A $150 million deal for Novartis
The Sandoz unit of the company Novartis has finally agreed to pay a whooping dollar one fifty million Swiss francs to settle down the claims it had charged the United States and state governments inflated prices for the drugs. On the basis of this deal the company Novartis will have to pay the United States government dollar eighty six million. It will pay dollar forty million around to the states of California and Florida. A drug company in Florida by the name of, ven a care, is supposed to be receiving dollar eight million. Sandoz has agreed to this settlement to avoid further hassles and also the further cost involved. Also in order to avoid the unpleasantness and the uncertainty involved in the court hearings. Novartis will make a provision for the dollar one fifty million in its second quarter.
Novartis AG is also assumed to be slashing about 2000 jobs in Switzerland and also in the United States to keep the costs under control in order to combat the growing prices and also the ever increasing value of the Swiss franc. This Basel based group has already planned to cut thousands of jobs and also shut many sites in Britain worth noticing. It is also planning to shift its focus to some of the specialty medicines in order to give a boost to its profitability. Taking such measures and cutting down on the company’s task force will ultimately mean a total profit of around two hundred million.
Novartis Sandoz has supposedly agreed to pay such a hefty amount just in time. The company knows for sure what all it has bargained for in this one fifty million dollar deal. in spite of the fact that it’s the company who will have to be paying such a huge amount to the government of the united states and also the states of California and Florida, it cannot be denied that this deal is definitely saving upon a lot many things from the company’s point of view. Sandoz has readily agreed to this deal to help save it a lot of money, the impending costs. This would no doubt save the company Novartis of a lot many unpleasantries. Not to forget it would be a great help to the company as it would help avoid all the hassles related to the court hearing associated with the case.