エドガーで原本を確認する
 |
||
Ad hoc announcement pursuant to Art. 53 LR
|
Novartis International AG
Novartis Global Communications CH-4002 Basel
Switzerland
https://www.novartis.com https://twitter.com/novartisnews
|
|
|
•
|
Q2 net sales grew +11% (cc1, +9% USD) with core operating income up +19% (cc, +17% USD)
|
|
o
|
Sales growth driven by continued strong performance from Entresto (+28% cc), Kesimpta (+65% cc), Cosentyx (+22% cc), Kisqali (+50% cc), Leqvio (+134% cc) and Pluvicto
(+44% cc)
|
|
o
|
Core operating income margin 39.6%, +270 basis points (cc), mainly driven by higher net sales
|
|
•
|
Q2 operating income grew +47% (cc, +43% USD) and net income up +49% (cc, +43% USD)
|
|
•
|
Q2 core EPS grew +21% (cc, +17% USD) to USD 1.97
|
|
•
|
Q2 free cash flow1 of USD 4.6 billion (+40% USD) driven by
higher net cash flows from operating activities
|
|
•
|
H1 sales up +11% (cc, +9% USD) and core operating income up +21% (cc, +16% USD)
|
|
•
|
Q2 selected innovation milestones:
|
|
o
|
Fabhalta (iptacopan) received EU, Japan and China approval for the treatment of
PNH
|
|
o
|
Lutathera approved by FDA for pediatric GEP-NET patients (≥12 years)
|
|
o
|
Scemblix filing for 1L CML accepted by FDA; received Breakthrough Therapy designation
|
|
o
|
Atrasentan FDA filing accepted for the treatment of adult patients with IgAN
|
|
o
|
Kisqali NATALEE updated data showed continued clinical benefit with median follow-up ~4 years
|
|
•
|
Full-year 2024 guidance raised for core operating income based on strong momentum2
|
|
o
|
Net sales expected to grow high-single to low double-digit (unchanged)
|
|
o
|
Core operating income expected to grow mid- to high teens (from low double-digit to mid-teens)
|
|
Key figures
|
Continuing operations3
|
||||||||
|
Q2 2024
|
Q2 2023
|
% change
|
H1 2024
|
H1 2023
|
% change
|
||||
|
|
USD m
|
USD m
|
USD
|
cc
|
|
USD m
|
USD m
|
USD
|
cc
|
|
Net sales
|
12 512
|
11 437
|
9
|
11
|
|
24 341
|
22 235
|
9
|
11
|
|
Operating income
|
4 014
|
2 807
|
43
|
47
|
|
7 387
|
5 425
|
36
|
43
|
|
Net income
|
3 246
|
2 271
|
43
|
49
|
|
5 934
|
4 421
|
34
|
43
|
|
EPS (USD)
|
1.60
|
1.09
|
47
|
52
|
|
2.91
|
2.12
|
37
|
47
|
|
Free cash flow
|
4 615
|
3 292
|
40
|
|
|
6 653
|
5 976
|
11
|
|
|
Core operating income
|
4 953
|
4 240
|
17
|
19
|
|
9 490
|
8 146
|
16
|
21
|
|
Core net income
|
4 008
|
3 502
|
14
|
18
|
|
7 689
|
6 735
|
14
|
19
|
|
Core EPS (USD)
|
1.97
|
1.69
|
17
|
21
|
|
3.77
|
3.23
|
17
|
22
|
|
1.
|
Accelerate growth: Renewed attention to deliver high-value medicines (NMEs) and focus on launch excellence, with a rich pipeline
across our core therapeutic areas.
|
|
2.
|
Deliver returns: Continuing to embed operational excellence and deliver improved financials. Novartis remains disciplined and
shareholder-focused in our approach to capital allocation, with substantial cash generation and a strong capital structure supporting continued flexibility.
|
|
3.
|
Strengthening foundations: Unleashing the power of our people, scaling data science and technology and continuing to build trust
with society.
