Novartis Q1 net up 49% to $2.95 bn

Swiss drug maker Novartis AG today said its net profit jumped by 49 per cent to $2.95 billion in the first quarter of 2010 boosted by sales of swine flu vaccine.

The company's sales rose by 25 per cent from an year ago period to $12.13 billion in the first quarter of 2010, Novartis said in a statement.

Novartis recently launched products contributed $1.9 billion to net sales, while sales recognition of (H1N1) pandemic flu vaccine contracts added $1.1 billion.

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

The company, which makes hypertension drug Diovan and anti-cancer medicine Glivec has received approval from the US and European regulator for meningitis drug Menveo during the quarter.

Novartis expects net sales to grow at a mid-single-digit percentage rate in constant currencies and also projects improvement in the Group's operating income margin in 2010, driven by business expansion and ongoing productivity gains.