Vaccines and diagnostics help Swiss major Novartis beat expectations

Reversing the trends of its previous quarter financial results, when it suffered restructuring charges and a poor performance in the USA (Marketletter January 28), Swiss drug major Novartis has presented a solid set of figures for the first quarter of 2008, reporting better-than-expected sales and profit.

Turnover from continuing operations for the quarter was up 9% at $9.9 billion, with double-digit contributions from the group generics unit, Sandoz (up 12% at $1.91 billion), as well as vaccines and diagnostics (which rose 21% to $280.0 million) and consumer health (up 14% at $1.46 billion). Operating income advanced 7% to $2.5 billion, with net income rising 10% to $2.3 billion and earnings per share up 15% year-on-year at $1.02.

Pharma revenues impacted by generics and Zelnorm suspension