|
|
|
2
|
|
|
|
3
|
|
|
Entresto
|
(USD 1 898 million, +28% cc) sustained robust demand-led growth, with increased penetration in the US and Europe following guideline-directed medical therapy in heart
failure, as well as in China with increased penetration in hypertension
|
|
Kesimpta
|
(USD 799 million, +65% cc) sales grew across all regions reflecting increased demand and strong access for a high efficacy product with convenient self-administered dosing
|
|
Cosentyx
|
(USD 1 526 million, +22% cc) sales grew mainly in the US, driven by recent launches (including the HS indication and the IV formulation in the US) in addition to volume
growth in core indications
|
|
Kisqali
|
(USD 717 million, +50% cc) sales grew strongly across all regions, based on increasing recognition of its overall survival benefit in HR+/HER2- advanced breast cancer and
Category 1 NCCN guidelines recommendation
|
|
Leqvio
|
(USD 182 million, +134% cc) continued to show steady growth, with a focus on increasing account and patient adoption, growing customer confidence in acquisition and
access, and continuing medical education
|
|
Pluvicto
|
(USD 345 million, +44% cc) grew in the US and Europe. With supply now unconstrained, the focus is on increasing share in established RLT sites, opening new sites and
referral pathways, and initiating new patients
|
|
Xolair
|
(USD 427 million, +22% cc) growth was driven mainly by emerging growth markets and Europe
|
|
Ilaris
|
(USD 368 million, +20% cc) sales grew across all regions, mainly US and Europe
|
|
Scemblix
|
(USD 164 million, +56% cc) sales grew across all regions, demonstrating the high unmet need in later lines of CML
|
|
Jakavi
|
(USD 471 million, +13% cc) sales grew across all regions, with strong demand in both myelofibrosis and polycythemia vera indications
|
|
Tafinlar + Mekinist
|
(USD 523 million, +9% cc) sales grew in all regions, led by emerging growth markets
|
|
Lutathera
|
(USD 175 million, +17% cc) sales grew across all regions due to increased demand, following the presentation of NETTER-2 results in 1L GEP-NET
|
|
Fabhalta
|
(USD 22 million) continued to show encouraging early launch indicators in the US, as the first oral monotherapy approved for PNH patients
|
|
Emerging Growth Markets*
|
Grew +16% (cc) overall. China grew +27% (cc) to USD 1.1 billion, mainly driven by Entresto and Xolair
|
|
|
4
|
|
|
Q2 2024
|
% change
|
H1 2024 |
% change
|
|||
|
USD m
|
USD
|
cc
|
USD m
|
USD
|
cc
|
|
|
Entresto
|
1 898
|
25
|
28
|
3 777
|
30
|
32
|
|
Cosentyx
|
1 526
|
20
|
22
|
2 852
|
21
|
23
|
|
Kesimpta
|
799
|
63
|
65
|
1 436
|
64
|
66
|
|
Kisqali
|
717
|
45
|
50
|
1 344
|
48
|
52
|
|
Promacta/Revolade
|
544
|
-7
|
-5
|
1 064
|
-6
|
-4
|
|
Tafinlar + Mekinist
|
523
|
5
|
9
|
997
|
5
|
7
|
|
Jakavi
|
471
|
8
|
13
|
949
|
12
|
15
|
|
Tasigna
|
446
|
-6
|
-4
|
841
|
-10
|
-9
|
|
Xolair
|
427
|
18
|
22
|
826
|
15
|
18
|
|
Ilaris
|
368
|
16
|
20
|
724
|
12
|
17
|
|
Sandostatin Group
|
313
|
-5
|
-4
|
668
|
1
|
3
|
|
Pluvicto
|
345
|
44
|
44
|
655
|
45
|
45
|
|
Zolgensma
|
349
|
12
|
14
|
644
|
4
|
6
|
|
Lucentis
|
275
|
-30
|
-28
|
589
|
-27
|
-26
|
|
Exforge Group
|
178
|
-3
|
1
|
370
|
0
|
3
|
|
Lutathera
|
175
|
17
|
17
|
344
|
15
|
16
|
|
Leqvio
|
182
|
133
|
134
|
333
|
135
|
137
|
|
Gilenya
|
138
|
-49
|
-47
|
313
|
-38
|
-36
|
|
Scemblix
|
164
|
55
|
56
|
300
|
65
|
67
|
|
Diovan Group
|
160
|
3
|
9
|
300
|
-4
|
1
|
|
Top 20 brands total
|
9 998
|
15
|
18
|
19 326
|
16
|
18
|
|
Fabhalta
(iptacopan)
|
EU, Japan and China approval for the treatment of adults with the rare blood disorder paroxysmal nocturnal hemoglobinuria (PNH).
|
|
Lutathera
(lutetium Lu 177 dotatate)
|
FDA approval for the treatment of pediatric patients (≥12 years) with somatostatin receptor-positive gastroenteropancreatic
neuroendocrine tumors (GEP-NETs).
|
|
Scemblix
(asciminib)
|
FDA granted Breakthrough Therapy designation to Scemblix for the treatment of adult patients with newly diagnosed Philadelphia
chromosome-positive chronic myeloid leukemia in chronic phase (Ph+ CML-CP).
