Novartis achieves record results, weak US business
Swiss pharmaceuticals company Novartis achieved record profits of USD 12 billion in 2007 thanks to the sale of part of its business.
17 January 2008
BASLE - Swiss pharmaceuticals company Novartis achieved record profits of USD 12 billion in 2007 thanks to the sale of part of its business, the company said Thursday in Basle.
After-tax profits, however, fell due to weaker business on the US market by 4 percent to USD 6.5 billion.
Novartis suffered a 42-percent profit collapse in the forth quarter 2007 to USD 931 million.
The US business had suffered from the competition of cheaper generic medicines and the stop of sales of bowel medicine Zelnorm, the company statement said.
Novartis had also put aside USD 1 billion for environmental provision and its initiative to improve competitiveness, it said.
The sale of baby-food sector Gerber and the medical nutrition business to Nestle also brought USD 5.2 billion into the company coffers.
Company turnover in 2007 grew by 8 percent to USD 39.8 billion.
Especially subsidiary Sandoz, which deals in generic products, and the vaccine and diagnostics business had contributed to the increase, it was said.
Company head Daniel Vasella said, "I am confident Novartis will deliver record results in 2008 and is well-positioned to benefit from current and future trends in healthcare."
[Copyright dpa 2008]
Subject: Swiss news