Novartis Profit Hurt by U.S. Settlement
October 27 2015 - 4:40AM
Dow Jones News
ZURICH—Novartis AG said Tuesday that third-quarter profit fell
42% from the same period last year, as the Swiss drug giant agreed
to settle claims that it used rebates to get specialty pharmacies
to increase prescriptions.
Basel-based Novartis said net income fell to $1.81 billion, or
$0.75 per share in the quarter ended in September, compared with
$3.1 billion, or $1.27 share a year earlier.
Core net income, which strips out one-time events such as
settlements, impairments, or gains, fell 2% to $3.06 billion,
Novartis said. Net sales fell 6% to $12.27 billion.
Analysts had expected core net income of $3.2 billion for the
third quarter, and sales of $12.7 billion.
Novartis said that it has agreed to pay $390 million as part of
a settlement with the U.S. Justice Department regarding claims that
the company induced specialty pharmacies to boost prescriptions for
Novartis drugs by paying kickbacks in the form of rebates.
Novartis said the settlement hasn't been finalized, and that it
neither admits nor denies liability.
Write to John Letzing at john.letzing@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 27, 2015 04:25 ET (08:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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