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RHONE-POULENC RORER REPORTS CONTINUED STRONG GROWTH IN EARNINGS: ACHIEVING ADDITIONAL EFFICIENCIES AND CREATING STRATEGIC PARTNERSHIPS

 RHONE-POULENC RORER REPORTS CONTINUED STRONG GROWTH IN EARNINGS:


ACHIEVING ADDITIONAL EFFICIENCIES AND CREATING STRATEGIC PARTNERSHIPS
 COLLEGEVILLE, Pa., and PARIS, April 23 /PRNewswire/ -- Rhone-Poulenc Rorer (NYSE: RPR) today reported Net Income for the first quarter 1992 of $84 million ($.61 per share) vs. $54 million ($.39 per share) reported in 1991. Earnings benefitted from the adoption of SFAS No. 109 (Accounting for Income Taxes), which increased 1992 first quarter net income by $15 million ($.11 per share).
 Excluding this one time effect, both net income and earnings per share increased by 28 percent. This growth reflects continued improvement in gross margin, operating expenses, and interest expense.
 First quarter 1992 consolidated net sales were $898 million vs. $928 million reported in first quarter of 1991. On an operational basis (excluding currency fluctuations and product divestitures) sales increased by 7.5 percent. Sales of the key products selected for global or local marketing focus increased by over 15 percent. Sales were particularly strong in Armour, RPR's plasma fraction business (Monoclate-P(R), Albuminar(R)), in prescription pharmaceuticals in the U.S. led by respiratory products Azmacort(R) and Nasacort(R), and in Spain with the launch of intranasal calcitonin for osteoporosis. Strong growth was also recorded by Clexane(R)/Lovenox(R) (antithrombotic) and Imovane(R)/Amoban(R) (hypnotic) as well as in consumer pharmaceuticals in Europe. These strong increases were somewhat offset by market softness in Italy and lower sales in the North American consumer pharmaceutical business resulting from trade buying patterns.
 "We are pleased with our first quarter results, which are consistent with our 1992 earnings growth objectives," commented Robert E. Cawthorn, chairman and chief executive officer. "We are seeing additional efficiencies in operations and working capital as we continue to focus and streamline our activities in all areas of our business. We also are continuing to reduce debt with a further reduction of about $200 million in the first quarter."
 Rhone-Poulenc Rorer is entering into strategic partnerships to obtain access to additional new products in areas of therapeutic focus. To this end, during the first quarter an agreement was reached with Boehringer Mannheim to co-develop and co-market a third-generation bisphosphonate for the treatment of bone metabolism disorders (hypercalcemia and osteoporosis). Additionally, an agreement was reached with Warner-Lambert to co-develop and co-market in the United States and Canada, the novel fluoroquinolone antibiotic sparfloxacine for the treatment of respiratory infections. This increases RPR's access to the product beyond Europe, where sparfloxacine is currently in Phase III trials as part of a joint venture with Dainippon.
 Recently, Manfred Karobath M.D., formerly senior vice president of R&D at Sandoz, Ltd. Basel, joined the company as President of RPR Research and Development. "His leadership and experience will help us achieve our ambitious long-term objectives to develop and bring to market innovative new compounds which satisfy unmet medical needs," stated Cawthorn.
 One of these innovative compounds is Taxotere(TM), under development for the treatment of a broad range of solid cancer tumors, and which recently entered Phase II clinical trials in the U.S. and Europe. Taxotere is a patented semi-synthetic compound related to Taxol. However, unlike Taxol which is extracted from the bark of the yew tree, Taxotere is synthesized from the needles which are a renewable source for this important compound.
 Rhone-Poulenc Rorer is a global pharmaceutical company dedicated to the discovery, development, manufacturing, and marketing of human pharmaceuticals. The company reported sales of $3.8 billion and invested $445 million in R&D in 1991.
 RHONE-POULENC RORER INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (unaudited; amounts in millions except per share data)
 Three months ended March 31 1992 1991
 Net sales $897.8 $927.7
 Cost of products sold 311.9 341.9
 Selling, delivery and administrative expenses 334.2 350.1
 Research and development expenses 114.3 110.9
 Operating income 137.4 124.8
 Interest expense -- net 27.1 42.6
 Other expense -- net 4.5 .7
 Income before income taxes 105.8 81.5
 Provision for income taxes 34.1 27.8
 Net income before accounting change 71.7 53.7
 Cumulative effect of accounting change 15.0 --
 Dividend on preferred stock (3.0) --
 Net income available to common shareholders $83.7 $53.7
 Earnings per common share:
 Before accounting change $.50 $.39
 Cumulative effect of accounting change .11 --
 $.61 $.39
 Earnings per common share reflect a two-for-one split of the company's common stock effective June 7, 1991.
 First quarter 1992 earnings per common share includes $.11 per share cumulative effect of adoption of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes," effective Jan. 1, 1992.
 Certain reclassifications have been made to the 1991 information to conform to 1992 classifications.
 /delval/
 -0- 4/23/92
 /CONTACT: Rhone-Poulenc Rorer media relations, 215-454-8035, or (France) 40-91-65-46, or investor relations, 215-454-3851/
 (RPR) CO: Rhone-Poulenc Rorer Inc. ST: Pennsylvania IN: MTC SU: ERN


MP -- PH001 -- 1584 04/23/92 06:11 EDT
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Date:Apr 23, 1992
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