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news.Novartis has made a strong start to 2006, with Q1 profit rising 32% and net sales up 13%, driven by growth in both its ethical pharmaceuticals and generics businesses.
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Group operating income rose to 31%, driven by pharmaceuticals and Sandoz as well as one-time divestment gain in consumer health. Net income climbed 32% to $2 billion, or $0.83 per share.
The company reported group first quarter net sales up 13% in US dollars (+17% in local currencies) to $8.3 billion based on strong underlying sales expansion in all divisions and the positive impact of acquisitions.
This double-digit net sales growth came mainly from dynamic growth in Novartis' pharmaceuticals division, which continued to outpace the market, and Sandoz through the contribution of the Hexal and Eon Labs acquisitions as well as recent product launches.A strong expansion in OTC, meanwhile, supported the company's consumer health business.
Novartis improved its share of the global health care market (including pharmaceuticals and Sandoz) to 5.4% for the first two months of 2006. The pharmaceuticals division increased its share of the global health care market to 3.9% from 3.8% in the same period.
Recent new product launches performed well, including Prexige in Brazil, the UK and Mexico; Focalin XR in the US; and Xolair in its first European markets after EU approval in late 2005.
In the US, net sales rose 15% to $2.1 billion, driven by Diovan, Lotrel and Zelnorm as well as Zometa, Gleevec/Glivec, Femara and Exjade. Also supporting growth in the US was the Focalin/Ritalin product family. Partially offsetting this performance were lower sales of Elidel, affected by a change in prescribing information, and Visudyne, which has faced increased competition.
Net sales in Europe declined 7% in US dollars but were up 1% in local currencies as strong performances from Diovan/Co-Diovan, Gleevec/Glivec, Femara, Comtan/Stalevo and Exelon offset lower sales of Lamisil, Clozaril and Foradil, which were affected by generic competition in some countries.
Net sales in Japan, the world's second-largest pharmaceutical market, were down 10% in US dollars but up 1% in local currencies, driven by Diovan and Glivec. Emerging growth markets delivered outstanding performances, with sales rising 28% based on strong double-digit growth in Turkey, Russia, China and India.