NEW YORK (TheStreet) -- Novartis AG (NVS) shares are down 0.42% to $98.11 in afternoon trading on Tuesday after the U.S. government filed papers saying that the company should pay fines of up to $3.35 billion over the alleged kickbacks the company used to boost the sales of two drugs that are covered by Medicaid and Medicare.
The U.S government claims the Swiss drug maker violated the False Claims Act and received improper reimbursements for blood transfusion treatment Exjade and kidney transplant treatment Myfortic.
The government is seeking fines of up to $1.83 billion as well as $1.52 billion in damages for the kickbacks it alleged took place between 2004 and 2013.
The company, which has offices in New Jersey, has denied the allegations.
TheStreet Ratings team rates NOVARTIS AG as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NOVARTIS AG (NVS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: NVS Ratings Report