Schwarz Pharma ‘on track’ in half-year report

Schwarz Pharma has published its half-year report for 2007, with the firm recording revenues of 455.8 million euros (307.5 million pounds) for the first six months of the year, a drop of 5.7 per cent on the same period last year.

In conjunction with this fall in sales, a reduction in milestone payments and lower gross margin, the company saw a 33.4 per cent drop in its operating result to 55.2 million euros for the quarter and a consequent 30 per cent drop in net result to 26.1 million euros.

Schwarz Pharma has forecast sales of 800-850 million euros for the full 2007 financial year, noting that the performance of novel compounds will not completely offset the ongoing decline in sales, though the company will seek to see a positive net result this year.

Detlef Thielgen, chairman of the executive board of Schwarz Pharma, said: “The solid business developments in the first half of the year are in line with our expectations.”

He added that the company would continue to progress in its integration with its new parent company UCB, as is set out under the terms of the recently published domination and profit transfer agreement between the firms.

This agreement to facilitate the full integration of the companies was approved by Schwarz Pharma shareholders at a general meeting held on March 8th 2007.