Alcon reports strong second quarter led by pharma growth

HUNENBERG, Switzerland – Alcon reported sales of $925.4 million for the second quarter of 2003, an increase of 14% from the same quarter in the previous year. Sales in its surgical division led, followed by pharmaceuticals and then consumer products, according to a press release.

The company’s surgical products division achieved sales of $401.9 million during the quarter, up from $371.4 during last year’s second quarter. The pharmaceutical division, led by sales in the infection/inflammation line, had sales of $392 million during the quarter, according to the release.

“During the quarter, we launched several key new products,” said Tim Sear, president and chief executive officer, during a Web cast hosted from Ft. Worth, Tex. “Vigamox [moxifloxacin] is off to a strong start in the U.S. We’ve shown it to have a strong clinical profile, and it’s had rapid market acceptance. Our anti-infective franchise gained eight share points in ophthalmology.”

Mr. Sear noted that most of the company’s anti-infective line is prescribed by physicians outside the ophthalmic realm. The upcoming quarter will be spent educating nonophthalmic specialists on Vigamox, he said.

Alcon has been previewing the Infiniti, its latest phacoemulsification machine, to surgeons throughout the second quarter, Mr. Sear said, and he expects sales to “really ramp up” during the fourth quarter.

“There’s been a strong momentum for the Infiniti,” he said.

Earlier this week, Travatan (travoprost) received European Union approval as a first-line therapy for the treatment of glaucoma. Retaane (anecortave acetate), for the treatment of age-related macular degeneration, has entered its second pivotal trial, according to the company.

Mr. Sear said Alcon expected to file a new drug application with the Food and Drug Administration for Retaane during the fourth quarter of 2004, with a product launch during the first half of 2005.

During a question and answer period, Gerald Cagle, PhD, senior vice president of research and development for Alcon, spoke about pharmaceutical products still in the pipeline. He noted that the Retaane trial had a “very low dropout rate, relatively low single digits” and has shown an “outstanding” safety profile to date. Alcon’s olopatadine formulation for nasal use, dubbed Patanase, will likely have an NDA filed with U.S. regulators during the first half of 2004.

In addition, Patanol QD, for the treatment of allergic conjunctivitis, received an approvable letter from the FDA earlier this quarter, Dr. Cagle said.

“We’re working with the FDA to resolve all the outstanding conditions of the approvable letter right now,” he said.

“The overall market for ocular allergy drugs increased 7% this quarter, and Alcon’s share grew 2.6%. We have about 69% of the total market for ocular allergy. Patanol QD will just add to the franchise; it’s not slowing us down,” Mr. Sear said.

More than 1,000 patients have been enrolled in a U.S. study of Alcon’s combined Travatan/timolol product, according to Dr. Cagle.

“We’re optimistic about its possibilities,” he said.

In the United States, about 49% of Alcon’s sales are in pharmaceutical products, 37% in surgical products and 15% in consumer products. Outside the United States, the surgical unit accounts for about 55% of the company’s sales, with pharmaceutical products at 30% and consumer products about 15%. Company executives predicted Alcon’s pharmaceutical line to grow 16% to 18% for the year, with surgical products registering 7% to 9% growth for the year.