Form 20-F: x
|
Form 40-F: o
|
Yes: o
|
No: x
|
Novartis AG
|
|||
Date:
October 24, 2023
|
By:
|
/s/ PAUL PENEPENT
|
|
Name:
|
Paul Penepent
|
||
Title:
|
Head Financial Reporting and Accounting
|
||
Ad hoc announcement pursuant to Art. 53 LR
FINANCIAL RESULTS | RÉSULTATS FINANCIERS | FINANZERGEBNISSE
|
Novartis International AG
Novartis Global Communications CH-4002 Basel Switzerland https://www.novartis.com |
•
|
Transformation into a “pure-play” innovative medicines business is complete, with the spin-off of Sandoz; commentary below is on continuing operations2
|
•
|
Q3 sales grew +12% (cc, +12% USD) with core operating income growing +21% (cc, +17% USD)
|
o
|
Growth driven by continued strong performance from Kesimpta (+124% cc), Entresto (+31% cc), Kisqali (+76% cc), Pluvicto (+217% cc) and Scemblix (+157% cc)
|
•
|
Q3 operating income grew +13% (cc, -4% USD) driven
by higher sales and lower restructuring charges, partly offset by higher impairments through discontinuation of early stage development projects
|
•
|
Q3 net income grew +37% (cc, +14% USD)
mainly due to higher operating income
|
•
|
Q3 free cash flow3 was USD 5.0 billion (+24% USD) driven by higher net cash flows from operating activities
|
•
|
Q3 core EPS grew +29% (cc, +24% USD) to USD 1.74
|
•
|
Strong nine months performance with sales growing +10% (cc, +8% USD) and core operating income growing +19% (cc, +13% USD)
|
•
|
Q3 key innovation milestones, including positive Ph3 data for multiple pipeline assets with blockbuster potential:
|
o
|
Cosentyx – FDA approval
for intravenous formulation in three indications (PsA, AS, nr-axSpA)
|
o
|
Demonstrated clinically meaningful and statistically significant Ph3 data for: 1) Pluvicto (mCRPC pre-taxane), 2) iptacopan (IgAN), 3) remibrutinib (CSU), 4) Lutathera
(GEP-NETs)
|
o
|
Kisqali – Ph3
NATALEE iDFS 500 event analysis complete; file submitted in EU, US submission planned for Q4 2023
|
•
|
Initiated previously announced, up-to USD 15
billion share buyback to be completed by year-end 2025
|
•
|
Full-year 2023 guidance raised for core
operating income based on strong momentum4
|
o
|
Net sales expected to grow high single digit
|
o
|
Core operating income expected to grow mid to high teens (from low double digit to mid teens)
|
Continuing operations2
|
|||||||||
Q3 2023
|
Q3 2022
|
% change
|
9M 2023
|
9M 2022
|
% change
|
||||
|
USD m
|
USD m
|
USD
|
cc
|
|
USD m
|
USD m
|
USD
|
cc
|
Net sales
|
11 782
|
10 492
|
12
|
12
|
|
34 017
|
31 630
|
8
|
10
|
Operating income
|
1 762
|
1 826
|
-4
|
13
|
|
7 187
|
6 191
|
16
|
31
|
Net income
|
1 513
|
1 330
|
14
|
37
|
|
5 934
|
4 734
|
25
|
41
|
EPS (USD)
|
0.73
|
0.61
|
20
|
45
|
|
2.84
|
2.16
|
31
|
49
|
Free cash flow
|
5 043
|
4 054
|
24
|
|
|
11 019
|
8 661
|
27
|
|
Core operating income
|
4 405
|
3 772
|
17
|
21
|
|
12 551
|
11 149
|
13
|
19
|
Core net income
|
3 585
|
3 035
|
18
|
23
|
|
10 320
|
8 983
|
15
|
22
|
Core EPS (USD)
|
1.74
|
1.40
|
24
|
29
|
|
4.95
|
4.09
|
21
|
28
|
Kesimpta
|
(USD 657 million, +124% cc) sales growth was driven by increased demand, strong access and benefitting from a one-time revenue deduction
adjustment in Europe
|
Entresto
|
(USD 1 485 million, +31% cc) sustained robust demand-led growth, benefitting from the adoption of guideline-directed medical therapy across
regions
|
Kisqali
|
(USD 562 million, +76% cc) sales grew strongly across all regions, based on increasing recognition of consistent overall survival and quality
of life benefits
|
Pluvicto
|
(USD 256 million, +217% cc) continued sales growth in the US. Supply now unconstrained, focusing on initiating new patients
|
Ilaris
|
(USD 335 million, +24% cc) sales grew across all regions
|
Scemblix
|
(USD 106 million, +157% cc) sales grew across all regions, demonstrating the high unmet need in CML
|
Leqvio
|
(USD 90 million, +165% cc) launch in the US and other markets ongoing, with focus on patient on-boarding, removing access hurdles and
enhancing medical education
|
Cosentyx
|
(USD 1 329 million, +4% cc) continued demand growth across key regions, partly offset by US revenue deduction fluctuations across periods.
Ex-US sales grew +15% (cc)
|
Promacta/Revolade
|
(USD 576 million, +10% cc) grew across all regions, driven by increased use in chronic ITP and severe aplastic anemia
|
Xolair
|
(USD 369 million, +13% cc) sales grew across most regions
|
Jakavi
|
(USD 427 million, +9% cc) sales grew in Emerging Growth Markets, Europe and Japan, driven by strong demand in both myelofibrosis and
polycythemia vera
|
Tafinlar + Mekinist
|
(USD 482 million, +8% cc) sales grew in the US and Emerging Growth Markets, driven by demand in BRAF+ adjuvant melanoma and NSCLC indications
|
Lutathera
|
(USD 159 million, +19% cc) sales grew mainly in the US, Japan and Europe due to increased demand
|
Emerging Growth Markets*
|
Overall, grew +17% (cc). Growth in China (+14% cc, USD 848 million)
*All markets except the US, Canada, Western Europe, Japan, Australia, and New Zealand
|
Q3 2023
|
% change
|
9M 2023
|
% change
|
|||
USD m
|
USD
|
cc
|
USD m
|
USD
|
cc
|
|
Entresto
|
1 485
|
31
|
31
|
4 400
|
31
|
33
|
Cosentyx
|
1 329
|
4
|
4
|
3 677
|
-1
|
1
|
Promacta/Revolade
|
576
|
10
|
10
|
1 706
|
10
|
12
|
Kesimpta
- excl. revenue deduction adjust.*
|
657
|
127
87
|
124
86
|
1 530
|
112
95
|
112
96
|
Kisqali
|
562
|
72
|
76
|
1 470
|
68
|
74
|
Tafinlar + Mekinist
|
482
|
7
|
8
|
1 436
|
10
|
13
|
Tasigna
|
464
|
-5
|
-5
|
1 402
|
-3
|
-1
|
Jakavi
|
427
|
11
|
9
|
1 276
|
9
|
11
|
Lucentis
|
363
|
-20
|
-22
|
1 174
|
-20
|
-19
|
Xolair
|
369
|
15
|
13
|
1 085
|
4
|
6
|
Sandostatin
|
338
|
15
|
15
|
998
|
7
|
8
|
Ilaris
|
335
|
23
|
24
|
979
|
18
|
20
|
Zolgensma
|
308
|
-3
|
-2
|
928
|
-13
|
-11
|
Gilenya
|
270
|
-47
|
-48
|
771
|
-54
|
-53
|
Pluvicto
|
256
|
220
|
217
|
707
|
nm
|
nm
|
Exforge Group
|
187
|
1
|
3
|
557
|
-5
|
-1
|
Galvus Group
|
181
|
-15
|
-4
|
539
|
-17
|
-10
|
Diovan Group
|
153
|
-4
|
-1
|
466
|
-9
|
-4
|
Lutathera
|
159
|
20
|
19
|
458
|
34
|
34
|
Gleevec/Glivec
|
144
|
-19
|
-17
|
433
|
-24
|
-21
|
Top 20 brands total
|
9 045
|
13
|
13
|
25 992
|
9
|
11
|
Leqvio
|
Approved in China and Japan as the first and only small interfering RNA (siRNA) therapy for LDL-C reduction
|
Cosentyx
|
In October, FDA approved the intravenous formulation in three indications: Psoriatic Arthritis, Ankylosing Spondylitis, and non-radiographic
axial SpA
|
Kisqali
|
EU file submission in adjuvant early breast cancer setting; US submission planned for Q4 2023
|
Adakveo
|
EC adopts decision endorsing CHMP recommendation to revoke conditional marketing authorization
|
iptacopan
|
In October, Ph3 APPLAUSE-IgAN study interim analysis demonstrated clinically meaningful and highly statistically significant proteinuria
reduction in patients with IgA nephropathy. The trial met its pre-specified interim analysis (9 months) primary endpoint, demonstrating superiority vs. placebo in proteinuria reduction, with safety consistent with previously reported
data.
Novartis plans to review interim data with regulatory authorities for accelerated approval; study continues with final readout at 24 months
|
remibrutinib
|
Ph3 REMIX-1 and REMIX-2 studies met all primary and secondary endpoints, showing fast, clinically meaningful improvements across urticaria
disease activity scores. Remibrutinib demonstrated a favorable safety profile with rates of adverse events comparable to placebo and balanced liver function tests across both studies.
Final (52 weeks) readout and submissions to health authorities are expected in 2024. Full data will be presented at upcoming medical meetings
|
Pluvicto
|
Ph3 PSMAfore study demonstrated clinically meaningful and statistically significant rPFS benefit in patients with PSMA+ mCRPC in the
pre-taxane setting. Per updated analysis presented at ESMO, median rPFS more than doubled compared to ARPI switch. Patients on Pluvicto
showed improved quality of life compared to daily oral ARPI, along with improvements in other clinically meaningful efficacy endpoints including PSA response, ORR, DOR and time to symptomatic skeletal event, with favorable
safety. Pre-specified crossover-adjusted OS analysis demonstrated a HR of 0.80 (0.48, 1.33); the unadjusted ITT OS analysis was confounded by a high rate of crossover.
Novartis is continuing to collect OS data, regulatory filings are anticipated in 2024
|
Lutathera
|
Ph3 NETTER-2 study demonstrated clinically meaningful and statistically significant improvement in PFS (primary endpoint) in patients with
newly diagnosed somatostatin receptor (SSTR)-positive, Grade 2 and 3, advanced gastroenteropancreatic neuroendocrine tumors (GEP-NETs) vs. high-dose long-acting octreotide alone. The trial also met its key secondary endpoint of ORR.
No new or unexpected safety findings were observed and data are consistent with the already well-established safety profile of Lutathera.
Data to be presented at an upcoming medical meeting and discussed with regulatory authorities, with submissions to follow
|
Kisqali
|
Ph3 NATALEE iDFS 500 event analysis complete. Updated data is consistent with the interim analysis results announced in
March 2023 and will be communicated at an upcoming medical meeting.
|
|
Health-related quality of life (HRQoL) analyses from Ph3 NATALEE trial demonstrated that patients with early breast cancer receiving
adjuvant Kisqali plus ET for up to 3 years maintained physical and social functioning; psychological well-being; and overall
health scores, compared to baseline. Data was presented at the ESMO Virtual Plenary 2023
|
Leqvio
|
Long-term data from Ph3 ORION-8 demonstrated that Leqvio, in addition to statin therapy, provides consistent low-density lipoprotein cholesterol (LDL-C) reduction beyond six years of treatment in patients with atherosclerotic cardiovascular disease (ASCVD),
increased risk of ASCVD or heterozygous familial hypercholesterolemia. Efficacy and safety were consistent with previously reported Ph3 results. Data was presented at ESC 2023
|
GT005
(PPY988)
|
Development in Geographic Atrophy secondary to dry-Age-related Macular Degeneration discontinued based on benefit-risk assessment. No new
safety signals identified. Patients treated will be provided with long term safety follow up
|
Tislelizumab
|
Novartis and BeiGene mutually agreed to terminate the collaboration and license agreement for tislelizumab for certain markets. With the
termination, BeiGene will re-assume all development and commercialization rights for tislelizumab, and Novartis will manufacture tislelizumab for certain markets. BeiGene will also provide Novartis with ongoing clinical supply of
tislelizumab to support its clinical trials
|
‘Front of Eye’ Assets
|
Divestment completed of ‘front of eye’ ophthalmology assets to Bausch + Lomb
|
Barring unforeseen events; growth vs prior year in cc | Previous Guidance | |
Net sales
|
Expected to grow high single digit
|
Unchanged
|
Core operating income
|
Expected to grow mid to high teens
|
(from low double digit to mid
teens)
|
•
|
No US Entresto Gx at risk launch in
2023
|
•
|
No Sandostatin LAR generics enter in
the US in 2023
|
Continuing operations2
|
Q3 2023
|
Q3 2022
|
% change
|
9M 2023
|
9M 2022
|
% change
|
||||
|
USD m
|
USD m
|
USD
|
cc
|
|
USD m
|
USD m
|
USD
|
cc
|
|
Net sales
|
11 782
|
10 492
|
12
|
12
|
Net sales
|
34 017
|
31 630
|
8
|
10
|
|
Operating income
|
1 762
|
1 826
|
-4
|
13
|
Operating income
|
7 187
|
6 191
|
16
|
31
|
|
As a % of sales
|
15.0
|
17.4
|
|
|
As a % of sales
|
21.1
|
19.6
|
|
|
|
Net income
|
1 513
|
1 330
|
14
|
37
|
Net income
|
5 934
|
4 734
|
25
|
41
|
|
EPS (USD)
|
0.73
|
0.61
|
20
|
45
|
EPS (USD)
|
2.84
|
2.16
|
31
|
49
|
|
Cash flows from
operating activities |
5 304
|
4 275
|
24
|
|
Cash flows from
operating activities |
11 673
|
9 271
|
26
|
|
|
Non-IFRS measures
|
Non-IFRS measures
|
|||||||||
Free cash flow
|
5 043
|
4 054
|
24
|
|
Free cash flow
|
11 019
|
8 661
|
27
|
|
|
Core operating income
|
4 405
|
3 772
|
17
|
21
|
Core operating income
|
12 551
|
11 149
|
13
|
19
|
|
As a % of sales
|
37.4
|
36.0
|
|
|
As a % of sales
|
36.9
|
35.2
|
|
|
|
Core net income
|
3 585
|
3 035
|
18
|
23
|
Core net income
|
10 320
|
8 983
|
15
|
22
|
|
Core EPS (USD)
|
1.74
|
1.40
|
24
|
29
|
Core EPS (USD)
|
4.95
|
4.09
|
21
|
28
|
|
Discontinued operations2
|
Q3 2023
|
Q3 2022
|
% change
|
9M 2023
|
9M 2022
|
% change
|
||||
|
USD m
|
USD m
|
USD
|
cc
|
|
USD m
|
USD m
|
USD
|
cc
|
|
Net sales
|
2 476
|
2 286
|
8
|
6
|
Net sales
|
7 428
|
6 998
|
6
|
8
|
|
Operating (loss)/income
|
-86
|
342
|
nm
|
nm
|
Operating income
|
265
|
1 057
|
-75
|
-60
|
|
As a % of sales
|
nm
|
15.0
|
|
|
As a % of sales
|
3.6
|
15.1
|
|
|
|
Net income
|
250
|
245
|
2
|
79
|
Net income
|
440
|
755
|
-42
|
-18
|
|
Non-IFRS measures
|
Non-IFRS measures
|
|||||||||
Core operating income
|
250
|
510
|
-51
|
-38
|
Core operating income
|
1 185
|
1 486
|
-20
|
-11
|
|
As a % of sales
|
10.1
|
22.3
|
|
|
As a % of sales
|
16.0
|
21.2
|
|
|
|
Total company
|
Q3 2023
|
Q3 2022
|
% change
|
9M 2023
|
9M 2022
|
% change
|
||||
|
USD m
|
USD m
|
USD
|
cc
|
|
USD m
|
USD m
|
USD
|
cc
|
|
Net income
|
1 763
|
1 575
|
12
|
44
|
Net income
|
6 374
|
5 489
|
16
|
33
|
|
EPS (USD)
|
0.85
|
0.73
|
16
|
51
|
EPS (USD)
|
3.05
|
2.50
|
22
|
40
|
|
Cash flows from
operating activities |
5 378
|
4 721
|
14
|
|
Cash flows from
operating activities |
11 911
|
10 125
|
18
|
|
|
Non-IFRS measures
|
Non-IFRS measures
|
|||||||||
Free cash flow
|
5 043
|
4 435
|
14
|
|
Free cash flow
|
11 038
|
9 325
|
18
|
|
|
Core net income
|
3 784
|
3 419
|
11
|
16
|
Core net income
|
11 209
|
10 101
|
11
|
18
|
|
Core EPS (USD)
|
1.83
|
1.58
|
16
|
22
|
Core EPS (USD)
|
5.37
|
4.60
|
17
|
24
|
Novartis Third Quarter and Nine Months 2023 Condensed Interim Financial Report – Supplementary Data
(USD millions unless indicated otherwise) |
Q3 2023
USD m |
Q3 2022
USD m |
% change
USD |
% change
cc 1 |
9M 2023
USD m |
9M 2022
USD m |
% change
USD |
% change
cc 1 |
|||||||||
Net sales from continuing operations
|
11 782
|
10 492
|
12
|
12
|
34 017
|
31 630
|
8
|
10
|
|||||||||
Other revenues
|
310
|
291
|
7
|
6
|
867
|
865
|
0
|
0
|
|||||||||
Cost of goods sold
|
-3 117
|
-2 874
|
-8
|
-4
|
-9 450
|
-8 541
|
-11
|
-9
|
|||||||||
Gross profit
from continuing operations |
8 975 |
7 909 |
13 |
15 |
25 434 |
23 954 |
6 |
10 |
|||||||||
Selling, general and administration
|
-3 091
|
-2 936
|
-5
|
-4
|
-9 073
|
-9 010
|
-1
|
-1
|
|||||||||
Research and development
|
-3 925
|
-2 542
|
-54
|
-48
|
-8 804
|
-6 956
|
-27
|
-25
|
|||||||||
Other income
|
224
|
87
|
157
|
143
|
1 322
|
541
|
144
|
141
|
|||||||||
Other expense
|
-421
|
-692
|
39
|
42
|
-1 692
|
-2 338
|
28
|
29
|
|||||||||
Operating income
from continuing operations |
1 762 |
1 826 |
-4 |
13 |
7 187 |
6 191 |
16 |
31 |
|||||||||
% of net sales
|
15.0
|
17.4
|
|
|
21.1
|
19.6
|
|
|
|||||||||
Loss from associated companies
|
-3
|
-5
|
40
|
46
|
-7
|
-8
|
13
|
26
|
|||||||||
Interest expense
|
-222
|
-206
|
-8
|
-11
|
-638
|
-593
|
-8
|
-11
|
|||||||||
Other financial income and expense
|
15
|
-28
|
nm
|
nm
|
204
|
18
|
nm
|
nm
|
|||||||||
Income before taxes
from continuing operations |
1 552 |
1 587 |
-2 |
18 |
6 746 |
5 608 |
20 |
36 |
|||||||||
Income taxes
|
-39
|
-257
|
85
|
82
|
-812
|
-874
|
7
|
-5
|
|||||||||
Net income from continuing operations
|
1 513
|
1 330
|
14
|
37
|
5 934
|
4 734
|
25
|
41
|
|||||||||
Net income from discontinued operations
|
250
|
245
|
2
|
79
|
440
|
755
|
-42
|
-18
|
|||||||||
Net income
|
1 763
|
1 575
|
12
|
44
|
6 374
|
5 489
|
16
|
33
|
|||||||||
Basic earnings per share from continuing operations (USD)
|
0.73
|
0.61
|
20
|
45
|
2.84
|
2.16
|
31
|
49
|
|||||||||
Basic earnings per share from discontinued operations (USD)
|
0.12
|
0.12
|
0
|
88
|
0.21
|
0.34
|
-38
|
-13
|
|||||||||
Total basic earnings per share (USD)
|
0.85
|
0.73
|
16
|
51
|
3.05
|
2.50
|
22
|
40
|
|||||||||
Net cash flows from operating activities from continuing operations
|
5 304
|
4 275
|
24
|
|
11 673
|
9 271
|
26
|
|
|||||||||
|
|
|
|
|
|
|
|
||||||||||
Non-IFRS measures 1
|
|
|
|
|
|
|
|
|
|||||||||
Free cash-flow from continuing operations 2
|
5 043
|
4 054
|
24
|
|
11 019
|
8 661
|
27
|
|
|||||||||
Core operating income from continuing operations
|
4 405
|
3 772
|
17
|
21
|
12 551
|
11 149
|
13
|
19
|
|||||||||
% of net sales
|
37.4
|
36.0
|
|
|
36.9
|
35.2
|
|
|
|||||||||
Core net income from continuing operations
|
3 585
|
3 035
|
18
|
23
|
10 320
|
8 983
|
15
|
22
|
|||||||||
Core basic earnings per share (USD) from continuing operations
|
1.74
|
1.40
|
24
|
29
|
4.95
|
4.09
|
21
|
28
|
|||||||||
1 Constant currencies (cc), core results and free cash flow are non-IFRS measures. An
explanation of non-IFRS measures can be found on page 48. Unless otherwise noted,
all growth rates in this release refer to same period in prior year.
