Novartis
stock climbed in early trading Tuesday after the Swiss pharmaceutical company hiked its full-year outlook and announced a $15 billion share buyback.
The drugmaker cited strong sales in the second quarter and “robust margin expansion” as it raised its profit outlook. The company now said it expects core operating income to grow by a low-double-digit percentage, up from a previous forecast for high-single-digit growth.
Novartis
’ (ticker: NVS) share buyback will be completed by the end of 2025, the company said, after its previous program was concluded in June. “Novartis’ robust balance sheet and expected future growth allow us to initiate an up to $15 billion share buyback while maintaining the flexibility for continued strategic bolt-on acquisitions,” the company said.
The board also endorsed plans to spin off its generic medicines unit Sandoz early in the fourth quarter, subject to shareholder approval.
Sales grew 9% to $13.6 billion in the second quarter, beating analysts’ estimates of $13.5 billion, according to FactSet. Core earnings per share of $1.83 also beat expectations of $1.73.
The Swiss-listed shares rose more than 3% shortly after the open, and are around 4.5% up so far in 2023.
Write to Callum Keown at [email protected]
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