Record
results with double-digit net sales and operating income growth in 2005. Group
net sales up 14% (+13% in local currencies) and operating income advances 10%
as strong performances in all divisions are partially offset by acquisition-related
costs.
PHARMACEUTICALS
Novartis
continues to outpace competitors, gaining market share. Net sales rise 10% (+9%
lc) based on excellent performances from strategic products. Operating income
advances 12% as margin improves 0.7 percentage points to 29.7% of net sales.
SANDOZ
Transformational
year with acquisitions of Hexal and Eon Labs to make Sandoz a world leader in
generics. Both businesses performed well and exceeded expectations with sales
rising 54% (+54% lc).
CONSUMER
HEALTH
Focus on strategic
brands and new product launches drives growth. Net sales climb 8% (+8% lc), also
supported by contribution from the North American OTC business of Bristol-Myers
Squibb, acquired in 2005. Operating income advances 5%.
PIPELINE
A
total of 76 compounds in one of the industry’s most promising pipelines. Key late-stage
successes in 2005 include approval of Exjade and positive new data for
Galvus (type 2 diabetes), Rasilez (hypertension) and FTY720 (multiple
sclerosis).
RESEARCH
Increase
in the number and quality of compounds in early-stage development. The Novartis
Institutes for BioMedical Research (NIBR) are exploring molecular pathways that
may be shared by various diseases as an organizing concept.
CORPORATE
CITIZENSHIP
In 2005,
Novartis contributes USD 696 million worth of medicines through access-to-medicines
programs for patients in need.
DIVIDEND
A
dividend increase to CHF 1.15 per share (+10%) will be proposed to shareholders,
reflecting the strong organic net sales growth and improved profitability.
