Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Novartis To Buy Back $5 Bln Shares - Quick Facts

Swiss pharma giant Novartis (NVS: Quote) on Friday announced the launch of a $5 billion share buyback, reflecting its confidence in its long-term growth prospects, as well as its commitment to deliver strong shareholder returns. The company said the buyback will start immediately and be executed over two years on the 2nd trading line.

The company noted that it re-confirmed its capital structure aligned with a target rating of double-A as a reflection of its financial strength and discipline. It will allocate capital to a strong and growing dividend, value-creating bolt-on acquisitions and a $5 billion share buyback starting immediately.

The firm also announced it will continue to pursue an aggressive productivity agenda, which has offset generic erosion and growth investments over the past two years. Ongoing initiatives include leveraging scale in Procurement, consolidating Research sites around the world and optimizing the manufacturing footprint.

The company expects that the programs will deliver approximately 3-4% of sales in productivity gains per year through 2015, and contribute to organic margin leverage.

According to the company, Pharmaceuticals, the largest division in the company portfolio is preparing for a new growth phase, driven by an expanding blockbuster portfolio and an industry-leading pipeline. In addition to products with blockbuster status such as Lucentis, Gilenya, Afinitor and Tasigna, the Galvus group is expected to reach more than $1 billion in net sales by year end and there is the potential for a total of 14 or more blockbusters by 2018.

Register
To receive FREE breaking news email alerts for Novartis AG and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Specialty drugmaker Horizon Pharma plc (HZNP) on Friday managed to redomicile itself as an entity incorporated in Ireland following the completion of its $660 million acquisition of Vidara Therapeutics International plc. The deal will help it avoid paying the high rate of U.S. corporate taxes. The... Stocks showed a lack of direction over the course of the trading day on Friday after failing to sustain an initial upward move. Despite the choppy trading, the Dow once again managed to end the session at a new record closing high. The major averages turned in a mixed performance on the day. President Barack Obama delivered a statement Thursday evening thanking members of Congress for voting to approve legislation granting the U.S. military the authority to train and arm moderate Syrian rebels fighting against the terrorist group known as the Islamic State.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.