January 29, 2009
Novartis reports 25 percent net profit jump in 2008
Swiss pharmaceutical giant Novartis on Wednesday reported a 25 percent jump in 2008 net profit and forecast a record year ahead despite market scepticism.
Net profit reached US$8.1 billion dollars, the group said in a statement.
Sales increased nine percent to US$41.6 billion dollars, driven by vaccines, diagnostics and consumer health products, and a revival in the core pharmaceutical business.
Key sellers on the pharmaceutical side were cancer and cardiovascular drugs, while vaccines were driven by deliveries of pandemic H5N1 or 'bird-flu' influenza vaccines to the US government, offsetting lower sales of seasonal flu vaccines.
Signs of slower sales in the final quarter with a rise of just one percent to US$10 billion dollars failed to dampen the spirits of company chairman and chief executive Daniel Vasella.
Vasella anticipates another year of record results in 2009, continuing on its path of sustainable growth.
He also acknowledged obstacles faced this year which included pressures for cuts in drug prices, the increasing use of generic drugs and what Novartis regards as "conservative regulators" overseeing medicines and weakening intellectual property rights.
Barring unforeseen events, the company is targeting record revenues and earnings for the full year, and superior growth in a challenging environment.
Earlier this month, Novartis announced a deal with the US government to supply pandemic flu vaccines worth US$486 million dollars, including a plant to be built in North Carolina.
