Pliva announces decreased revenues but increased sales

Croatian-based generics manufacturer Pliva has reported decreased revenues of 17 per cent, although it has reported an increase in sales of four per cent. The company said it blames the reduction in revenue down the loss of 90 per cent of its royalty income and added that its generics division now accounts for 81 per cent of the business.

Pliva said it experienced strong growth in the UK, where sales increased by 30 per cent to $7 million (3.7 million pounds), as well as the US, which saw sales grow by 40 per cent to $61 million dollars on the back of the launch of generic azithromycin, a type of antibiotic.

The pharmaceutical chemicals division reported a 19 per cent decrease in sales, attributable to renegotiated terms for the bulk supply of azithromycin to Pfizer following the expiration of the drug’s US patent.

On Monday, Pliva received a warning letter from the FDA following an inspection of its manufacturing facility in Zagreb regarding quality issues. Pliva announced that it will not receive approvals for any abbreviated new drug applications from the FDA while it carries out corrective action, although it added that this will not materially impact the company’s financial outlook for 2006.

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