During the first six months of 2000, Aventis continued to deliver a strong improvement in earnings, as half-year earnings per share (EPS) for the consolidated life science businesses climbed 54 percent to 0.74 euros before exceptionals compared with 0.48 euros per share during the first half of 1999. Second-quarter earnings per share before exceptionals were 0.43 euros, an increase of
52.6 percent over the same period in 1999. Life science sales totaled 10.245 billion euros for the first six months of the year, an increase of 11.6 percent compared to the same period in 1999. Second-quarter life science sales rose 12.8 percent to 5.382 billion euros. 

During the first half, net income of the Aventis group, including industrial activities, rose 61.3 percent to 632 million euros before exceptionals from 392 million euros in the first half of 1999. Group net income for the second quarter increased by 59.3 percent to 374 million euros. Total net sales by Aventis increased by 9 percent to 11.091 billion euros during the first half and rose 10.4 percent to 5.815 billion euros in the second quarter.

"The ongoing strong improvement in earnings during the first six months was again driven by our Pharma business, which continued to grow, particularly in the important U.S. market, thanks to new and innovative products,? said Patrick Langlois, Chief Financial Officer of Aventis. ?Our business performance and resulting profitability during the first half of 2000 provides a good indication that we are in line with our margin improvement objectives."

Synergies for year 2000 fully secured at the end of first half.

As previously announced, Aventis has identified synergies and associated annual savings of 1.2 billion euros, which are planned to be achieved in full by 2002. Of this amount, 750 million euros are expected at Aventis Pharma, 350 million euros at Aventis Agriculture, and 100 million euros in corporate costs. 

"During the first half of 2000, we clearly identified and secured our targeted amount of 400 million euros in synergies for this year. We have already realized close to half that amount, 186 million euros, through the end of the second quarter,? said Langlois. 

During the first six months, Aventis recorded exceptional charges (net of gains) of 494 million euros at the pre-tax income level. The remainder of the previously announced 1.3 billion euros in cash restructuring charges for the year 2000 are planned to be booked during the second half. 

Aventis Pharma: EBITA before exceptionals up 21.5 percent 

Aventis Pharma, which is comprised of the prescription drugs business Aventis Pharma AG, the human vaccines business Aventis Pasteur and the therapeutic proteins business Aventis Behring, continued to enhance its profitability by launching innovative products and focusing on new, high-margin products in important markets worldwide. 

During the first six months of 2000, Aventis Pharma posted a 21.5 percent increase in earnings before interest, taxes and amortization (EBITA) to 1.420 billion euros before exceptionals. Synergies contributed 111 million euros to the EBITA of Aventis Pharma for the first half. EBITA for the second quarter increased by 17.7 percent to 769 million euros before exceptionals. 

Half-year sales by Aventis Pharma rose 17.6 percent to 7.794 billion euros. At 4.114 billion euros, second-quarter sales of Aventis Pharma increased by 18.2 percent compared to 1999. Sales in the U.S., the largest pharmaceutical market worldwide, accounted for 30.5 percent of total Pharma sales in the first six months of 2000, up from 25.5 percent in the same period of 1999. 

New product approvals, growth in the U.S. and focus on strategic pharma products 

The prescription drugs business of Aventis Pharma contributed 6.775 billion euros to sales in the first half, an increase of 15.3 percent. Second-quarter sales rose 15.4 percent to 3.590 billion euros. As in the first quarter, U.S. sales of Aventis prescription drugs for the first half were particularly strong, up 34 percent. 

During the first half of 2000, Aventis received approvals in the EU and the U.S. for two new products: Lantus®, a biosynthetic insulin that closely mimics human insulin for the treatment of Type 1 and Type 2 diabetes, and Actonel®, for the treatment of postmenopausal osteoporosis and corticosteroid-induced osteoporosis. Actonel® is co-marketed with Procter and Gamble. Aventis also filed dossiers in the EU and the U.S. seeking approval of Ketek®, the first product in a new family of antibiotics. 
 
