Novartis has posted satisfactory performance during the first half ended June 2008. Its net profit went up by 13 per cent to US$4,574 million from $4,035 million in the corresponding period of last year. Its net sales increased by 11 per cent to $20,635 million from $ 18,528 million. With improvement in profitability, its basic earnings per share touched to $2.01 as against $ 1.72 in the last period. Novartis reaffirms expectations for another year of record net sales and earnings in 2008 from continuing operations entirely focused on healthcare.
Commenting on the results, Dr Daniel Vasella, chairman and CEO of Novartis, said, "The growth acceleration in the second quarter of 2008 and our R&D successes, especially in pharmaceuticals and vaccines, demonstrate that our strategy is delivering results and that we are heading towards a promising future despite a weak economy. Speed and productivity of operations are improving and growth in most countries is dynamic."
Novartis' pharmaceuticals sales increased by 10 per cent to $13,192 million from $11,988 million in the similar period of last year. Dynamic growth from oncology products and the flagship brand Diovan, along with increasing contributions from recently launched products pushed its sales. Outside of North America, all other regions expanded, with Europe and $5.2 billion, Japan at $1.2 billion, Latin America at $0.9 billion and the rest of the world at $1.4 billion.
Its oncology gained momentum and accounted for four of the five top-selling medicines. Gleevec/Glivec achieved sales of $1.8 billion, and Zometa, Sandostatin and Femara are all on track for over $1 billion in annual sales. Recently launched products added $1.3 billion in first-half net sales after 15 major US and EU approvals in 2007 and launches underway in 2008. Vaccines and diagnostics sales increased by 25 per cent to $602 million.
Diovan, the world's top-selling branded medicine for high blood pressure, maintained solid growth worldwide and achieved its highest US Share ever of 41 per cent of the segment for angiotensin receptor blockers (ARBs). The sales of Diovoan reached at $2.9 billion. Gleevec / Glivec, a targeted therapy for certain forms of chronic myeloid leukaemia and gastrointestinal stromal tumours, generated sales of $1.8 billion during the first half of 2008.