Novartis achieved better double digit growth in net sales and net earnings during the first quarter ended March 2007. Its net earnings increased by 11 per cent to US$ 2,171 million from $1,956 million in the corresponding period of last year. Its net sales increased by 18.3 per cent to $9,819 million from 8,301 million. The earning per share worked out to $0.92 as against $9.83 in the last period.
The pharmaceutical sales increased by 17 per cent to $5,923 million from $5,052 million in the corresponding period of last year and that of vaccines and diagnostics amounted to $231 million as against nil in the previous period. Sandoz division recorded sales growth of 19 per cent to $1,696 million and its Consumer Health division achieved 9 per cent growth to $1,721 million. The two top-selling medicines - Diovan ($1.2 billin) and Gleevec/Glivec ($674 million) - led the strong underlying performance.
The first quarter performance included four important new regulatory approvals, including US approval for the Tekturna (hypertension medicine - US), Lucentis (blindness - EU), Exforge (Hypertension - EU) and (hepatitis B - China).
"I am pleased with the strong start, enhanced by several new approvals for innovative medicines that address important unmet medical needs. All divisions, particularly pharmaceuticals and Sandoz, delivered excellent performances," Said Dr Daniel Vasella, chairman and CEO, "I am confident of another year of record sales and earnings in 2007.
Groups operating income advanced 11 per cent to $2.5 billion, reflecting the strong underlying business expansion but growing at a lower rate than net sales primarily due to a one-time pre-tax divestment gain of $129 million from the sale of the Nutrition and Sant business as part of a strategy to strategically position Novartis on healthcare.
"We have now completed the divestments of non-core business as part of our long-term strategy to focus on healthcare, and we will continue to invest vigorously into R&D to offer a continuously novel range of medicines." Dr Vasella said.
With 138 projects in pharmaceutical development, Novartis has one of the industry's most promising pipelines amid plans for multiple new product approvals and launches over the next two years. Several of these anticipated approvals are for potentially best-in-class medicines that would advance treatment standards.