2Q Revenues: $10.7 billion (+14%)
2Q Earnings: $2.3 billion (+17%)
YTD Revenues: $20.6 billion (+11%)
YTD Earnings: $4.6 billion (+13%)
Comments: Pharmaceutical sales were $6.9 billion (+14%) in the quarter and $13.2 billion (+10%) in 1H08, driven by Diovan sales along with contributions from recently launched products, which offset an 11% decline in the U.S. due to generic versions of Lotrel, Lamisil, Trileptal and Famvir, along with the Zelnorm withdrawal. Oncology sales in 1H08 were $4.0 billion, driven by Gleevec/Glivec sales of $1.8 billion (+17%), as well as strong contributions from Zometa, Sandostatin and Femara. Cardiovascular product sales in that period were $3.3 billion, which benefited from gains for Diovan ($2.9 billion in 1H08). Galvus gained European approval for type 2 diabetes in 1Q08 and has been launched, but the company announced that it does not plan to resubmit Galvus in the U.S. after delays and additional testing that would be required. The Sandoz generic unit had $3.8 billion in sales (+13%) in 1H08; sales at the Vaccines and Diagnostics unit were $602 million (+25%).