Novartis sticks to 2011 goals as sales jump

Swiss drugmaker Novartis AG is sticking to its 2011 outlook after posting stronger-than-expected first-quarter sales on the back of robust demand for its newest products.

Sales at the group, which has just wrapped up its buyout of U.S. eyecare group Alcon, rose 14% in constant currencies to USD 14.03 billion, topping forecasts as recently launched drugs such as Lucentis, Exforge, Tasigna and Gilenya performed well.

This helped the group to weather a USD 1.1 billion absence of pandemic flu sales.

A number of Novartis's rivals are also facing a loss of sales from flu-related products and last week Roche reported a 47% slump in its Tamiflu sales.

Novartis said it still expects net sales to grow around the double-digit mark in 2011 and it is aiming to improve core operating income margin in constant currencies.

But the group said it would have to absorb price cuts, generic competition and the loss of sales from the H1N1 pandemic flu vaccine.

Pharmaceutical companies across the globe are having to cope with healthcare reform in the United States and a push from cash-strapped governments in Europe to slash the prices of drugs, along with competition from cheaper generic drugs.

Novartis reported first-quarter core earnings per share of USD 1.41, in line with the average analyst forecast in a Reuters poll of USD 1.40.

The group said Alcon contributed USD 1.9 billion of net sales in the first quarter.

Novartis is hoping the Alcon deal, worth some USD 51 billion in total, will help it diversify and give it protection against patent losses on big-selling medicines such as blood pressure drug Diovan.