Novartis Posts 21% Jump in Net Driven by Pharmaceutical Unit
DOW JONES NEWSWIRES
October 21, 2004 2:27 a.m.
Novartis AG said Thursday that its third-quarter net profit rose 21% on a 14% increase in sales, driven by its pharmaceutical division.
Novartis said its net profit totaled $1.547 billion, or 63 cents a share, in the latest quarter, up from $1.277 billion, or 52 cents a share, a year earlier.
Sales increased to $7.057 billion from $6.210 billion. Drug sales increased to $4.65 billion from $4.04 billion, the company said.
Analysts were expecting a third-quarter net profit of $1.42 billion on sales of $7 billion, according to an average forecast of nine analysts polled by Dow Jones Newswires.
Novartis said its operating profit rose to $1.717 billion from $1.469 billion.
"The rapid growth pace was driven by pharmaceuticals, which once more gained market share and improved operating profit margins," said Chairman and Chief Executive Daniel Vasella said.
Novartis said one of two pivotal trials of anticancer drug PTK787 in colorectal cancer has been completed. PTK787 is being co-developed with Schering AG. Submission for U.S. regulatory approval is planned for the second half of 2005, the company said.
During the fourth quarter, Novartis said it expects to receive the first phase III data for the renin inhibitor aliskiren (SPP100/hypertension) evaluating the blood pressure lowering effects of the combination of this new compound with valsartan, the active ingredient in Diovan.
Novartis said it "remains on track to deliver excellent sales and earnings growth for 2004, exceeding its initial expectations due to the strong overall business performance. The group expects for the full year to deliver high-single-digit sales growth and in pharmaceuticals high-single-digit to low double-digit sales growth in local currencies," it said.
Novartis said its full-year group operating and net income are expected "to be markedly higher than last year."
For the first nine months of 2004, net income rose to $4.389 billion, or $1.79 a share, from $3.656 billion, or $1.48 a share. Sales were $20.669 billion, up from $18.134 billion. And operating profit rose to $5.005 billion from $4.283 billion.
Write to Dow Jones Newswires editors at djnews@dowjones.com
online.wsj.com |
