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Novartis (NVS) announces $15bn share buyback

By David Burrows

08:32, 16 December 2021

Novartis lab in St Petersburg. Photo: Alamy
Novartis lab in St Petersburg. Photo: Alamy

Swiss-based pharma giant Novartis announced that it will initiate a share buyback of up to $15bn to be executed by the end of 2023.

The buyback will be funded by proceeds from the recent sale of 53.3 million Roche bearer shares.

The Novartis Board of Directors are bullish on the company’s short, medium and long-term growth potential, based on strong in-market portfolio, a robust pipeline of new products and advanced technology platforms.

Shareholder value

In a statement, the Zurich-listed company said: “With strong operational performance, prospects for earnings growth and the proceeds from the recent sale of the Roche stake, Novartis retains the flexibility to return value to shareholders through the planned $15bn share buyback, without compromising the company’s capacity for value-creating bolt-on M&A, whilst providing a strong, growing dividend and reinvesting in the business.”

The buyback is expected to start in the next few days and conclude by the end of 2023.


16,169.50 Price
+1.090% 1D Chg, %
Long position overnight fee -0.0221%
Short position overnight fee -0.0001%
Overnight fee time 22:00 (UTC)
Spread 1.5


16,064.70 Price
+0.350% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8


4,568.20 Price
+0.310% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.8


17,011.60 Price
-2.010% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0044%
Overnight fee time 22:00 (UTC)
Spread 5.0

A proposal for an additional CHF10bn buyback ($10.83bn) will be presented at the company's AGM in March 2022. It will cover the amount exceeding the CHF8.8bn still available under the existing shareholder authority granted in 2021.

Further information on the dividend and growth outlook will be provided with the company’s full year results in February 2022.

The market responded positively to the buy-back news. Novartis stock was up 3.77%  (on the Swiss market) in early morning trading to CHF77.83. 

Read more: Gemini Therapeutics (GMTX) vaulted by volume and buy ratings

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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