Novartis, a Switzerland based US$ 37 billion pharmaceutical company, has recorded strong growth in net profit during the third quarter ended September 2007 basically due to divestments of the medical nutrition and gerber businesses, which added US$ 5,294 million. The total net profit, after taking into consideration divestment income of $5.3 billion, worked out to $6,868 million for the quarter ended in September 2007 as against $1,870 million in the corresponding period of last year. In reality, the net profit from continuing operations declined by 12 per cent to $1,574 million from $ 1,792 million. The net sales increased by 9 per cent to $9,613 million from $8,821 million.

The pharmaceutical sales declined by three per cent during the third quarter of 2007 to $5,885 million from $6,065 million in the similar period of last year. However, the sales of vaccines and diagnostics went up sharply by 128 per cent to $ 572 million from $251 million. Sandoz division recorded 4 per cent growth in sales at $1,783 million and consumer health continuing operations achieved one per cent growth during the quarter under review. The company's sales in US declined sharply by 6 per cent to $3,523 million from $3,742 million and that in Europe remained almost at same level at $3,994 million. Sales in rest of the world moved up marginally by two per cent to $2,411 million.

Commenting on the results, Dr Daniel Vasella, chairman and CEO, said, "Following the successful divestments of the medical nutrition and gerber businesses we are now strategically focused on healthcare products. Despite the anticipated weak quarter in pharmaceuticals, we showed a strong operational performance driven by our other businesses. I am especially pleased that Vaccines and Diagnostics and Sandoz grew dynamically and improved profitability. After losing several products to generics, pharmaceuticals succeeded in launching many new medicines, including Lucentis, Exforge, Tekturna/Rasilez, Exelon patch, Tasigna, Galvus and Aclasta/Reclast, creating the foundation for a new growth phase that will visible starting in the second half of 2008."

For the first nine months of 2008, Novartis' net sales increased by 13 per cent $28,141 million from $24,995 million in the corresponding period of last year. Its net income, before discontinued operations, increased by 7 per cent to $5,609 million from $5,229 million. Major investments in new product launches and late-sage clinical trials as well as lost US operating income from Lotrel, Zelnorm and Lamisil were among the factors leading to an only modest increase in net profit. After including figures of discontinued operations of $5,446, the net profit reached at $11,055 million from $5,539 million for the nine months of the 2006.

Pharmaceutical sales increased by 8 per cent to $17,873 million, vaccines and diagnostics recorded sales growth of 108 per cent, Sandoz achieved 21 per cent sales growth and consumer health continuing operations 10 per cent during the first nine months of 2008. The sales of Diovan brand for hypertension reached at $3,657 million, representing a growth of 19 per cent and that of Gleevec/Glivec also improved by 19 per cent to $2,204 million.