Novartis has achieved double digit growth in sales and net profit during the first quarter ended March 2005. Its net profit moved up by 16 per cent to US$ 1,477 million from $ 1270 million in the corresponding period of last year. Its net sales also increased by 11 per cent to $7,341 million from $6,639 million in the last period. Pharmaceutical sales, led by oncology and cardiovascular portfolios, touched to $ 4,789 million as against $ 4,310 million despite challenging environment. Pharmaceuticals provided 65 per cent of total Group net sales, Sandoz 11 per cent and consumer healthcare 24 per cent.
Commenting on the first-quarter results, Dr Daniel Vasella, chairman and CEO, said, "We are off to a strong start in 2005. In Pharmaceuticals, we once more gained market share, especially through the dynamic performance of our oncology portfolio. Our plans to integrate Hexal and Eon Labs making Sandoz the world leader in generics are on track, and will further strengthen our ability to fulfill customer needs with a broad health-care portfolio in the context of an aging population and rising health-care needs. We anticipate delivering a competitive performance in 2005 with record sales and, on a comparable basis, record earnings."
Novartis increased its share of the global healthcare market to 4.5 per cent for the first two months of 2005, up from 4.4 per cent in the same year ago period, according to IMS Health. Geographically, the US accounted for 38 per cent of total Group net sales, Europe 39 per cent and other regions for 23 per cent.
The Pharmaceutical division, led by the performance of the key brands Diovan, Gleevec/Glivec, Femara, Lamisil and Zometa, reported a net sales increase of 11 per cent. Sales growth was driven by volume expansion, contributing eight percentage points, while currency benefits added three percentage points.
Novartis' research and development expenses increased by 16 per cent to $1087 million during the first quarter of 2005. Operating income advanced faster than sales on account of strong business performance across all three divisions. Operating income touched to $ 1,680 million from $ 1454 million.