FDA submission for first-line CML is completed and under Real-Time Oncology Review.
|
|
Atrasentan
|
FDA filing accepted for the treatment of adult patients with IgA nephropathy (IgAN).
|
|
|
5
|
|
|
Lutathera
(lutetium Lu 177 dotatate)
|
EU filing accepted for the treatment of newly diagnosed, unresectable or metastatic, well-differentiated (G2 and G3), somatostatin receptor-positive GEP-NETs in adults.
|
|
Scemblix
(asciminib)
|
In the Phase III ASC4FIRST study, Scemblix demonstrated superior major molecular response rates at week 48 vs
investigator-selected standard-of-care tyrosine kinase inhibitors (TKIs) (67.7% vs 49.0%) and vs imatinib alone (69.3% vs 40.2%) in adults with newly diagnosed Ph+ CML-CP. Scemblix also
demonstrated a favorable safety and tolerability profile. These results have been submitted to the FDA under Real-Time Oncology Review. Data presented at
ASCO and EHA 2024 and published in the New England Journal of Medicine.
|
|
Kisqali
(ribociclib)
|
New analyses following the end of Kisqali treatment
for all patients in the Phase III NATALEE study in HR+/HER2- early breast cancer showed a continued clinically meaningful benefit with a consistent safety profile. Results to be presented at an upcoming medical meeting.
In addition, a subgroup analysis from the NATALEE study at the time of final iDFS data cut-off showed the addition of Kisqali to
endocrine therapy in patients with high-risk node-negative (N0) disease resulted in a 28% risk reduction in iDFS. The efficacy, safety and tolerability profile observed in the high-risk N0 subgroup is consistent with the overall
NATALEE study population. Data presented at ASCO 2024.
|
|
Fabhalta
(iptacopan)
|
Phase III APPEAR-C3G data showed a 35.1% proteinuria reduction vs placebo at 6 months for C3G patients treated with Fabhalta in
addition to supportive care. Secondary endpoint data for estimated glomerular filtration rate showed numerical improvement over 6 months vs placebo. The study also showed Fabhalta has a
favorable safety profile with no new safety signals. Submissions to the FDA and EMA for the adult C3 glomerulopathy indication are planned for H2 2024. Data presented at ERA 2024.
Phase III APPLAUSE-IgAN data showed a 38.3% proteinuria reduction at nine months vs placebo for patients with IgAN. Fabhalta was well tolerated
with a favorable safety profile consistent with previously reported data. Data presented at WCN 2024.
|
|
Atrasentan
|
Results from a pre-specified interim analysis of Phase III ALIGN data showed patients treated with atrasentan, in addition to supportive care with a renin-angiotensin
system inhibitor, achieved a statistically significant 36.1% reduction in proteinuria vs placebo on top of supportive care at 36 weeks. Results presented at ERA 2024.
|
|
Remibrutinib
|
Phase III REMIX-1 and REMIX-2 data showed sustained efficacy and long-term safety of oral remibrutinib in chronic spontaneous urticaria (CSU) patients, with improvements
in weekly urticaria activity scores observed as early as week 1 and sustained to week 52. Across both studies, remibrutinib demonstrated a favorable and consistent safety profile up to one year, including balanced liver function tests
vs placebo. Novartis plans to submit remibrutinib for regulatory approval in 2025. Data presented at EAACI 2024.
|
|
Coartem (artemether- lumefantrine)
|
Phase II/III CALINA study data demonstrated that an optimized dose of Coartem developed for babies weighing <5kg with malaria
has the required pharmacokinetic profile and good efficacy and safety. Data presented at the Multilateral Initiative on Malaria Pan-African Malaria Conference 2024.
|
|
Deals
|
In line with our strategic focus on oncology, Novartis acquired >90% of the total share capital of MorphoSys AG, adding to our pipeline pelabresib, a late-stage
investigational BET inhibitor for myelofibrosis, and tulmimetostat, an early-stage investigational dual inhibitor of EZH2 and EZH1 for solid tumors or lymphomas.
