Aventis Pharma sales
increased 17.6 percent during first six months of 2000
Strategic pharma products continue to post strong growth –
especially in the U.S.
Second quarter sales of Aventis Agriculture
on par with 1999
Strasbourg, France
28 July, 2000
During the first six months of 2000, consolidated life science sales of
Aventis totaled euro
10.245 billion, an increase of 11.6 percent compared to six month pro forma sales in 1999 (+ 6.0 percent excluding currency effects and structural changes). This continued positive performance of Aventis was mainly driven by strong sales growth of Aventis Pharma, which posted a 17.6 percent increase over the pro forma sales figures for the first six months of 1999 ( +12.1 percent excluding currency effects and structural changes).
“Following an already strong first quarter, sales by Aventis Pharma in the second quarter increased by 18.2 percent compared to the same period in 1999. Our major growth
drivers Lovenox®, Allegra® and Taxotere® continued to grow rapidly during the second quarter and we improved our position in the important U.S. pharma market” said Patrick Langlois, Chief Financial Officer of Aventis. "While the overall market for Agricultural products remained difficult, sales by our CropScience business were about the same as in the second quarter of last year, despite the divestment of non-strategic product lines during the first half of this year, which should have a beneficial effect on the gross margin of our CropScience business."
Pharma growth driven by strong business performance and new approvals
During the first six months of 2000, Aventis Pharma, which comprises the prescription drugs business Aventis Pharma, the human vaccines business Aventis Pasteur and the therapeutic proteins business Aventis Behring, generated sales of euro 7.794 billion. This represents an increase of 17.6 percent compared to the same period in 1999 (+ 12.1 percent excluding currency effects and structural changes). At euro 4.114 billion, second-quarter sales of Aventis Pharma increased by 18.2 percent compared to 1999. Sales in the U.S. market as a percentage of total pharma sales rose to 33.5% in the second quarter of 2000 compared to 28% in the same period of 1999.
For the first half of 2000, prescription drug sales of Aventis rose to euro 6.775 billion, up 15.3 percent (+ 10.4 percent excluding currency effects and structural changes) compared
to the same period in 1999. Second-quarter sales of prescription drugs were euro 3.590 billion, an increase of 15.4 percent compared to the second quarter of 1999 (+ 10.8 percent excluding currency effects and structural changes). Prescription drugs sales for the second quarter
included 108 million euro related to a low margin contract manufacturing agreement with Ajinomoto CO. Inc., Japan, which ended as of June 30.
During the first half of 2000, Aventis received approvals in the EU and the U.S. for two new products, Lantus® and Actonel®, filed dossiers in the EU and the U.S. seeking approval of Ketek®, the first product in a new family of antibiotics, and obtained approvals for new indications for two main growth drivers, Allegra® /Telfast® and Taxotere®.
The anti-allergy drug Allegra®/Telfast® (fexofenadine), generated half-year sales of euro 525 million (+ 43.2 percent excluding currency effects), driven by strong U.S. demand. Sales for the second quarter increased to euro 306 million (+ 34.6 percent excluding currency effects) from euro 203 million in 1999. In February, Allegra® received approval in the U.S. for a once-daily form. This once-daily form is now available in more than 35 countries, including all countries of
the European Union. Allegra®/Telfast® is the pharmaceutical industry's fastest growing non-sedating antihistamine.
Taxotere® (docetaxel), for the treatment of advanced metastatic breast cancer and non-small-cell lung cancer, achieved half-year sales of euro 311 million (+ 55.8 percent excluding currency effects). Taxotere® generated sales of euro 181 million (+ 67.7 percent excluding currency
effects) for the second quarter. At the beginning of this year, Taxotere® was granted marketing
authorization in the European Union for the treatment of advanced non-small-cell lung cancer, a
leading cause of cancer deaths worldwide. It is the first chemotherapy agent shown to
significantly improve survival in patients after failure of prior chemotherapy. The U.S. Food and
Drug Administration (FDA) granted approval for the same indication in December of 1999.
Lovenox®, (enoxaparin sodium) for the prevention and treatment of thrombosis and the treatment of unstable angina pectoris and myocardial infarction, generated sales of euro 444 million (+ 22.2 percent excluding currency effects) in the first half and euro 255 million (+ 24.5 percent excluding currency effects) in the second quarter.
Lantus® (insulin glargine) received approval in the EU and U.S. during the second quarter for the treatment of Type 1 and Type 2 diabetes. It is a recombinant human insulin analog – a biosynthetic insulin that closely mimics human insulin. Its
chemical structure regulates its release from the subcutaneous tissue into circulation, providing a relatively constant concentration/time profile with no pronounced peak. This profile allows for once-daily dosing as a basal insulin.
Actonel® (risedronate sodium) was approved in
Europe in March and the U.S. in April for postmenopausal osteoporosis and corticosteroid-induced osteoporosis. It is the first osteoporosis therapy to consistently demonstrate a reduction in vertebral (spinal) fracture incidence in just one
year of treatment. This is important because of the need to stop the fracture cascade that so
commonly occurs after many osteoporosis patients suffer their first fracture. Actonel® is co-marketed with Procter and Gamble Company.
