Novartis International AG reported improved financial performance during the year ended December 2005. Group net sales rose by 14 per cent to US$ 32.2 billion based on dynamic expansion in pharmaceuticals and Sandoz, which was supported by the acquisitions of Hexal and Eon Labs in 2005. The consumer health, particularly OTC section, also added to its sales. Volume increases were the primary, driver, contributing nine percentage points to Group net sales growth. The US remained the largest market, accounting for 39 per cent of Group net sales, while Europe contributed 37 per cent and rest of the world 24 per cent.
Pharmaceutical net sales were up by 10 per cent to US$ 20.3 billion, delivering dynamic growth ahead of the market and in all regions. The cardiovascular and oncology franchises each generated more than $ 5 billion in annual net sales. Many leading products, particularly, Diovan, Lotrel and Gleevec/Glivec were the No 1 products by sales in their therapeutic categories. Sandoz net sales surged by 54 per cent to $ 4.7 billion bolstered by $ 1.4 billion in sales contributions fro Hexal and Eon Labs.
The net income improved by 9.6 per cent to $ 6.14 billion during 2005 from $ 5.60 billion in the last year. Earning per share touched to $ 2.63 crore from $ 2.37 in the previous year.
Commenting on the results, Dr Daniel Vasella, chairman and CEO of Novartis, said, "It gives me great pleasure to present once again a strong performance and record results in 2005. We gained market share and concluded strategic acquisitions to strengthen our leadership position in areas with high growth potential and unmet patient needs. We are confident of delivering in 2006 another year of dynamic growth with record sales and earnings."