Novartis reports strong performance in first quarter of 2014

Novartis has announced its financial results for the first quarter of 2014, during which it generated a net sales total of $14 billion (8.33 billion pounds).

The company delivered solid sales and profit growth during the three-month period, with its net sales rising by one percent year on year and all divisions contributing to the upward trend. Its core operating leverage was driven by pharmaceuticals and lower corporate costs.

During the three months, the firm made progress in the development of its product portfolio, receiving regulatory approval for Xolair, achieving positive phase III trial data for the heart failure drug LCZ696 and completing a deal to acquire CoStim Pharmaceuticals.

Its growth products contributed 31 percent of its group net sales total, with strong performance in emerging markets.

Moreover, a number of transformational business deals were agreed earlier this month that will see Novartis acquire GlaxoSmithKline's oncology business, while selling off its vaccines division to the UK company. They will also be creating a consumer health joint venture together.

Joseph Jimenez, chief executive officer of Novartis, said these recent transactions "position the company for future success based on our sharpened focus, innovation power and financial strength".