Novartis acquired Mariana Oncology, a biotech company focused on
developing novel radioligand therapies (RLTs) across a range of solid tumors. The acquisition brings a
|
|
|
6
|
|
|
|
robust portfolio of RLT programs, including MC-339, an actinium-based RLT being investigated in small cell lung cancer.
Novartis expanded its peptide discovery collaboration with PeptiDream. Under the multi-program agreement, PeptiDream will identify and optimize novel macrocyclic peptides against targets selected by Novartis, for potential application in RLT.
Novartis signed an exclusive strategic license agreement with Arvinas for the worldwide development and commercialization of
ARV-766, a second generation PROTAC® androgen receptor (AR) degrader, complementing our RLT platform in prostate cancer.
|
|
Barring unforeseen events; growth vs prior year in cc
|
Previous guidance
|
|
|
Net sales
|
Expected to grow high single to low double-digit
|
(unchanged)
|
|
Core operating income
|
Expected to grow mid- to high teens
|
(from low double-digit to mid-teens)
|
|
•
|
Our guidance assumes that no Entresto generics and no Promacta
generics launch in the US in 2024
|
|
|
7
|
|
|
|
8
|
|
|
Continuing operations2
|
Q2 2024
|
Q2 2023
|
% change
|
H1 2024
|
H1 2023
|
% change
|
|||
|
|
USD m
|
USD m
|
USD
|
cc
|
USD m
|
USD m
|
USD
|
cc
|
|
|
Net sales
|
12 512
|
11 437
|
9
|
11
|
24 341
|
22 235
|
9
|
11
|
|
|
Operating income
|
4 014
|
2 807
|
43
|
47
|
7 387
|
5 425
|
36
|
43
|
|
|
As a % of sales
|
32.1
|
24.5
|
|
|
30.3
|
24.4
|
|
|
|
|
Net income
|
3 246
|
2 271
|
43
|
49
|
5 934
|
4 421
|
34
|
43
|
|
|
EPS (USD)
|
1.60
|
1.09
|
47
|
52
|
2.91
|
2.12
|
37
|
47
|
|
|
Cash flows from
operating activities |
4 875
|
3 517
|
39
|
|
7 140
|
6 369
|
12
|
|
|
|
Non-IFRS measures
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
4 615
|
3 292
|
40
|
|
6 653
|
5 976
|
11
|
|
|
|
Core operating income
|
4 953
|
4 240
|
17
|
19
|
9 490
|
8 146
|
16
|
21
|
|
|
As a % of sales
|
39.6
|
37.1
|
|
|
39.0
|
36.6
|
|
|
|
|
Core net income
|
4 008
|
3 502
|
14
|
18
|
7 689
|
6 735
|
14
|
19
|
|
|
Core EPS (USD)
|
1.97
|
1.69
|
17
|
21
|
3.77
|
3.23
|
17
|
22
|
|
|
Discontinued operations2
|
Q2 2024
|
Q2 2023
|
% change
|
H1 2024
|
H1 2023
|
% change
|
|||
|
|
USD m
|
USD m
|
USD
|
cc
|
USD m
|
USD m
|
USD
|
cc
|
|
|
Net sales
|
|
2 449
|
nm
|
nm
|
|
4 952
|
nm
|
nm
|
|
|
Operating income
|
|
113
|
nm
|
nm
|
|
351
|
nm
|
nm
|
|
|
As a % of sales
|
|
4.6
|
|
|
|
7.1
|
|
|
|
|
Net income
|
|
46
|
nm
|
nm
|
|
190
|
nm
|
nm
|
|
|
Non-IFRS measures
|
|
|
|
|
|
|
|
|
|
|
Core operating income
|
|
428
|
nm
|
nm
|
|
935
|
nm
|
nm
|
|
|
As a % of sales
|
|
17.5
|
|
|
|
18.9
|
|
|
|
|
Total Company
|
Q2 2024
|
Q2 2023
|
% change
|
H1 2024
|
H1 2023
|
% change
|
|||
|
|
USD m
|
USD m
|
USD
|
cc
|
USD m
|
USD m
|
USD
|
cc
|
|
|
Net income
|
3 246
|
2 317
|
nm
|
nm
|
5 934
|
4 611
|
nm
|
nm
|
|
|
EPS (USD)
|
1.60
|
1.11
|
nm
|
nm
|
2.91
|
2.20
|
nm
|
nm
|
|
|
Cash flows from
operating activities |
