MERCK's U.S. BUSINESS PASSES $ 4 BIL. IN 1990; SCHERING's NET PROFIT MARGINS CLIMB OVER 17% IN STRONG YEAR-END; PROTROPIN MAKES $ 157 MIL. FOR GENENTECH

Merck's U.S. business surpassed $ 4 bil. in sales in 1990, increasing about 17% over 1989 and maintaining pace with the growth rate of the company's exchange-aided non-U.S. business. The currency changes in 1990 added three percentage points to the 18% advance by non-U.S. sales. Merck's foreign sales climbed to $ 3.6 bil. The U.S. and non-U.S. businesses maintained the 53%/47% split of the business from 1989. The overall sales growth was "led by newer products," Chairman Roy Vagelos commented. "Both our domestic and international operations reported solid unit volume gains." In a series of comments on major products, Merck noted that the injectable antibiotic Primaxin (imipamine/cilastin) "is the third most widely prescribed injectable antibiotic in the U.S. and its level of acceptance continues to increase." The firm added that the product "grew significantly" outside the U.S. Merck's earnings grew at a faster rate than sales in 1990. After-tax earnings for the year reached $ 1.8 bil., an increase of 19.1% from 1989. The company noted that a lower tax rate was one of the factors contributing to the rate of earnings increase. Merck's tax rate was shaved to 34% in 1990 from 34.5% the year before. The R&D budget at Merck continues to move closer to the $ 1 bil. mark. R&D spending increased 13.7% to $ 854 mil. in 1990, up from $ 751 mil. in the previous year. Even with a $ 103 mil. increase in 1990, the firm's R&D spending ran a bit behind sales growth in percentage terms. Abbott's pharmaceutical/nutritional sales were 13.5% higher in 1990, at $ 3.2 bil. Sales from hospital/lab products rose 15.6% to nearly $ 3 bil. Like Merck, Abbott reported four consecutive quarters of sales and earnings gains in excess of 10%. Fourth quarter Abbott sales of $ 1.7 bil. were 17.5% ahead of the comparable period in 1989, while full-year sales increased 14.5% to $ 6.2 bil. Earnings rose 10.6% and 12.3% for the quarter and year, to $ 279.8 mil. and $ 965.8 mil., respectively. Abbott Chairman Duane Burnham attributed the strong performance to "several factors," including "increased unit sales worldwide from each of the company's major business segments, significant new product introductions, and results from Abbott's continuing emphasis on productivity improvement." Launches and approvals during 1990 included a supplemental endometriosis indication for the Takeda/Abbott product Lupron; a broader claim for Calcijex to include bone disease in dialysis patients; and approval of Abbott's hepatitis C diagnostic. Abbott has a new drug to sell going into 1990 from the December approval of the short-term anti-insomnia product Prosom (estazolam). Abbott's international operations, including direct exports from the U.S., recorded $ 2.3 bil. in sales in 1990, an increase of 22.4%, the company noted. The contribution to total sales from overseas was 38.8% compared to 35.3% in 1989. The U.S. market generated sales of $ 3.8 bil., a 10.2% increase over 1989. Pfizer's health care group sales rose 27% to approximately $ 1.2 bil. in the fourth quarter with a balance between two equally strong groups: pharmaceuticals (up 27%) and hospital products (up 28%). Commenting on the rapid growth in the prescription drug segment, Pfizer Chairman and CEO Edmund Pratt said that "newly launched drugs -- antibiotics Unasyn and Sulperazon; cardiovasculars Procardia XL, Norvasc and Minipress XL; and the antifungal Diflucan . . . account for more than 34% of our fourth quarter pharmaceutical sales." In October, Pfizer projected worldwide sales for the Procardia "family" for 1990 of more than $ 700 mil., with Procardia XL accounting for more than half. Diflucan, launched in March, was projected to generate $ 90 mil. in U.S. sales. Pfizer has NDAs pending for Minipress XL and Norvasc in the U.S. Alza, developer of the GITS oral delivery system used in Procardia XL, said Jan. 23 that the company's "increases in net income and revenues for 1990 were due primarily to royalties received from Pfizer Inc. based upon sales of Procardia XL in the U.S." Alza royalties totaled $ 11.7 mil. in the fourth quarter and $ 41.7 mil. for the full year. Three-month revenues increased 27% to $ 31.1 mil. and for the 12 months, revenues