|
|||||||||||||||||
2 Effective January 1, 2023, Novartis revised its definition of free cash flow, to define
free cash flow as net cash flows from operating activities less purchases of property,
plant and equipment. To aid in comparability, the prior year free cash flow amounts
have been revised to conform with the new free cash flow definition. See page 48 of
the Condensed Interim Financial Report.
|
|||||||||||||||||
nm = not meaningful
|
Q3 2023
|
Q3 2022
|
% change
|
% change
|
9M 2023
|
9M 2022
|
% change
|
% change
|
||||||||||
USD m
|
USD m
|
USD
|
cc
|
USD m
|
USD m
|
USD
|
cc
|
||||||||||
Cardiovascular, Renal and Metabolic
|
|
|
|
|
|
|
|
|
|||||||||
Entresto
|
1 485
|
1 135
|
31
|
31
|
4 400
|
3 353
|
31
|
33
|
|||||||||
Leqvio
|
90
|
34
|
165
|
165
|
232
|
70
|
231
|
231
|
|||||||||
Total Cardiovascular, Renal and Metabolic
|
1 575
|
1 169
|
35
|
34
|
4 632
|
3 423
|
35
|
37
|
|||||||||
Q3 2023
|
Q3 2022
|
% change
|
% change
|
9M 2023
|
9M 2022
|
% change
|
% change
|
||||||||||
USD m
|
USD m
|
USD
|
cc
|
USD m
|
USD m
|
USD
|
cc
|
||||||||||
Immunology
|
|
|
|
|
|
|
|
|
|||||||||
Cosentyx
|
1 329
|
1 274
|
4
|
4
|
3 677
|
3 708
|
-1
|
1
|
|||||||||
Xolair 1
|
369
|
322
|
15
|
13
|
1 085
|
1 042
|
4
|
6
|
|||||||||
Ilaris
|
335
|
272
|
23
|
24
|
979
|
832
|
18
|
20
|
|||||||||
Other
|
|
|
|
|
|
1
|
nm
|
nm
|
|||||||||
Total Immunology
|
2 033
|
1 868
|
9
|
9
|
5 741
|
5 583
|
3
|
4
|
|||||||||
1 Net sales reflect Xolair sales for all indications.
|
|||||||||||||||||
nm = not meaningful
|
Q3 2023
|
Q3 2022
|
% change
|
% change
|
9M 2023
|
9M 2022
|
% change
|
% change
|
||||||||||
USD m
|
USD m
|
USD
|
cc
|
USD m
|
USD m
|
USD
|
cc
|
||||||||||
Neuroscience
|
|
|
|
|
|
|
|
|
|||||||||
Kesimpta
|
657
|
289
|
127
|
124
|
1 530
|
723
|
112
|
112
|
|||||||||
Zolgensma
|
308
|
319
|
-3
|
-2
|
928
|
1 061
|
-13
|
-11
|
|||||||||
Mayzent
|
103
|
94
|
10
|
9
|
286
|
258
|
11
|
12
|
|||||||||
Aimovig
|
69
|
50
|
38
|
32
|
197
|
159
|
24
|
24
|
|||||||||
Other
|
|
|
|
|
|
1
|
nm
|
nm
|
|||||||||
Total Neuroscience
|
1 137
|
752
|
51
|
50
|
2 941
|
2 202
|
34
|
35
|
|||||||||
nm = not meaningful
|
Q3 2023
|
Q3 2022
|
% change
|
% change
|
9M 2023
|
9M 2022
|
% change
|
% change
|
||||||||||
USD m
|
USD m
|
USD
|
cc
|
USD m
|
USD m
|
USD
|
cc
|
||||||||||
Oncology
|
|
|
|
|
|
|
|
|
|||||||||
Promacta/Revolade
|
576
|
523
|
10
|
10
|
1 706
|
1 548
|
10
|
12
|
|||||||||
Kisqali
|
562
|
327
|
72
|
76
|
1 470
|
874
|
68
|
74
|
|||||||||
Tafinlar + Mekinist 1
|
482
|
450
|
7
|
8
|
1 436
|
1 305
|
10
|
13
|
|||||||||
Tasigna
|
464
|
489
|
-5
|
-5
|
1 402
|
1 448
|
-3
|
-1
|
|||||||||
Jakavi
|
427
|
386
|
11
|
9
|
1 276
|
1 173
|
9
|
11
|
|||||||||
Pluvicto
|
256
|
80
|
220
|
217
|
707
|
92
|
nm
|
nm
|
|||||||||
Lutathera
|
159
|
132
|
20
|
19
|
458
|
343
|
34
|
34
|
|||||||||
Kymriah
|
124
|
134
|
-7
|
-9
|
388
|
397
|
-2
|
-1
|
|||||||||
Piqray/Vijoice
|
128
|
103
|
24
|
24
|
374
|
261
|
43
|
44
|
|||||||||
Votrient
|
102
|
118
|
-14
|
-14
|
313
|
371
|
-16
|
-14
|
|||||||||
Scemblix
|
106
|
41
|
159
|
157
|
288
|
97
|
197
|
198
|
|||||||||
Adakveo
|
45
|
50
|
-10
|
-11
|
150
|
143
|
5
|
5
|
|||||||||
Tabrecta
|
36
|
36
|
0
|
1
|
113
|
97
|
16
|
17
|
|||||||||
Other
|
|
|
|
|
1
|
2
|
nm
|
nm
|
|||||||||
Total Oncology
|
3 467
|
2 869
|
21
|
21
|
10 082
|
8 151
|
24
|
26
|
|||||||||
1 Majority of sales for Mekinist and Tafinlar are combination, but both
can be used as monotherapy.
|
|||||||||||||||||
nm = not meaningful
|
Q3 2023
|
Q3 2022
|
% change
|
% change
|
9M 2023
|
9M 2022
|
% change
|
% change
|
||||||||||
USD m
|
USD m
|
USD
|
cc
|
USD m
|
USD m
|
USD
|
cc
|
||||||||||
Other Promoted Brands
|
|
|
|
|
|
|
|
|
|||||||||
Ultibro Group
|
104
|
108
|
-4
|
-7
|
332
|
366
|
-9
|
-8
|
|||||||||
Xiidra
|
64
|
109
|
-41
|
-41
|
249
|
342
|
-27
|
-27
|
|||||||||
Beovu
|
47
|
52
|
-10
|
-9
|
151
|
154
|
-2
|
1
|
|||||||||
Other respiratory
|
21
|
19
|
11
|
21
|
69
|
58
|
19
|
27
|
|||||||||
Total Other Promoted Brands
|
236
|
288
|
-18
|
-19
|
801
|
920
|
-13
|
-11
|
|||||||||
|
|
|
|
|
|
|
|
||||||||||
Total Promoted Brands 1
|
8 448
|
6 946
|
22
|
21
|
24 197
|
20 279
|
19
|
21
|
|||||||||
1 Total Promoted Brands refer to the sum of Total Other Promoted Brands and all Therapeutic
Areas brands (Cardiovascular, Renal and Metabolic, Immunology, Neuroscience, and Oncology).
|
Q3 2023
|
Q3 2022
|
% change
|
% change
|
9M 2023
|
9M 2022
|
% change
|
% change
|
||||||||||
USD m
|
USD m
|
USD
|
cc
|
USD m
|
USD m
|
USD
|
cc
|
||||||||||
Established Brands
|
|
|
|
|
|
|
|
|
|||||||||
Lucentis
|
363
|
455
|
-20
|
-22
|
1 174
|
1 476
|
-20
|
-19
|
|||||||||
Sandostatin
|
338
|
295
|
15
|
15
|
998
|
933
|
7
|
8
|
|||||||||
Gilenya
|
270
|
507
|
-47
|
-48
|
771
|
1 667
|
-54
|
-53
|
|||||||||
Exforge Group
|
187
|
185
|
1
|
3
|
557
|
584
|
-5
|
-1
|
|||||||||
Galvus Group
|
181
|
212
|
-15
|
-4
|
539
|
650
|
-17
|
-10
|
|||||||||
Diovan Group
|
153
|
160
|
-4
|
-1
|
466
|
510
|
-9
|
-4
|
|||||||||
Gleevec/Glivec
|
144
|
178
|
-19
|
-17
|
433
|
570
|
-24
|
-21
|
|||||||||
Afinitor/Votubia
|
85
|
125
|
-32
|
-30
|
311
|
406
|
-23
|
-21
|
|||||||||
Contract manufacturing 1
|
471
|
271
|
74
|
60
|
1 174
|
879
|
34
|
30
|
|||||||||
Other 2
|
1 142
|
1 158
|
-1
|
-2
|
3 397
|
3 676
|
-8
|
-3
|
|||||||||
Total Established Brands 1, 2
|
3 334
|
3 546
|
-6
|
-7
|
9 820
|
11 351
|
-13
|
-11
|
|||||||||
1 2022 restated to reflect the transfer of the Sandoz Division’s biotechnology manufacturing
services to other companies’ activities to the Innovative Medicines Division that
was effective as of January 1, 2023.
|
|||||||||||||||||
2 2022 restated to reflect the transfer of the Coartem brand from the Sandoz Division
to the Innovative Medicines Division that was effective as of January 1, 2023.
