Financial Performance - Novartis Q3 2025 net sales reached USD 13909 million, a 7% increase in constant currencies compared to Q3 2024[19, 108] - Core operating income also grew by 7% in constant currencies, reaching USD 5460 million in Q3 2025[19, 108] - The core margin was 393% in Q3 2025[19, 108] - Free cash flow for 9M 2025 was USD 15941 million, a 26% increase compared to 9M 2024[108, 112] - The company reaffirms its 2025 full-year guidance, expecting high single-digit sales growth and low-teens core operating income growth in constant currencies[20, 119, 120] Key Products Growth - Kisqali experienced a 68% growth in constant currencies during Q3[25, 27] - Kesimpta sales increased by 44% in constant currencies in Q3[25, 40, 41] - Pluvicto sales grew by 45% in constant currencies in Q3[25, 47, 48] - Scemblix sales increased by 95% in constant currencies in Q3[25, 67, 68] - Leqvio sales grew +54% cc in Q3[60, 61] Pipeline and Innovation - Rhapsido received FDA approval for Chronic Spontaneous Urticaria (CSU)[22, 88] - Ianalumab showed positive Phase III results in Sjögren's Disease (SjD)[22, 93] - Pluvicto's PSMAddition trial demonstrated a 28% reduction in risk of progression or death in PSMA+ mHSPC patients[54, 59]

Acquisition Overview - Genmab is set to acquire Merus to deliver the next decade of sustainable growth[1, 5] - The offer price is $97 per share in cash, reflecting approximately $8 billion transaction value[24] - The tender offer for 100% of Merus' common shares is expected to close by early Q1 2026, subject to customary conditions[24] Strategic Rationale - The acquisition aligns with Genmab's 2030 Vision and capital allocation priorities[7] - It advances the shift to a wholly-owned model, positioning Genmab for sustainable long-term growth[7] - The deal is expected to be accretive to EBITDA by the end of 2029, with sustained revenue growth into the next decade[24] Petosemtamab Asset - Petosemtamab has two FDA Breakthrough Therapy Designations (BTDs) in 1L & 2L+ r/m HNSCC[7] - Topline readout of one or both 1L & 2/3L r/m HNSCC Phase 3 trials is expected in 2026[9, 15] - First launch is planned for 2027, with high confidence in multi-billion-dollar annual peak sales potential[7] Financial Impact - Genmab expects to fund the acquisition with a mix of cash on the balance sheet and $5500 million of new non-convertible debt[24] - The company anticipates returning to meaningful growth in 2027[24] - Genmab targets gross leverage of less than 30x within two years post-close[24]