- Summary: Swiss drug company Novartis' Q2 sales results: Revenue up 18% to $9.18 billion, driven mainly by inclusion of sales from generics company Hexal and five weeks of sales from vaccine maker Chiron. Net profit of $1.71 billion up from $1.65 a year earlier, rising slower than sales growth due to integration costs of the Chiron acquisition and amortization of assets. Net US sales rose 20% to $2.4 billion due to the new Medicare drug program. Global prescription drug sales rose 11%, above the industry average. Novartis raised 2006 guidance slightly, predicting sales growth of 10% versus previous guidance of "high single digit" growth.
- Comment on related stocks/ETFs: Novartis' stock trades as an ADS in the US (NVS). See also the company's press release [PDF] and presentation [PDF]. The 20% rise in US sales due to Medicare is a strong positive for US companies with more exposure to that market.
Source: Novartis Benefits from Medicare