Novartis Up on Financial Results and Potential Resolution of Kickback Case

Swiss drug company sees stock rise following latest earnings report.
By Tom Bemis ,

Shares of Novartis (NVS) - Get Report rose Thursday after the company raised guidance, posted its latest financial results and said it had set aside $700 million to cover a settlement of a long-standing bribery case.

The stock gained 4.4% to $94.20 in recent action.

The company posted second-quarter earnings of $1.34 a share, excluding one-time items, on sales of $11.8 billion, ahead of analyst forecasts.

In addition, Novartis raised its full-year operating-income growth projections to the low- to mid-teens, from high single digits.

Novartis also said it has set aside $700 million in anticipation of settling longstanding charges it offered kickbacks to prescribe its medicines, effectively capping its potential liability as it moves to avoid going to trial in the case.

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