Novartis Partners 9 Months Figures Disappoint

Soon-to-be-Novartis partners Ciba and Sandoz of Switzerland reported nine-month 1996 sales figures which failed to please investors, leading to a fall in share prices for both. The merger has already been approved by the European Commission, but still awaits clearance from the US Federal Trade Commission, which is expected late fall.

Ciba's turnover rose just a modest 2% in both local currency and Swiss francs terms, reaching 16.26 billion francs ($12.87 billion). Health care sales were up 3% at 6.1 billion francs, with pharmaceuticals contributing 4.4 billion francs, a rise of 2%. Self-medication product turnover improved 3% to 809 million francs.

The company notes that the pharmaceutical division was supported by increased sales in Europe and Japan, along with the successful introduction of new products. However, total sales growth was limited by the impact of generic competition in the USA for its antirheumatic Voltaren (diclofenac) and antihypertensive Lopresor (metoprolol).