GENEVA: Drug maker Novartis AG yesterday posted a 10 percent drop in second quarter net profit due to shifts in currency values and higher financing costs, but said underlying growth was boosted by advances in its pharmaceuticals division.

The profit of $2 billion was down from $2.3 billion in the same period of 2008, but the Basel-based company said its pharmaceuticals division performed well.

"I am pleased that our pharmaceuticals business continues to deliver double-digit underlying growth, driven by the strong momentum of our recently launched products," said Chief Executive Daniel Vasella.