Currency lifts Wyeth to 5% growth
pharmafile | July 31, 2008 | News story | Sales and Marketing |
Wyeth saw revenues increase 5% in the second quarter of the year to $5.9 billion, contributing to six month sales which rose 6% to $11.7 billion.
But much of the rise was down to favourable foreign exchange rates, and when their effect is stripped out the global revenue figure was static in the second quarter and up just 1% in the first half.
The company cites its product highlights as inflammation treatment Enbrel, whose sales were up 36% in the half-year and Prevnar, the first conjugate vaccine against pneumococcal disease, which saw a 12% rise.
"We are pleased with the volume growth we experienced internationally which was enhanced by foreign exchange rates, and continue to build upon the strength of our biotech products Enbrel and Prevnar, as well as our growing nutritional franchise," says Bernard Poussot, Wyeth's chairman, president and chief executive.
Sales of antidepressant Effexor also increased in the second quarter by 5% (9% for the half-year) although this was due primarily to price increases.
But sales of blockbuster ulcer pill Protonix slumped 62% in the six months to June after the launch of generic rivals – a move against which Wyeth is taking legal action. Wyeth launched its own generic version of Protonix earlier this year.
The second quarter results also included charges of $155 million, primarily due to redundancy costs related to Wyeth's slashing of the workforce by 6% – including many staff who were selling and marketing Protonix.
Despite this setback, Poussot said the company's work in pharma, consumer healthcare and animal health meant it was well-placed in the current business environment. "[We have] secured five product approvals in the past 14 months, and we are encouraged by the phase II results for bapineuzumab in Alzheimer's disease that support our decision to initiate phase III trials."
The drug, developed with Elan, in fact showed mixed results. Although some patients in the trial improved mental performance, there were concerns over serious side effects which saw Wyeth shares tumble in market trading.
Wyeth's new drug Relistor was approved during the period in the US and Europe.
The product is a subcutaneous injection for the treatment of opioid-induced constipation in advanced illness patients who are receiving palliative care when response to laxative therapy has not been sufficient.
