News Update: Novartis Will Pay $185 Million to Settle U.S. Investigation (NYSE:NVS)
Shares of Novartis AG (NYSE:NVS) are trading 1.6% higher to $54.31 Tuesday following a Reuters report that the Swiss drug maker will plead guilty to violating US Laws relating to off-label marketing and promotion of an epilepsy treatment and pay a $185 million fine. “In the fourth quarter of 2009, Novartis increased provisions relating to the edpa’s Trileptal investigations by $318 million,” it said in a statement. In addition, Novartis Pharmaceuticals is cooperating with a US Attorney’s Office for the Eastern District of Pennsylvania (EDPA) investigation into potential off-label marketing and promotion as well as payments made to healthcare providers in connection with the following products: Diovan, Exforge, Sandostatin, Tekturna and Zelnorm. “Novartis is unable to assess with reasonable certainty the outcome of the investigation related to these five products or the amounts, which could be material, that it might be required to pay to resolve this investigation,” the company said.