|
Product |
Active ingredient/
Descriptor |
Indication |
Region |
|||||
Leqvio
|
inclisiran
|
Hypercholesterolemia
|
China, Japan
|
|||||
Cosentyx
|
secukinumab
|
Intravenous formulation for psoriatic
arthritis, ankylosing spondylitis, and non-radiographic axial SpA |
US
|
|||||
Jakavi
|
ruxolitinib
|
Acute graft-versus-host
disease |
Japan
|
|||||
|
Chronic graft-versus-host
disease |
Japan
|
||||||
|
Completed submissions
|
|
|||||||||
Product
|
Indication
|
US
|
EU
|
Japan
|
News update
|
||||||
Kisqali
|
Hormone receptor-positive /
human epidermal growth factor receptor 2-negative early breast cancer (adjuvant) |
|
Q3 2023
|
|
– EU filing
|
||||||
LNP023
(iptacopan) |
Paroxysmal nocturnal
hemoglobinuria |
Q2 2023
|
Q2 2023
|
Q3 2023
|
– Japan filing
|
||||||
Cosentyx
|
Hidradenitis suppurativa
|
Q3 2022
|
Approved
|
|
|
||||||
VDT482
(tislelizumab) |
2L Esophageal cancer
|
|
|
|
– Mutual termination of the agreement
with BeiGene, Ltd. |
||||||
Non-small cell lung
cancer |
|
|
|
|
|||||||
Compound/
product |
Potential indication/
Disease area |
First planned
submissions |
Current
Phase |
News update |
|||||
Aimovig
|
Migraine, pediatrics
|
≥2026
|
3
|
|
|||||
AVXS-101
(OAV101) |
Spinal muscular atrophy
(IT formulation) |
2025
|
3
|
|
|||||
Beovu
|
Diabetic retinopathy
|
2025
|
3
|
|
|||||
CFZ533
(iscalimab) |
Sjögren's syndrome
|
≥2026
|
2
|
|
|||||
Coartem
|
Malaria, uncomplicated (<5 kg patients)
|
2024
|
3
|
– Submission will use the MAGHP procedure
in Switzerland to facilitate rapid approval in developing countries |
|||||
Cosentyx
|
Giant cell arteritis
|
2025
|
3
|
|
|||||
Polymyalgia rheumatica
|
≥2026
|
3
|
|
||||||
Rotator cuff tendinopathy
|
≥2026
|
3
|
|
||||||
EXV811
(atrasentan) |
IgA nephropathy
|
2024
|
3
|
– Chinook aquisition
|
|||||
FUB523
(zigakibart) |
IgA nephropathy
|
≥2026
|
3
|
– Chinook aquisition
|
|||||
JDQ443
(opnurasib) |
Non-small cell lung cancer, 2/3L
|
2024
|
3
|
|
|||||
Non-small cell lung cancer (combos)
|
≥2026
|
2
|
|
||||||
KAE609
(cipargamin) |
Malaria, uncomplicated
|
≥2026
|
2
|
||||||
Malaria, severe
|
≥2026
|
2
|
|
||||||
KLU156
(ganaplacide + lumefantrine) |
Malaria, uncomplicated
|
≥2026
|
2
|
– FDA Orphan Drug designation
– FDA Fast Track designation |
|||||
Compound/
product |
Potential indication/
Disease area |
First planned
submissions |
Current
Phase |
News update |
|||||
Leqvio
|
Secondary prevention of cardiovascular
events in patients with elevated levels of LDL-C |
≥2026
|
3
|
|
|||||
Primary prevention CVRR
|
≥2026
|
3
|
|
||||||
LNA043
|
Osteoarthritis
|
≥2026
|
2
|
– FDA Fast Track designation
|
|||||
LNP023
(iptacopan) |
IgA nephropathy
|
2024
|
3
|
– EU Orphan Drug designation
– Ph3 APPLAUSE-IgAN study met its pre-specified interim analysis primary endpoint |
|||||
C3 glomerulopathy
|
2024
|
3
|
– EU Orphan Drug designation
– EU PRIME designation – FDA Rare Pediatric designation – China Breakthrough Therapy designation – FDA Breakthrough Therapy designation |
||||||
IC-MPGN
|
≥2026
|
3
|
|
||||||
Atypical haemolytic uraemic syndrome
|
≥2026
|
3
|
|
||||||
LOU064
(remibrutinib) |
Chronic spontaneous urticaria
|
2024
|
3
|
– Ph3 REMIX-1 and REMIX-2 studies
met all primary and secondary endpoints |
|||||
Multiple sclerosis
|
≥2026
|
3
|
|
||||||
CINDU
|
≥2026
|
3
|
|
||||||
Sjögren's syndrome
|
≥2026
|
2
|
|
||||||
Lutathera
|
Gastroenteropancreatic
neuroendocrine tumors, 1L in G2/3 tumors |
2024
|
3
|
– Ph3 NETTER-2 trial met
its primary endpoint |
|||||
177Lu-NeoB
|
Multiple solid tumors
|
≥2026
|
1
|
|
|||||
LXE408
|
Visceral leishmaniasis
|
≥2026
|
2
|
|
|||||
MBG453
(sabatolimab) |
Myelodysplastic syndrome
|
2024
|
3
|
– FDA Fast Track designation
– EU Orphan Drug designation |
|||||
Unfit acute myeloid leukemia
|
≥2026
|
2
|
|
||||||
MIJ821
(onfasprodil) |
Depression
|
|
2
|
– Program discontinued following
strategic review, including a benefit risk assessment of acute MDD with suicidality |
|||||
Piqray
|
Ovarian cancer
|
|
3
|
– Program discontinued based on benefit-risk
assessment |
|||||
Pluvicto
|
Metastatic castration-resistant
prostate cancer pre-taxane |
2024
|
3
|
– Novartis is continuing to collect OS data,
regulatory filings are anticipated in 2024 |
|||||
Metastatic hormone sensitive prostate cancer
|
2024
|
3
|
|
||||||
PPY988
(GT005) |
Geographic atrophy
|
|
2
|
– Program discontinued based on benefit-risk
assessment. No new safety signals identified. Patients treated to be provided with long term safety follow up |
|||||
QGE031
(ligelizumab) |
Food allergy
|
≥2026
|
3
|
|
|||||
Scemblix
|
1L Chronic myeloid leukemia
|
2024
|
3
|
|
|||||
TQJ230
(pelacarsen) |
Secondary prevention of cardiovascular
events in patients with elevated levels of lipoprotein(a) |
2025
|
3
|
– FDA Fast Track designation
– China Breakthrough Therapy designation |
|||||
Compound/
product |
Potential indication/
Disease area |
First planned
submissions |
Current
Phase |
News update |
|||||
VAY736
(ianalumab) |
Auto-immune hepatitis
|
≥2026
|
2
|
|
|||||
Sjögren’s syndrome
|
≥2026
|
3
|
– FDA Fast Track designation
|
||||||
Lupus nephritis
|
≥2026
|
3
|
|
||||||
Systemic lupus erythematosus
|
≥2026
|
3
|
|
||||||
1L Immune thrombocytopenia
|
≥2026
|
3
|
|
||||||
2L Immune thrombocytopenia
|
≥2026
|
3
|
|
||||||
warm Autoimmune hemolytic anemia
|
≥2026
|
3
|
|
||||||
VDT482
(tislelizumab) |
1L Gastric cancer
|
|
3
|
– Mutual termination of the agreement
with BeiGene, Ltd. |
|||||
1L ESCC
|
|
3
|
|
||||||
Localized ESCC
|
|
3
|
|
||||||
1L Small cell lung cancer
|
|
3
|
|
||||||
1L Urothelial cell carcinoma
|
|
3
|
|
||||||
Adj/Neo adj. NSCLC
|
|
3
|
|
||||||
Xolair
|
Food allergy
|
2023
|
3
|
|
|||||
XXB750
|
Hypertension
|
≥2026
|
2
|
|
|||||
YTB323
|
sr Lupus nephritis /
Systemic lupus erythematosus |
≥2026
|
2
|
|
|||||
1L High-risk large B-cell lymphoma
|
≥2026
|
2
|
|
||||||
Condensed Interim Consolidated Financial Statements
(USD millions unless indicated otherwise)
|
Note
|
Q3 2023
|
Q3 2022
|
||||
Net sales from continuing operations
|
10
|
11 782
|
10 492
|
||||
Other revenues
|
10
|
310
|
291
|
||||
Cost of goods sold
|
|
-3 117
|
-2 874
|
||||
Gross profit from continuing operations
|
|
8 975
|
7 909
|
||||
Selling, general and administration
|
|
-3 091
|
-2 936
|
||||
Research and development
|
|
-3 925
|
-2 542
|
||||
Other income
|
|
224
|
87
|
||||
Other expense
|
|
-421
|
-692
|
||||
Operating income from continuing operations
|
|
1 762
|
1 826
|
||||
Loss from associated companies
|
|
-3
|
-5
|
||||
Interest expense
|
|
-222
|
-206
|
||||
Other financial income and expense
|
|
15
|
-28
|
||||
Income before taxes from continuing operations
|
|
1 552
|
1 587
|
||||
Income taxes
|
|
-39
|
-257
|
||||
Net income from continuing operations
|
|
1 513
|
1 330
|
||||
Net income from discontinued operations
|
12
|
250
|
245
|
||||
Net income
|
|
1 763
|
1 575
|
||||
Attributable to:
|
|
|
|
||||
Shareholders of Novartis AG
|
|
1 761
|
1 573
|
||||
Non-controlling interests
|
|
2
|
2
|
||||
|
|
|
|||||
Weighted average number of shares outstanding – Basic (million)
|
|
2 062
|
2 167
|
||||
Basic earnings per share from continuing operations (USD) 1
|
|
0.73
|
0.61
|
||||
Basic earnings per share from discontinued operations (USD) 1
|
|
0.12
|
0.12
|
||||
Total basic earnings per share (USD) 1
|
|
0.85
|
0.73
|
||||
|
|
|
|||||
Weighted average number of shares outstanding – Diluted (million)
|
|
2 075
|
2 180
|
||||
Diluted earnings per share from continuing operations (USD) 1
|
|
0.73
|
0.61
|
||||
Diluted earnings per share from discontinued operations (USD) 1
|
|
0.12
|
0.11
|
||||
Total diluted earnings per share (USD) 1
|
|
0.85
|
0.72
|
||||
1 Earnings per share (EPS) is calculated on the amount of net income attributable to
shareholders of Novartis AG.
|
|||||||
The accompanying Notes form an integral part of the condensed interim consolidated
financial statements
|
(USD millions unless indicated otherwise)
|
Note
|
9M 2023
|
9M 2022
|
||||
Net sales from continuing operations
|
10
|
34 017
|
31 630
|
||||
Other revenues
|
10
|
867
|
865
|
||||
Cost of goods sold
|
|
-9 450
|
-8 541
|
||||
Gross profit from continuing operations
|
|
25 434
|
23 954
|
||||
Selling, general and administration
|
|
-9 073
|
-9 010
|
||||
Research and development
|
|
-8 804
|
-6 956
|
||||
Other income
|
|
1 322
|
541
|
||||
Other expense
|
|
-1 692
|
-2 338
|
||||
Operating income from continuing operations
|
|
7 187
|
6 191
|
||||
Loss from associated companies
|
|
-7
|
-8
|
||||
Interest expense
|
|
-638
|
-593
|
||||
Other financial income and expense
|
|
204
|
18
|
||||
Income before taxes from continuing operations
|
|
6 746
|
5 608
|
||||
Income taxes
|
|
-812
|
-874
|
||||
Net income from continuing operations
|
|
5 934
|
4 734
|
||||
Net income from discontinued operations
|
12
|
440
|
755
|
||||
Net income
|
|
6 374
|
5 489
|
||||
Attributable to:
|
|
|
|
||||
Shareholders of Novartis AG
|
|
6 370
|
5 489
|
||||
Non-controlling interests
|
|
4
|
0
|
||||
|
|
|
|||||
Weighted average number of shares outstanding – Basic (million)
|
|
2 085
|
2 196
|
||||
Basic earnings per share from continuing operations (USD) 1
|
|
2.84
|
2.16
|
||||
Basic earnings per share from discontinued operations (USD) 1
|
|
0.21
|
0.34
|
||||
Total basic earnings per share (USD) 1
|
|
3.05
|
2.50
|
||||
|
|
|
|||||
Weighted average number of shares outstanding – Diluted (million)
|
|
2 098
|
2 210
|
||||
Diluted earnings per share from continuing operations (USD) 1
|
|
2.83
|
2.14
|
||||
Diluted earnings per share from discontinued operations (USD) 1
|
|
0.21
|
0.34
|
||||
Total diluted earnings per share (USD) 1
|
|
3.04
|
2.48
|
||||
|
|||||||
1 Earnings per share (EPS) is calculated on the amount of net income attributable to
shareholders of Novartis AG.
|
|||||||
The accompanying Notes form an integral part of the condensed interim consolidated
financial statements
|
(USD millions)
|
Q3 2023
|
Q3 2022
|
|||
Net income
|
1 763
|
1 575
|
|||
|
|
||||
Other comprehensive income
|
|
|
|||
Items that are or may be recycled into the consolidated income statement from continuing
operations
|
|
|
|||
Net investment hedge, net of taxes
|
38
|
36
|
|||
Currency translation effects, net of taxes
|
-389
|
-631
|
|||
Total of items that are or may be recycled
|
-351
|
-595
|
|||
|
|
||||
Items that will never be recycled into the consolidated income statement from continuing
operations
|
|
|
|||
Actuarial gains/(losses) from defined benefit plans, net of taxes
|
104
|
-530
|
|||
Fair value adjustments on equity securities, net of taxes
|
27
|
40
|
|||
Total of items that will never be recycled
|
131
|
-490
|
|||
|
|
||||
Other comprehensive income from continuing operations
|
-220
|
-1 085
|
|||
Other comprehensive income from discontinued operations
|
-66
|
-129
|
|||
Total comprehensive income
|
1 477
|
361
|
|||
Total comprehensive income for the year attributable to:
|
|
|
|||
Shareholders of Novartis AG
|
1 476
|
363
|
|||
Non-controlling interests
|
1
|
-2
|
|||
The accompanying Notes form an integral part of the condensed interim consolidated
financial statements
|
(USD millions)
|
9M 2023
|
9M 2022
|
|||
Net income
|
6 374
|
5 489
|
|||
|
|
||||
Other comprehensive income
|
|
|
|
||
Items that are or may be recycled into the consolidated income statement from continuing
operations
|
|
|
|
||
Net investment hedge, net of taxes
|
32
|
84
|
|||
Currency translation effects, net of taxes
|
63
|
-1 735
|
|||
Total of items that are or may be recycled
|
95
|
-1 651
|
|||
|
|
||||
Items that will never be recycled into the consolidated income statement from continuing
operations
|
|
|
|
||
Actuarial gains from defined benefit plans, net of taxes
|
47
|
1 741
|
|||
Fair value adjustments on equity securities, net of taxes
|
-19
|
-281
|
|||
Total of items that will never be recycled
|
28
|
1 460
|
|||
|
|
||||
Other comprehensive income from continuing operations
|
123
|
-191
|
|||
Other comprehensive income from discontinued operations
|
-21
|
-170
|
|||
Total comprehensive income
|
6 476
|
5 128
|
|||
Total comprehensive income for the year attributable to:
|
|
|
|||
Shareholders of Novartis AG
|
6 472
|
5 136
|
|||
Non-controlling interests
|
4
|
-8
|
|||
|
|||||
The accompanying Notes form an integral part of the condensed interim consolidated
financial statements
|
(USD millions) |
Note |
Sep 30,
2023 (unaudited) |
Dec 31,
2022 (audited) |
||||
Assets
|
|
|
|
||||
Non-current assets
|
|
|
|
||||
Property, plant and equipment
|
|
9 044
|
10 764
|
||||
Right-of-use assets
|
|
1 300
|
1 431
|
||||
Goodwill
|
|
23 416
|
29 301
|
||||
Intangible assets other than goodwill
|
|
26 418
|
31 644
|
||||
Investments in associated companies
|
|
202
|
143
|
||||
Deferred tax assets
|
|
3 628
|
3 739
|
||||
Financial assets
|
|
1 920
|
2 411
|
||||
Other non-current assets
|
|
1 109
|
1 110
|
||||
Total non-current assets
|
|
67 037
|
80 543
|
||||
Current assets
|
|
|
|
||||
Inventories
|
|
5 610
|
7 175
|
||||
Trade receivables
|
|
6 819
|
8 066
|
||||
Income tax receivables
|
|
280
|
268
|
||||
Marketable securities, commodities, time deposits and derivative financial instruments
|
|
290
|
11 413
|
||||
Cash and cash equivalents
|
|
12 405
|
7 517
|
||||
Other current assets
|
|
2 782
|
2 471
|
||||
Total current assets related to
continuing operations |
|
28 186 |
36 910 |
||||
Assets related to discontinued operations
|
12
|
17 474
|
|
||||
Total current assets
|
|
45 660
|
36 910
|
||||
Total assets
|
|
112 697
|
117 453
|
||||
|
|
|
|||||
Equity and liabilities
|
|
|
|
||||
Equity
|
|
|
|
||||
Share capital
|
|
825
|
890
|
||||
Treasury shares
|
|
-32
|
-92
|
||||
Reserves
|
|
37 371
|
58 544
|
||||
Equity attributable to Novartis AG shareholders
|
|
38 164
|
59 342
|
||||
Non-controlling interests
|
|
81
|
81
|
||||
Total equity
|
|
38 245
|
59 423
|
||||
Liabilities
|
|
|
|
||||
Non-current liabilities
|
|
|
|
||||
Financial debts
|
|
18 068
|
20 244
|
||||
Lease liabilities
|
|
1 453
|
1 538
|
||||
Deferred tax liabilities
|
|
2 457
|
2 686
|
||||
Provisions and other non-current liabilities
|
|
4 081
|
4 906
|
||||
Total non-current liabilities
|
|
26 059
|
29 374
|
||||
Current liabilities
|
|
|
|
||||
Dividend in kind distribution liability
|
3
|
13 962
|
|
||||
Trade payables
|
|
3 870
|
5 146
|
||||
Financial debts and derivative financial instruments
|
|
5 458
|
5 931
|
||||
Lease liabilities
|
|
210
|
251
|
||||
Current income tax liabilities
|
|
2 129
|
2 533
|
||||
Provisions and other current liabilities
|
|
13 974
|
14 795
|
||||
Total current liabilities
related to continuing operations |
|
39 603 |
28 656 |
||||
Liabilities related to discontinued operations
|
12
|
8 790
|
|
||||
Total current liabilities
|
|
48 393
|
28 656
|
||||
Total liabilities
|
|
74 452
|
58 030
|
||||
Total equity and liabilities
|
|
112 697
|
117 453
|
||||
The accompanying Notes form an integral part of the condensed interim consolidated
financial statements
|
|
|
|
Reserves
|
|
|
|
|||||||||||
(USD millions) |
Note |
Share capital |
Treasury shares |
Retained earnings |
Total value adjustments |
Issued share
capital and reserves attributable to Novartis shareholders |
Non- controlling interests |
Total equity |
|||||||||
Total equity at July 1, 2023
|
|
842
|
-52
|
55 682
|
-4 625
|
51 847
|
84
|
51 931
|
|||||||||
Net income
|
|
|
|
1 761
|
|
1 761
|
2
|
1 763
|
|||||||||
Other comprehensive income
|
|
|
|
|
-285
|
-285
|
-1
|
-286
|
|||||||||
Total comprehensive income
|
|
|
|
1 761
|
-285
|
1 476
|
1
|
1 477
|
|||||||||
Dividend in kind
|
3
|
|
|
-13 962
|
|
-13 962
|
|
-13 962
|
|||||||||
Purchase of treasury shares
|
|
|
-6
|
-1 390
|
|
-1 396
|
|
-1 396
|
|||||||||
Reduction of share capital
|
4.1
|
-17
|
26
|
-9
|
|
|
|
|
|||||||||
Exercise of options and employee transactions
|
4.2
|
|
|
-2
|
|
-2
|
|
-2
|
|||||||||
Equity-based compensation
|
|
|
0
|
221
|
|
221
|
|
221
|
|||||||||
Taxes on treasury share transactions
|
|
|
|
3
|
|
3
|
|
3
|
|||||||||
Transaction costs, net of taxes
|
4.4
|
|
|
-74
|
|
-74
|
|
-74
|
|||||||||
Changes in non-controlling interests
|
|
|
|
|
|
|
-4
|
-4
|
|||||||||
Fair value adjustments on financial assets sold
|
|
|
|
52
|
-52
|
|
|
|
|||||||||
Other movements
|
4.5
|
|
|
51
|
|
51
|
|
51
|
|||||||||
Total of other equity movements
|
|
-17
|
20
|
-15 110
|
-52
|
-15 159
|
-4
|
-15 163
|
|||||||||
Total equity at September 30, 2023
|
|
825
|
-32
|
42 333
|
-4 962
|
38 164
|
81
|
38 245
|
|||||||||
The accompanying Notes form an integral part of the condensed interim consolidated
financial statements
|
|||||||||||||||||
|
|
|
Reserves
|
|
|
|
|||||||||||
(USD millions) |
Note |
Share capital |
Treasury shares |
Retained earnings |
Total value adjustments |
Issued share
capital and reserves attributable to Novartis shareholders |
Non- controlling interests |
Total equity |
|||||||||
Total equity at July 1, 2022
|
|
890
|
-60
|
65 432
|
-3 337
|
62 925
|
81
|
63 006
|
|||||||||
Net income
|
|
|
|
1 573
|
|
1 573
|
2
|
1 575
|
|||||||||
Other comprehensive income
|
|
|
|
|
-1 210
|
-1 210
|
-4
|
-1 214
|
|||||||||
Total comprehensive income
|
|
|
|
1 573
|
-1 210
|
363
|
-2
|
361
|
|||||||||
Purchase of treasury shares
|
|
|
-11
|
-2 702
|
|
-2 713
|
|
-2 713
|
|||||||||
Exercise of options and employee transactions
|
4.2
|
|
|
-2
|
|
-2
|
|
-2
|
|||||||||
Equity-based compensation
|
|
|
1
|
213
|
|
214
|
|
214
|
|||||||||
Taxes on treasury share transactions
|
|
|
|
1
|
|
1
|
|
1
|
|||||||||
Changes in non-controlling interests
