logo
Share SHARE
FONT-SIZE Plus   Neg

Novartis To Buy Back $5 Bln Shares - Quick Facts

Swiss pharma giant Novartis (NVS) 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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Online retail giant Amazon is launching technical teams with full-time employees, but with 30 hour a week work schedule, the Washington Post reported. The program could help boost the image of Amazon, which has faced criticism for intense work conditions earlier. Taxi-hailing company Uber and its rival Careem has suspended their services in Abu Dhabi, the capital of the United Arab Emirates, since Saturday, reports said. Uber said the move was temporary, and did not explain the reason for suspension of services. Even after two years of thoroughly searching across the Indian Ocean, using modern technologies and devices, there is no clue about the Malaysian airline that vanished on March 8, 2014.
comments powered by Disqus
Follow RTT