Novartis reports ‘higher sales and earnings’ in Q1 2008

Novartis has published its financial results for the first quarter of 2008, with the firm reporting higher sales and earnings in the quarter and stating that its healthcare portfolio is making assured progress to a new growth cycle.

The company announced a nine per cent increase in net sales from continuing operations to $9.9 billion (five billion pounds), with this figure driven by double-digit contributions from its consumer health, vaccines and diagnostics and Sandoz units.

Operating income at the firm rose by seven per cent to $2.5 billion, while net income rose ten per cent to $2.3 billion and earnings per share rose by 15 per cent to $1.02.

Dr Daniel Vasella, chairman and chief executive officer of Novartis, said: “Our solid first quarter results show that Novartis is on track.

“I am especially pleased with the dynamic growth of vaccines and diagnostics and the new products in pharmaceuticals.”

He added that the company’s product pipeline is also showing progress, with drugs like RAD001 giving promising results in oncology and FTY720 showing potential benefits in multiple sclerosis.

Earlier this month, Novartis announced that it had signed a definitive agreement to purchase a 25 per cent stake in Alcon from Nestle.