4 875
|
3 576
|
nm
|
nm
|
7 140
|
6 533
|
nm
|
nm
|
|
|
Non-IFRS measures
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
4 615
|
3 275
|
nm
|
nm
|
6 653
|
5 995
|
nm
|
nm
|
|
|
Core net income
|
4 008
|
3 811
|
nm
|
nm
|
7 689
|
7 425
|
nm
|
nm
|
|
|
Core EPS (USD)
|
1.97
|
1.83
|
nm
|
nm
|
3.77
|
3.54
|
nm
|
nm
|
|
|
|
9
|
|
|
|
10
|
|
| October 29, 2024 |
Third quarter & nine months 2024 results
|
| November 20-21, 2024
|
Meet Novartis Management 2024 (London, UK)
|
| January 31, 2025 | Fourth quarter & full year 2024 results |
|
|
11
|
|
Novartis Second Quarter and Half Year 2024 Condensed Interim Financial Report – Supplementary Data
(USD millions unless indicated otherwise) |
Q2 2024 USD m |
Q2 2023 USD m |
% change USD |
% change cc1 |
H1 2024 USD m |
H1 2023 USD m |
% change USD |
% change cc1 |
|||||||||
Net sales from continuing operations |
12 512 |
11 437 |
9 |
11 |
24 341 |
22 235 |
9 |
11 |
|||||||||
Other revenues |
360 |
308 |
17 |
17 |
651 |
557 |
17 |
17 |
|||||||||
Cost of goods sold |
-3 173 |
-3 342 |
5 |
4 |
-6 269 |
-6 333 |
1 |
1 |
|||||||||
Gross profit from continuing operations |
9 699 |
8 403 |
15 |
18 |
18 723 |
16 459 |
14 |
16 |
|||||||||
Selling, general and administration |
-3 091 |
-3 091 |
0 |
-1 |
-5 931 |
-5 982 |
1 |
0 |
|||||||||
Research and development |
-2 367 |
-2 304 |
-3 |
-4 |
-4 788 |
-4 879 |
2 |
2 |
|||||||||
Other income |
273 |
135 |
102 |
100 |
522 |
1 098 |
-52 |
-53 |
|||||||||
Other expense |
-500 |
-336 |
-49 |
-48 |
-1 139 |
-1 271 |
10 |
11 |
|||||||||
Operating income from continuing operations |
4 014 |
2 807 |
43 |
47 |
7 387 |
5 425 |
36 |
43 |
|||||||||
% of net sales |
32.1 |
24.5 |
30.3 |
24.4 |
|||||||||||||
Loss from associated companies |
-2 |
-2 |
0 |
20 |
-31 |
-4 |
nm |
nm |
|||||||||
Interest expense |
-246 |
-216 |
-14 |
-17 |
-467 |
-416 |
-12 |
-15 |
|||||||||
Other financial income and expense |
75 |
85 |
-12 |
41 |
81 |
189 |
-57 |
2 |
|||||||||
Income before taxes from continuing operations |
3 841 |
2 674 |
44 |
49 |
6 970 |
5 194 |
34 |
43 |
|||||||||
Income taxes |
-595 |
-403 |
-48 |
-53 |
-1 036 |
-773 |
-34 |
-43 |
|||||||||
Net income from continuing operations |
3 246 |
2 271 |
43 |
49 |
5 934 |
4 421 |
34 |
43 |
|||||||||
Net income from discontinued operations |
46 |
nm |
nm |
190 |
nm |
nm |
|||||||||||
Net income |
3 246 |
2 317 |
nm |
nm |
5 934 |
4 611 |
nm |
nm |
|||||||||
Basic earnings per share from continuing operations (USD) |
1.60 |
1.09 |
47 |
52 |
2.91 |
2.12 |
37 |
47 |
|||||||||
Basic earnings per share from discontinued operations (USD) |
0.02 |
nm |
nm |
0.08 |
nm |
nm |
|||||||||||
Total basic earnings per share (USD) |
1.60 |
1.11 |
nm |
nm |
2.91 |
2.20 |
nm |
nm |
|||||||||
Net cash flows from operating activities from continuing operations |
4 875 |
3 517 |
39 |
7 140 |
6 369 |
12 |
|||||||||||
Non-IFRS measures 1 |
|||||||||||||||||
Free cash flow from continuing operations |
4 615 |
3 292 |
40 |
6 653 |
5 976 |
