Novartis sticks to FY goals as Q1 EPS beats forecast

Swiss drugmaker Novartis AG stuck to its 2010 goals as it posted forecast-beating quarterly figures after governments bought up its flu vaccine during the swine flu pandemic. Earnings per share rose to $1.29, beating the average estimate of $1.11 in a Reuters poll. Novartis said it still expects group sales to grow at a mid-single-digit percentage rate in constant currencies this year, while sales at its pharmaceuticals division are seen growing at a mid- to high single-digit rate. "The strong sales and profit contributions in the first quarter of 2010 from fulfilment of agreed-upon government supply contracts for A (H1N1) pandemic vaccines, with sales approximately $400m above the group's target at the beginning of the year, will further strengthen these prospects," Novartis said in a statement. Novartis has agreed to buy a majority stake of Alcon from Nestle SA and has said profit was difficult to predict due to the deal, which should help cushion the forthcoming loss of exclusivity on treatments like top-selling blood pressure drug Diovan. Last week cross-town rival Roche also beat first-quarter sales forecasts and confirmed its full-year outlook thanks to strong sales of its cancer drugs. Novartis said its oncology sales rose 14 per cent to $2.4bn, with Tasigna sales more than doubling.