Novartis says Q1 profit up 49 pc

GENEVA: Drug maker Novartis AG said on Tuesday that strong sales particularly of swine flu vaccine helped increase net profit by 49 per cent to $2.95 billion during the first quarter.

The Swiss company reported a net profit of $1.98 billion in the same quarter a year ago, and the results beat analyst expectations for a net profit of some $2.49 billion.

Sales rose 25 per cent to $12.13 billion in the January-March period from $9.71 billion the previous year.

``All of our businesses are making good progress, particularly the sustained expansion in pharmaceuticals and the strong contributions from supply contracts for A(H1N1) pandemic flu vaccines,'' CEO Joseph Jimenez said in a statement.

Novartis, which makes hypertension drug Diovan and anticancer drug Glivec - known as Gleevec in the United States, received approval for meningitis drug Menveo during the quarter.

Expanding the company's product range was ``our number one priority,'' Jimenez said, noting that Diovan's patent is due to start expiring in late 2011. New products will emerge from in-house development and acquisitions, he said.

Novartis announced Monday that its generics division Sandoz has purchased US-based Oriel Therapeutics for an undisclosed sum. Oriel Therapeutics' products include a dry powder asthma inhaler.

The Basel, Switzerland-based company is in the process of taking over eye-care company Alcon Inc. but still faces opposition from minority shareholders claiming they are getting less than Novartis is paying for the 77 per cent stake it is acquiring from Nestle SA.