Novartis ready to boost cash returns to investors

- Reuters

09/12/2007 - Swiss drugmaker Novartis is ready to increase cash returns to shareholders, its chairman and chief executive said on Wednesday.

In slides prepared for a presentation to analysts in East Hanover, New Jersey, Daniel Vasella said up to 100 percent of the free cash flow generated and not reserved for acquisitions could in future be available for share buybacks.

In the past, Novartis has said it would only return 50 percent. The change is the latest sign of big pharmaceutical companies responding to investor pressure to boost returns and follows a major increase in GlaxoSmithKline's share buyback programme announced in July.

Vasella reiterated his belief that Novartis's pharmaceutical division would return to double-digit growth in 2008-2011, helped by the rollout of new products.

However, the second half of 2007 and first half of 2008 will continue to be impacted by the suspension of bowel drug Zelnorm and generic competition.

If you or a loved one have experienced Zelnorm side effects such as severe chest pain, heart attack, or stroke you may be entitled to compensation. Contact the Zelnorm attorneys of Ennis & Ennis today for a free confidential case evaluation. Our on staff nurse and attorneys are standing by to answer any questions you may have regarding Zelnorm side effects, a possible Zelnorm class action lawsuit, or any other type of Zelnorm litigation.