Bottom Line: SKB finds the elixir
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THERE was much to chew on in SmithKline Beecham's presentation yesterday. But perhaps the key focus for investors should be the remarkable way in which the company has achieved the objective it set two years ago of growing substitutes for its previously dominant Tagamet anti-ulcer product.
In 1991 four new SKB products - Paxil, Relafen, Kytril and Havrix - had sales of pounds 24m; by last year their turnover was pounds 463m.
These new product sales exactly offset the amount SKB will probably lose when Tagamet goes off patent in the US in May. About two-thirds of Tagamet's pounds 673m of sales last year were in the US.
But it is comforting - and no mean management feat - that it is no longer SKB's core product.
As for the future - the company says that last year it had 10 products with sales of more than pounds 100m each. This year it hopes to have 14 products in that category and by 1996 it says it is not impossible that it will have 20 such money-earners.
The uncertainty that has dogged drug stocks, forcing them to underperform dramatically, still has some way to run. Yet while some companies will suffer as the market shifts, others could capitalise on the weakness of their competitors. SKB's record to date has been excellent. A management for investors to back.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments