Financial Performance - Net sales from continuing operations reached $45.4 billion, up from $42.2 billion in 2022, representing a growth of approximately 5.1%[21] - Net income from continuing operations rose to USD 8.6 billion, a 62% increase from USD 6.0 billion in 2022[169] - Core operating income from continuing operations was $16.4 billion, compared to $14.8 billion in 2022, reflecting an increase of about 10.8%[22] - Core operating income increased to USD 16.4 billion, up 18% in constant currencies, with a core operating income margin of 36.0%[172] - Free cash flow increased to USD 13.2 billion, up 9% driven by higher net cash flows from operating activities[172] - The company paid USD 7.3 billion in dividends to shareholders in 2023[157] Sales Growth - The company achieved a 10% growth in sales (constant currency) and an 18% growth in core operating income (constant currency) in 2023[41] - Sales of Entresto, a heart failure medicine, grew 31% to USD 6.0 billion, with approximately 10 million patients treated globally[166][178] - Kesimpta, a treatment for relapsing multiple sclerosis, saw sales of USD 2.2 billion, up 99% from the previous year[166] - Pluvicto, a radioligand therapy for prostate cancer, registered sales of USD 1.0 billion, reflecting a 261% increase[167] - Cosentyx sales increased 5% (cc) to USD 5.0 billion in 2023, with sales outside the US growing 19% (cc)[187] - Kisqali sales increased 75% (cc) to USD 2.1 billion, driven by its overall survival benefits in HR+/HER2- advanced breast cancer[192] - Scemblix registered sales of USD 413 million, up 179% (cc), demonstrating high unmet need for CML treatment options[198] Research and Development - Novartis invested $8.6 billion in research and development in 2023, an increase from $8.3 billion in 2022[21] - The company reported a total of 3,951 gene, cell, and RNA therapies in development, with 53% being gene therapies[75] - The average cost to develop and bring a new medicine to market is USD 2.3 billion, taking over seven years from initial clinical trials to the end of Phase III[84] - Novartis is actively engaging with over 100 investigational medicines, integrating patient perspectives into research and development processes[130] - Novartis has removed the requirement for a bone marrow aspiration test in clinical trials for CML, improving patient recruitment and experience[136] Market Presence and Strategy - Novartis maintains a strong presence in priority markets, including the US, Germany, China, and Japan, which are expected to account for most of the growth in global healthcare spending over the next five years[90] - The global medicine market is projected to grow at a compound annual growth rate of 3-6% through 2027, reaching approximately USD 1.9 trillion[75] - The company aims for a 5% compound annual growth rate (CAGR) in sales from 2023 to 2028, driven by strong momentum in its existing portfolio and key upcoming launches[91] - The company targets to increase core margins to the 40%+ range by 2027 through operational excellence initiatives[93] Sustainability and ESG Initiatives - The company reported a 63% reduction in greenhouse gas emissions in its own operations compared to the 2016 baseline[22] - Novartis achieved a 63% reduction in Scope 1 and 2 carbon emissions compared to the 2016 baseline, on track to become carbon neutral in its operations by 2025[6] - 57% of supplier emissions are covered by contracts that include environmental sustainability criteria, aiming for 100% coverage by 2025[8] - The company is on track for a 50% reduction in water consumption in its operations by 2025, compared to the 2016 baseline[11] - 66% reduction in waste sent for disposal achieved compared to the 2016 baseline, with a target to reduce by half by 2025[15] - 51% of new projects have incorporated sustainable design principles, with a goal of 100% by 2030[14] - Novartis aims to become plastic neutral by 2030, with an established baseline for reducing plastics in packaging and devices[14] - The company is working on increasing the share of primary emissions data collected from suppliers, enhancing its carbon neutrality efforts across the value chain[9] - Novartis has completed a physical water risk assessment for all its sites, aiming to become water neutral in its operations by 2030[11] Product Development and Approvals - Novartis received 22 approvals for new medicines in the US, EU, Japan, and China in 2023, slightly down from 23 in 2022[21] - The acquisition of Chinook Therapeutics added two promising Phase III assets for IgA nephropathy to Novartis' pipeline[37] - 100% of new product launches in 2023 included a global access strategy, reaching 33.2 million patients[157] - Submissions for approval of ribociclib in early breast cancer were completed in August to the EMA and in December to the FDA[193] - Scemblix has been approved in more than 60 countries for patients with Philadelphia chromosome-positive CML in chronic phase[198] Workforce and Gender Diversity - Female representation in management reached 48%, meeting the aspiration for gender balance globally by the end of 2023[21] - Novartis employs over 78,000 people globally, with 48% of management positions held by women[66] - The company achieved a mean gender pay gap of -0.9% globally as of December 31, 2022, and increased women in management to 48%[122] Corporate Transformation - Novartis spun off its Sandoz generics and biosimilars business in October 2023, marking a significant transformation into an innovative medicines company[52] - The company has made targeted acquisitions since 2015, including Chinook Therapeutics in 2023, to enhance its capabilities in innovative therapies[54]

Analysts on Wall Street project that Novartis (NVS) will announce quarterly earnings of $1.67 per share in its forthcoming report, representing an increase of 10.6% year over year. Revenues are projected to reach $11.69 billion, declining 7.9% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.3% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Be ...

Swiss pharma giant Novartis AG (NVS) is scheduled to post fourth-quarter 2023 results on Jan 31.The company has an impressive track record, beating the earnings expectations in each of the trailing four quarters. It delivered a four-quarter average earnings surprise of 6.99%. In the last reported quarter, it beat earnings estimates by 2.35%.Let's see how things are shaping up for this announcement.Factors Driving GrowthWith the successful spin-off of the Sandoz business in October 2023, Novartis operates as ...

Insights PSMAfore trial design BPI-SF pain intensity scale2 HR: 0.69 (95% CI: 0.56, 0.85) Novartis Investor Relations Investor Presentation October 24, 2023 This presentation contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, that can generally be identified by words such as "potential," "will," "planned," "pipeline," "outlook," or similar expressions, or by express or implied discussions regarding potential marketing approvals, new ...

ianalumab - BAFF-R inhibitor Primary Outcome Measures | --- | --- | --- | --- | --- | --- | |---------------------------------------------------------------|---------------------------------------------|---------------------------|-----------------------------------------------------------|-----------------------------|-------| | Company overview Company overview | Financial review Financial review | Conclusions Conclusions | Appendix Appendix | References References | | | Innovation: Pipeline overview Inno ...

Novartis Third Quarter and Nine Months 2023 Condensed Interim Financial Report – Supplementary Data | INDEX | Page | | --- | --- | | COMPANY OPERATING PERFORMANCE REVIEW | | | Continuing operations | 3 | | Discontinued operations | 11 | | Total Company | 11 | | COMPANY CASH FLOW AND BALANCE SHEET | 12 | | INNOVATION REVIEW | 16 | | CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | | | Consolidated income statements | 19 | | Consolidated statements of comprehensive income | 21 | | Consolidated balance sh ...