|
|
|
|
|
|
|
-1
|
-1
|
|||||||||
Fair value adjustments on financial assets sold
|
|
|
|
-4
|
4
|
|
|
|
|||||||||
Other movements
|
4.5
|
|
|
32
|
|
32
|
|
32
|
|||||||||
Total of other equity movements
|
|
|
-10
|
-2 462
|
4
|
-2 468
|
-1
|
-2 469
|
|||||||||
Total equity at September 30, 2022
|
|
890
|
-70
|
64 543
|
-4 543
|
60 820
|
78
|
60 898
|
|||||||||
The accompanying Notes form an integral part of the condensed interim consolidated
financial statements
|
|
|
|
Reserves
|
|
|
|
|||||||||||
(USD millions) |
Note |
Share capital |
Treasury shares |
Retained earnings |
Total value adjustments |
Issued share
capital and reserves attributable to Novartis shareholders |
Non- controlling interests |
Total equity |
|||||||||
Total equity at January 1, 2023
|
|
890
|
-92
|
63 540
|
-4 996
|
59 342
|
81
|
59 423
|
|||||||||
Net income
|
|
|
|
6 370
|
|
6 370
|
4
|
6 374
|
|||||||||
Other comprehensive income
|
|
|
|
|
102
|
102
|
0
|
102
|
|||||||||
Total comprehensive income
|
|
|
|
6 370
|
102
|
6 472
|
4
|
6 476
|
|||||||||
Dividends
|
|
|
|
-7 255
|
|
-7 255
|
|
-7 255
|
|||||||||
Dividend in kind
|
3
|
|
|
-13 962
|
|
-13 962
|
|
-13 962
|
|||||||||
Purchase of treasury shares
|
|
|
-41
|
-7 243
|
|
-7 284
|
|
-7 284
|
|||||||||
Reduction of share capital
|
4.1
|
-65
|
94
|
-29
|
|
|
|
|
|||||||||
Exercise of options and employee transactions
|
4.2
|
|
2
|
149
|
|
151
|
|
151
|
|||||||||
Equity-based compensation
|
|
|
5
|
649
|
|
654
|
|
654
|
|||||||||
Taxes on treasury share transactions
|
|
|
|
11
|
|
11
|
|
11
|
|||||||||
Transaction costs, net of taxes
|
4.4
|
|
|
-74
|
|
-74
|
|
-74
|
|||||||||
Changes in non-controlling interests
|
|
|
|
|
|
|
-4
|
-4
|
|||||||||
Value adjustments on financial assets sold
|
|
|
|
68
|
-68
|
|
|
|
|||||||||
Other movements
|
4.5
|
|
|
109
|
|
109
|
|
109
|
|||||||||
Total of other equity movements
|
|
-65
|
60
|
-27 577
|
-68
|
-27 650
|
-4
|
-27 654
|
|||||||||
Total equity at September 30, 2023
|
|
825
|
-32
|
42 333
|
-4 962
|
38 164
|
81
|
38 245
|
|||||||||
|
|||||||||||||||||
The accompanying Notes form an integral part of the condensed interim consolidated
financial statements
|
|
|
|
Reserves
|
|
|
|
|||||||||||
(USD millions) |
Note |
Share capital |
Treasury shares |
Retained earnings |
Total value adjustments |
Issued share
capital and reserves attributable to Novartis shareholders |
Non- controlling interests |
Total equity |
|||||||||
Total equity at January 1, 2022
|
|
901
|
-48
|
70 989
|
-4 187
|
67 655
|
167
|
67 822
|
|||||||||
Net income
|
|
|
|
5 489
|
|
5 489
|
0
|
5 489
|
|||||||||
Other comprehensive income
|
|
|
|
|
-353
|
-353
|
-8
|
-361
|
|||||||||
Total comprehensive income
|
|
|
|
5 489
|
-353
|
5 136
|
-8
|
5 128
|
|||||||||
Dividends
|
|
|
|
-7 506
|
|
-7 506
|
|
-7 506
|
|||||||||
Purchase of treasury shares
|
|
|
-44
|
-8 159
|
|
-8 203
|
|
-8 203
|
|||||||||
Reduction of share capital
|
4.1
|
-11
|
15
|
-4
|
|
|
|
|
|||||||||
Exercise of options and employee transactions
|
4.2
|
|
1
|
88
|
|
89
|
|
89
|
|||||||||
Equity-based compensation
|
|
|
6
|
645
|
|
651
|
|
651
|
|||||||||
Shares delivered to Alcon employees
as a result of the Alcon spin-off |
|
|
0 |
5 |
|
5 |
|
5 |
|||||||||
Taxes on treasury share transactions
|
|
|
|
12
|
|
12
|
|
12
|
|||||||||
Decrease of treasury share repurchase obligation
under a share buyback trading plan |
4.3 |
|
|
2 809 |
|
2 809 |
|
2 809 |
|||||||||
Changes in non-controlling interests
|
|
|
|
|
|
|
-81
|
-81
|
|||||||||
Fair value adjustments on financial assets sold
|
|
|
|
3
|
-3
|
|
|
|
|||||||||
Other movements
|
4.5
|
|
|
172
|
|
172
|
|
172
|
|||||||||
Total of other equity movements
|
|
-11
|
-22
|
-11 935
|
-3
|
-11 971
|
-81
|
-12 052
|
|||||||||
Total equity at September 30, 2022
|
|
890
|
-70
|
64 543
|
-4 543
|
60 820
|
78
|
60 898
|
|||||||||
The accompanying Notes form an integral part of the condensed interim consolidated
financial statements
|
(USD millions)
|
Note
|
Q3 2023
|
Q3 2022
|
||||
Net income from continuing operations
|
|
1 513
|
1 330
|
||||
Adjustments to reconcile net income to net cash flows from operating activities from
continuing operations
|
|
|
|
||||
Reversal of non-cash items and other adjustments from continuing operations
|
6.1
|
3 329
|
2 920
|
||||
Dividends received from associated companies and others
|
|
1
|
|
||||
Interest received
|
|
109
|
82
|
||||
Interest paid
|
|
-178
|
-159
|
||||
Change in other financial receipts
|
|
37
|
89
|
||||
Change in other financial payments
|
|
-4
|
19
|
||||
Income taxes paid
|
6.2
|
-426
|
-260
|
||||
Net cash flows from operating activities from continuing operations
before working capital and provision changes |
|
4 381 |
4 021 |
||||
Payments out of provisions and other net cash movements in non-current liabilities
|
|
-255
|
-193
|
||||
Change in net current assets and other operating cash flow items
|
6.3
|
1 178
|
447
|
||||
Net cash flows from operating activities from continuing operations
|
|
5 304
|
|
4 275
|
|
||
Net cash flows from operating activities from discontinued operations
|
|
74
|
446
|
||||
Total net cash flows from operating activities
|
|
5 378
|
4 721
|
||||
Purchases of property, plant and equipment
|
|
-261
|
-221
|
||||
Proceeds from sale of property, plant and equipment
|
|
51
|
20
|
||||
Purchases of intangible assets
|
|
-422
|
-251
|
||||
Proceeds from sale of intangible assets
|
|
1 823
|
3
|
||||
Purchases of financial assets
|
|
-11
|
-15
|
||||
Proceeds from sale of financial assets
|
|
91
|
26
|
||||
Purchases of other non-current assets
|
|
|
-1
|
||||
Acquisitions and divestments of interests in associated companies, net
|
|
-3
|
-2
|
||||
Acquisitions and divestments of businesses, net
|
6.4
|
-3 443
|
8
|
||||
Purchases of marketable securities, commodities and time deposits
|
|
-28
|
-6 693
|
||||
Proceeds from sale of marketable securities, commodities and time deposits
|
|
199
|
12 435
|
||||
Net cash flows (used in)/from investing activities from continuing operations
|
|
-2 004
|
5 309
|
||||
Net cash flows used in investing activities from discontinued operations
|
|
-208
|
-111
|
||||
Total net cash flows (used in)/from investing activities
|
|
-2 212
|
5 198
|
||||
Purchases of treasury shares
|
|
-1 625
|
-2 718
|
||||
Proceeds from exercised options and other treasury share transactions, net
|
|
-1
|
|
||||
Repayments of the current portion of non-current financial debts
|
|
-2 223
|
-1 500
|
||||
Change in current financial debts
|
|
-418
|
-499
|
||||
Payments of lease liabilities
|
|
-63
|
-64
|
||||
Other financing cash flows, net
|
|
24
|
32
|
||||
Net cash flows used in financing activities from continuing operations
|
|
-4 306
|
-4 749
|
||||
Net cash flows from financing activities from discontinued operations
|
12
|
3 474
|
11
|
||||
Total net cash flows used in financing activities
|
|
-832
|
-4 738
|
||||
Net change in cash and cash equivalents before effect of exchange rate changes
|
|
2 334
|
5 181
|
||||
Less cash and cash equivalents from discontinued operations at September 30, 2023
|
12
|
-648
|
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
|
-166
|
-80
|
||||
Net change in cash and cash equivalents
|
|
1 520
|
5 101
|
||||
Cash and cash equivalents at July 1
|
|
10 885
|
3 625
|
||||
Cash and cash equivalents at September 30
|
|
12 405
|
8 726
|
||||
The accompanying Notes form an integral part of the condensed interim consolidated
financial statements
|
(USD millions)
|
Note
|
9M 2023
|
9M 2022
|
||||
Net income from continuing operations
|
|
5 934
|
4 734
|
||||
Adjustments to reconcile net income to net cash flows from operating activities from
continuing operations
|
|
|
|
||||
Reversal of non-cash items and other adjustments from continuing operations
|
6.1
|
8 578
|
7 875
|
||||
Dividends received from associated companies and others
|
|
2
|
1
|
||||
Interest received
|
|
482
|
119
|
||||
Interest paid
|
|
-513
|
-455
|
||||
Other financial receipts
|
|
64
|
89
|
||||
Other financial payments
|
|
-14
|
-21
|
||||
Income taxes paid
|
6.2
|
-1 694
|
-1 368
|
||||
Net cash flows from operating activities from continuing operations
before working capital and provision changes |
|
12 839 |
10 974 |
||||
Payments out of provisions and other net cash movements in non-current liabilities
|
|
-1 181
|
-451
|
||||
Change in net current assets and other operating cash flow items
|
6.3
|
15
|
-1 252
|
||||
Net cash flows from operating activities from continuing operations
|
|
11 673
|
|
9 271
|
|
||
Net cash flows from operating activities from discontinued operations
|
|
238
|
854
|
||||
Total net cash flows from operating activities
|
|
11 911
|
10 125
|
||||
Purchases of property, plant and equipment
|
|
-654
|
-610
|
||||
Proceeds from sale of property, plant and equipment
|
|
73
|
56
|
||||
Purchases of intangible assets
|
|
-1 316
|
-1 131
|
||||
Proceeds from sale of intangible assets
|
|
1 953
|
170
|
||||
Purchases of financial assets
|
|
-77
|
-86
|
||||
Proceeds from sale of financial assets
|
|
201
|
121
|
||||
Purchases of other non-current assets
|
|
|
-1
|
||||
Acquisitions and divestments of interests in associated companies, net
|
|
-8
|
-22
|
||||
Acquisitions and divestments of businesses, net
|
6.4
|
-3 550
|
-833
|
||||
Purchases of marketable securities, commodities and time deposits
|
|
-97
|
-24 147
|
||||
Proceeds from sale of marketable securities, commodities and time deposits
|
|
11 216
|
29 706
|
||||
Net cash flows from investing activities from continuing operations
|
|
7 741
|
3 223
|
||||
Net cash flows used in investing activities from discontinued operations
|
|
-385
|
-288
|
||||
Total net cash flows from investing activities
|
|
7 356
|
2 935
|
||||
Dividends paid to shareholders of Novartis AG
|
|
-7 255
|
-7 506
|
||||
Purchases of treasury shares
|
|
-7 468
|
-7 974
|
||||
Proceeds from exercised options and other treasury share transactions, net
|
|
158
|
100
|
||||
Repayments of the current portion of non-current financial debts
|
|
-2 223
|
-2 575
|
||||
Change in current financial debts
|
|
-128
|
1 448
|
||||
Payments of lease liabilities
|
|
-194
|
-198
|
||||
Other financing cash flows, net
|
|
42
|
123
|
||||
Net cash flows used in financing activities from continuing operations
|
|
-17 068
|
-16 582
|
||||
Net cash flows from financing activities from discontinued operations
|
12
|
3 397
|
14
|
||||
Total net cash flows used in financing activities
|
|
-13 671
|
-16 568
|
||||
Net change in cash and cash equivalents before effect of exchange rate changes
|
|
5 596
|
-3 508
|
||||
Less cash and cash equivalents from discontinued operations at September 30, 2023
|
12
|
-648
|
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
|
-60
|
-173
|
||||
Net change in cash and cash equivalents
|
|
4 888
|
-3 681
|
||||
Cash and cash equivalents at January 1
|
|
7 517
|
12 407
|
||||
Cash and cash equivalents at September 30
|
|
12 405
|
8 726
|
||||
The accompanying Notes form an integral part of the condensed interim consolidated
financial statements
|
Notes to the Condensed Interim Consolidated Financial Statements for the three month and nine month period ended September 30, 2023 (unaudited)
|
Number of outstanding shares (in millions)
|
Issued share capital and reserves attributable to Novartis AG shareholders (in USD millions)
|
|||||||||
Note
|
2023
|
2022
|
9M 2023
|
9M 2022
|
|||||||
Balance at beginning of year
|
|
2 119.6
|
2 234.9
|
59 342
|
67 655
|
||||||
Shares acquired to be canceled
|
|
-74.9
|
-94.2
|
-7 150
|
-8 085
|
||||||
Other share purchases
|
|
-1.4
|
-1.3
|
-134
|
-118
|
||||||
Exercise of options and employee transactions
|
4.2
|
2.8
|
1.9
|
151
|
89
|
||||||
Equity-based compensation
|
|
9.4
|
9.7
|
654
|
651
|
||||||
Shares delivered to Alcon employees as a result of the Alcon spin-off
|
|
|
0.0
|
|
5
|
||||||
Taxes on treasury share transactions
|
|
|
|
11
|
12
|
||||||
Decrease of treasury share repurchase obligation
under a share buyback trading plan |
4.3 |
|
|
|
2 809 |
||||||
Transaction costs, net of taxes
|
4.4
|
|
|
-74
|
|
||||||
Dividends
|
|
|
|
-7 255
|
-7 506
|
||||||
Dividend in kind
|
3
|
|
|
-13 962
|
|
||||||
Net income of the period attributable to shareholders of Novartis AG
|
|
|
|
6 370
|
5 489
|
||||||
Other comprehensive income attributable to shareholders of Novartis AG
|
|
|
|
102
|
-353
|
||||||
Other movements
|
4.5
|
|
|
109
|
172
|
||||||
Balance at September 30
|
|
2 055.5
|
2 151.0
|
38 164
|
60 820
|
|
|||||
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||
(USD millions) |
Sep 30,
2023 |
Dec 31,
2022 |
Sep 30,
2023 |
Dec 31,
2022 |
Sep 30,
2023 |
Dec 31,
2022 |
Sep 30,
2023 |
Dec 31,
2022 |
|||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|||||||||
Debt securities
|
60
|
|
|
|
|
|
60
|
|
|||||||||
Total cash and cash equivalents at fair value
|
60
|
|
|
|
|
|
60
|
|
|||||||||
Marketable securities
|
|
|
|
|
|
|
|
|
|||||||||
Debt securities
|
|
|
8
|
9
|
|
|
8
|
9
|
|||||||||
Derivative financial instruments
|
|
|
117
|
204
|
|
|
117
|
204
|
|||||||||
Total marketable securities and derivative financial instruments at fair value
|
|
|
125
|
213
|
|
|
125
|
213
|
|||||||||
Current contingent consideration receivables
|
|
|
|
|
60
|
43
|
60
|
43
|
|||||||||
Current financial investments - equity securities
|
182
|
|
|
|
56
|
|
238
|
|
|||||||||
Long-term financial investments
|
|
|
|
|
|
|
|
|
|||||||||
Debt and equity securities
|
220
|
473
|
10
|
10
|
551
|
699
|
781
|
1 182
|
|||||||||
Fund investments
|
7
|
20
|
|
|
198
|
261
|
205
|
281
|
|||||||||
Non-current contingent consideration receivables
|
|
|
|
|
592
|
607
|
592
|
607
|
|||||||||
Total long-term financial investments at fair value
|
227
|
493
|
10
|
10
|
1 341
|
1 567
|
1 578
|
2 070
|
|||||||||
Associated companies at fair value through profit or loss
|
|
|
|
|
111
|
129
|
111
|
129
|
|||||||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|||||||||
Current contingent consideration liabilities
|
|
|
|
|
-32
|
-131
|
-32
|
-131
|
|||||||||
Current other financial liabilities
|
|
|
|
|
-142
|
|
-142
|
|
|||||||||
Derivative financial instruments
|
|
|
-66
|
-55
|
|
|
-66
|
-55
|
|||||||||
Dividend in kind distribution liability 1
|
|
|
|
|
-13 962
|
|
-13 962
|
|
|||||||||
Total current financial liabilities at fair value
|
|
|
-66
|
-55
|
-14 136
|
-131
|
-14 202
|
-186
|
|||||||||
Non-current contingent consideration liabilities
|
|
|
|
|
-432
|
-704
|
-432
|
-704
|
|||||||||
Non-current other financial liabilities
|
|
|
|
|
-23
|
-232
|
-23
|
-232
|
|||||||||
Total non-current financial liabilities at fair value
|
|
|
|
|
-455
|
-936
|
-455
|
-936
|
|||||||||
1 See Note 3 for further disclosures
|
(USD millions)
|
Q3 2023
|
Q3 2022
|
|||
Depreciation, amortization and impairments on:
|
|
|
|||
Property, plant and equipment
|
295
|
307
|
|||
Right-of-use assets
|
64
|
64
|
|||
Intangible assets
|
2 752
|
1 544
|
|||
Financial assets 1
|
-6
|
90
|
|||
Change in provisions and other non-current liabilities
|
-130
|
228
|
|||
Gains on disposal and other adjustments on property, plant and equipment; intangible
assets;
financial assets; and other non-current assets, net |
-65 |
-15 |
|||
Equity-settled compensation expense
|
205
|
208
|
|||
Loss from associated companies
|
3
|
5
|
|||
Income taxes
|
39
|
257
|
|||
Net financial expense
|
207
|
234
|
|||
Other
|
-35
|
-2
|
|||
Total
|
3 329
|
2 920
|
|||
1 Includes fair value changes
|
(USD millions)
|
9M 2023
|
9M 2022
|
|||
Depreciation, amortization and impairments on:
|
|
|
|||
Property, plant and equipment
|
760
|
1 025
|
|||
Right-of-use assets
|
197
|
200
|
|||
Intangible assets
|
5 732
|
3 658
|
|||
Financial assets 1
|
69
|
288
|
|||
Change in provisions and other non-current liabilities
|
232
|
835
|
|||
Gains on disposal and other adjustments on property, plant and equipment; intangible
assets;
financial assets; and other non-current assets, net |
-281 |
-181 |
|||
Equity-settled compensation expense
|
617
|
602
|
|||
Loss from associated companies
|
7
|
8
|
|||
Income taxes
|
812
|
874
|
|||
Net financial expense
|
434
|
575
|
|||
Other
|
-1
|
-9
|
|||
Total
|
8 578
|
7 875
|
|||
1 Includes fair value changes
|
(USD millions)
|
Q3 2023
|
Q3 2022
|
9M 2023
|
9M 2022
|
|||||
Increase in inventories
|
-33
|
-129
|
-579
|
-514
|
|||||
Increase in trade receivables
|
-117
|
-136
|
-1 264
|
-825
|
|||||
Decrease in trade payables
|
-184
|
-121
|
-85
|
-325
|
|||||
Change in other current and non-current assets
|
16
|
127
|
-84
|
-86
|
|||||
Change in other current liabilities
|
1 496
|
706
|
2 027
|
498
|
|||||
Total
|
1 178
|
447
|
15
|
-1 252
|
|||||
(USD millions)
|
Q3 2023
|
Q3 2022
|
9M 2023
|
9M 2022
|
|||||
Net assets recognized as a result of acquisitions of businesses
|
-3 696
|
9
|
-3 696
|
-1 077
|
|||||
Fair value of previously held equity interests
|
27
|
-2
|
27
|
22
|
|||||
Contingent consideration payable, net
|
163
|
-7
|
153
|
224
|
|||||
Payments (incl. prepayments), deferred consideration and other adjustments, net
|
61
|
|
-39
|
1
|
|||||
Cash flows used for acquisitions of businesses
|
-3 445
|
0
|
-3 555
|
-830
|
|||||
Cash flows from/(used for) divestments of businesses, net 1
|
2
|
8
|
5
|
-3
|
|||||
Cash flows (used in)/from acquisitions and divestments of businesses, net
|
-3 443
|
8
|
-3 550
|
-833
|
|||||
1 In the first nine months of 2023, USD 5 million (Q3 2023: USD 2 million) represented the net cash inflows from divestments in prior years.
