Pharmacia & Upjohn
This article was originally published in The Tan Sheet
Executive Summary
Nicorette sales were up 9.6% in 1999, totaling $233.6 mil., but declined 7.1% in the fourth quarter to $61.1 mil. due to strong year-ago sales that resulted from the introduction of the product's mint flavor. P&U directly sells the smoking cessation gum in various international markets and under a licensing agreement with SmithKline Beecham in the U.S. Firm's net sales increased 11.9% to $7.18 bil. for the year, while fourth quarter sales rose 9.7% to $1.94 bil. Net earnings - after adjusting for the acquisition of SUGEN, Inc. and various R&D charges - reached $944 mil. for the year, up 13.6%, and climbed 11.1% to $261 mil. in the quarter. The company announced Dec. 19 its plans to merge with Monsanto; the deal is expected to close in the first half of the year