Novartis International AG has recorded strong growth in net profits during the fourth quarter ended December 2012 mainly due to provision of exceptional charges in the last period. Its net profit increased by 72.1 per cent to US$ 2,082 million from $ 1,210 million in the similar quarter in the last year. It has provided $0.9 billion as exceptional charges relating to Tekturna/Rasilez in the last period. Its net sales remained at almost same level at $14,828 million as compared to $ 14,781 million. EPS worked out to $1.27 as against $1.23.
Commenting on the results, Joseph Jimenez, CEO of Novartis, said, "Novartis maintained strong momentum in innovation in 2012, securing 17 major approvals and significantly advancing promising pipeline projects. Our pipeline is expected to deliver a record number of near-term approvals and filings, and with our strong global commercial capacity we anticipate 14 products to reach blockbuster status by 2017, up from 8 in 2012. After our 2013 patent expirations are behind us, our relentless focus on innovation, growth, and productivity is expected to result in Group net sales growth of at least mid-single digits in both 2014 and 2015, with core operating income growing ahead of sales.”
The pharmaceutical sales declined slightly to $8,276 million from $8,313 million in the similar period of last year due to the impact of generic competition, including the loss of exclusivity for Diovan HCT in the US at the end of the third quarter. The sales of Alcon improved by 6 per cent to $2,576 million from $2,425 million and that of Sandoz improved by 4 per cent to $2,387 million from $2,294 million. However, sales of vaccines and diagnostics declined by 6 per cent to$628 million from $671 million and that of consumer health by 11 per cent to $961 million from $1,078 million. The recently launched products grew by 17 per cent to $4.3 billion. These products, which include Lucentis, Gilenya, Afinitor and Tasigna, contributed 29 per cent of Group net sales, up from 25 per cent in the year-ago period.
For the full year ended December 2012, Novartis' net sales declined by 3.3 per cent to $56.7 billion from $58.6 billion and its full year net profit increased by 4 per cent to 49.6 billion from $ 9.2 billion. The company recommended equity dividend of CHF 2.30 per share for the year 2012 as against CHF 2.25 per share in previous year.
The pharmaceutical division recorded net sales of $32.2 billion as against $32.5 billion in the previous year and Alcon division's net sales improved by 3 per cent to $10.2 billion from $9.96 billion. However, net sales of Sandoz, Vaccines and Diagnostics and Consumer Health declined by 8 per cent 7 per cent and 19 per cent respectively to $8.7 billion, $1.9 billion and $3.7 billion during 2012.
The company expects 2013 sales to be in line with 2012 in constant currencies, after absorbing impact of generic competition which amount to as much as $3.5 billion. The operating income is likely to declined in mid-single digits. Novartis has an industry-leading pipeline with over 200 projects in clinical development, including 138 in pharmaceuticals. Over the next 2 years, Novartis anticipates 24 pivotal study readouts (13 in 2013) and up to 20 filings and 18 potential approvals in Pharmaceuticals alone.