Glaxo Wellcome 1996 Product Performance

As reported last week, Glaxo Wellcome's 1996 sales growth of 6% to L8.34billion ($13.49 billion) was propelled by new products in the face of declining turnover for the company's lead product, the H2 receptor antagonist Zantac (ranitidine), which has been facing competition from other antiulcerants, notably the proton pump inhibitor omeprazole and other generic H2 RAs.

Excluding Zantac, at constant exchange rates, turnover was up 14% last year, while the world pharmaceutical market grew at just 8%, GW deputy chairman and chief executive Sir Richard Sykes told a press conference in London. Zantac, he added, has dropped from 49% of group turnover in 1990 to just 23% for 1996.

Among its product range, GW notes that it has substantial businesses in respiratory disease, antivirals, antibacterials and diseases of the central nervous system, as well as gastroenterology. Sales of anti-HIV products, which include Retrovir (zidovudine), rose by over 100% to nearly L500 million ($808.5 million), with the company's Epivir/3TC (lamivudine) - launched in 1995 - producing sales of almost L200 million in 1996. Elsewhere in the antiviral area, Zovirax (aciclovir) and Valtrex (valaciclovir) contributed sales of over L850 million, and as Valtrex rolls out around the world, significant growth and market penetration are expected by the company. Of particular benefit to Valtrex, according to Sir Richard, was the use of direct-to-consumer advertising in the USA, where sales more than doubled to reach L23 million.