rose 18.1% to $ 109.4 mil. Net income jumped 20.8% and 31.3% for the quarter and the year, respectively, to $ 6.6 mil. and $ 24.7 mil. With the heavy, no-cost royalty revenues, Alza had a 23% net-to-sales ratio for the full year. Pfizer worldwide sales for the fourth quarter were $ 1.8 bil., up 19.5% from the comparable period of 1989. Sales for the year climbed 13% to $ 6.4 bil. Net for the quarter jumped 77.7% to $ 154.8 mil. and was 17.6% higher for the 12 months at $ 801.2 mil. Net income would have risen 16.1% for the quarter but the comparative figures were skewed by a $ 709 mil. pre-tax provision for the sale of a pigments business in the fourth quarter in 1989. Schering-Plough's worldwide pharmaceutical sales increased 17% in 1990 with a 13% gain in the U.S. and 22% outside the U.S. (excluding a divestiture in Brazil). Schering's U.S. business ended 1990 with approximately $ 1.3 bil. in sales. U.S. pharmaceutical sales were led by the respiratory and anti-infectives and anticancer product groups. The Proventil and Vancenase asthma product lines, Eulexin, Intron A and K-Dur were cited as "significant contributors" to U.S. sales growth. Schering told securities analysts Nov. 14 that it expected Intron A sales to exceed $ 150 mil. worldwide in 1990 and that Eulexin sales would reach $ 100 mil. ("The Pink Sheet" Nov. 19, p. 11). In contrast, Schering-Plough HealthCare Products sales were "essentially flat" for the year, the company reported. "Significant inventory reductions" during the year and a "weak cough/cold season earlier in 1990" were blamed for the poor performance. Second half segment results improved, however, with fourth quarter OTC sales 5% higher than in 1989, Schering noted. The rebound benefited from "strong sales of new products, led by Lotrimin AF," the OTC athlete's foot product launched in May 1990. Consolidated worldwide Schering-Plough revenues totaled $ 3.3 bil. for the 12-month period, a gain of 5% for the year. Without the Brazilian and Maybelline cosmetics divestitures, sales would have been up 13% for the year. Earnings rose at a rate about four times the adjusted sales growth, gaining 20% to $ 565.1 mil. Like Merck, Schering also shaved .5% off its effective tax rate cutting its tax rate for 1990 to 26.5% The company's net-to-sales ratio climbed over 17% from just under 15% last year. Genentech fourth quarter revenues were $ 131.3 mil., 17.8% higher than in the year-earlier period, the company reported Jan. 17. For the year, revenues rose 18.9% to $ 476.1 mil. Genentech's sales continue to be fueled by Activase (TPA) and the human growth hormone Protropin. Activase sales climbed 7% to $ 210 mil., the company reported, noting that the drug maintained approximately two-thirds of the market share for thrombolytics during 1990. Protropin sales grew 28% to $ 157.1 mil. As a result of Roche's acquisition of a 60% equity interest in the company, Genentech posted a loss of $ 98 mil. for the year "due to a previously reported special charge of $ 167.7 mil." The company reported that fourth quarter profits were $ 17.1 mil., up 10.5% from the fourth quarter of 1989. The Roche deal also left Genentech with $ 691.3 mil. in cash at the end of the year, compared to $ 205 mil. at the end of 1989. Mylan sales declined 5% in the third quarter (ended Dec. 31) to $ 22.9 mil. from $ 24.1 mil. in the comparable period of fiscal 1989, the company reported Jan. 25. Nine-month sales slipped 1.8% to $ 67.1 mil. The figures do not include sales of the Somerset Pharmaceutical's drug for Parkinson's, Eldepryl, which Mylan owns in a joint venture with Bolar. Sandoz's 800 field reps began co- marketing Eldepryl on Oct. 1 ("The Pink Sheet" Sept. 10, T&G-1). Mylan's 50% share of Eldepryl revenues totaled $ 8.8 mil. for the three months and $ 25.8 mil. for the nine months, the company said. Doubling that figure to take into account Bolar's share in the Somerset joint venture puts total Eldepryl sales at about $ 17.6 mil. for the quarter and $ 51.7 mil. year-to-date. Those figures are pretty much in line with Mylan estimates that have the drug annualizing at $ 65 mil. to $ 75 mil. Earnings are apparently being held back by the lack of new product flow in the generic market. Quarterly net declined a slight .2% to $ 8.2 mil., but year-to-date earnings are 41.3% higher, at $ 23.4 mil. Chart omitted.