11 |
|||||||||||
Core operating income from continuing operations |
4 953 |
4 240 |
17 |
19 |
9 490 |
8 146 |
16 |
21 |
|||||||||
% of net sales |
39.6 |
37.1 |
39.0 |
36.6 |
|||||||||||||
Core net income from continuing operations |
4 008 |
3 502 |
14 |
18 |
7 689 |
6 735 |
14 |
19 |
|||||||||
Core basic earnings per share from continuing operations (USD) |
1.97 |
1.69 |
17 |
21 |
3.77 |
3.23 |
17 |
22 |
|||||||||
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 43. Unless otherwise noted, all growth rates in this release refer to same period in prior-year. | |||||||||||||||||
nm = not meaningful | |||||||||||||||||
Q2 2024 |
Q2 2023 |
% change |
% change |
H1 2024 |
H1 2023 |
% change |
% change |
||||||||||
USD m |
USD m |
USD |
cc |
USD m |
USD m |
USD |
cc |
||||||||||
Cardiovascular, renal and metabolic |
|||||||||||||||||
Entresto |
1 898 |
1 516 |
25 |
28 |
3 777 |
2 915 |
30 |
32 |
|||||||||
Leqvio |
182 |
78 |
133 |
134 |
333 |
142 |
135 |
137 |
|||||||||
Total cardiovascular, renal and metabolic |
2 080 |
1 594 |
30 |
33 |
4 110 |
3 057 |
34 |
37 |
|||||||||
Q2 2024 |
Q2 2023 |
% change |
% change |
H1 2024 |
H1 2023 |
% change |
% change |
||||||||||
USD m |
USD m |
USD |
cc |
USD m |
USD m |
USD |
cc |
||||||||||
Immunology |
|||||||||||||||||
Cosentyx |
1 526 |
1 272 |
20 |
22 |
2 852 |
2 348 |
21 |
23 |
|||||||||
Xolair 1 |
427 |
362 |
18 |
22 |
826 |
716 |
15 |
18 |
|||||||||
Ilaris |
368 |
316 |
16 |
20 |
724 |
644 |
12 |
17 |
|||||||||
Other |
1 |
nm |
nm |
1 |
nm |
nm |
|||||||||||
Total immunology |
2 322 |
1 950 |
19 |
22 |
4 403 |
3 708 |
19 |
21 |
|||||||||
1 Net sales reflect Xolair sales for all indications. | |||||||||||||||||
nm = not meaningful | |||||||||||||||||
Q2 2024 |
Q2 2023 |
% change |
% change |
H1 2024 |
H1 2023 |
% change |
% change |
||||||||||
USD m |
USD m |
USD |
cc |
USD m |
USD m |
USD |
cc |
||||||||||
Neuroscience |
|||||||||||||||||
Kesimpta |
799 |
489 |
63 |
65 |
1 436 |
873 |
64 |
66 |
|||||||||
Zolgensma |
349 |
311 |
12 |
14 |
644 |
620 |
4 |
6 |
|||||||||
Aimovig |
77 |
67 |
15 |
16 |
153 |
128 |
20 |
19 |
|||||||||
Other |
1 |
nm |
nm |
||||||||||||||
Total neuroscience |
1 225 |
867 |
41 |
43 |
2 234 |
1 621 |
38 |
39 |
|||||||||
nm = not meaningful | |||||||||||||||||
Q2 2024 |
Q2 2023 |
% change |
% change |
H1 2024 |
H1 2023 |
% change |
% change |
||||||||||
USD m |
USD m |
USD |
cc |
USD m |
USD m |
USD |
cc |
||||||||||
Oncology |
|||||||||||||||||
Kisqali |
717 |
493 |
45 |
50 |
1 344 |
908 |
48 |
52 |
|||||||||
Promacta/Revolade |
544 |
583 |
-7 |
-5 |
1 064 |
1 130 |
-6 |
-4 |
|||||||||
Tafinlar + Mekinist 1 |
523 |
496 |
5 |
9 |
997 |
954 |
5 |
7 |
|||||||||
Jakavi |
471 |
435 |
8 |
13 |
949 |
849 |
12 |
15 |
|||||||||
Tasigna |
446 |
476 |
-6 |
-4 |
841 |
938 |
-10 |
-9 |
|||||||||
Pluvicto |
345 |
240 |
44 |
44 |
655 |
451 |
45 |
45 |
|||||||||
Lutathera |
175 |
150 |
17 |
17 |
344 |
299 |
15 |
16 |
|||||||||
Scemblix |
164 |
106 |
55 |
56 |
300 |
182 |
65 |
67 |
