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Novartis Jumps on Plan For Up To $15-Billion Buyback -Breaking

by Mike Robinson

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© Reuters.

By Dhirendra Tripathi

Investing.com – Novartis ADRs (NYSE:) traded 3.8% higher in Thursday’s premarket after the company said it will buy back shares worth up to $15 billion.

Money for the repurchase comes from the $20.7billion that Swiss drugmaker Roche earned from parting with its share in Rival Roche (SIX).

Novartis announced that the buyback would be finished by end-2023.

Novartis owned 33%, or 53.3 million, of Roche’s voting shares and used record-high share prices to exit the company it bought into between 2001 and 2003.

They were part of the takeover effort by Daniel Vasella (then-Novartis Chief Executive officer). Novartis made a successful takeover attempt, but the capital gain was $14 billion.

Roche will cancel its Novartis shares. 

Novartis stated that the buyback will allow it to continue investing in its business, and make additional investments. The company reiterated its goal of increasing sales by at least 4% through 2026.

 

 

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