It expects to complete the separation from Sandoz by the beginning of the fourth quarter.
MADRID, 18 Jul. (EUROPA PRESS) –
The Swiss laboratory Novartis registered a net profit of 4,611 million dollars (4,104 million euros) in the first six months of the year, which represents an advance of 17.8% compared to the result recorded in the first half of 2022, The pharmaceutical company has reported that it will launch a share repurchase plan of 15,000 million dollars (13,352 million euros) and has revised its annual forecasts upwards.
Between April and June, Novartis obtained a net profit of 2,317 million dollars (2,062 million euros), 36.7% more than in the second quarter of last year.
The company’s net sales up to June totaled 26,575 million dollars (23,656 million euros), 5% more than a year earlier, including growth of 6.6% in the second quarter, up to 13,622 million dollars (12,126 million of euros).
“Novartis delivers another strong quarter of sales growth and strong margin expansion, supporting an updated group guidance for 2023,” said Vas Narasimhan, CEO of Novartis.
Thus, the laboratory now expects its annual sales to grow by a high single-digit percentage, when it previously anticipated mid-single-digit growth. It also expects its core operating income to grow to a low double-digit level, versus a previous forecast of a high single-digit increase.
“Novartis’ strong balance sheet and expected future growth allow us to initiate a share buyback of up to $15 billion while maintaining the flexibility for continued complementary strategic acquisitions,” Narasimhan added.
On the other hand, the Novartis board of directors has unanimously supported the proposal for the separation of Sandoz, the subsidiary of generic medicines, in order to create an independent company through a 100% spin-off.
Thus, Novartis shareholders will be invited to vote on the proposed spin-off and the corresponding reduction in Novartis’s share capital at an extraordinary general meeting, scheduled for Friday, September 15, 2023.
“The proposed spin-off is expected to occur at the beginning of the fourth quarter of 2023,” said the company, which expects Sandoz to be listed on the SIX Swiss Exchange, with an American Depositary Receipt (ADR) program in the US.