|||||||||
Kymriah |
113 |
129 |
-12 |
-11 |
233 |
264 |
-12 |
-10 |
|||||||||
Piqray/Vijoice |
120 |
130 |
-8 |
-7 |
229 |
246 |
-7 |
-6 |
|||||||||
Fabhalta |
22 |
nm |
nm |
28 |
nm |
nm |
|||||||||||
Other |
1 |
nm |
nm |
||||||||||||||
Total oncology |
3 640 |
3 238 |
12 |
15 |
6 984 |
6 222 |
12 |
14 |
|||||||||
1 Majority of sales for Mekinist and Tafinlar are combination, but both can be used as monotherapy. | |||||||||||||||||
nm = not meaningful | |||||||||||||||||
Q2 2024 |
Q2 2023 |
% change |
% change |
H1 2024 |
H1 2023 |
% change |
% change |
||||||||||
USD m |
USD m |
USD |
cc |
USD m |
USD m |
USD |
cc |
||||||||||
Established brands |
|||||||||||||||||
Sandostatin Group |
313 |
331 |
-5 |
-4 |
668 |
660 |
1 |
3 |
|||||||||
Lucentis |
275 |
395 |
-30 |
-28 |
589 |
811 |
-27 |
-26 |
|||||||||
Exforge Group |
178 |
184 |
-3 |
1 |
370 |
370 |
0 |
3 |
|||||||||
Gilenya |
138 |
269 |
-49 |
-47 |
313 |
501 |
-38 |
-36 |
|||||||||
Diovan Group |
160 |
155 |
3 |
9 |
300 |
313 |
-4 |
1 |
|||||||||
Galvus Group |
150 |
175 |
-14 |
-5 |
299 |
358 |
-16 |
-9 |
|||||||||
Contract manufacturing |
271 |
339 |
-20 |
-19 |
550 |
714 |
-23 |
-23 |
|||||||||
Other |
1 760 |
1 940 |
-9 |
-10 |
3 521 |
3 900 |
-10 |
-10 |
|||||||||
Total established brands |
3 245 |
3 788 |
-14 |
-13 |
6 610 |
7 627 |
-13 |
-12 |
|||||||||
Product |
Active ingredient/ Descriptor |
Indication |
Region |
|||||
Fabhalta |
iptacopan |
Paroxysmal nocturnal hemoglobinuria |
EU, Japan and China |
|||||
Lutathera |
177Lu-oxodotreotide |
Pediatric GEP-NETs |
US |
|||||
Completed submissions |
|||||||||||
Product |
Indication |
US |
EU |
Japan |
News update |
||||||
Kisqali |
Hormone receptor-positive / human epidermal growth factor receptor 2-negative early breast cancer (adjuvant) |
Q4 2023 |
Q3 2023 |
||||||||
Scemblix |
1L chronic myeloid leukemia |
Q2 2024 |
– US submission and Breakthrough Therapy designation granted – Ph3 data presented at ASCO congress |
||||||||
Fabhalta |
IgA nephropathy |
Q1 2024 |
– US submission, priority review granted |
||||||||
Atrasentan |
IgA nephropathy |
Q2 2024 |
– US submission – Ph3 data presented at ERA congress |
||||||||
Lutathera |
Gastroenteropancreatic neuroendocrine tumors, 1L in G2/3 tumors |
Q2 2024 |
|||||||||
Coartem |
Malaria (<5kg patients) |
– Submission using MAGHP procedure in Switzerland to facilitate rapid approvals in developing countries |
|||||||||
Compound/ product |
Potential indication/ Disease area |
First planned submissions |
Current Phase |
News update |
|||||
Aimovig |
Migraine, pediatrics |
≥2027 |
3 |
||||||
AVXS-101 (OAV101) |
Spinal muscular atrophy (IT formulation) |
2025 |
3 |
||||||
Beovu |
Diabetic retinopathy |
2025 |
3 |
||||||
CFZ533 (iscalimab) |
Sjögren's syndrome |
≥2027 |
2 |
||||||
Cosentyx |
Giant cell arteritis |
2025 |
3 |
||||||
Polymyalgia rheumatica |
2026 |
3 |
|||||||
Rotator cuff tendinopathy |
3 |
– Project discontinued to prioritize other key programs in portfolio |
|||||||