|
|||||||||
In the first nine months of 2022, USD 3 million (Q3 2022: USD 8 million net cash inflows) net cash outflows from divestments of businesses included
USD 20 million (Q3 2022: nil) reduction to cash and cash equivalents due to the derecognized cash and cash equivalents
following a loss of control of a company upon expiry of an option to purchase the
company, partly offset by net cash inflows of USD 17 million (Q3 2022: USD 8 million) from business divestments in the 2022 periods and in prior years.
|
|||||||||
In the first nine months of 2022, the net identifiable assets of divested businesses
amounted to USD 106 million (Q3 2022: nil), comprised of non-current assets of USD 113 million (Q3 2022: nil), current assets of USD 22 million (Q3 2022: nil), including USD 20 million (Q3 2022: nil) cash and cash equivalents and of non-current and current liabilities of USD 29 million (Q3 2022: nil).
|
(USD millions)
|
9M 2023
|
9M 2022
|
|||
Property, plant and equipment
|
18
|
13
|
|||
Right-of-use assets
|
16
|
12
|
|||
Acquired research and development
|
2 408
|
1 213
|
|||
Other intangible assets
|
15
|
|
|||
Deferred tax assets
|
182
|
53
|
|||
Non-current financial and other assets
|
148
|
|
|||
Trade receivable and financial and other current assets
|
181
|
5
|
|||
Cash and cash equivalents
|
226
|
88
|
|||
Deferred tax liabilities
|
-592
|
-301
|
|||
Current and non-current lease liabilities
|
-50
|
-12
|
|||
Trade payables and other liabilities
|
-152
|
-68
|
|||
Net identifiable assets acquired
|
2 400
|
1 003
|
|||
Acquired cash and cash equivalents
|
-226
|
-88
|
|||
Goodwill
|
1 522
|
162
|
|||
Net assets recognized as a result of acquisitions of businesses 1
|
3 696
|
1 077
|
|||
1 All net assets recognized relate to business combinations of continuing operations.
|
(USD millions)
|
Q3 2023
|
Q3 2022
|
9M 2023
|
9M 2022
|
|||||
Net sales to third parties from continuing operations
|
11 436
|
10 299
|
33 212
|
31 006
|
|||||
Sales to discontinued operations
|
346
|
193
|
805
|
624
|
|||||
Net sales from continuing operations
|
11 782
|
10 492
|
34 017
|
31 630
|
|||||
Q3 2023
USD m |
Q3 2022
USD m |
% change
USD |
% change
cc 2 |
Q3 2023
% of total |
Q3 2022
% of total |
||||||||
Europe
|
3 930
|
3 360
|
17
|
11
|
33
|
32
|
|||||||
US
|
4 648
|
4 117
|
13
|
13
|
39
|
39
|
|||||||
Asia/Africa/Australasia
|
2 349
|
2 272
|
3
|
8
|
20
|
22
|
|||||||
Canada and Latin America
|
855
|
743
|
15
|
21
|
8
|
7
|
|||||||
Total
|
11 782
|
10 492
|
12
|
12
|
100
|
100
|
|||||||
Of which in Established Markets
|
8 719
|
7 729
|
13
|
10
|
74
|
74
|
|||||||
Of which in Emerging Growth Markets
|
3 063
|
2 763
|
11
|
17
|
26
|
26
|
|||||||
|
|
|
|
|
|
||||||||
1 Net sales from continuing operations by location of customer. Emerging Growth Markets
comprise all markets other than the Established Markets of the US, Canada, Western
Europe, Japan, Australia and New Zealand.
|
|||||||||||||
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures
used by Novartis can be found starting on page 48.
|
9M 2023
USD m |
9M 2022
USD m |
% change
USD |
% change
cc 2 |
9M 2023
% of total |
9M 2022
% of total |
||||||||
Europe
|
11 281
|
10 776
|
5
|
5
|
33
|
34
|
|||||||
US
|
13 196
|
11 717
|
13
|
13
|
39
|
37
|
|||||||
Asia/Africa/Australasia
|
7 077
|
6 944
|
2
|
9
|
21
|
22
|
|||||||
Canada and Latin America
|
2 463
|
2 193
|
12
|
20
|
7
|
7
|
|||||||
Total
|
34 017
|
31 630
|
8
|
10
|
100
|
100
|
|||||||
Of which in Established Markets
|
25 070
|
23 401
|
7
|
7
|
74
|
74
|
|||||||
Of which in Emerging Growth Markets
|
8 947
|
8 229
|
9
|
17
|
26
|
26
|
|||||||
1 Net sales from continuing operations by location of customer. Emerging Growth Markets
comprise all markets other than the Established Markets of the US, Canada, Western
Europe, Japan, Australia and New Zealand.
|
|||||||||||||
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures
used by Novartis can be found starting on page 48.
|
Q3 2023
|
Q3 2022
|
% change
|
% change
|
||||||
USD m
|
USD m 1
|
USD
|
cc 2
|
||||||
Cardiovascular, Renal and Metabolic
|
|
|
|
|
|||||
Entresto
|
1 485
|
1 135
|
31
|
31
|
|||||
Leqvio
|
90
|
34
|
165
|
165
|
|||||
Total Cardiovascular, Renal and Metabolic
|
1 575
|
1 169
|
35
|
34
|
|||||
|
|
|
|
||||||
Immunology
|
|
|
|
|
|||||
Cosentyx
|
1 329
|
1 274
|
4
|
4
|
|||||
Xolair 3
|
369
|
322
|
15
|
13
|
|||||
Ilaris
|
335
|
272
|
23
|
24
|
|||||
Total Immunology
|
2 033
|
1 868
|
9
|
9
|
|||||
|
|
|
|
||||||
Neuroscience
|
|
|
|
|
|||||
Kesimpta
|
657
|
289
|
127
|
124
|
|||||
Zolgensma
|
308
|
319
|
-3
|
-2
|
|||||
Mayzent
|
103
|
94
|
10
|
9
|
|||||
Aimovig
|
69
|
50
|
38
|
32
|
|||||
Total Neuroscience
|
1 137
|
752
|
51
|
50
|
|||||
|
|
|
|
||||||
Oncology
|
|
|
|
|
|||||
Promacta/Revolade
|
576
|
523
|
10
|
10
|
|||||
Kisqali
|
562
|
327
|
72
|
76
|
|||||
Tafinlar + Mekinist
|
482
|
450
|
7
|
8
|
|||||
Tasigna
|
464
|
489
|
-5
|
-5
|
|||||
Jakavi
|
427
|
386
|
11
|
9
|
|||||
Pluvicto
|
256
|
80
|
220
|
217
|
|||||
Lutathera
|
159
|
132
|
20
|
19
|
|||||
Kymriah
|
124
|
134
|
-7
|
-9
|
|||||
Piqray/Vijoice
|
128
|
103
|
24
|
24
|
|||||
Votrient
|
102
|
118
|
-14
|
-14
|
|||||
Scemblix
|
106
|
41
|
159
|
157
|
|||||
Adakveo
|
45
|
50
|
-10
|
-11
|
|||||
Tabrecta
|
36
|
36
|
0
|
1
|
|||||
Total Oncology
|
3 467
|
2 869
|
21
|
21
|
|||||
|
|
|
|
||||||
Other Promoted Brands
|
|
|
|
|
|||||
Ultibro Group
|
104
|
108
|
-4
|
-7
|
|||||
Xiidra
|
64
|
109
|
-41
|
-41
|
|||||
Beovu
|
47
|
52
|
-10
|
-9
|
|||||
Other respiratory
|
21
|
19
|
11
|
21
|
|||||
Total Other Promoted Brands
|
236
|
288
|
-18
|
-19
|
|||||
|
|
|
|
||||||
Total Promoted Brands
|
8 448
|
6 946
|
22
|
21
|
|||||
|
|
|
|
||||||
Established Brands
|
|
|
|
|
|||||
Lucentis
|
363
|
455
|
-20
|
-22
|
|||||
Sandostatin
|
338
|
295
|
15
|
15
|
|||||
Gilenya
|
270
|
507
|
-47
|
-48
|
|||||
Exforge Group
|
187
|
185
|
1
|
3
|
|||||
Galvus Group
|
181
|
212
|
-15
|
-4
|
|||||
Diovan Group
|
153
|
160
|
-4
|
-1
|
|||||
Gleevec/Glivec
|
144
|
178
|
-19
|
-17
|
|||||
Afinitor/Votubia
|
85
|
125
|
-32
|
-30
|
|||||
Contract manufacturing 4
|
471
|
271
|
74
|
60
|
|||||
Other 5
|
1 142
|
1 158
|
-1
|
-2
|
|||||
Total Established Brands 4, 5
|
3 334
|
3 546
|
-6
|
-7
|
|||||
|
|
|
|
||||||
Total net sales from continuing operations
|
11 782
|
10 492
|
12
|
12
|
|||||
1 In Q1 2023 Lucentis was reclassified from Other Promoted Brands to Established
Brands and Gilenya was reclassified from Neuroscience to Established Brands.
These reclassifications have been reflected in Q3 2022.
|
|||||||||
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures
used by Novartis can be found starting on page 48.
|
|||||||||
3 Net sales to from continuing operations reflect Xolair sales for all indications.
|
|||||||||
4 2022 restated to reflect the transfer of the Sandoz Division’s biotechnology manufacturing
services to other companies’ activities to the Innovative Medicines Division that
was effective as of January 1, 2023.
|
|||||||||
5 2022 restated to reflect the transfer of the Coartem brand from the Sandoz Division
to the Innovative Medicines Division that was effective as of January 1, 2023.
|
|||||||||
9M 2023
|
9M 2022
|
% change
|
% change
|
||||||
USD m
|
USD m 1
|
USD
|
cc 2
|
||||||
Cardiovascular, Renal and Metabolic
|
|
|
|
|
|||||
Entresto
|
4 400
|
3 353
|
31
|
33
|
|||||
Leqvio
|
232
|
70
|
231
|
231
|
|||||
Total Cardiovascular, Renal and Metabolic
|
4 632
|
3 423
|
35
|
37
|
|||||
|
|
|
|
||||||
Immunology
|
|
|
|
|
|||||
Cosentyx
|
3 677
|
3 708
|
-1
|
1
|
|||||
Xolair 3
|
1 085
|
1 042
|
4
|
6
|
|||||
Ilaris
|
979
|
832
|
18
|
20
|
|||||
Other
|
|
1
|
nm
|
nm
|
|||||
Total Immunology
|
5 741
|
5 583
|
3
|
4
|
|||||
|
|
|
|
||||||
Neuroscience
|
|
|
|
|
|||||
Kesimpta
|
1 530
|
723
|
112
|
112
|
|||||
Zolgensma
|
928
|
1 061
|
-13
|
-11
|
|||||
Mayzent
|
286
|
258
|
11
|
12
|
|||||
Aimovig
|
197
|
159
|
24
|
24
|
|||||
Other
|
|
1
|
nm
|
nm
|
|||||
Total Neuroscience
|
2 941
|
2 202
|
34
|
35
|
|||||
|
|
|
|
||||||
Oncology
|
|
|
|
|
|||||
Promacta/Revolade
|
1 706
|
1 548
|
10
|
12
|
|||||
Kisqali
|
1 470
|
874
|
68
|
74
|
|||||
Tafinlar + Mekinist
|
1 436
|
1 305
|
10
|
13
|
|||||
Tasigna
|
1 402
|
1 448
|
-3
|
-1
|
|||||
Jakavi
|
1 276
|
1 173
|
9
|
11
|
|||||
Pluvicto
|
707
|
92
|
nm
|
nm
|
|||||
Lutathera
|
458
|
343
|
34
|
34
|
|||||
Kymriah
|
388
|
397
|
-2
|
-1
|
|||||
Piqray/Vijoice
|
374
|
261
|
43
|
44
|
|||||
Votrient
|
313
|
371
|
-16
|
-14
|
|||||
Scemblix
|
288
|
97
|
197
|
198
|
|||||
Adakveo
|
150
|
143
|
5
|
5
|
|||||
Tabrecta
|
113
|
97
|
16
|
17
|
|||||
Other
|
1
|
2
|
nm
|
nm
|
|||||
Total Oncology
|
10 082
|
8 151
|
24
|
26
|
|||||
|
|
|
|
||||||
Other Promoted Brands
|
|
|
|
|
|||||
Ultibro Group
|
332
|
366
|
-9
|
-8
|
|||||
Xiidra
|
249
|
342
|
-27
|
-27
|
|||||
Beovu
|
151
|
154
|
-2
|
1
|
|||||
Other respiratory
|
69
|
58
|
19
|
27
|
|||||
Total Other Promoted Brands
|
801
|
920
|
-13
|
-11
|
|||||
|
|
|
|
||||||
Total Promoted Brands
|
24 197
|
20 279
|
19
|
21
|
|||||
|
|
|
|
||||||
Established Brands
|
|
|
|
|
|||||
Lucentis
|
1 174
|
1 476
|
-20
|
-19
|
|||||
Sandostatin
|
998
|
933
|
7
|
8
|
|||||
Gilenya
|
771
|
1 667
|
-54
|
-53
|
|||||
Exforge Group
|
557
|
584
|
-5
|
-1
|
|||||
Galvus Group
|
539
|
650
|
-17
|
-10
|
|||||
Diovan Group
|
466
|
510
|
-9
|
-4
|
|||||
Gleevec/Glivec
|
433
|
570
|
-24
|
-21
|
|||||
Afinitor/Votubia
|
311
|
406
|
-23
|
-21
|
|||||
Contract manufacturing 4
|
1 174
|
879
|
34
|
30
|
|||||
Other 5
|
3 397
|
3 676
|
-8
|
-3
|
|||||
Total Established Brands 4, 5
|
9 820
|
11 351
|
-13
|
-11
|
|||||
|
|
|
|
||||||
Total net sales from continuing operations
|
34 017
|
31 630
|
8
|
10
|
|||||
1 In Q1 2023 Lucentis was reclassified from Other Promoted Brands to Established
Brands and Gilenya was reclassified from Neuroscience to Established Brands.These
reclassifications have been reflected in 9M 2022.
