| – | Solvay Pharmaceuticals is a group of pharmaceutical companies, active in more than 30 countries. |
| – | With a turnover of 1,35 billion EUR Solvay Pharmaceuticals ranks in the top 40 of pharmaceutical companies |
| – | Solvay Pharmaceuticals is strongly established in Europe, in Canada and the United States, and now has own organizations in virtually all countries in Western, Central and Eastern Europe. We are rapidly expanding in the United States, Japan and the rest of Asia where distribution and marketing have been established. |
| – | Solvay Pharmaceuticals is active in the therapeutic areas of cardiology, gastroenterology, mental health and hormone replacement. |
| – | Solvay Pharmaceuticals is world market leader in pancreatic enzymes, irritable bowel syndrome and vertigo. It has a leading position in antidepressants, laxatives and hormone replacement therapy |
| – | Solvay Pharmaceuticals maintains a substantial investment in R&D. Around seventeen percent of annual sales, more than the industry average, is committed to research and development of innovative products. |
| – | Worldwide the Solvay Pharmaceuticals companies have more than 6000 employees. |
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Key Figures 1998-1999
Strong growth of 16% in both sales and earnings. “Fast and profitable growth” strategy yields results.
Largest products were Luvox® (17% of the total), Estratest® (9% of the total), Creon® (8% of the total), Duphalac® (6% of the total), Serc® (5% of the total) and Duspatal® (4% of the total).
Sales generated by the Solvay Pharmaceuticals companies were up 16% this year. The strongest growing products were Prometrium® (up 387%), Pantoloc® (up 113%), Estratab® (up 68%), Femoston® (up 48%), Physiotens® (up 32%) and Estratest® (up 29%).
The countries showing strongest growth in 1999 were the US (up 21% to 33% of the total), Canada (up 34% to 3% of the total), Central and Eastern Europe (up 26% to 3% of the total) and Japan (up 1500% to 2% of the total). Despite the continuing pressure from Western European health authorities we continue to grow in our major markets.
| EUR MILLION | 1997 | 1998 | 1999 | D 98/99 |
| Sales | 1,049 | 1,167 | 1,349 | +16% |
| EBIT (1) | 118 | 135 | 157 | +16% |
| Depreciation | 44 | 46 | 54 | +17% |
| Capital expeditures | 79 | 56 | 313 | X5.6 |
| R&D; | 151 | 175 | 229 | +31% |
| Headcount (2) | 6,172 | 6,235 | 6,694 | +7% |
(1) EBIT: earnings before net debt expense, taxes and non-allocated
items
(2) At January 1 of the following year
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| – | Cardiology portfolio expanded by 2 major acquisitions, TEVETEN® (from SmithKlineBeecham) worldwide and ACEON® (from Servier) for the US. |
| – | Acquisition of 100% of Unimed Pharmaceuticals Inc. in the US. |
| – | An equity investment in and co-promotion deal with Duramed Pharmaceuticals Inc. in the US. |
| – | Creation of two additional field-forces (Solvay Pharmaceuticals and Unimed Pharmaceuticals) for promoting to primary care physicians and internists in the US. |
| – | Building of own organizations in Scandinavia. |
| – | Further investments in Eastern Europe with new organizations starting up in Latvia, Uzbekistan and Kazakhstan. Sales double in Slovakia, Poland and the Czech Republic. |
| – | Host partnership was signed in China with Tianjin-Hexal, a Chinese-German joint venture, to speed our growth. |
| – | An agreement was reached in India to concentrate our pharmaceutical business under the Solvay flag. |
| – | Acquisition and launch of PROMETRIUM® for hormone replacement therapy in the US. |
| – | Acquisition of Estrogel, Hormone replacement product under development in the US. |
| – | Acquisition of estrogen-progestin combination transdermal patch in the US. |
| – | US launch of the medication ESTRATAB® to prevent osteoporosis. |
| – | Successful launch in Japan of the first SSRI antidepressant and anti-obsessive compulsive disorder therapy, Solvay’s fluvoxamine, under trade marks LUVOX® (by Fujisawa and Solvay Seiyaku) and DEPROMEL® (by Meiji-Seika). |
| – | Alliance with Innogenetics in biotechnology. |
| – | Collaboration with BERNA (Switzerland) on a new influenza vaccine. |
| – | Specialization of plants in Europe, the US and Japan to cut manufacturing costs. |
| – | Restructuring of R&D to shorten the development process and ensure that our research centers in Europe, the United States and Japan share the same approach. |
| – | Enzyme activities sold to Genencor during the second quarter of 1998. |
| – | Animal health division sold to American Home products in 1998. |
| WORLD | EUROPE | USA | |
| Pancreatic Enzymes | 1 | 1 | 2 |
| Irritable Bowel Syndrome | 1 | 1 | – |
| Laxatives | 2 | 1 | – |
| Hormone Replacement Therapy | 3 | 4 | 2 |
| Vertigo (Menière’s disease) | 1 | 1 | – |
| Antidepressants/ OCD | 10 | 12 | 8 |
Growth in sales (1984-1999) in millions of EUR
in 1999: 1,349 millions of EUR
Activities sold in 1995 and 1996 [Back to top]
1999 sales breakdown by therapeutic area (in %) [Back to top]
Geographic breakdown of sales in 1999 (in %)
| European Union | 44% |
| Other European countries | 10% |
| Nafta | 38% |
| Mercosur | <1% |
| Africa – Middle-East | 4% |
| Asia – Pacific (including Japan) | 4% |
Total sales in 1999: EUR 1,349 M (USD 1,355 M) [Back to top]
Growth through existing products in 4 therapeutics areas:
| WORLDSALES IN MIO EUR | 99/98 x% | |
| Gastroenterology e.g. CREON® DICETEL® | 428 128 31 | + 5% + 13% + 6% |
| Psychiatry e.g. LUVOX® | 370 228 | + 14% + 22% |
| Hormone replacement therapies e.g. ESTRATEST® ESTRATAB® PROMETRIUM® | 389 124 33 25 | + 24% + 29% + 68% > 100% |
| Cardiology e.g. TEVETEN® ACEON® Physiotens | 99 About 20 Mio EUR in Q4/99 31 | + 37% – + 32% |