January 27, 2010

Novartis Q4 profits up 54%

Swiss pharmaceutical group Novartis AG has reported a 54% rise in fourth quarter net profit to US$2.32 billion, supported by strong sales and favourable exchange rates.

Results have benefitted from better exchange rates and large orders of AH1N1 flu vaccine in the fourth quarter, according to CEO Daniel Vasella.

For the full year, net profit was up 8%, exceeding forecasts, as revenue grew on high sales of the AH1N1 flu vaccine. Net income rose to US$10.3 billion last year, compared to US$9.5 billion in 2008, exceeding analysts' expectations of US$8.6 billion.

Core operating income was up 11% to US$11.4 billion. New products launched in 2009, including the AH1N1 flu vaccine, boosted net sales by 7% to US$44.3 billion.

Novartis said it has appointed Joe Jimenez, the head of its global pharmaceuticals division, to succeed Vasella, effective February 1.