Novartis reports 14% rise in second quarter net sales

BASEL, Switzerland — Novartis reported $10.7 billion in net sales for the second quarter, a 14% increase compared with net sales for the second quarter of 2007, the company announced in a press release.

Second-quarter pharmaceutical net sales totaled $6.93 billion, representing a 14% rise compared with $6.07 billion in pharmaceutical sales reported during the same period last year, the release said.

Operating income rose 17% to $2.5 billion for the quarter, based primarily on strong growth in the company's pharmaceuticals and consumer health divisions. Consequently, operating income margin rose to 22.9% of net sales, compared with 22.3% during last year's second quarter.

Net income also rose 17%, rising to $2.3 billion, largely due to ongoing business expansion and higher levels of income. Basic earnings per share rose 19% to $0.99, an increase the company attributed to a reduced level of outstanding shares.

Earlier this month, Novartis finalized the purchase of a 25% stake in Alcon from Nestlé for $10.4 billion, completing the first step in an agreement providing Novartis the right to acquire majority ownership of Alcon, according to the release.

The second step provides Novartis the right to acquire Nestlé's 52% remaining stake in Alcon between January 2010 and July 2011 for up to approximately $28 billion.