|
|||||||||
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures
used by Novartis can be found starting on page 48.
|
|||||||||
3 Net sales from continuing operations reflect Xolair sales for all indications.
|
|||||||||
4 2022 restated to reflect the transfer of the Sandoz Division’s biotechnology manufacturing
services to other companies’ activities to the Innovative Medicines Division that
was effective as of January 1, 2023.
|
|||||||||
5 2022 restated to reflect the transfer of the Coartem brand from the Sandoz Division
to the Innovative Medicines Division that was effective as of January 1, 2023.
|
|||||||||
|
|||||||||
nm = not meaningful
|
|
|
US
|
Rest of world
|
Total
|
|||||||||||||||||
Brands
|
Brand classification by therapeutic area, other promoted brands or established brands
|
Key indications
|
USD m
|
% change USD/cc 1
|
USD m
|
% change USD
|
% change cc 1
|
USD m
|
% change USD
|
% change cc 1
|
|||||||||||
Entresto
|
Cardiovascular, Renal and Metabolic
|
Chronic heart failure, hypertension
|
728
|
28
|
757
|
34
|
34
|
1 485
|
31
|
31
|
|||||||||||
Cosentyx
|
Immunology
|
Psoriasis (PsO), ankylosing spondylitis (AS), psoriatic arthritis (PsA), non-radiographic axial spondyloarthritis (nr-axSPA), hidradenitis suppurativa (HS)
|
717
|
-3
|
612
|
15
|
15
|
1 329
|
4
|
4
|
|||||||||||
Promacta/Revolade
|
Oncology
|
Immune thrombocytopenia (ITP), severe aplastic anemia (SAA)
|
314
|
11
|
262
|
10
|
8
|
576
|
10
|
10
|
|||||||||||
Kesimpta
|
Neuroscience
|
Relapsing-remitting multiple sclerosis (RRMS)
|
407
|
70
|
250
|
nm
|
nm
|
657
|
127
|
124
|
|||||||||||
Kisqali
|
Oncology
|
HR+/HER2- metastatic breast cancer
|
294
|
119
|
268
|
39
|
45
|
562
|
72
|
76
|
|||||||||||
Tafinlar + Mekinist
|
Oncology
|
BRAF V600+ metastatic adjuvant melanoma, advanced non-small cell lung cancer (NSCLC), tumor agnostic with BRAF mutation indication
|
201
|
15
|
281
|
2
|
3
|
482
|
7
|
8
|
|||||||||||
Tasigna
|
Oncology
|
Chronic myeloid leukemia (CML)
|
221
|
-6
|
243
|
-5
|
-5
|
464
|
-5
|
-5
|
|||||||||||
Jakavi
|
Oncology
|
Myelofibrosis (MF), polycytomia vera (PV), graft-versus-host disease (GvHD)
|
|
|
427
|
11
|
9
|
427
|
11
|
9
|
|||||||||||
Lucentis 2
|
Established Brands
|
Age-related macular degeneration (AMD), diabetic macular edema (DME), retinal vein occlusion (RVO)
|
|
|
363
|
-20
|
-22
|
363
|
-20
|
-22
|
|||||||||||
Xolair 3
|
Immunology
|
Severe allergic asthma (SAA), chronic spontaneous urticaria (CSU), nasal polyps
|
|
|
369
|
15
|
13
|
369
|
15
|
13
|
|||||||||||
Sandostatin
|
Established Brands
|
Carcinoid tumors, acromegaly
|
218
|
15
|
120
|
14
|
16
|
338
|
15
|
15
|
|||||||||||
Ilaris
|
Immunology
|
Auto-inflammatory (CAPS, TRAPS, HIDS/MKD, FMF, SJIA, AOSD, gout)
|
182
|
27
|
153
|
19
|
20
|
335
|
23
|
24
|
|||||||||||
Zolgensma
|
Neuroscience
|
Spinal muscular atrophy (SMA)
|
89
|
-10
|
219
|
0
|
2
|
308
|
-3
|
-2
|
|||||||||||
Gilenya 2
|
Established Brands
|
Relapsing multiple sclerosis (RMS)
|
120
|
-63
|
150
|
-17
|
-19
|
270
|
-47
|
-48
|
|||||||||||
Pluvicto
|
Oncology
|
PSMA-positive mCRPC patients post-ARPI, post-Taxane
|
238
|
222
|
18
|
200
|
165
|
256
|
220
|
217
|
|||||||||||
Exforge Group
|
Established Brands
|
Hypertension
|
3
|
-40
|
184
|
2
|
4
|
187
|
1
|
3
|
|||||||||||
Galvus Group
|
Established Brands
|
Type 2 diabetes
|
|
|
181
|
-15
|
-4
|
181
|
-15
|
-4
|
|||||||||||
Diovan Group
|
Established Brands
|
Hypertension
|
11
|
0
|
142
|
-5
|
-1
|
153
|
-4
|
-1
|
|||||||||||
Lutathera
|
Oncology
|
GEP-NETs gastroenteropancreatic neuroendocrine tumors
|
114
|
18
|
45
|
29
|
23
|
159
|
20
|
19
|
|||||||||||
Gleevec/Glivec
|
Established Brands
|
Chronic myeloid leukemia (CML), gastrointestinal stromal tumors (GIST)
|
41
|
-16
|
103
|
-20
|
-18
|
144
|
-19
|
-17
|
|||||||||||
Top 20 brands total
|
|
|
3 898
|
16
|
5 147
|
11
|
12
|
9 045
|
13
|
13
|
|||||||||||
Rest of portfolio 4
|
|
|
750
|
1
|
1 987
|
13
|
10
|
2 737
|
9
|
7
|
|||||||||||
Total net sales from continuing operations 4
|
|
|
4 648
|
13
|
7 134
|
12
|
11
|
11 782
|
12
|
12
|
|||||||||||
1 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures
used by Novartis can be found starting on page 48.
|
|||||||||||||||||||||
2 In Q1 2023 Lucentis was reclassified from Other Promoted Brands to Established
Brands and Gilenya was reclassified from Neuroscience to Established Brands.
|
|||||||||||||||||||||
3 Net sales from continuing operations reflect Xolair sales for all indications.
|
|||||||||||||||||||||
4 % change has been restated to reflect the transfers of the Sandoz Division’s biotechnology
manufacturing services and the Coartem brand to the Innovative Medicines Division
that were effective as of January 1, 2023.
|
|||||||||||||||||||||
nm = not meaningful
|
|
|
US
|
Rest of world
|
Total
|
|||||||||||||||||
Brands
|
Brand classification by therapeutic area, other promoted brands or established brands
|
Key indications
|
USD m
|
% change USD/cc 1
|
USD m
|
% change USD
|
% change cc 1
|
USD m
|
% change USD
|
% change cc 1
|
|||||||||||
Entresto
|
Cardiovascular, Renal and Metabolic
|
Chronic heart failure, hypertension
|
2 187
|
32
|
2 213
|
31
|
35
|
4 400
|
31
|
33
|
|||||||||||
Cosentyx
|
Immunology
|
Psoriasis (PsO), ankylosing spondylitis (AS), psoriatic arthritis (PsA), non-radiographic axial spondyloarthritis (nr-axSPA), hidradenitis suppurativa (HS)
|
1 895
|
-11
|
1 782
|
13
|
17
|
3 677
|
-1
|
1
|
|||||||||||
Promacta/Revolade
|
Oncology
|
Immune thrombocytopenia (ITP), severe aplastic anemia (SAA)
|
904
|
13
|
802
|
7
|
10
|
1 706
|
10
|
12
|
|||||||||||
Kesimpta
|
Neuroscience
|
Relapsing-remitting multiple sclerosis (RRMS)
|
1 075
|
75
|
455
|
nm
|
nm
|
1 530
|
112
|
112
|
|||||||||||
Kisqali
|
Oncology
|
HR+/HER2- metastatic breast cancer
|
700
|
117
|
770
|
40
|
49
|
1 470
|
68
|
74
|
|||||||||||
Tafinlar + Mekinist
|
Oncology
|
BRAF V600+ metastatic adjuvant melanoma, advanced non-small cell lung cancer (NSCLC), tumor agnostic with BRAF mutation indication
|
591
|
17
|
845
|
5
|
10
|
1 436
|
10
|
13
|
|||||||||||
Tasigna
|
Oncology
|
Chronic myeloid leukemia (CML)
|
664
|
2
|
738
|
-7
|
-4
|
1 402
|
-3
|
-1
|
|||||||||||
Jakavi
|
Oncology
|
Myelofibrosis (MF), polycytomia vera (PV), graft-versus-host disease (GvHD)
|
|
|
1 276
|
9
|
11
|
1 276
|
9
|
11
|
|||||||||||
Lucentis 2
|
Established Brands
|
Age-related macular degeneration (AMD), diabetic macular edema (DME), retinal vein occlusion (RVO)
|
|
|
1 174
|
-20
|
-19
|
1 174
|
-20
|
-19
|
|||||||||||
Xolair 3
|
Immunology
|
Severe allergic asthma (SAA), chronic spontaneous urticaria (CSU), nasal polyps
|
|
|
1 085
|
4
|
6
|
1 085
|
4
|
6
|
|||||||||||
Sandostatin
|
Established Brands
|
Carcinoid tumors, acromegaly
|
630
|
6
|
368
|
10
|
14
|
998
|
7
|
8
|
|||||||||||
Ilaris
|
Immunology
|
Auto-inflammatory (CAPS, TRAPS, HIDS/MKD, FMF, SJIA, AOSD, gout)
|
486
|
20
|
493
|
15
|
19
|
979
|
18
|
20
|
|||||||||||
Zolgensma
|
Neuroscience
|
Spinal muscular atrophy (SMA)
|
282
|
-16
|
646
|
-11
|
-8
|
928
|
-13
|
-11
|
|||||||||||
Gilenya 2
|
Established Brands
|
Relapsing multiple sclerosis (RMS)
|
304
|
-68
|
467
|
-34
|
-32
|
771
|
-54
|
-53
|
|||||||||||
Pluvicto
|
Oncology
|
PSMA-positive mCRPC patients post-ARPI, post-Taxane
|
670
|
nm
|
37
|
270
|
242
|
707
|
nm
|
nm
|
|||||||||||
Exforge Group
|
Established Brands
|
Hypertension
|
11
|
-8
|
546
|
-5
|
-1
|
557
|
-5
|
-1
|
|||||||||||
Galvus Group
|
Established Brands
|
Type 2 diabetes
|
|
|
539
|
-17
|
-10
|
539
|
-17
|
-10
|
|||||||||||
Diovan Group
|
Established Brands
|
Hypertension
|
38
|
0
|
428
|
-9
|
-4
|
466
|
-9
|
-4
|
|||||||||||
Lutathera
|
Oncology
|
GEP-NETs gastroenteropancreatic neuroendocrine tumors
|
324
|
36
|
134
|
29
|
30
|
458
|
34
|
34
|
|||||||||||
Gleevec/Glivec
|
Established Brands
|
Chronic myeloid leukemia (CML), gastrointestinal stromal tumors (GIST)
|
118
|
-24
|
315
|
-24
|
-20
|
433
|
-24
|
-21
|
|||||||||||
Top 20 brands total
|
|
|
10 879
|
14
|
15 113
|
5
|
9
|
25 992
|
9
|
11
|
|||||||||||
Rest of portfolio 4
|
|
|
2 317
|
6
|
5 708
|
3
|
6
|
8 025
|
4
|
6
|
|||||||||||
Total net sales from continuing operations 4
|
|
|
13 196
|
13
|
20 821
|
5
|
8
|
34 017
|
8
|
10
|
|||||||||||
1 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures
used by Novartis can be found starting on page 48.
|
|||||||||||||||||||||
2 In Q1 2023 Lucentis was reclassified from Other Promoted Brands to Established
Brands and Gilenya was reclassified from Neuroscience to Established Brands.
|
|||||||||||||||||||||
3 Net sales from continuing operations reflect Xolair sales for all indications.
|
|||||||||||||||||||||
4 % change has been restated to reflect the transfers of the Sandoz Division’s biotechnology
manufacturing services and the Coartem brand to the Innovative Medicines Division
that were effective as of January 1, 2023.
|
|||||||||||||||||||||
nm = not meaningful
|
(USD millions)
|
Q3 2023
|
Q3 2022
|
9M 2023
|
9M 2022
|
|||||
Profit sharing income
|
251
|
246
|
696
|
674
|
|||||
Royalty income
|
22
|
10
|
63
|
21
|
|||||
Milestone income
|
7
|
8
|
35
|
47
|
|||||
Other 1
|
30
|
27
|
73
|
123
|
|||||
Total other revenues
|
310
|
291
|
867
|
865
|
|||||
1 Other includes revenue from activities such as manufacturing or other services rendered,
to the extent such revenue is not recorded under net sales.
|
(USD millions)
|
Q3 2023
|
Q3 2022
|
9M 2023
|
9M 2022
|
|||||
Balance at beginning of period
|
1 045
|
731
|
1 131
|
345
|
|||||
Provisions related to
discontinued operations 1 |
-41 |
|
-51 |
|
|||||
Additions to provisions 2
|
58
|
289
|
523
|
851
|
|||||
Cash payments
|
-179
|
-87
|
-645
|
-231
|
|||||
Releases of provisions 3
|
-23
|
-20
|
-115
|
-35
|
|||||
Transfers
|
-42
|
-1
|
-43
|
-1
|
|||||
Currency translation effects
|
-9
|
-9
|
9
|
-26
|
|||||
Balance at closing of period
|
809
|
903
|
809
|
903
|
|||||
|
|||||||||
1 Notes 2, 3 and 12 provide information related to discontinued operations.
|
|||||||||
2 Provisions charged to the consolidated income statement from continuing operations
were USD 283 million in Q3 2022 and USD 816 million in 9M 2022.
|
|||||||||
3 Releases of provisions credited to the consolidated income statement from continuing
operations were USD 15 million in Q3 2022 and USD 25 million in 9M 2022.
|
(USD millions)
|
Q3 2023
|
Q3 2022
|
9M 2023
|
9M 2022
|
|||||
Property, plant and equipment impairment charges
|
-27
|
-61
|
-85
|
-320
|
|||||
Property, plant and equipment impairment reversal
|
-37
|
0
|
11
|
2
|
|||||
Right-of-use assets impairment charges
|
-2
|
|
-2
|
|
|||||
Intangible assets impairment charges 1
|
-1 739
|
-595
|
-2 665
|
-858
|
|||||
1 First nine months 2023 intangible assets impairment charges include the write-down
of IPR&D on the cessation of clinical development programs, including the clinical
development programs PPY988 (USD 1.0 billion) and VDT482 (USD 0.4 billion), and the
clinical research program NIZ985 (USD 0.3 billion); as well as the write-down of a
currently marketed product by USD 0.3 billion to reflect reduction in its recoverable
amount.
|
|||||||||
First nine months 2022 intangible assets impairment charges include the write-down
of IPR&D on the cessation of clinical development programs, including UNR844 (USD
0.6 billion).
|
(USD millions)
|
Q3 2023
|
Q3 2022
|
9M 2023
|
9M 2022
|
|||||
Net sales to third parties from discontinued operations
|
2 329
|
2 244
|
7 128
|
6 849
|
|||||
Sales to continuing operations
|
147
|
42
|
300
|
149
|
|||||
Net sales from discontinued operations
|
2 476
|
2 286
|
7 428
|
6 998
|
|||||
Other revenues
|
7
|
8
|
19
|
21
|
|||||
Cost from goods sold
|
-1 493
|
-1 167
|
-4 044
|
-3 645
|
|||||
Gross profit from discontinued operations
|
990
|
1 127
|
3 403
|
3 374
|
|||||
Selling, general and administration
|
-581
|
-477
|
-1 728
|
-1 496
|
|||||
Research and development
|
-230
|
-194
|
-671
|
-598
|
|||||
Other income
|
28
|
17
|
56
|
96
|
|||||
Other expense
|
-293
|
-131
|
-795
|
-319
|
|||||
Operating (loss)/income from discontinued operations
|
-86
|
342
|
265
|
1 057
|
|||||
as % from net sales
|
-3.5%
|
15.0%
|
3.6%
|
15.1%
|
|||||
Income from associated companies
|
1
|
1
|
2
|
2
|
|||||
Interest expense
|
-14
|
-9
|
-33
|
-25
|
|||||
Other financial income and expense
|
-2
|
-2
|
-20
|
-12
|
|||||
(Loss)/Income before taxes from discontinued operations
|
-101
|
332
|
214
|
1 022
|
|||||
Taxes 1
|
351
|
-87
|
226
|
-267
|
|||||
Net income from discontinued operations
|
250
|
245
|
440
|
755
|
|||||
1 The tax rate in the third quarter 2023 and in the first nine months 2023 was impacted
by non-recurring items such as tax benefits arising from intercompany transactions
to effect the spin-off of the Sandoz business, net decreases in uncertain tax positions
of the Sandoz business and the favorable settlement of a tax matter related to the
Alcon business, which was spun-off in 2019. Excluding these impacts, the tax rate
would have been 28% in third quarter 2023 and 31.2% in the first nine months 2023,
compared to 26.2% and 26.1% in third quarter 2022 and the first nine months 2022,
respectively. The tax rate in the third quarter 2023 is higher than the prior year
period primarily due to a change in profit mix. The tax rate in the first nine months
2023 is higher than the prior year period primarily due to a change in profit mix
and the increased relative impact of recurring permanent items as a result of lower
income before taxes for the first nine months 2023 compared to 2022.
