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Novartis earnings shine
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August 21, 2000: 9:41 a.m. ET
First-half profit climbs 30% as drug sales grow; warning of softer 3Q
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LONDON (CNNfn) - Europe's third-biggest drug maker, Novartis AG, said Monday first-half profit jumped 30 percent, above expectations, helped by rising demand for hypertension, osteoporosis and asthma drugs.
Net profit excluding one-time items climbed to 4.2 billion Swiss francs ($2.4 billion), or 64 francs per share, from 3.2 billion a year earlier. Drug sales rose 17 percent to 8.48 billion francs.
Novartis expects to be able to maintain its 30 percent operating margin for its pharmaceuticals business as it launches a series of new products, Chief Financial Officer Raymund Breu told Reuters on Monday, but cautioned second-half profit growth might not match the pace seen in the first half.
Operating profit advanced 12 percent to 4.48 billion francs in the first six months of the year.
"Looking ahead, we anticipate a somewhat softer third quarter and, again, a more dynamic fourth quarter resulting in mid-single-digit sales growth... and solid operating growth for the full year," Chairman Daniel Vasella said in a statement.
The Basel, Switzerland-based company said sales of Diovan, a hypertension drug, jumped 54 percent, while Miacalcic for osteoporosis rose 29 percent and revenue from asthma drug Foradil climbed 25 percent.
The drug maker also said its newly launched Alzheimer's disease treatment Exelon had captured 13 percent of new prescriptions in the U.S. market. Comtan, a treatment for Parkinson's disease, is making "inroads" in the U.S. and performed will in Germany and France.
Novartis' plan to spin off and merge its agribusiness unit with that of U.K.-based drug maker AstraZeneca PLC was on track to be wrapped up by the fourth quarter, the Swiss company said.
Novartis shares, which have underperformed the Dow Jones Stoxx health care index by about 5 percent this year, were unchanged at 2,635 in afternoon trade in Zurich. 
--from staff and wire reports
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Novartis AG
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