Pharma drives growth as Novartis makes progress on swine flu vaccine

Novartis is making progress on a vaccine against A(H1N1) pandemic flu and has started large-scale antigen production at all sites in Europe, using both egg- and cell-based production. Clinical trials will start this month and the US government has placed orders worth US$979m (Euro 693m) for the product and the company's MF59 adjuvant.

The Swiss firm also reports strong first-half results, driven by its pharmaceuticals division. Net sales increased by 8% in local currencies to US$20.3bn, but declined by 2% in dollars compared with the same period in 2008.

Net income for the first half was down 12% at US$4.02bn owing to a negative currency impact and financing costs associated with the acquisition of eyecare group Alcon.

The pharma division's sales increased to US$2bn owing to rapid expansion of new products (Lucentis, Exforge, Exjade, Exelon Patch, Reclast/Aclasta and Tekturna/Rasilez) and growth in all therapeutic franchises and regions. This represented 15% of net sales compared with 9% in the first half of 2008. R&d highlights included the US launch of anti-cancer drug Afinitor, which is awaiting EU approval. US approvals were also granted for the biologic therapy Ilaris for some auto-inflammatory conditions and OTC product Prevacid 24HR.

Generics division Sandoz achieved a "greatly improved" performance outside the US (+4%), and created a new global growth platform through its purchase of the generic oncology injectables business of EBEWE for US$1.3bn (â"šÂ¬925m). Consumer health was affected by "challenging economic conditions" and only saw growth of 1%.

"I am pleased that our pharmaceuticals business continues to deliver double-digit underlying growth, driven by the strong momentum of our recently launched products," said Novartis" chairman and ceo Dr Daniel Vasella. "Our pipeline continues to deliver a steady stream of innovative medicines."