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Novartis CEO sets aside $700 million to settle bribery lawsuit

Published on 18/07/19 at 10:07am

Vas Narasimhan, Novartis’ CEO, has set aside $700 million to settle a bribery lawsuit in the United States.

Speaking in a conference call, Narasimhan said he sought to bring an end to the whistle-blower lawsuit in which Novartis was accused of bribing doctors to boost subscriptions of its drugs.

“Consistent with our efforts to resolve our legacy compliance-related allegations, right now we’re working in settlement discussions to resolve the civil suit...on speaker programs and other promotional events that happened between 2002 and 2011”

“We’ve provisioned approximately $700 million for any potential settlement,” Narashimhan said.

The statements come as the Swiss multinational lifted full-year sales and profit targets. Novartis saw second-quarter core operating income increase by 20% to $3.6 billion while sales were up 8% to $11.8 billion compared to the $11.54 billion forecast by analysts.

The increases are being driven by innovative medicines sales and increased demand for generics from Novartis’ Sandoz unit.  

Louis Goss

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