ALTANA expects to achieve record levels in 2001
Offensive research strategies confirmed / Panto successor products in sight
On the occasion of an international analysts and press conference in Bad Homburg, headquarters of Altana AG, the Chairman of the Managing Board, Nikolaus Schweickart, confirmed the demanding profit expectations for the whole year 2001: “The ALTANA Group is well on the way towards another record year: We assume to achieve a clear double-digit sales increase of about 18 – 20%. Profit before taxes will roughly post a 30% growth compared to the previous year.”
Due to the great demand in the US and in Europe as well as a substantial improvement of domestic business the Group’s profit from operations – based on EBITDA – will for the first time exceed the 1 billion DM level, a striking departure in the last year of the DM currency. “Moreover”, said Schweickart, “in 2001 we further approach our target level of 20% concerning the return on sales. In Europe ALTANA as a result belongs to the most profitable companies within its industry.”
Blockbuster Pantoprazole remains on course for success
ALTANA also confirmed the forecasts for the gastrointestinal product Pantoprazole raised again within the semiannual reporting. With this blockbuster sales between 500 and 550 million € are expected in the US and more than 1.1 billion market sales worldwide for the whole of 2001. The Panto share in consolidated profit is less than 50%, the share in sales amounts to roughly 30%. In this conjunction the head of pharmaceuticals, Hans-Joachim Lohrisch, referred to the successful Panto marketing in the US and further important pharmaceutical markets: “Without any doubt we show a particular rapidity in growth in the US market. By now we have achieved a market share of 10.4% concerning new PPI prescriptions. However, even in all the other markets we anticipate strong double-digit growth.”
„As to the forecasts for Pantoprazole and consolidated profit“, said Chairman of the Board, Nikolaus Schweickart, „we adhere to our conservative assessment leaving a certain flexibility. Rather than to miss them we prefer to fulfill our forecasts – for the sake of the company and its shareholders.”
Capital expenditure on future-oriented projects
In the past years ALTANA systematically increased its research expenditure on a double-digit scale. For 2001 the Chairman of the Managing Board expects R & D costs in the pharmaceutical business of about 250 million € corresponding to an increase of 30%. “We utilize the high profitability of the company to invest into its innovative power. On the one hand our innovative profile is strengthened through large R & D capital expenditure and on the other hand through well-targeted cooperations in the areas of biotechnology and genetic engineering.” In the first half of the year ALTANA entered into further research alliances with the biotech company GPC (Martinsried / Germany) as well as the Swiss company GeneData. Apart from these activities ALTANA is in the progress to further modernize its pharmaceutical production facilities. Mid 2002 it is planned to put a state-of-the-art pharmaceutical plant into operation in Brazil destined for the Mercosur markets.
The expansion of the Group may also be recognized in view of the number of employees. Compared to the first half of 2000 the number of ALTANA employees worldwide increased by 4% to achieve 8,800 people. “We are proud to be able to create additional jobs due to our corporate success. This year it will be roughly 500. Thus the number of employees will amount to 9,000 until the end of the year”, said the Chairman of the Board.
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