Aventis Pharma also obtained approvals for new indications for its main growth drivers, which are approaching blockbuster status due to strong double-digit growth rates: 

The anti-allergy drug Allegra®/Telfast® (fexofenadine), generated six-month sales of 525 million euros, driven by strong demand in the U.S., where sales totaled 463 million euros (+ 44.5 percent excluding currency effects). In February, a once-daily form of Allegra® received FDA approval in the U.S. Allegra® 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 six-month sales of 311 million euros, with the U.S. accounting for 132 million euros in sales (+ 84.8 percent excluding currency effects). 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. In April, Taxotere® was approved in Japan for additional indications for the
treatment of gastric, head, neck and ovarian cancer.

Lovenox® (enoxaparin sodium), for the prevention and treatment of thrombosis as well as the treatment of unstable angina pectoris and myocardial infarction, generated sales of 444 million euros during the first six months, with the U.S. market accounting for 247 million euros of the total (+ 23.3 percent excluding currency effects).

Other strategic pharmaceutical products also contributed to the growth in Pharma sales, such as Amaryl®, for the treatment of diabetes, and Arava®, for the treatment of rheumatoid arthritis, as well as Delix®/Tritace®, an ACE-inhibitor, and the anti-allergy product Nasacort®. 

During the first half, global sales of strategic pharmaceutical products increased by 54.2 percent. This was driven by strong growth of 63.5 percent in the U.S. compared to the first half of 1999. The strategic products now account for 34.9 percent of total prescription drug sales by Aventis Pharma as compared with 26 percent in the same period of 1999. 

During the first six months of 2000, gross margin of Aventis Pharma (before exceptional items) was 65.7 percent. This includes the impact of a minimal margin manufacturing contract with Ajinomoto Co. Inc., Japan, which added 194 million euros in Pharma sales, though reduced gross margin by 1.7 percentage points. This contract ended on June 30, 2000. Excluding the impact of this transaction, Aventis Pharma is on track to achieve its gross margin improvement objectives on a full year basis. 

Despite the impact of the Ajinomoto transaction, Aventis Pharma gross margin during the second quarter improved to 66 percent over 65.5 percent in the first quarter of this year, as the negative impact of generic Cardizem CD® was more than offset by the favorable mix impact of newer strategic products. 

Sales by the vaccines business Aventis Pasteur rose 26.8 percent to 475 million euros in the first half of 2000. The therapeutic proteins business Aventis Behring posted a 42.6 percent increase in sales during the first six months to 556 million euros. 

Aventis Agriculture: Earnings improvement in second quarter despite declining sales 

Aventis Agriculture, which consolidates Aventis CropScience and Aventis Animal Nutrition, generated total sales of 2.490 billion euros in the first half of 2000, a decline of 4.4 percent compared with the first six months of 1999. Sales by Aventis CropScience, the crop protection and crop production business, totaled 2.212 billion euros in the first half, down 4.5 percent mainly due to a difficult first quarter. Aventis Animal Nutrition reported sales of 280 million euros, compared to 284 million euros for the same period last year. 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. 

Aventis Agriculture increased its EBITA by 13.6 percent to 284 million euros before exceptionals during the second quarter, although sales were down 2.4 percent in a highly competitive market environment. For the first six months, EBITA was up 2.9 percent to 529 million euros. This earnings improvement was due to the favorable impact of 69 million euros in synergies during the first half year and the margin-focused product mix of Aventis CropScience. 

The gross margin of Aventis Agriculture also improved significantly during the second quarter to 50.5 percent from 45.9 percent in 1999. For the first half of 2000, the gross margin increased to 50.3 percent from 47.8 percent. During the coming quarters, the performance of Aventis Agriculture is expected to reflect even more strongly the positive impact of the synergies. 

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 results 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 sales figures of the second quarter and first half-year were released on July 28, 2000.

Company news release
N2959