PHARMACEUTICALS
Important market share gains in 2005 as Novartis
outpaces the competition through focus on innovative medicines that address needs
of patients worldwide, especially in cardiovascular disease and oncology. Double-digit
net sales growth of 10% (+9% lc) to USD 20.3 billion, supported by dynamic performances
from many products. Operating income rises faster than net
sales, advancing 12% to USD 6.0 billion as the operating margin improves 0.7 percentage
points to 29.7% of net sales, reflecting productivity gains in all areas. Cardiovascular
and Oncology franchises are the key growth drivers, delivering dynamic performances
in challenging markets, particularly from Diovan and Lotrel for hypertension as
well as Gleevec/Glivec, Femara and Zometa for the treatment of cancer. Novartis
leads the industry with 14 new product approvals in the US since 2000, with key
approvals in 2005 for the iron chelator Exjade; Femara, in a new indication for
helping women with hormone-sensitive breast cancer; and Xolair in Europe, for
treatment of severe allergic asthma. Impressive new data
in 2005 for three late-stage compounds with significant sales potential, preparing
submissions in 2006 for Galvus (type 2 diabetes) and Rasilez (hypertension) as
well as the start of Phase III trials for FTY720 (multiple sclerosis). | 
