Novartis Q2 beats forecasts

Source: Healthcare Digital

Date :17/07/2008 10:19:24

The Swiss drugmaker Novartis AG said net profit rose 17 percent to US$2.27 billion, beating forecasts and boosting its shares.

Novartis said the rise was helped by the weak US dollar and cost-cutting efforts.

The company faces the loss of exclusivity on top-selling high blood pressure drug Diovan in 2012, pricing pressures and more complicated paths to market, which have prompted it to cut costs.

Novartis said that almost 65 percent of these cost savings of US$670 million have been realised.

Sales rose 14 percent to US$10.72 billion.

Drug unit

Novartis’ drug unit was boosted by a one-time accounting benefit of $104 million, beating forecasts.

Second quarter growth in the unit was driven by revenue from Diovan, which increased 22 percent to US$1.5 billion, and by Gleevec, which advanced 26 percent to US$942 million.

The company expects sales in its drugs unit to rise almost 10 percent by the fourth quarter.

Forecast

Novartis also confirmed its full year forecast today, July 17.

The Basel, Switzerland-based drugmaker expects group sales to grow at a mid single-digit percentage rate and drug sales at a low single-digit rate.

Novartis rose CHF1.2, or 2.1 percent, to CHF58.65 in early Zurich trading.