Success for Novartis in first half
The Swiss healthcare group, Novartis, has reported strong first-half results. Net profit jumped 12 per cent to SFr4.2 billion ($2.4 billion), on sales of SFr19 billion.
Turnover at the Basel-based group was up 15 per cent, or six per cent in local currencies, compared to the same period last year.
Zurich Cantonal Bank analyst, Meinrad Gyr, told swissinfo that “operating and net earnings were in line with market expectations”, and that turnover had slightly surpassed analysts’ forecasts.
Novartis’ chief financial officer, Raymon Breu, warned against expecting the group’s second half performance to be as strong as the first.
Novartis’ chairman, Daniel Vasella, said: “looking ahead, we anticipate a somewhat softer third quarter and again a more dynamic fourth quarter resulting in mid single-digit sales growth in local currencies and solid operating income growth for the full year.”
The company saw drug sales rise eight per cent over first six months of the year to SFr8.5 billion.
The performance of the pharmaceutical division was better than expected by analysts, but still lagged the sector average.
Novartis was founded in 1996 by the merger of two of Switzerland’s biggest pharmaceutical and chemical manufacturers: Ciba-Geigy (founded in 1970) and Sandoz (founded in 1886), both located in Basel.
In 1999 the company disposed of its agricultural chemicals and nutrition divisions to concentrate on healthcare only.
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