Novartis has reported strong financial performance during the first quarter ended March 2010 on account of rapid expansion of recently launched products and important regulatory approvals achieved for new medicines and vaccines. Its net profit moved up by 49 per cent to US$ 2,948 million from US$ 1,975 million in the corresponding period of last year. Its net sales increased by 25 per cent to US$ 12,131 million from US$ 9,709 million. The net sales from the top six emerging markets rose 38 per cent to US$ 1.2 billion, driven by China and India.

Its pharmaceuticals sales increased by 13.3 per cent to US$ 7,291 million from US$ 6,433 million in the similar period of last year. Recently launched products provided US$ 1.5 billion of net sales in the first quarter of 2010. These products launched since 2007 – which include Lucentis, Exforge, Exelon Patch, Exjade, Reclast/Aclasta, Tekturna/Rasilez, Tasigna, Afinitor, Onbrez, Breezhaler, Ilaris and Fanapat – contributed substantially to the division's growth.

Its pharmaceuticals sales in Europe moved by 10 per cent to US$ 2.8 billion. Latin America and Canada maintained sales growth of 12 per cent. However, its sales in Japan declined by 4 per cent to US$ 700 million mainly due to a slowdown in demand ahead of the biennial price cuts in April. The pharma sales in six top emerging markets including China, India, South Korea, Russia, Turkey and Brazil increased by 9 per cent to US$ 690 million.

The company's sales of vaccines and diagnostics jumped to US$1,361 million during the first quarter ended March 2010 from US$ 247 million in the same period of last year. The further deliveries for many supply contracts with governments around the world for A (H1N1) pandemic flu vaccines and adjuvants generated net sales of US$ 1.1 billion. The new vaccine Menveo was also launched in March after US and European regulatory approvals for initial use from age 11 and older against four meningococcal meningitis serogroups.

Commenting on the results, Joseph Jimenez, CEO of Novartis, said, "I am pleased with the strong growth generated in the first quarter of 2010 across our entire healthcare portfolio. All of our businesses are making good progress, particularly the sustained expansion in Pharmaceuticals and the strong contributions from supply contracts for A (H1N1) pandemic flu vaccines. We are focusing on extending our lead in innovation, driving growth and improving productivity, which we believe will generate greater sustainable value from our portfolio. As we prepare for the integration of Alcon, which will create a new growth platform in eye care, we are building momentum in 2010 and achieving continued success."