Novartis International AG, Switzerland, has declared strong financial performance during the third quarter ended September 2008 mainly due to double-digit growth in vaccines and diagnostics. Its net profit went up sharply by 32.3 per cent to US$2,082 million from $1,574 million in the corresponding period of last year. Its net sales increased by 11.8 per cent to $10,747 million from $9,613 million. With better growth in profitability, its earnings per share improved to $0.92 from $0.68 in the last period.

Commenting on the performance, Dr Daniel Vasella, chairman and CEO, said, "Led by the enhanced performance of pharmaceuticals in all regions as well as solid sales growth in vaccines and diagnostics and productivity gains in consumer health, we have achieved strong results in the third quarter of 2008 despite significant volatility in the global economic environment. We are rejuvenating our portfolio as recently launched pharmaceutical products provided US$ 2.1 billion in sales to date in 2008 and several novel medicines have been recognized for their benefits to patients with priority review status at the FDA."

"Also with a strong new leadership team, Novartis is positioning itself for continued growth and success in a demanding environment. Despite the economic uncertainty in the world market, Novartis is on track for another yea of record results in 2008, continuing to build momentum by focusing on innovation and performance."

For the nine months ended September 2008, Novartis' net sales increased by 11.5 per cent to $31,382 million from $28,141 million in the similar period of last year. The pharmaceutical sales during first nine months increased by 11.3 per cent to $19,901 million due to its oncology products, the portfolio of high blood pressure medicines and contribution of $2.1 billion from recently launched products. Oncology represented 31 per cent of pharmaceuticals net sales at $6.2 billion.

The company launched more than 100 new products launches have been completed in the top 20 countries so far in 2008 following the 15 major US and European regulatory approvals in 2007. Its net profit moved up by 18.7 per cent to $6,656 million from $5,609 million.

In a rapidly changing and increasingly challenging environment, Novartis is implementing longer-term strategic initiatives to deliver sustainable and profitable growth. It is expanding in high-growth emerging markets around the world, particularly the seven priority countries of Brazil, China, India, Mexico, Russia, South Korea and Turkey. The Group's net sales for these priority markets rose by 17 per cent to $3.3 billion in the first nine months with all emerging markets worldwide now a about 25 -per cent of total net sales.

The Group reaffirms expectations for another year of record net sales and earnings in 2008 from the Group's continuing operations now focused solely on healthcare. The strong momentum in Pharmaceuticals has confirmed expectations for a new growth cycle in the second half of 2008. in local currencies. Sandoz net sales are now expected to grow at a low-single-digit rate for the full year in local currencies.