[Group and Divisional Operating Performance](index=3&type=section&id=GROUP%20AND%20DIVISIONAL%20OPERATING%20PERFORMANCE) [Group Performance](index=3&type=section&id=Group) Novartis Group achieved robust Q2 and H1 2023 growth, driven by volume, with double-digit increases in net sales and operating income (cc), as it strategically transforms into a "pure-play" innovative medicines business with the planned Sandoz spin-off Group Key Financial Data (Q2 & H1 2023) | Indicator | Q2 2023 (Million USD) | Q2 YoY Change (cc) | H1 2023 (Million USD) | H1 YoY Change (cc) | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | 13,622 | +9% | 26,575 | +8% | | **Operating Income** | 2,920 | +50% | 5,776 | +28% | | **Net Income** | 2,317 | +54% | 4,611 | +32% | | **Core Operating Income** | 4,668 | +17% | 9,081 | +16% | | **Core Net Income** | 3,811 | +19% | 7,425 | +19% | | **Core EPS (USD)** | 1.83 | +25% | 3.54 | +25% | - The company is strategically transforming into a "pure-play" innovative medicines business, focusing on five core therapeutic areas: Cardiovascular, Immunology, Neuroscience, Solid Tumors, and Hematology[6](index=6&type=chunk) - The planned spin-off of Sandoz is set for early Q4 2023, subject to shareholder vote at an Extraordinary General Meeting on September 15[7](index=7&type=chunk)[8](index=8&type=chunk)[10](index=10&type=chunk) - Q2 net sales growth was primarily driven by **14 percentage points of volume growth**, partially offset by price erosion (**-2 percentage points**) and generic competition (**-3 percentage points**)[14](index=14&type=chunk) [Innovative Medicines Segment](index=7&type=section&id=Innovative%20Medicines) The Innovative Medicines segment, a core growth engine, achieved **$11.2 billion** in Q2 2023 net sales (**+9% cc**), driven by strong performance from key products like Entresto, Kesimpta, Pluvicto, and Kisqali, alongside significant growth in operating income and margins Innovative Medicines Segment Key Financial Data (Q2 & H1 2023) | Indicator | Q2 2023 (Million USD) | Q2 YoY Change (cc) | H1 2023 (Million USD) | H1 YoY Change (cc) | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | 11,243 | +9% | 21,813 | +8% | | **Operating Income** | 2,999 | +52% | 5,674 | +30% | | **Core Operating Income** | 4,387 | +20% | 8,475 | +19% | - Q2 sales growth was primarily driven by products such as Entresto (**+37% cc**), Kesimpta (**+105% cc**), Pluvicto (**$240 million**), and Kisqali (**+66% cc**), partially offset by generic competition for Gilenya[34](index=34&type=chunk) - Regionally, US market sales grew by **14%**, Europe by **2% (cc)**, and Emerging Growth Markets by **17% (cc)**, with China sales increasing by **16% (cc)**[35](index=35&type=chunk) Q2 2023 Sales and Growth by Key Therapeutic Area | Therapeutic Area | Q2 2023 Sales (Million USD) | YoY Change (cc) | | :--- | :--- | :--- | | **Cardiovascular** | 1,594 | +41% | | **Solid Tumors** | 1,656 | +54% | | **Immunology** | 1,950 | +4% | | **Neuroscience** | 961 | +28% | | **Hematology** | 1,782 | +10% | - Established Brands like Lucentis and Gilenya saw sales decline by **20% (cc)** and **52% (cc)** respectively, due to generic competition[71](index=71&type=chunk)[72](index=72&type=chunk) [Sandoz Segment](index=13&type=section&id=Sandoz) The Sandoz segment achieved **$2.4 billion** in Q2 2023 sales (**+8% cc**), driven by volume growth in Europe and biosimilars, but operating income significantly declined by **41% (-27% cc)** due to higher legal settlement expenses and spin-off related standalone costs Sandoz Segment Key Financial Data (Q2 & H1 2023) | Indicator | Q2 2023 (Million USD) | Q2 YoY Change (cc) | H1 2023 (Million USD) | H1 YoY Change (cc) | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | 2,379 | +8% | 4,762 | +8% | | **Operating Income** | 212 | -27% | 531 | -19% | | **Core Operating Income** | 429 | +6% | 933 | +5% | - Q2 sales growth was primarily driven by the European market (**+13% cc**), while the US market experienced an **8%** sales decline[75](index=75&type=chunk) - Global Biosimilars sales grew by **13% (cc)**, reaching **$531 million**[75](index=75&type=chunk) - The decline in operating income was primarily attributed to higher legal settlement expenses, increased selling and marketing expenses to drive sales growth, and standalone costs related to the spin-off[76](index=76&type=chunk) [Cash Flow and Group Balance Sheet](index=15&type=section&id=CASH%20FLOW%20AND%20GROUP%20BALANCE%20SHEET) [Cash Flow](index=15&type=section&id=Cash%20Flow) In H1 2023, the Group's net cash inflow from operating activities was **$6.5 billion**, a **21%** increase driven by higher net income, while Q2 operating cash flow was **$3.6 billion**, a slight decrease year-over-year, with H1 free cash flow reaching **$6.0 billion**, up **23%** Key Cash Flow Data (H1 2023 vs H1 2022) | Indicator (Million USD) | H1 2023 | H1 2022 | YoY Change | | :--- | :--- | :--- | :--- | | **Net cash flows from operating activities** | 6,533 | 5,404 | +21% | | **Net cash flows from/(used in) investing activities** | 9,568 | (2,263) | N/A | | **Net cash flows used in financing activities** | (12,839) | (11,830) | -8.5% | | **Free cash flow** | 5,995 | 4,890 | +23% | - Net cash inflow from operating activities in Q2 was **$3.6 billion**, a decrease from **$3.8 billion** in the prior year, primarily due to the timing of income tax payments, increased provision payments, and unfavorable working capital movements[86](index=86&type=chunk) [Balance Sheet](index=17&type=section&id=Balance%20sheet) As of June 30, 2023, the Group's total assets decreased to **$111.0 billion** from year-end 2022, with total equity reducing to **$51.9 billion** due to dividend payments and share repurchases, and net debt significantly increasing from **$7.2 billion** to **$15.4 billion** Key Balance Sheet Items (As of June 30, 2023) | Item (Million USD) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total assets** | 110,979 | 117,453 | | **Total liabilities** | 59,048 | 58,030 | | **Total equity** | 51,931 | 59,423 | | **Net debt** | 15,374 | 7,245 | - The decrease in total assets was primarily due to amortization and impairment of intangible assets, as well as a reduction in cash and marketable securities[100](index=100&type=chunk)[102](index=102&type=chunk) - The reduction in total equity was mainly driven by **$7.3 billion** in dividend payments and **$5.9 billion** in treasury share purchases, partially offset by **$4.6 billion** in net income[109](index=109&type=chunk) [Innovation Review](index=18&type=section&id=INNOVATION%20REVIEW) [R&D Pipeline and Progress](index=18&type=section&id=Innovation%20Review) Novartis focuses on high-value drug development with approximately **130** clinical projects, securing recent approvals for Cosentyx and Entresto, with key late-stage pipeline assets like Kisqali and Pluvicto, and strengthened R&D through acquisitions like Chinook and DTx Pharma - The company's R&D portfolio focuses on approximately **130** clinical development projects, prioritizing medicines with transformative potential[113](index=113&type=chunk) - Recent key approvals include Cosentyx for hidradenitis suppurativa in the EU and Entresto for pediatric heart failure in the EU[114](index=114&type=chunk) - Key late-stage pipeline projects Kisqali (for early breast cancer) and Pluvicto (for pre-taxane metastatic castration-resistant prostate cancer) are planned for regulatory submissions in 2023[118](index=118&type=chunk) - Through business development, the company reached agreements to acquire Chinook Therapeutics (for rare kidney diseases) and DTx Pharma (for neuroscience) to enhance R&D capabilities[119](index=119&type=chunk) - In Sandoz's biosimilar pipeline, the marketing authorization applications for denosumab have been accepted by the FDA and EMA[120](index=120&type=chunk) [Condensed Interim Consolidated Financial Statements](index=21&type=section&id=CONDENSED%20INTERIM%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [Consolidated Income Statements](index=21&type=section&id=Consolidated%20income%20statements) This section presents the unaudited detailed consolidated income statements for Q2 and H1 2023, outlining revenue and expense items from net sales to net income Consolidated Income Statement Summary (H1 2023) | Item (Million USD) | H1 2023 | H1 2022 | | :--- | :--- | :--- | | **Net Sales** | 26,575 | 25,312 | | **Gross Profit** | 18,872 | 18,292 | | **Operating Income** | 5,776 | 5,080 | | **Income before taxes** | 5,509 | 4,711 | | **Net Income** | 4,611 | 3,914 | [Notes to Condensed Interim Consolidated Financial Statements, Including Update on Legal Proceedings](index=29&type=section&id=Notes%20to%20condensed%20interim%20consolidated%20financial%20statements%2C%20including%20update%20on%20legal%20proceedings) The notes detail financial statement preparation, accounting policies, major transactions like DTx Pharma and Chinook acquisitions, the Xiidra divestment, legal proceedings updates for Sandoz's generic pricing and Exforge antitrust cases, and segment reporting for Innovative Medicines and Sandoz - Major transactions include agreements to acquire DTx Pharma (**$500 million** upfront, up to **$500 million** in milestones) and Chinook Therapeutics (**$3.2 billion** upfront, up to **$300 million** in milestones)[142](index=142&type=chunk)[145](index=145&type=chunk) - Legal proceedings update: Sandoz's Deferred Prosecution Agreement (DPA) in the US generic pricing investigation concluded in March 2023, and the Exforge antitrust class action was settled for **$245 million**, paid in Q1 2023[171](index=171&type=chunk)[177](index=177&type=chunk) - Pending divestment: An agreement was reached with Bausch + Lomb to divest the ophthalmic product Xiidra and related assets for a total consideration of **$1.75 billion** in cash and up to **$750 million** in milestones, with related assets reclassified as held for sale[199](index=199&type=chunk)[200](index=200&type=chunk) - Segment reporting structure adjustment: Effective January 1, 2023, Sandoz's biotechnology manufacturing services and the Coartem brand were transferred to the Innovative Medicines segment, with historical data restated[185](index=185&type=chunk) [Supplementary Information](index=48&type=section&id=SUPPLEMENTARY%20INFORMATION) [Core Results (Non-IFRS)](index=50&type=section&id=CORE%20RESULTS) This section provides a reconciliation from IFRS to core results, which exclude items like intangible asset amortization, impairments, acquisition/divestment related items, restructuring costs, and significant legal matters, to better reflect underlying business performance, with Q2 2023 Group core operating income at **$4.7 billion** and core net income at **$3.8 billion** - Core performance measures exclude items management believes impact comparability, such as intangible asset amortization, significant impairments, restructuring costs, legal settlements, and acquisition-related items[236](index=236&type=chunk) Reconciliation of Group IFRS Operating Income to Core Operating Income (Q2 2023) | Item (Million USD) | Amount | | :--- | :--- | | **IFRS Operating Income** | **2,920** | | Add: Amortization of intangible assets | 971 | | Add: Impairments | 440 | | Less: Acquisition/divestment related items | (58) | | Add: Other items (restructuring, legal, etc.) | 395 | | **Core Operating Income** | **4,668** | [Free Cash Flow (Non-IFRS)](index=57&type=section&id=FREE%20CASH%20FLOW) This section defines and reconciles free cash flow, which, effective January 1, 2023, is revised to "net cash flows from operating activities less purchases of property, plant and equipment," resulting in Q2 2023 free cash flow of **$3.3 billion** and H1 of **$6.0 billion** under the new definition - Effective January 1, 2023, the definition of free cash flow was revised to net cash flows from operating activities less purchases of property, plant and equipment, with prior year data restated for comparability[243](index=243&type=chunk)[244](index=244&type=chunk) Free Cash Flow Calculation | Indicator (Million USD) | Q2 2023 | H1 2023 | | :--- | :--- | :--- | | **Net cash flows from operating activities** | 3,576 | 6,533 | | **Less: Purchases of property, plant and equipment** | (301) | (538) | | **Free cash flow** | **3,275** | **5,995** | [Additional Information](index=59&type=section&id=ADDITIONAL%20INFORMATION) This section provides additional data on net debt, share information, and the impact of currency fluctuations, noting that as of June 30, 2023, Group net debt was **$15.4 billion**, and currency fluctuations had a **-2 percentage point** negative impact on Q2 Group sales - As of June 30, 2023, Group net debt was **$15.4 billion**, a significant increase from **$7.2 billion** at year-end 2022[281](index=281&type=chunk)[282](index=282&type=chunk) - Currency fluctuations had a **2 percentage point** negative impact on Q2 Group net sales growth (reported growth of **7%**, constant currency growth of **9%**)[287](index=287&type=chunk)

