Swiss pharmaceuticals giant Novartis announced a $2.4 billion share buyback after unveiling better-than-expected 2000 results. The firm said it did not need to hoard cash for acquisitions.
Profits rose 8 per cent in 2000 to $4.32 billion amid a 7 per cent rise in drug sales but the firm warned margins would be under pressure until at least 2003. The company will launch five key products that will be the main drivers of sales in the years to come.
Mr David Beadle, pharmaceuticals analyst at UBS Warburg in London, said the news was positive and he reiterated his hold rating.
Deutsche Bank said there were few surpises in the results and Novartis remained its preferred European pharmaceutical stock.
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Reuters