Citation
(2006), "Organon – continued strong growth", Pigment & Resin Technology, Vol. 35 No. 5. https://doi.org/10.1108/prt.2006.12935eab.012
Publisher
:Emerald Group Publishing Limited
Copyright © 2006, Emerald Group Publishing Limited
Organon – continued strong growth
Organon – continued strong growth
Healthy growth at Organon resulted in a 12 percent year on year revenues increase to 644 million. NuvaRing®, the once-a- month vaginal contraceptive ring, delivered revenues growth of 66 percent to 43 million, driven in part by accelerating US sales. During the quarter, NuvaRing also topped the one million user mark, highlighting the product's rapidly increasing acceptance and high satisfaction rates. Infertility products also made a strong contribution with Puregon®/Follistim® up 14 percent to nearly 100 million per quarter. The anesthesia products continued their positive growth trends, led by Esmeron®/Zemuron® and Anzemet®.
Operating income excluding incidentals was down 4 percent to 85 million, reflecting Organon's increasing investments in future growth. EBIT margin at Organon was 13.2 percent compared with 15.5 percent last year. As expected, R&D expenses increased by 32 percent, in line with late stage development pipeline projects, while marketing and distribution costs rose 12 percent.
Intervet – record quarterly sales, steady profitable growth
Intervet's revenues grew 8 percent to an all-time quarterly high of 282 million. Operating income grew 9 percent to 58 million, representing an attractive EBIT margin of 20.6 percent. This performance was driven by accelerating growth outside Europe. Revenues from North America grew 23 percent on successful product marketing, while Latin America was up 18 percent due to economic growth; currency gains also boosted growth in these regions. Rest of the world revenues rose 31 percent boosted by Asia's recovery from the effects of avian influenza. Revenues in Europe rose slightly thanks to successful product launches, although avian influenza affected our poultry vaccine business. Institutional demand for Intervet's avian flu vaccine from European authorities has so far been limited.