Novartis achieved better financial performance during the first half ended June 2006 and its net earnings improved by 17 per cent to s US$ 3,669 million from $ 3,123 million in the corresponding period of last year. Its net sales increased by 15 per cent to $17,483 million from $ 15,140 million.

Key growth drivers for Novartis Group sales were good underlying sales expansion in all divisions as well as from acquisitions, including the first-time consolidation of the former Chiron activities into the new vaccines & diagnostics division and Pharmaceuticals.

Pharmaceuticals delivered dynamic growth ahead of the market, as Diovan and Lotrel as well as Gleevec/Glivec were the top products by sales in their therapeutic categories and advanced at double-digit rates. US sales advanced 18 per cent on leading brand positions in the new US Medicare prescription drug programme started in January 2006. Vaccines and diagnostics net sales of $127 million reflected the first-time consolidation of Chiron's human vaccines and molecular diagnostics activities from the acquisition date.

Commenting on the financial performance Dr Daniel Vasella, Chairman and CEO, said, "I am pleased with our strong performance in the first half of 2006. Our strategic focus on healthcare delivered dynamic growth, with all divisions achieving excellent results expanding their market share. The Pharmaceutical division strengthened its competitive position, particularly with our cardiovascular and oncolo9ty products advancing at strong double-digit growth rates. Productivity gains in the second quarter were strong as we prepare for the launch of several potential blockbusters for the treatment of patients with type 2 diabetes, hypertension, asthma and eye diseases."