Novartis announces double digit dividend increase

Stockholders have approved proposals from the board at Novartis to accept a tenth successive dividend rise.

The healthcare firm confirmed that the relevant parties are now set to receive share payouts of CHF 1.35 (57 pence), which represents an increase of CHF 0.20 from 2005 and is the tenth consecutive dividend growth since the company’s inception in 1996.

More than 2,500 attendees at the Swiss enterprise’s recent annual general meeting approved all of the board’s plans, including the election of three new members to the panel.

Chairman and chief executive Dr Daniel Vasella commented that the company’s “outstanding performance” in 2006 can be attributed to its “continuous focus on innovation” and the strategy of creating a wide-ranging portfolio of products around the industry’s growing sectors.

He added that the firm’s primary concern remains the identification and resolution of patients’ problems.

The three new members voted to the board by stockholders are Marjorie Yang, who joins for a three-year term from next year, Dr Vasella and Hans-Joerg Rudloff who was re-elected to the body of directors.

Last month, Novartis announced that it has received an approvable letter from the US food and drug administration regarding its oral treatment Galvus for patients with type two diabetes.