Pharmaceuticals boost Novartis results

Swiss drug giant Novartis has reported sales of SFr32 billion (€21.7bn) for 2001, a 14 per cent increase on the previous year. The company said that sales of its principal pharmaceutical products were the main drivers of the growth.

Operating profits were up 8 per cent to SFr 7.3 billion, while net profits were ahead 8 per cent to SFR7 billion.

Investments in research & development (R&D) rose to a new high of SFr4.2 billion, principally to drive the strong pharmaceutical pipeline, which is currently stocked with 66 projects in clinical development, Novartis said.

Six of Novartis' main pharmaceutical brands achieved individual sales of more than SFr1 billion last year, taking total sales in the pharmaceutical division to more than SFr20.2 billion in 2001, up 11 per cent.

This performance was a result of dynamic sales growth in the US (+24 per cent), which accounts for 43 per cent of the division's total revenues, and strong sales increases of key brands in the primary care, oncology and ophthalmics businesses.

Sales from the consumer health division, which includes the health and functional food unit which Novartis put up for sale earlier this week, rose by 2 per cent during the year, helped by a 4 per cent rise in the US. The division contributed 49 per cent of total group revenues, despite a general economic slowdown.

Within the division, medical nutrition sales were up 11 per cent, driven by a strong European performance (up 16 per cent). The health & functional food unit, which includes the Isostar energy drink, increased sales by 3 per cent in local currency terms, with solid sales in Thailand, France and the UK helping to offset a decline in the juice business in Poland.

The company said it would continue to focus on its healthcare and pharmaceutical operations throughout 2002, as well as investing heavily in building brands and improving marketing. Sales growth from pharmaceuticals could reach double digits this year.