First off, Novartis reported earning of $1.26 beating street estimates of $1.19. Net revenue of $44.3 billion for the year is up 6.8 percent from last year and its quarterly revenue of $12.9 billion is up 28.3 percent year-on-year. The company received over 30 drug approvals in 2009 with approximately 145 new projects in the developmental stages. The company also reassured a strong outlook for the upcoming year on the conference call. The former head of the pharmaceuticals division Joe Jiminez is set to replace Daniel Vasella as CEO on February 1st. Novartis posted strong rises in each of its divisions where as cheif competitor Johnson & Johnson noted a decrease in pharmacuticals as well as stagnant growth in OTC products. A major catalyst for the significant rise in revenues can be attributed to the billion dollar shipment of swine flu vaccinations in the final three months of 2009. the vaccinations as well as the other strong segments helped Novartis post a $2.3 billion net profit in Q4, a 54% increase over 2008. Vasella also noted in the conference call exchange rates helped strengthen sales.
In addition to earnings, the talks of purchasing the remaining minority shares in Alcon have been stalled due to "an undervalued offer" Alliance Bernstein who represents Alcon, has urged Alcon's board of directors to protect minority shareholders until a better compensation package can be drawn together. regardless of Alcon's stance in the matter, Novartis is prepared to force the transaction by seizing Nestle's remaining shares in the company thus controlling the company.
Novartis has also publicly stated their interests in U.S pharmaceutical company Corthera and plan to purchase the company for $120 million. This company will help Novartis develop a drug to aid against heart failure. The acquisition is planned to be completed by the end of Q1 2010. The drug created by Corthera is in its 3rd trial phase.
Novartis continues to display their dominance in the pharmaceutical industry through their globalization tactics and strong product versatility. The company will be releasing their Q1 earnings on April 19, 2010.