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SANDOZ GROUP REPORTS FIRST HALF RESULTS 1993

 BASEL, Switzerland, July 15 /PRNewswire/ -- Sandoz Group sales reached Sfr. 8 billion in the first six months of 1993, an increase of 2 percent in Swiss Francs and 4 percent in local currencies. Strong net income growth, of 10 percent to Sfr. 998 million, reflected efficient cost management and improved margins. The U.S. pharmaceuticals business was dynamic, but cost containment in European healthcare markets dampened sales overall in the Core Sector "Life Sciences." Despite a continuing recession, sales increased in the Core Sector "Chemicals & Environment."
 Sales developed as follows:
 SANDOZ GROUP
 6 months 6 months Difference
 to June 30 to June 30 in local
 1993 1992 in SFr. currencies (A)
 Mio. Fr. Mio. Fr. percent percent
 Total Group 8,030 7,893 2 4
 Pharmaceuticals 3,636 3,542 3 3
 Seeds 735 774 -5 -3
 Nutrition 893 937 -5 1
 Life Sciences 5,264 5,253 0 3
 Chemicals 1,308 1,306 0 4
 Agro 891 803 11 10
 Construction &
 Environment 567 531 6 5
 Chemicals &
 Environment 2,766 2,640 5 6
 (A) Excluding high-inflation countries.
 Pharma maintained its first quarter growth rate. Positive developments in the USA and Japan outweighed a slow-down in Germany and Italy. Above-average expansion was enjoyed by growth leaders Sandimmun(R), Clozaril/Leponex(R), Sandostatin(R), DynaCirc/Lomir(R) and Lamisil(R). In the second half, these product and several new introductions are expected to accelerate growth.
 The sell-off of non-strategic activities and negative currency impacts depressed sales at Seeds. Discounting the disinvestments, the local currency performance equaled last year's level. Higher flower- seeds sales absorbed the effect of a reduction in U.S. corn acreage.
 On a comparable year-to-year base (neutralizing the effect of last year's sales of the U.S. snack business) Nutrition sales grew by 4 percent in local currencies. Ovaltine(R) and "Medical Foods" proved especially dynamic. "Baked Goods" and "Adult Dietetics" sustained their market shares in Europe despite difficult economic conditions.
 The positive development of sales in Chemicals was driven by notable improvements in North and South America and Asia. In Europe, sales growth was restrained by continuing problems in the business environment.
 In Agro, a marked sales increase was due to better penetration in traditional markets and good progress in new areas, which offset the negative impact of agricultural reforms in the European Community.
 Widespread recession in the U.S. and European construction industries characterized business conditions for Construction & Environment. By contrast, sales expanded well in Latin America and Southeast Asia. Acquisitions in priority areas contributed significantly to the increase in sales.
 The growth in group net income of 10 percent to Sfr. 998 million in the first six months reflected both efficient cost management and margin improvements achieved through a better product mix. Unless economic and political conditions deteriorate, a significant increase in earnings is also expected for the full year.
 -0- 7/15/93
 /CONTACT: James R. Simpson of Sandoz, 212-830-2444/


CO: Sandoz Group ST: IN: MTC SU: ERN

SH-LG -- NY010 -- 1796 07/15/93 09:23 EDT
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Date:Jul 15, 1993
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