|
(USD millions) |
Sep 30,
2023 (unaudited) |
||
Assets related to discontinued operations
|
|
||
Property, plant and equipment
|
1 447
|
||
Right-of-use assets
|
133
|
||
Goodwill
|
7 424
|
||
Intangible assets other than goodwill
|
1 481
|
||
Deferred tax assets
|
661
|
||
Financial assets, investments in associated companies and other non-current assets
|
142
|
||
Inventories
|
2 565
|
||
Trade receivables
|
2 277
|
||
Cash and cash equivalents 1
|
648
|
||
Other current assets and income tax receivables
|
696
|
||
Assets related to discontinued operations
|
17 474
|
||
|
|||
Liabilities related to discontinued operations
|
|
||
Non-current and current financial debts
|
3 691
|
||
Non-current and current lease liabilities
|
139
|
||
Deferred tax liabilities
|
270
|
||
Non-current and current provisions and other liabilities
|
3 335
|
||
Trade payables
|
1 152
|
||
Current income tax liabilities
|
203
|
||
Liabilities related to discontinued operations
|
8 790
|
||
|
|||
Net assets related to discontinued operations
|
8 684
|
||
1 On October 2, 2023 through a series of intercompany transactions in connection with
the Distribution (spin-off) of the Sandoz business to Novartis AG shareholders (refer
to Note 3 for further details) USD 38 million was paid in cash from a Novartis affiliate
to the Sandoz business. Including this transaction, cash and cash equivalents on Distribution
date October 3, 2023, amounted to USD 686 million.
|
(USD millions)
|
Q3 2023
|
Q3 2022
|
9M 2023
|
9M 2022
|
|||||
Interest income
|
1
|
1
|
2
|
2
|
|||||
Depreciation of property, plant and equipment
|
-45
|
-44
|
-144
|
-147
|
|||||
Depreciation of right-of-use assets
|
-14
|
-8
|
-32
|
-25
|
|||||
Amortization of intangible assets
|
-60
|
-55
|
-171
|
-168
|
|||||
Impairment charges on property, plant and equipment
|
-3
|
|
-5
|
-1
|
|||||
Impairment charges on intangible assets
|
-30
|
-7
|
-44
|
-11
|
|||||
Additions to restructuring provisions
|
-11
|
-5
|
-27
|
-35
|
|||||
Equity-based compensation of Novartis equity plans
|
-24
|
-17
|
-60
|
-46
|
|||||
(USD millions) |
Sep 30,
2023 (unaudited) |
||
Additions to property, plant and equipment
|
245
|
||
Additions to right-of-use assets
|
66
|
||
Additions to goodwill and intangible assets
|
221
|
||
Supplementary information (unaudited)
(USD millions unless indicated otherwise)
|
Q3 2023
|
Q3 2022
|
9M 2023
|
9M 2022
|
|||||
IFRS operating income from continuing operations
|
1 762
|
1 826
|
7 187
|
6 191
|
|||||
Amortization of intangible assets
|
955
|
903
|
2 896
|
2 675
|
|||||
Impairments
|
|
|
|
|
|||||
Intangible assets
|
1 738
|
592
|
2 664
|
855
|
|||||
Property, plant and equipment related to the company-wide
rationalization of manufacturing sites |
46 |
58 |
3 |
309 |
|||||
Other property, plant and equipment
|
11
|
1
|
33
|
1
|
|||||
Total impairment charges
|
1 795
|
651
|
2 700
|
1 165
|
|||||
Acquisition or divestment of businesses and related items
|
|
|
|
|
|||||
- Income
|
-1
|
|
-64
|
-3
|
|||||
- Expense
|
20
|
|
23
|
7
|
|||||
Total acquisition or divestment of businesses and related items, net
|
19
|
|
-41
|
4
|
|||||
Other items
|
|
|
|
|
|||||
Divestment gains
|
-90
|
9
|
-222
|
-139
|
|||||
Financial assets - fair value adjustments
|
-6
|
90
|
69
|
288
|
|||||
Restructuring and related items
|
|
|
|
|
|||||
- Income
|
-59
|
-18
|
-154
|
-29
|
|||||
- Expense
|
156
|
468
|
951
|
1 188
|
|||||
Legal-related items
|
|
|
|
|
|||||
- Income
|
|
|
-484
|
-51
|
|||||
- Expense
|
|
18
|
31
|
120
|
|||||
Additional income
|
-169
|
-178
|
-439
|
-297
|
|||||
Additional expense
|
42
|
3
|
57
|
34
|
|||||
Total other items
|
-126
|
392
|
-191
|
1 114
|
|||||
Total adjustments
|
2 643
|
1 946
|
5 364
|
4 958
|
|||||
Core operating income from continuing operations
|
4 405
|
3 772
|
12 551
|
11 149
|
|||||
as % of net sales
|
37.4%
|
36.0%
|
36.9%
|
35.2%
|
|||||
(Loss)/income from associated companies
|
-3
|
-5
|
-7
|
-8
|
|||||
Interest expense
|
-222
|
-206
|
-638
|
-593
|
|||||
Other financial income and expense
|
15
|
-28
|
204
|
18
|
|||||
Core adjustments to other financial income and expense
|
31
|
22
|
89
|
72
|
|||||
Income taxes, adjusted for above items (core income taxes)
|
-641
|
-520
|
-1 879
|
-1 655
|
|||||
Core net income from continuing operations
|
3 585
|
3 035
|
10 320
|
8 983
|
|||||
Core net income from discontinued operations 1
|
199
|
384
|
889
|
1 118
|
|||||
Core net income
|
3 784
|
3 419
|
11 209
|
10 101
|
|||||
Core net income attributable to shareholders of Novartis AG
|
3 782
|
3 417
|
11 205
|
10 101
|
|||||
Core basic EPS from continuing operations (USD) 2
|
1.74
|
1.40
|
4.95
|
4.09
|
|||||
Core basic EPS from discontinued operations (USD) 1, 2
|
0.09
|
0.18
|
|
0.42
|
|
0.51
|
|||
Core basic EPS (USD) 2
|
1.83
|
1.58
|
|
5.37
|
|
4.60
|
|||
1 For details on discontinued operations reconciliation from IFRS to core net income,
please refer to page 53.
|
|||||||||
2 Earnings per share (EPS) is calculated on the amount of net income attributable to
shareholders of Novartis AG.
|
(USD millions unless indicated otherwise) |
Q3 2023 IFRS results |
Amortization of intangible assets 1 |
Impairments 2 |
Acquisition or
divestment of businesses and related items 3 |
Other items 4 |
Q3 2023 Core results |
Q3 2022 Core results |
||||||||
Gross profit from continuing operations
|
8 975
|
786
|
|
|
28
|
9 789
|
8 890
|
||||||||
Operating income from continuing operations
|
1 762
|
955
|
1 795
|
19
|
-126
|
4 405
|
3 772
|
||||||||
Income before taxes from continuing operations
|
1 552
|
955
|
1 795
|
19
|
-95
|
4 226
|
3 555
|
||||||||
Income taxes 5
|
-39
|
|
|
|
|
-641
|
-520
|
||||||||
Net income from continuing operations
|
1 513
|
|
|
|
|
3 585
|
3 035
|
||||||||
Net income from discontinued operations 6
|
250
|
|
|
|
|
199
|
384
|
||||||||
Net income
|
1 763
|
|
|
|
|
3 784
|
3 419
|
||||||||
Basic EPS from continuing operations (USD) 7
|
0.73
|
|
|
|
|
1.74
|
1.40
|
||||||||
Basic EPS from discontinued operations (USD) 6, 7
|
0.12
|
|
|
|
|
0.09
|
0.18
|
||||||||
Basic EPS (USD) 7
|
0.85
|
|
|
|
|
1.83
|
1.58
|
||||||||
|
|||||||||||||||
The following are adjustments to arrive at core gross profit from continuing operations
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold
|
-3 117
|
786
|
|
|
28
|
-2 303
|
-1 893
|
||||||||
|
|||||||||||||||
The following are adjustments to arrive at core operating income from continuing operations
|
|
|
|
|
|
|
|
||||||||
Selling, general and administration
|
-3 091
|
|
|
|
-2
|
-3 093
|
-2 929
|
||||||||
Research and development
|
-3 925
|
169
|
1 738
|
18
|
-187
|
-2 187
|
-2 070
|
||||||||
Other income
|
224
|
|
36
|
-1
|
-80
|
179
|
19
|
||||||||
Other expense
|
-421
|
|
21
|
2
|
115
|
-283
|
-138
|
||||||||
|
|||||||||||||||
The following are adjustments to arrive at core income before taxes from continuing
operations
|
|
|
|
|
|
|
|
||||||||
Other financial income and expense
|
15
|
|
|
|
31
|
46
|
-6
|
||||||||
|
|||||||||||||||
1 Amortization of intangible assets: cost of goods sold includes the amortization of
acquired rights to currently marketed products and other production-related intangible
assets; research and development includes the amortization of acquired rights to technologies
|
|||||||||||||||
2 Impairments: research and development include net impairment charges related to intangible
assets; other income and other expense includes net impairment charges related to
property, plant and equipment
|
|||||||||||||||
3 Acquisition or divestment of businesses and related items, including restructuring
and integration charges: research & development and other expense include restructuring
and integration cost charges
|
|||||||||||||||
4 Other items: cost of goods sold, selling, general and administration, research and
development, other income and other expense include restructuring income and charges
related to the initiative to implement a new streamlined organizational model, the
company-wide rationalization of manufacturing sites and other net restructuring charges
and related items; cost of goods sold and research and development also include contingent
consideration adjustments; selling, general and administration includes adjustments
to provisions; other income and other expense include fair value adjustments and divestment
gains and losses on financial assets and fair value adjustment on a contingent receivable;
other expense includes also legal related items; other financial income and expense
includes the monetary loss on the restatement of non-monetary items for subsidiaries
in hyperinflationary economies
|
|||||||||||||||
5 Taxes on the adjustments between IFRS and core results, for each item included in
the adjustment, take into account the tax rate that will finally be applicable to
the item based on the jurisdiction where the adjustment will finally have a tax impact.
Generally, this results in amortization and impairment of intangible assets and acquisition-related
restructuring and integration items having a full tax impact. There is usually a tax
impact on other items, although this is not always the case for items arising from
legal settlements in certain jurisdictions. Adjustments related to income from associated
companies are recorded net of any related tax effect. Due to these factors and the
differing effective tax rates in the various jurisdictions, the tax on the total adjustments
of USD 2.7 billion to arrive at the core results before tax amounts to USD 602 million.
The average tax rate on the adjustments is 22.5% since the quarterly core tax charge
of 15.2% has been applied to the pre-tax income of the period.
|
|||||||||||||||
6 For details on discontinued operations reconciliation from IFRS to core net income
please refer to page 53.
|
|||||||||||||||
7 Earnings per share (EPS) is calculated on the amount of net income attributable to
shareholders of Novartis AG.
|
(USD millions unless indicated otherwise) |
9M 2023 IFRS results |
Amortization of intangible assets 1 |
Impairments 2 |
Acquisition or
divestment of businesses and related items 3 |
Other items 4 |
9M 2023 Core results |
9M 2022 Core results |
||||||||
Gross profit from continuing operations
|
25 434
|
2 529
|
310
|
|
107
|
28 380
|
26 683
|
||||||||
Operating income from continuing operations
|
7 187
|
2 896
|
2 700
|
-41
|
-191
|
12 551
|
11 149
|
||||||||
Income before taxes from continuing operations
|
6 746
|
2 896
|
2 700
|
-41
|
-102
|
12 199
|
10 638
|
||||||||
Income taxes 5
|
-812
|
|
|
|
|
-1 879
|
-1 655
|
||||||||
Net income from continuing operations
|
5 934
|
|
|
|
|
10 320
|
8 983
|
||||||||
Net income from discontinued operations 6
|
440
|
|
|
|
|
889
|
1 118
|
||||||||
Net income
|
6 374
|
|
|
|
|
11 209
|
10 101
|
||||||||
Basic EPS from continuing operations (USD) 7
|
2.84
|
|
|
|
|
4.95
|
4.09
|
||||||||
Basic EPS from discontinued operations (USD) 6, 7
|
0.21
|
|
|
|
|
0.42
|
0.51
|
||||||||
Basic EPS (USD) 7
|
3.05
|
|
|
|
|
5.37
|
4.60
|
||||||||
|
|||||||||||||||
The following are adjustments to arrive at core gross profit from continuing operations
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold
|
-9 450
|
2 529
|
310
|
|
107
|
-6 504
|
-5 812
|
||||||||
|
|||||||||||||||
The following are adjustments to arrive at core operating income from continuing operations
|
|
|
|
|
|
|
|
||||||||
Selling, general and administration
|
-9 073
|
|
|
|
28
|
-9 045
|
-9 003
|
||||||||
Research and development
|
-8 804
|
367
|
2 356
|
18
|
-306
|
-6 369
|
-6 173
|
||||||||
Other income
|
1 322
|
|
-10
|
-64
|
-929
|
319
|
209
|
||||||||
Other expense
|
-1 692
|
|
44
|
5
|
909
|
-734
|
-567
|
||||||||
|
|||||||||||||||
The following are adjustments to arrive at core income before taxes from continuing
operations
|
|
|
|
|
|
|
|
||||||||
Other financial income and expense
|
204
|
|
|
|
89
|
293
|
90
|
||||||||
|
|||||||||||||||
1 Amortization of intangible assets: cost of goods sold includes the amortization of
acquired rights to currently marketed products and other production-related intangible
assets; research and development includes the amortization of acquired rights to technologies
|
|||||||||||||||
2 Impairments: cost of goods sold, research and development, other income and other
expense include net impairment charges related to intangible assets; other income
and other expense includes also net impairment charges related to property, plant
and equipment
|
|||||||||||||||
3 Acquisition or divestment of businesses and related items, including restructuring
and integration charges: other income includes a favorable stamp duties tax settlement
related to a prior periods acquisition; other income and other expense include also
restructuring and integration costs charges and reversals
|
|||||||||||||||
4 Other items: cost of goods sold, selling, general and administration, research and
development, other income and other expense include restructuring income and charges
related to the initiative to implement a new streamlined organizational model, the
company-wide rationalization of manufacturing sites and other net restructuring charges
and related items; cost of goods sold and research and development also include contingent
consideration adjustments; cost of goods sold and selling, general and administration
includes also adjustments to provisions; research and development also include a write-off
prepaid expenses for a terminated clinical development program; other income and other
expense include fair value adjustments, divestment gains, losses and gains on financial
assets, legal related items and fair value adjustment on a contingent receivable,
other income includes also gains from the divestment of products and curtailment gains;
other financial income and expense includes the monetary loss on the restatement of
non-monetary items for subsidiaries in hyperinflationary economies
|
|||||||||||||||
5 Taxes on the adjustments between IFRS and core results, for each item included in
the adjustment, take into account the tax rate that will finally be applicable to
the item based on the jurisdiction where the adjustment will finally have a tax impact.
Generally, this results in amortization and impairment of intangible assets and acquisition-related
restructuring and integration items having a full tax impact. There is usually a tax
impact on other items, although this is not always the case for items arising from
legal settlements in certain jurisdictions. Adjustments related to income from associated
companies are recorded net of any related tax effect. Due to these factors and the
differing effective tax rates in the various jurisdictions, the tax on the total adjustments
of USD 5.5 billion to arrive at the core results before tax amounts to USD 1.1 billion.