In March, Aventis Pharma submitted applications in the EU and U.S. for the approval of Ketek® (telithromycin), a novel ketolide antibiotic in an oral formulation. Aventis is seeking approval for a once-daily dosing regimen for treatment of respiratory infections, including those caused by drug-resistant pathogens.
Ongoing focus on strategic products and performance in the U.S. market
During the first half, global sales of strategic pharmaceutical products increased by 54.3 percent compared to the first half of 1999 and represented 34.9 percent of total prescription drug sales compared to 26 percent in the same period of 1999.
As in the first quarter, U.S. sales of Aventis prescription drugs for the first half were particularly strong, up 34 percent (+ 18 percent excluding currency effects and structural changes). This increase was due primarily to the strong performance of strategic brands such as Allegra®,
Taxotere® and Lovenox®. The continued excellent growth of strategic brands in the first half more
than offset a decline in sales of the high margin calcium antagonist Cardizem CD® of 62.8 percent excluding currency effects to euro 146 million, which had been expected due to the onset
of generic competition in the U.S.
Vaccines and therapeutic protein products businesses post strong sales growth
Sales by the vaccines business Aventis Pasteur rose 26.8 percent (+ 17.9 percent excluding currency effects) to euro 475 million in the first half of 2000. Sales of Aventis Pasteur for the second quarter amounted to euro 234 million (+ 11.6 percent excluding currency effects). Injectable polio vaccines continued to grow rapidly (+ 59 percent excluding currency effects) following a 1999 recommendation by the U.S. Food and Drug Administration (FDA) to use fully injectable polio vaccine as opposed to mixed oral/injected vaccination. In June, Aventis Pasteur-MSD, a joint venture between Aventis Pasteur and Merck & Co. Inc. in Europe, received a favorable opinion for Hexavac®, a combined vaccine against diphtheria, tetanus, pertussis, poliomyelitis, hepatitis B and Haemophilus influenzae type b (Hib) disease, by the European Committee for Proprietary Medicinal Products (CPMP). Hexavac® is planned to be launched in Germany before the end of the year.
Sales by the therapeutic proteins business Aventis Behring rose 42.6 percent (+ 30.4 percent excluding currency effects) to euro 556 million in the first six months despite the significant and
ongo ing efforts related to compliance. Due to the favorable development particularly in the U.S., Japan, Canada and Mexico, the second quarter was particularly strong with sales of euro 292 million, up 55.6 percent (+ 41.3 excluding currency effects) compared to the same period in 1999.
Aventis Agriculture recovers in second quarter despite difficult market environment
Aventis Agriculture, which consolidates Aventis
CropScience and Aventis Animal Nutrition, generated total sales of euro 2.490 billion in the first half of 2000, a decline of 4.4 percent
compared with the first six months in 1999 (-10.1 percent
excluding currency effects and structural changes). Despite the overall difficult market situation for agricultural products, Aventis Agriculture achieved sales of euro 1.283 billion during the second quarter, which, on a comparable
basis, is almost at the same level of sales as during the second quarter of 1999. Sales by the
animal health business Merial, a 50:50 joint venture with Merck & Co. Inc, are not consolidated in the Aventis Agriculture sales figures.
Sales by Aventis CropScience, the crop protection and crop production business, totaled euro 2.212 billion in the first
half. This 4.5 percent decline over the previous year was due, primarily to a difficult first quarter. On a comparable basis of structure, second-quarter sales grew slightly to euro 1.142 billion, marking first indications of a turnaround for the CropScience business.
Aventis CropScience continues to make progress with good market penetration of new products. In the U.S. Midwest our corn herbicide portfolio developed very significantly during the 2000 growing season : sales of Liberty Link® grew by 32.7 percent and use of Balance® grew substantially leading to an almost complete clean-up of inventories in the distribution channels. Good performance was also achieved by other major products, such as the insecticides Regent®
and Temik® and the selective herbicide Puma®, which allowed Aventis CropScience to gain market share in key countries such as the U.S. and Brazil.
Sales by Aventis Animal Nutrition during the first 6 months were euro 280 million, compared to euro 284 million for the same period last year. Second quarter sales of Aventis Animal Nutrition were euro 142 million, flat compared to the second quarter 1999. Volumes of methionine and Vitamin A were sharply higher than last year, with strong growth recorded in the Asia-Pacific market in particular. However, these gains were offset by continued weakness in vitamin prices, notably for Vitamin E.
Aventis (NYSE: AVE) is a world leader in life sciences. Focused on two core business areas - pharmaceuticals and agriculture - Aventis is dedicated to improving life through the discovery and development of innovative products in the fields of prescription drugs, vaccines, therapeutic
proteins, crop production and protection, animal health and nutrition. With global corporate headquarters in Strasbourg, France, Aventis employs around 95,000 people in more than 120
countries and recorded pro forma sales in 1999 of 20.5 billion euros. Aventis was launched in December 1999 through the merger of Hoechst AG of Germany and Rhone-Poulenc SA of France.
Note: Figures released today are unaudited sales for the first
six months and second quarter of 2000, compared with the respective unaudited pro forma figures of 1999. These pro
forma figures present Aventis in its current structure retroactively for 1999. Detailed second quarter results will be released towards the end of August 2000.
Company news release
N2872 |