ZURICH-- Novartis AG said sales of newly-launched drugs helped
push first-quarter net profit about 23% higher, a strong
performance that comes as the pharmaceutical giant embarks on a
major overhaul of its sprawling product portfolio.
Cancer treatment Afinitor and multiple sclerosis pill Gilenya,
two of the company's newest treatments, contributed to sales
growth, the company said Thursday. Sales in emerging markets, most
notably China, also helped drive the company's results.
The performance comes as Novartis readies for a series of deals,
announced earlier this week, that will refocus the pharmaceutical
giant on areas where it has the heft to compete. On Tuesday,
Novartis said it would buy GlaxoSmithKline's oncology unit, a deal
that bulks up its already-potent lineup of cancer products, while
Glaxo will acquire Novartis's vaccines business. In a separate
transaction, Novartis will sell its animal health business to Eli
Lilly and Co.
"These transactions are consistent with our strategy to lead
through science-based innovation and would further accelerate our
future growth, " Novartis said in a statement. The deals, in total,
are worth more than $25 billion.
The company's first-quarter net profit attributable to
shareholders rose to $2.94 billion. The result narrowly missed
analyst expectations for $3.05 billion.
Sales rose 1% to $14.02 billion from a year-earlier restated
$13.88 billion, missing expectations for $14.22 billion.
On Thursday, Novartis offered new details on its planned
transformation. It said it plans to create a shared-services
organization to improve profitability. The organization will
consolidate some support functions that are currently spread across
the company's divisions. These include information technology,
financial reporting and accounting.
Write to Marta Falconi at marta.falconi@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires