Novartis reports 12% increase in third-quarter net sales

BASEL, Switzerland — Novartis reported $10.75 billion in net sales for the third quarter, a 12% increase compared with net sales reported during the third quarter of 2007.

Specifically, third-quarter pharmaceutical sales totaled $6.71 billion, representing a 14% increase compared with $5.89 billion reported during the same period last year.

Operating income rose 61% to $2.3 billion for the quarter, largely due to business expansion and productivity gains in the company's pharmaceuticals, Sandoz and consumer health divisions as well as from the Forward initiative, a plan designed to improve speed, flexibility and productivity and to streamline resources for future growth.

Consequently, the company's operating income margin rose to 21.7%, compared with 15.1% during last year's third quarter, according to the release.

Net income rose 32% to $2.1 billion and was negatively affected by a 14% tax rate as compared with a 2.3% rate during the same period last year. The company attributed the higher rate to various one-time factors, as well as higher financing costs due to the first stage of its acquisition of Alcon.

Basic earnings per share totaled $0.92 during the quarter, representing a 35% increase compared with basic earning per share of $0.68 during the third quarter of 2007.