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Coatings - AkzoNobel

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Sales of Pharmaceuticals made substantial progress<br />

compared to 1997, aided by incidental Norcuron®<br />

muscle relaxant sales in the United States. Esmeron®<br />

muscle relaxant (Zemuron® in the United States) shows<br />

satisfactory growth both by replacing Norcuron® and by<br />

further market penetration, demonstrating our world<br />

leadership in muscle relaxants. To aid anesthesiologists<br />

in monitoring muscle relaxation we have introduced<br />

TOF-Watch®. One of the year’s highlights was the<br />

submission to the U.S. FDA of the New Drug Application<br />

(NDA) file for Raplon® rapid onset short duration muscle<br />

relaxant, in June 1998. Market introduction is<br />

anticipated in late 1999.<br />

In Diagnostics, Microbiology performed well, continuing<br />

to show double-digit growth for its BacT/Alert® systems<br />

for automated blood culture. BacT/Alert® 3D, the new<br />

generation diagnostic for the culture and detection of<br />

bacteria (including mycobacteria) and fungi was<br />

introduced in May 1998 at the conference of the<br />

American Society of Microbiology in Atlanta, Georgia.<br />

Nucleic Acid Diagnostics also registered strong sales<br />

growth, notably for its HIV and CMV assays. We also<br />

have high expectations for our NucliSens® Extractor<br />

introduced at the 12th World Aids Conference in<br />

Geneva, Switzerland. The extractor provides an<br />

automated solution for the extraction of nucleic acids<br />

from human body fluids, replacing labor-intensive<br />

manual procedures.<br />

Immunodiagnostics reported a favorable development<br />

of sales, despite the economic situation in Southeast<br />

Asia. The FDA approved Vironostika® HTLV I/II assay for<br />

blood screening. Through an arrangement with Ortho<br />

Clinical Diagnostics (Johnson & Johnson), the combined<br />

assay for detection of types I and II Human T-cell<br />

Lymphotrophic Virus, a causal agent of certain types of<br />

leukemia, lymphoma, and neurological disorders, was<br />

successfully introduced in the U.S. blood screening<br />

market. A fourth generation HIV screening assay<br />

Vironostika® HIV Uni-Form II Ag/Ab was launched in late<br />

1998. This assay helps reduce the period between<br />

infection and detection from three to two weeks.<br />

Hemostasis improved its geographic mix by further<br />

placements of its MDA®-180 and Coag-A-Mate® MTX<br />

systems. Two new clotting assays (MDA® D-dimer assay<br />

and Simplastin® HTF assay) were FDA approved and<br />

introduced. Conventional assay sales failed to meet<br />

expectations in the United States, but higher sales<br />

outside the United States compensated for the<br />

shortfall.<br />

AKZO NOBEL ANNUAL REPORT 1998<br />

29<br />

PHARMA<br />

Organon Teknika’s installed base of diagnostic systems<br />

improved substantially in 1998, providing an attractive<br />

platform for future growth in a highly competitive<br />

environment.<br />

INTERVET – VETERINARY PRODUCTS<br />

Sales NLG 780 million (1997: NLG 720 million)<br />

Further expansion in difficult year<br />

Intervet’s product range comprises biologicals for use in<br />

farm animals, fish and pets, fertility products to<br />

enhance reproduction performance, corticosteroids,<br />

nonsteroidal anti-inflammatory drugs (NSAIDs), and<br />

antibiotics.<br />

Although 1998 was a rather difficult year, particularly in<br />

Asia, satisfying sales and excellent income were<br />

achieved. Volume growth was good in Europe and the<br />

Americas. In particular, the range of biological products<br />

contributed to this positive development. During the<br />

year new Intervet subsidiaries were established in<br />

Korea and Taiwan. In Switzerland, Veterinaria AG was<br />

acquired, while in Australia—through the acquisition of<br />

AusVac—a foothold in the biological market was<br />

secured.<br />

Worldwide, a number of new products were registered<br />

and introduced. In the United States various new<br />

animal vaccines were launched; in Europe registration<br />

for an NSAID for use in dogs was obtained. Several<br />

other vaccines were introduced in the various European<br />

markets. In Japan, eight new products were registered,<br />

creating sufficient potential for healthy growth in that<br />

country.<br />

Our strategy continues to focus on achieving<br />

substantial autonomous growth through R&D and<br />

simultaneous improvements in the geo mix. Aside from<br />

this, Intervet remains interested in opportunities to<br />

acquire smaller businesses that fit this strategy.<br />

Construction of the new R&D center in France for the<br />

development of pharmaceutical products is on<br />

schedule. During the year the construction of a new<br />

NLG 50 million bacterin production plant in Boxmeer,<br />

the Netherlands, was authorized.

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