Novartis reports strong Q1 performance

Group net sales were up 11% to $7.3 billion, driven by pharmaceuticals, which once again gained market share, and its recently acquired generics division Sandoz, which posted a solid performance.

The pharmaceuticals division, led by the performance of the key brands Diovan, Gleevec/Glivec, Femara, Lamisil and Zometa, reported a net sales increase of 11% to $4.8 billion.

Primary care (excluding mature products) reported a net sales increase of 13% and the cardiovascular franchise improved 12% despite increased competition. Net sales in specialty medicines rose 20% and oncology products delivered dynamic growth of 26%, based on leading performances of Gleevec/Glivec, Zometa and Femara.

Novartis has also reaffirmed its 2005 outlook, stating that further gains in market share are expected to keep the company positioned as one of the fastest-growing pharmaceutical companies. Barring any unforeseen events, Novartis said group operating and net income should reach new record levels on a comparable basis.

“We are off to a strong start in 2005,” said Dr Daniel Vasella, chairman and CEO of Novartis. “Our plans to integrate Hexal and Eon Labs making Sandoz the world leader in generics are on track, and will further strengthen our ability to fulfill customer needs with a broad health-care portfolio in the context of an aging population and rising health-care needs. We anticipate delivering a competitive performance in 2005 with record sales and, on a comparable basis, record earnings.”