inc.
 Like you, I am concerned about your Company's stock price. In management's view the stock is undervalued and for this reason the Company has accelerated its plans to repurchase shares under the previously announced buy-back program.
 We look forward to the upcoming years of change in the industry since, at RPR, we view change as opportunity. Opportunity to seek and find newer and better ways of doing business around the world and opportunity to bring to market innovative new drugs. And most importantly, it provides us with an opportunity to reward you, our shareholders.
 1993/1994 EARNINGS GUIDANCE
 1992 1993 1994(A)
 Reported EPS $3.10 Slightly Down Moderate Growth
 Non-Recurring
 Items Less: (.28) Plus: Trade
 Incentive
 Adjustment
 Plus/Minus:
 Other
 Adjustments
 Adjusted EPS $2.82 +10% to 15%
 Growth Small Growth
 (A) Excluding any currently unanticipated major events
 /delval/
 -0- 12/23/93
 /CONTACT: Rhone-Poulenc Rorer media relations, 215-454-3871, or investor relations, 215-454-3851/
 (RPR)


CO: Rhone-Poulenc Rorer ST: Pennsylvania IN: MTC SU: ERP

LJ -- PHRPR -- 7006 12/23/93 15:00 EST
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