The Swiss pharma major, Novartis AG has reported group sales went up 16 per cent to USD 6.6 billion in first quarter. The sales were driven by dynamic growth of the young pharmaceutical product portfolio.
Volume expansion of 5 per cent was the key driver of local currency sales growth, with price increases adding 2 per cent and acquisitions 1 per cent.
Commenting on the first quarter results published here, Daniel Vasella, chairman and CEO of Novartis, said, "In the first quarter, we delivered a strong performance with highly competitive sales increases and double digit gains in both operating and net income. I am pleased that our team is continuing to strengthen our operational excellence, turning in good results driven by the dynamic growth of our novel medicines''
Based on the company's active pipeline and broad, young product portfolio, it expected to outpace the market in sales growth and continue to gain market share barring unforeseen events, he added
Pharmaceuticals sales up 19 per cent to USD 4.3 billion. Sustaining its momentum, the core Pharmaceuticals business achieved above-market growth Based on IMS data to post a 19 per cent (11 per cent lc) rise in first quarter 2004 sales.
The cardiovascular (22 per cent; 16 per cent lc) and oncology franchises (26 per cent; 17 per cent lc) were key growth drivers in the first quarter, led by Diovan, Lotrel, Gleevec/Glivec, Zometa and Femara. Newly launched products Elidel and Zelnorm/Zelmac also performed well.
Based on IMS data, Novartis increased global health care market share from 4.35 per cent to 4.45 per cent in the first quarter of 2004, with pharmaceutical sales up 12 per cent in the US, 13 per cent in Japan and 27 per cent in Europe.
First quarter sales increase of 10 per cent (2 per cent lc) for Consumer Health was driven by an exceptionally strong performance of OTC and solid growth of Medical Nutrition, Infant & Baby and CIBA Vision, all of which posted double-digit growth in USD.
Sandoz US sales were impacted by increased competition for AmoxC, while Omeprazole sales provided positive upside. Key international markets including the UK, France and Russia performed well.
OTC sales increased 24 per cent (14 per cent lc), driven mainly by the 31 per cent growth of global strategic brands, including cough and cold products growth of 20 per cent versus first quarter 2003. Nicotinell benefited from good underlying fundamentals and continued consumer preference for its coated gum offering. Lamisil grew primarily in the US and in Japan.
Animal Health benefited from increased share of sales for new products - particularly Milbemax, Atopica and Deramaxx - which rose from 6 per cent in 2003 to 14 per cent in the first quarter of 2004.
The Medical Nutrition acquisition of Mead Johnson was consolidated for the first time and contributed an additional USD 34 million of sales in the quarter. Excluding the positive acquisition impact, sales grew by 5 per cent in local currency.