Andrew Baum Thank you. Please forgive the voice. I'm struggling with COVID. A question for Vas, I suspect you remember, historically, I've described the bases is suffering from [indiscernible] syndrome in always being the early adopter and taking unnecessary risk relative to peers. IÂ'm going to completely contradict myself. The early data from SET with RT CD19 in refractory autoimmune is remarkable. The biology is strong, patient access node patients is much easier in oncology. We understand that Bristol i ...

eBC – early breast cancer. ET – endocrine therapy. iDFS – invasive disease-free survival. 1. Unprobabilized peak sales. 2. Under stage II: N0, T0N1 is excluded; T2N0 only if G3, or G2 with Ki67≥20% or high risk on Oncotype DX / Prosigna / MammaPrint / EndoPredict. 3. Estimated incidence US + EU5. Sources: DRG (US) and Kantar (EU5). TNM and grade information based on SEER AJCC 8th Incidence Report. 9 NOVARTIS Q1 RESULTS | APRIL 25, 2023 | NOVARTIS INVESTOR PRESENTATION APPOINT-PNH: Single-arm Ph3 trial in ad ...

Novartis AG (NYSE:NVS) Q4 2022 Earnings Conference Call February 1, 2023 8:00 AM ET Company Participants Samir Shah - Global Head of Investor Relations Vasant Narasimhan - Chief Executive Officer Harry Kirsch - Chief Financial Officer Conference Call Participants Matthew Weston - Credit Suisse Graham Parry - Bank of America Stephen Scala - Cowen Tim Anderson - Wolfe Research Florent Cespedes - Société Générale Peter Welford - Jefferies Seamus Fernandez - Guggenheim Securities Andrew Baum - Citi Keyur Parekh ...