The first quarter of 2010 has been a boon to Novartis. The company reports profits, which can be attributed to an amalgamation of emerging-market exposure and efficient cost-cutting measures. Swiss pharmaceutical conglomerate has outdone expectations by registering an increase of 18% rise in first-quarter sales. Besides this the company has also achieved a 49% growth in earning, which amounts to $2.9 billion.

A major portion of this elevation in sales can be attributed to the sale of the swine flu vaccines during the H1N1 pandemic. The company also reported that the sales have risen by almost a third.

However, the company is still not completely out of the doldrums. These profits cannot make up for the paucity of new blockbuster drugs and the impending healthcare spending that will ensue owing to the health care overhaul. This may just be an evanescent silver lining that ensnares the dark cloud.

The company also faces immense competition from its rivals. At present, the company holds the position of the leader in the industry in terms of new drug launches. It also does not have any blockbuster drugs to that can be swapped with its single best seller, blood-pressure treatment drug Diovan. Diovan faces general competition in the United States.

However, this may also come as a true ray of hope for the company since these figures do hold the potential of a sustainable future. It has been reported that the company has achieved a 38% growth in sales in the six emerging markets.

Is it a tad too soon to congratulate the company is achieving high sale figures? May be not! Novartis is just one of the companies that have reported profits in the first quarter of this year. This increasing rise in profits by most companies can provide some testament to the fact that the clouds of recession are finally letting up.