Novartis Attributes OTC Sales Growth To Expanding Geographic Reach
This article was originally published in The Tan Sheet
Executive Summary
Growing OTC product sales driven by "ongoing geographic expansion" contributed to a 14 percent increase in Novartis' fiscal 2008 first-quarter consumer health sales, according to the firm
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Growing OTC product sales driven by "ongoing geographic expansion" contributed to a 14 percent increase in Novartis' fiscal 2008 first-quarter consumer health sales, according to the firm. Novartis' OTC expansion "in countries like Russia and Latin America is double digit and very dynamic," Chairman and CEO Daniel Vasella said in an April 21 earnings call. Consumer health sales also got a boost from the "excellent performance" in Europe of the firm's Voltaren non-steroidal anti-inflammatory drug and NeoCitran acetaminophen product, he said. Vasella added that nonprescription product sales are driven by cough and cold products. The Swiss firm's consumer health business also includes animal health products and CIBA Vision. Novartis reported higher overall sales and earnings in the January-March period and says it "expects record sales and earnings in 2008 from continuing operations," according to a same-day release. The firm says its first-quarter net sales grew 9 percent to $9.9 billion and its net income grew 10 percent to $2.3 billion from the year-ago quarter. Operating income also rose, growing 7 percent to $2.5 billion, up from $2.3 billion the previous year. Sales of OTC cough/cold products increased despite the decision in October 2007 by Novartis and other firms to voluntarily withdraw OTC infant oral cough/cold drugs due to concerns of potential misuse (1 (Also see "Infant Cold Products Pulled; Waxman Looks For More OTC Risks" - Pink Sheet, 15 Oct, 2007.), p. 6). In March, a proposed class action suit was filed against Novartis in federal court in Los Angeles by a woman who claimed the firm's Triaminic Daytime products are not effective and are dangerous in children under 6 years of age (2 (Also see "Pre-emption Among Legal Hurdles For Triaminic Proposed Class Action" - Pink Sheet, 24 Mar, 2008.), p. 3). The firm says it expects to complete the purchase of 25 percent of eye care firm Alcon by the second half of 2008. Novartis signed an agreement April 6 with Nestle to acquire a minority stake in Alcon (3 'The Tan Sheet' April 14, 2008, In Brief). - Katie Stevenson ([email protected]) |