Swiss pharmaceutical giant Novartis reported Thursday lower than expected fourth quarter earnings and warned that sales in 2011 would likely see tough times, according to dpa. While sales for the quarter rose 10 per cent to 14.1 billion dollars, net profits declined by 2 per cent to 2.27 billion. Operating income fell by 6 per cent, hit by one-off charges, including for restructuring, and a declining demand for swine flu vaccines. The vaccine division at the Basel-based company declined 74 per cent to 361 million dollars, largely owing to the huge pandemic flu vaccine sales in comparison month, the fourth quarter of 2009. For the full year 2010, Novartis had a net income of 9.97 billion dollars, up 18 per cent on the previous year, on sales that went 14 per cent higher. The company's outlook for 2011 warned that sales could slip, and that even its generic drug-maker Sandoz would see lower sales growth this year. "Reported sales growth will be lower as a result of the combined effect of price reductions seen in 2010, the full impact of healthcare reform in the US and generic competition," according to a company statement. dpa sg dms
