Novartis claimed it had posted the strongest growth among the world's top 10 pharmaceutical companies in 2003, with double-digit increases in annual sales and operating income fuelling its unrelenting growth.

Net income at the Swiss-based giant also reached a "new record", climbing six per cent compared to 2002 to five billion dollars (3.9 billion euros) last year, Novartis said in a statement.

Chairman and chief executive Daniel Vasella acknowledged that the pharmaceutical market was ripe for more consolidation amid reports that French firms Aventis and Sanofi-Synthelabo were eyeing a merger, but said nothing about his own ambitions.

Novartis sales jumped 19 per cent to 24.8 billion dollars (19.6 billion euros) last year from the previous year. In the 2003 fourth quarter alone, sales rose 21 per cent to 6.7 billion dollars.

Full-year operating income climbed 16 per cent to 5.8 billion dollars, Novartis said.

"2003 ended on a strong note as our sales grew dynamically, reaching record levels for the eighth time in our eight-year history," said Vasella.

Novartis's boss signalled that the group was hungry for more in 2004, targeting yet another improvement in net profit and operating income, as well as ten per cent sales growth -- albeit a slightly more modest figure than last year.

"We want to do better than the market, which we estimate will grow by eight per cent," Vasella predicted.

Despite its flourishing balance sheet, Novartis acknowledged that its growing stake in rival Roche and other investments had dragged down non-operating income.

The group increased its overall stake in Roche to 6.3 per cent during 2003, allowing it to raise its share of voting rights to exactly one-third, against 32.7 per cent at the end of 2002.

Roche has steadfastly rebuffed Vasella's suggestions of a takeover of his Basel-based neighbour, and on Thursday the chief executive merely acknowledged that the overall business environment in the industry favoured mergers.

But Vasella admitted that if his group's share of the vote at Roche climbed above 33.3 per cent, Novartis would have to launch a bid for his rival.

"If I intended to do so, I would not tell you here," he added.

The investment dented Novartis's balance sheet last year, as it incurred 354 million dollars in costs, partly to foot its share of the bill for Roche's huge loss in 2002.

Novartis entered into Roche's share capital in 2001, snatching up a stake held by Swiss corporate raider Martin Ebner, who had failed to gain a seat on Roche's board.

Novartis was formed in 1996 out of the merger of Swiss pharmaceutical companies Sandoz and Ciba-Geigy.

The company's persistent growth last year was founded on an 18 per cent rise in pharmaceutical sales to 16 billion dollars.

Sales by its consumer health division grew 24 per cent to 8.8 billion dollars, boosted by a 60 per cent increase in demand for generic medicines under the Sandoz brand, Novartis said.

The group claimed to have captured 4.4 per cent of the overall global health care market in 2003, allowing it to hop into fifth place among the top-ranking companies in its field.

Research and development spending was boosted by 32 per cent in 2003 and 79 new medicines were in the pipeline, reaching clinical stages of development, Novartis said.

Although mergers were left off the agenda, the group continued to capitalize on its financial record and 3.6 billion dollar cash reserve by announcing a new three billion Swiss franc (1.9 billion euros, 2.4 billion dollars) share buy-back scheme.

The scheme is the third of its kind in the space of four years. A four billion Swiss franc share buy-back launched in 2002 has yet to be completed.