Novartis eyes share buy backs
When asked whether Novartis was interested in buying U.S. biotechnology firm MedImmune , Vasella said biotech firms were "on our radar screen," but declined to comment further.
By PTI |
Zurich: Swiss-based drug group Novartis can use the roughly $8 billion in proceeds from the sale of two food divisions to buy back shares or for acquisitions, chief executive Daniel Vasella said on Saturday.
When asked whether Novartis was interested in buying U.S. biotechnology firm MedImmune , Vasella said biotech firms were "on our radar screen," but declined to comment further.
"It is possible that we do both, acquisitions and share buybacks (in 2007)," Vasella said in an interview in newspaper Finanz und Wirtschaft.
MedImmune said this week it had hired bankers to expore a sale of the company, which could fetch up to $12 billion.
Since December, Novartis has agreed to sell its Gerber baby food division and its medical food unit to Nestle for
a combined $8 billion. Vasella said Novartis would make $3.8 billion in book gains from the Gerber sale alone.
Vasella said Novartis was most interested in acquisitions in biotechnology, in vaccinations and in over-the-counter medicines.
Vasella said it made more strategic sense to employ the windfall gains to strengthen the company strategically through investments than to pay a one-off, special dividend.
When asked whether Novartis was interested in buying U.S. biotechnology firm MedImmune , Vasella said biotech firms were "on our radar screen," but declined to comment further.
"It is possible that we do both, acquisitions and share buybacks (in 2007)," Vasella said in an interview in newspaper Finanz und Wirtschaft.
MedImmune said this week it had hired bankers to expore a sale of the company, which could fetch up to $12 billion.
Since December, Novartis has agreed to sell its Gerber baby food division and its medical food unit to Nestle for
a combined $8 billion. Vasella said Novartis would make $3.8 billion in book gains from the Gerber sale alone.
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"Novartis is constantly watching the market but we also have the possibility to use the recently freed-up resources to repurchase shares, and so feed it back to shareholders. That's interesting especially if our share price is low," he said.Vasella said Novartis was most interested in acquisitions in biotechnology, in vaccinations and in over-the-counter medicines.
Vasella said it made more strategic sense to employ the windfall gains to strengthen the company strategically through investments than to pay a one-off, special dividend.
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