Demand for drugs drives up profits at Novartis
Novartis has revealed strong first-half results, fuelled by demand for its hypertension, osteoporosis and asthma drugs.
Europe's third-largest pharmaceuticals company says operating profit rose 7% in the first-half as demand for its hypertension treatment Diovan accelerated.
Operating profit rose to £1.46bn, from £1.38bn last time, while net profit gained 10% to £1.5bn.
Sales of Novartis's anti-hypertensive drug Diovan rose by 53% to £344.7m, making it the company's second-biggest seller.
Chief executive Daniel Vasella says: "I am confident that our pharmaceutical business will post double-digit sales growth in the second-half."
This growth is expected to be fuelled by new product launches, rising sales of existing drugs and new uses for some current products.
Operating margins are expected to continue to come under pressure as the company strives to increase its market share.
Of Novartis's current cabinet of drugs, sales of Aredia, a treatment for cancer complications, rose by 28% to about £279.6m, but revenue from the transplant drug Sandimmun, its bestselling product, dropped 8% to £388m.
