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ZURICH (Thomson Financial) - Novartis AG.'s chief executive Daniel Vasella said, while the pharmaceuticals business remains difficult, the Swiss drug maker has a 'very promising' product pipeline and is well on its way to returning to dynamic growth, according to an interview in Swiss weekly Sonntag.

The company's move earlier this month to buy a 25 percent stake in eye-care group Alcon Inc. (nyse: ACL - news - people ) from Nestle SA (other-otc: NSRGF.PK - news - people ). for about $11 billion is not a strategic departure from the pharmaceuticals industry, but rather an effort to strengthen the company as a whole through diversification, he said in an interview published yesterday.

Novartis (nyse: NVS - news - people ) has the exclusive right to acquire Nestle (other-otc: NSRGY.PK - news - people )'s remaining 52 percent stake in Alcon for about $28 billion by 2010.

Vasella declined to say whether Alcon will remain a retail supplier following the acquisitions.

maria.sheahan@thomson.com

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