The average tax rate on the adjustments is 19.6% since the full year core tax charge
of 15.4% has been applied to the pre-tax income of the period.
|
|||||||||||||||
6 For details on discontinued operations reconciliation from IFRS to core net income
please refer to page 53.
|
|||||||||||||||
7 Earnings per share (EPS) is calculated on the amount of net income attributable to
shareholders of Novartis AG.
|
(USD millions) |
Q3 2023 IFRS results |
Amortization of intangible assets 1 |
Impairments 2 |
Acquisition or
divestment of businesses and related items |
Other items 3 |
Q3 2023 Core results |
Q3 2022 Core results |
||||||||
Gross profit from discontinued operations
|
990
|
54
|
22
|
|
21
|
1 087
|
1 209
|
||||||||
Operating (loss)/income from discontinued operations
|
-86
|
54
|
30
|
|
252
|
250
|
510
|
||||||||
Income before taxes from discontinued operations
|
-101
|
54
|
30
|
|
257
|
240
|
502
|
||||||||
Income taxes
|
351
|
|
|
|
|
-41
|
-118
|
||||||||
Net income from discontinued operations
|
250
|
|
|
|
|
199
|
384
|
||||||||
Basic EPS from discontinued operations (USD)
|
0.12
|
|
|
|
|
0.09
|
0.18
|
||||||||
The following are adjustments to arrive at core gross profit from discontinued operations
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold
|
-1 493
|
54
|
22
|
|
21
|
-1 396
|
-1 089
|
||||||||
The following are adjustments to arrive at core operating income from discontinued
operations
|
|
|
|
|
|
|
|
||||||||
Research and development
|
-230
|
|
8
|
|
|
-222
|
-193
|
||||||||
Other income
|
28
|
|
|
|
-2
|
26
|
11
|
||||||||
Other expense
|
-293
|
|
|
|
233
|
-60
|
42
|
||||||||
|
|
|
|
|
|
|
|||||||||
The following are adjustments to arrive at core income before taxes from discontinued
operations
|
|
|
|
|
|
|
|
||||||||
Other financial income and expense
|
-2
|
|
|
|
5
|
3
|
|
||||||||
1 Amortization of intangible assets: cost of goods sold includes the amortization of
acquired rights to currently marketed products and other production-related intangible
assets
|
|||||||||||||||
2 Impairments: cost of goods sold and research and development include impairment charges
related to intangible assets
|
|||||||||||||||
3 Other items: cost of goods sold, selling, other income and other expense include charges
related to the Sandoz spin-off (see Note 3 and Note 12), the company-wide rationalization
of manufacturing sites and other net restructuring charges and related items; other
expense includes also legal-related items; other financial income and expense includes
the monetary loss on the restatement of non-monetary items for subsidiaries in hyperinflationary
economies
|
(USD millions) |
9M 2023 IFRS results |
Amortization of intangible assets 1 |
Impairments 2 |
Acquisition or
divestment of businesses and related items |
Other items 3 |
9M 2023 Core results |
9M 2022 Core results |
||||||||
Gross profit from discontinued operations
|
3 403
|
165
|
34
|
|
57
|
3 659
|
3 623
|
||||||||
Operating income from discontinued operations
|
265
|
165
|
43
|
|
712
|
1 185
|
1 486
|
||||||||
Income before taxes from discontinued operations
|
214
|
165
|
43
|
|
718
|
1 140
|
1 460
|
||||||||
Income taxes
|
226
|
|
|
|
|
-251
|
-342
|
||||||||
Net income from discontinued operations
|
440
|
|
|
|
|
889
|
1 118
|
||||||||
Basic EPS from discontinued operations (USD)
|
0.21
|
|
|
|
|
0.42
|
0.51
|
||||||||
The following are adjustments to arrive at core gross profit from discontinued operations
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold
|
-4 044
|
165
|
34
|
|
57
|
-3 788
|
-3 396
|
||||||||
The following are adjustments to arrive at core operating income from discontinued
operations
|
|
|
|
|
|
|
|
||||||||
Selling, general and administration
|
-1 728
|
|
|
|
25
|
-1 703
|
-1 488
|
||||||||
Research and development
|
-671
|
|
10
|
|
|
-661
|
-597
|
||||||||
Other income
|
56
|
|
-1
|
|
-24
|
31
|
75
|
||||||||
Other expense
|
-795
|
|
|
|
654
|
-141
|
-127
|
||||||||
|
|
|
|
|
|
|
|||||||||
The following are adjustments to arrive at core income before taxes from discontinued
operations
|
|
|
|
|
|
|
|
||||||||
Other financial income and expense
|
-20
|
|
|
|
6
|
-14
|
-3
|
||||||||
1 Amortization of intangible assets: cost of goods sold includes the amortization of
acquired rights to currently marketed products and other production-related intangible
assets
|
|||||||||||||||
2 Impairments: cost of goods sold and research and development include impairment charges
related to intangible assets; other income includes a reversal of impairment charges
related to property, plant and equipment
|
|||||||||||||||
3 Other items: cost of goods sold, selling, general and administration, other income
and other expense include charges related to the Sandoz spin-off (see Note 3 and Note
12), the company-wide rationalization of manufacturing sites and other net restructuring
charges and related items; cost of goods sold and selling, general and administration
also include adjustments to provisions; other expense includes legal-related items;
other financial income and expense includes the monetary loss on the restatement of
non-monetary items for subsidiaries in hyperinflationary economies
|
Q3 2023
|
Q3 2022
|
||||||||||||
(USD millions) |
IFRS cash flow |
Adjustments |
Free cash flow |
IFRS cash flow |
Adjustments 1 |
Revised
Free cash flow 1 |
|||||||
Net cash flows from operating activities from continuing operations
|
5 304
|
|
5 304
|
4 275
|
|
4 275
|
|||||||
Net cash flows from operating activities from discontinued operations
|
74
|
|
74
|
446
|
|
446
|
|||||||
Total net cash flows from operating activities
|
5 378
|
|
5 378
|
4 721
|
|
4 721
|
|||||||
|
|
|
|
|
|
||||||||
Net cash flows (used in)/from investing activities from continuing operations
|
-2 004
|
1 743
|
-261
|
5 309
|
-5 530
|
-221
|
|||||||
Net cash flows used in investing activities from discontinued operations
|
-208
|
134
|
-74
|
-111
|
46
|
-65
|
|||||||
Total net cash flows (used in)/from investing activities 2
|
-2 212
|
1 877
|
-335
|
5 198
|
-5 484
|
-286
|
|||||||
Net cash flows used in financing activities from continuing operations
|
-4 306
|
4 306
|
0
|
-4 749
|
4 749
|
0
|
|||||||
Net cash flows from financing activities from discontinued operations
|
3 474
|
-3 474
|
0
|
11
|
-11
|
0
|
|||||||
Total net cash flows used in financing activities 3
|
-832
|
832
|
0
|
-4 738
|
4 738
|
0
|
|||||||
Free cash flow from continuing operations 1
|
|
|
5 043
|
|
|
4 054
|
|||||||
Free cash flow from discontinued operations 1
|
|
|
0
|
|
|
381
|
|||||||
Free cash flow 1
|
|
|
5 043
|
|
|
4 435
|
|||||||
1 To aid in comparability, the prior year adjustments and free cash flow amounts have
been revised to conform with the new free cash flow definition that was effective
as of January 1, 2023.
|
|||||||||||||
2 With the exception of purchases of property, plant and equipment, all net cash flows
from investing activities from continuing operations and from discontinued operations
are excluded from the free cash flow.
|
|||||||||||||
3 Net cash flows (used in)/from financing activities from continuing operations and
from discontinued operations are excluded from the free cash flow.
|
|||||||||||||
9M 2023
|
9M 2022
|
||||||||||||
(USD millions) |
IFRS cash flow |
Adjustments |
Free cash flow |
IFRS cash flow |
Adjustments 1 |
Revised
Free cash flow 1 |
|||||||
Net cash flows from operating activities from continuing operations
|
11 673
|
|
11 673
|
9 271
|
|
9 271
|
|||||||
Net cash flows from operating activities from discontinued operations
|
238
|
|
238
|
854
|
|
854
|
|||||||
Total net cash flows from operating activities
|
11 911
|
|
11 911
|
10 125
|
|
10 125
|
|||||||
|
|
|
|
|
|
||||||||
Net cash flows from/(used in) investing activities from continuing operations
|
7 741
|
-8 395
|
-654
|
3 223
|
-3 833
|
-610
|
|||||||
Net cash flows used in investing activities from discontinued operations
|
-385
|
166
|
-219
|
-288
|
98
|
-190
|
|||||||
Total net cash flows from/(used in) investing activities 2
|
7 356
|
-8 229
|
-873
|
2 935
|
-3 735
|
-800
|
|||||||
Net cash flows used in financing activities from continuing operations
|
-17 068
|
17 068
|
0
|
-16 582
|
16 582
|
0
|
|||||||
Net cash flows from financing activities from discontinued operations
|
3 397
|
-3 397
|
0
|
14
|
-14
|
0
|
|||||||
Total net cash flows used in financing activities 3
|
-13 671
|
13 671
|
0
|
-16 568
|
16 568
|
0
|
|||||||
Free cash flow from continuing operations 1
|
|
|
11 019
|
|
|
8 661
|
|||||||
Free cash flow from discontinued operations 1
|
|
|
19
|
|
|
664
|
|||||||
Free cash flow 1
|
|
|
11 038
|
|
|
9 325
|
|||||||
1 To aid in comparability, the prior year adjustments and free cash flow amounts have
been revised to conform with the new free cash flow definition that was effective
as of January 1, 2023.
|
|||||||||||||
2 With the exception of purchases of property, plant and equipment, all net cash flows
from investing activities from continuing operations and from discontinued operations
are excluded from the free cash flow.
|
|||||||||||||
3 Net cash flows (used in)/from financing activities from continuing operations and
from discontinued operations are excluded from the free cash flow.
|
|||||||||||||
|
(USD millions)
|
Q3 2023
|
Q3 2022
|
|||
Operating income from continuing operations
|
1 762
|
1 826
|
|||
Adjustments for non-cash items
|
|
|
|||
Depreciation, amortization and impairments
|
3 105
|
2 005
|
|||
Change in provisions and other non-current liabilities
|
-130
|
228
|
|||
Other
|
105
|
191
|
|||
Operating income adjusted for non-cash items from continuing operations
|
4 842
|
4 250
|
|||
Dividends received from associated companies and others
|
1
|
|
|||
Interest received and change in other financial receipts
|
146
|
171
|
|||
Interest paid and change in other financial payments
|
-182
|
-140
|
|||
Income taxes paid
|
-426
|
-260
|
|||
Payments out of provisions and other net cash movements in non-current liabilities
|
-255
|
-193
|
|||
Change in inventories and trade receivables less trade payables
|
-334
|
-386
|
|||
Change in other net current assets and other operating cash flow items
|
1 512
|
833
|
|||
Net cash flows from operating activities from continuing operations
|
5 304
|
4 275
|
|||
Purchases of property, plant and equipment
|
-261
|
-221
|
|||
Free cash flow from continuing operations 1
|
5 043
|
4 054
|
|||
Free cash flow from discontinued operations 1, 2
|
0
|
381
|
|||
Total free cash flow 1
|
5 043
|
4 435
|
|||
1 To aid in comparability, the prior year free cash flow amounts have been revised to
conform with the new free cash flow definition that was effective as of January 1,
2023
|
|||||
2 In the third quarter of 2023, the free cash flow from discontinued operations was
zero (Q3 2022: USD 381 million cash inflow) consisting of USD 74 million (Q3 2022:
USD 446 million) net cash inflows from operating activities from discontinued operations,
less purchases of property, plant and equipment by discontinued operations of USD
74 million (Q3 2022: USD 65 million).
|
(USD millions)
|
9M 2023
|
9M 2022
|
|||
Operating income from continuing operations
|
7 187
|
6 191
|
|||
Adjustments for non-cash items
|
|
|
|||
Depreciation, amortization and impairments
|
6 758
|
5 171
|
|||
Change in provisions and other non-current liabilities
|
232
|
835
|
|||
Other
|
335
|
412
|
|||
Operating income adjusted for non-cash items from continuing operations
|
14 512
|
12 609
|
|||
Dividends received from associated companies and others
|
2
|
1
|
|||
Interest received and other financial receipts
|
546
|
208
|
|||
Interest paid and other financial payments
|
-527
|
-476
|
|||
Income taxes paid
|
-1 694
|
-1 368
|
|||
Payments out of provisions and other net cash movements in non-current liabilities
|
-1 181
|
-451
|
|||
Change in inventories and trade receivables less trade payables
|
-1 928
|
-1 664
|
|||
Change in other net current assets and other operating cash flow items
|
1 943
|
412
|
|||
Net cash flows from operating activities from continuing operations
|
11 673
|
9 271
|
|||
Purchases of property, plant and equipment
|
-654
|
-610
|
|||
Free cash flow from continuing operations 1
|
11 019
|
8 661
|
|||
Free cash flow from discontinued operations 1, 2
|
19
|
664
|
|||
Total free cash flow 1
|
11 038
|
9 325
|
|||
1 To aid in comparability, the prior year free cash flow amounts have been revised to
conform with the new free cash flow definition that was effective as of January 1,
2023
|
|||||
2 In the first nine months of 2023, the free cash flow from discontinued operations
was a cash inflow of USD 19 million (9M 2022: USD 664 million) consisting of USD 238
million (9M 2022: USD 854 million) net cash inflows from operating activities from
discontinued operations, less purchases of property, plant and equipment by discontinued
operations of USD 219 million (9M 2022: USD 190 million).
|
|||||
|
(USD millions)
|
Q3 2023 1
|
Q3 2022
|
|||
Net change in cash and cash equivalents
|
1 520
|
5 101
|
|||
Change in marketable securities, commodities, time deposits, financial debts and derivatives financial instruments
|
3 023
|
-3 266
|
|||
Change in net debt
|
4 543
|
1 835
|
|||
Net debt at July 1
|
-15 374
|
-9 519
|
|||
Net debt at September 30
|
-10 831
|
-7 684
|
|||
1 Excluding net debt related to discontinued operations
|
(USD millions)
|
9M 2023 1
|
9M 2022
|
|||
Net change in cash and cash equivalents
|
4 888
|
-3 681
|
|||
Change in marketable securities, commodities, time deposits, financial debts and derivatives financial instruments
|
-8 474
|
-3 135
|
|||
Change in net debt
|
-3 586
|
-6 816
|
|||
Net debt at January 1
|
-7 245
|
-868
|
|||
Net debt at September 30
|
-10 831
|
-7 684
|
|||
1 Excluding net debt related to discontinued operations
|
(USD millions) |
Sep 30,
2023 1 |
Dec 31,
2022 |
Sep 30,
2022 |
||||
Non-current financial debts
|
-18 068
|
-20 244
|
-19 732
|
||||
Current financial debts and derivative financial instruments
|
-5 458
|
-5 931
|
-7 055
|
||||
Total financial debts
|
-23 526
|
-26 175
|
-26 787
|
||||
Less liquidity
|
|
|
|
||||
Cash and cash equivalents
|
12 405
|
7 517
|
8 726
|
||||
Marketable securities, commodities, time deposits and derivative financial instruments
|
290
|
11 413
|
10 377
|
||||
Total liquidity
|
12 695
|
18 930
|
19 103
|
||||
Net debt at end of period
|
-10 831
|
-7 245
|
-7 684
|
||||
1 Excluding net debt related to discontinued operations
|
Sep 30,
2023 |
Sep 30,
2022 |
||||
Number of shares outstanding
|
2 055 460 483
|
2 150 980 441
|
|||
Registered share price (CHF)
|
93.87
|
75.53
|
|||
ADR price (USD)
|
101.86
|
76.01
|
|||
Market capitalization (USD billions) 1
|
211.7
|
166.2
|
|||
Market capitalization (CHF billions) 1
|
192.9
|
162.5
|
|||
1 Market capitalization is calculated based on the number of shares outstanding (excluding
treasury shares). Market capitalization in USD is based on the market capitalization
in CHF converted at the quarter end CHF/USD exchange rate.
|
(USD per unit) |
Average rates Q3 2023 |
Average rates Q3 2022 |
Average rates 9M 2023 |
Average rates 9M 2022 |
Period-end
rates Sep 30, 2023 |
Period-end
rates Sep 30, 2022 |
|||||||
1 CHF
|
1.132
|
1.034
|
1.109
|
1.051
|
1.097
|
1.023
|
|||||||
1 CNY
|
0.138
|
0.146
|
0.142
|
0.152
|
0.137
|
0.141
|
|||||||
1 EUR
|
1.088
|
1.007
|
1.084
|
1.065
|
1.059
|
0.980
|
|||||||
1 GBP
|
1.266
|
1.177
|
1.244
|
1.258
|
1.224
|
1.114
|
|||||||
100 JPY
|
0.692
|
0.724
|
0.726
|
0.785
|
0.672
|
0.692
|
|||||||
100 RUB
|
1.063
|
1.663
|
1.221
|
1.445
|
1.031
|
1.721
|
|||||||
Change in USD % Q3 2023 |
Change in
constant currencies % Q3 2023 |
Percentage
point currency impact Q3 2023 |
|||||
Net sales from continuing operations
|
12
|
12
|
0
|
||||
Operating income from continuing operations
|
-4
|
13
|
-17
|
||||
Net income from continuing operations
|
14
|
37
|
-23
|
||||
Basic earnings per share (USD) from continuing operations
|
20
|
45
|
-25
|
||||
Core operating income from continuing operations
|
17
|
21
|
-4
|
||||
Core net income from continuing operations
|
18
|
23
|
-5
|
||||
Core basic earnings per share (USD) from continuing operations
|
24
|
29
|
-5
|
||||
|
|
|
|||||
|
Change in USD % 9M 2023 |
Change in
constant currencies % 9M 2023 |
Percentage
point currency impact 9M 2023 |
|||||
Net sales from continuing operations
|
8
|
10
|
-2
|
||||
Operating income from continuing operations
|
16
|
31
|
-15
|
||||
Net income from continuing operations
|
25
|
41
|
-16
|
||||
Basic earnings per share (USD) from continuing operations
|
31
|
49
|
-18
|
||||
Core operating income from continuing operations
|
13
|
19
|
-6
|
||||
Core net income from continuing operations
|
15
|
22
|
-7
|
||||
Core basic earnings per share (USD) from continuing operations
|
21
|
28
|
-7
|
||||
|
|
|
|||||
|