Novartis Expects Annual Cost Synergies of $350 Million From Alcon Integration
Novartis Tuesday said it now expects the integration of Alcon as an eye care segment to create annual cost synergies of $350 million by 2013. In January 2010, on acquiring a 77% majority stake in Alcon from Nestle, Novartis had estimated generating annual pre-tax cost synergies of approximately $200 million "within three years".
Updating on Alcon's performance, the company noted that both sales and core operating income had registered double-digit growth in the last 18 months.
Novartis's Chief Executive Officer Joseph Jimenez commented "This transaction was about long-term growth and not just cost synergies. We believe that Alcon has significant growth potential by leveraging the Novartis expertise in research, market access, and reimbursement, among others."