DAK539 (pelabresib) |
Myelofibrosis |
3 |
– Morphosys aquisition |
||||||
FUB523 (zigakibart) |
IgA nephropathy |
≥2027 |
3 |
||||||
JDQ443 (opnurasib) |
Non-small cell lung cancer (mono/combos) |
3 |
– Project discontinued to prioritize other key programs in portfolio |
||||||
KAE609 (cipargamin) |
Malaria, uncomplicated |
≥2027 |
2 |
||||||
Malaria, severe |
≥2027 |
2 |
|||||||
KLU156 (ganaplacide + lumefantrine) |
Malaria, uncomplicated |
2026 |
3 |
– FDA Orphan Drug designation – FDA Fast Track designation |
|||||
Leqvio |
Secondary prevention of cardiovascular events in patients with elevated levels of LDL-C |
≥2027 |
3 |
||||||
Primary prevention CVRR |
≥2027 |
3 |
|||||||
LNA043 |
Osteoarthritis |
≥2027 |
2 |
– FDA Fast Track designation |
|||||
Compound/ product |
Potential indication/ Disease area |
First planned submissions |
Current Phase |
News update |
|||||
LNP023 (iptacopan) |
C3 glomerulopathy |
2024 |
3 |
– EU Orphan Drug designation – EU PRIME designation – FDA Rare Pediatric designation – China Breakthrough Therapy designation – FDA Breakthrough Therapy designation – Ph3 data presented at ERA congress |
|||||
IC-MPGN |
≥2027 |
3 |
|||||||
Atypical haemolytic uraemic syndrome |
≥2027 |
3 |
|||||||
Myasthenia gravis |
≥2027 |
3 |
– Ph3 started |
||||||
LOU064 (remibrutinib) |
Chronic spontaneous urticaria |
2025 |
3 |
– Updated CMC package, filing now anticipated in 2025 – Ph3 52-week data presented at EAACI |
|||||
Multiple sclerosis |
≥2027 |
3 |
|||||||
CINDU |
≥2027 |
3 |
|||||||
177Lu-NeoB |
Multiple solid tumors |
≥2027 |
1 |
||||||
LXE408 |
Visceral leishmaniasis |
≥2027 |
2 |
||||||
Pluvicto |
Metastatic castration-resistant prostate cancer, pre-taxane |
2024 |
3 |
||||||
Metastatic hormone sensitive prostate cancer |
2025 |
3 |
– Event-driven trial |
||||||
Oligometastatic prostate cancer |
≥2027 |
3 |
|||||||
QGE031 (ligelizumab) |
Food allergy |
≥2027 |
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 |
|||||
VAY736 (ianalumab) |
Auto-immune hepatitis |
≥2027 |
2 |
– FDA Fast Track designation |
|||||
Sjögren’s syndrome |
2026 |
3 |
– FDA Fast Track designation |
||||||
Lupus nephritis |
≥2027 |
3 |
|||||||
Systemic lupus erythematosus |
≥2027 |
3 |
|||||||
1L immune thrombocytopenia |
≥2027 |
3 |
– Adjusted submission timeline due to slower recruitment progress |
||||||
2L immune thrombocytopenia |
≥2027 |
3 |
– Adjusted submission timeline due to slower recruitment progress |
||||||
Warm autoimmune hemolytic anemia |
≥2027 |
3 |
– Adjusted submission timeline due to slower recruitment progress |
||||||
Vijoyce |
Lymphatic malformations |
≥2027 |
3 |
– US, EU Orphan Drug designation |
|||||
XXB750 |
Hypertension |
≥2027 |
2 |
||||||
YTB323 |
Severe refractory lupus nephritis / Systemic lupus erythematosus |
≥2027 |
2 |
||||||
1L high-risk large B-cell lymphoma |
≥2027 |
2 |
|||||||
Condensed Interim Consolidated Financial Statements
(USD millions unless indicated otherwise) |
Note |
Q2 2024 |
Q2 2023 |
||||
Net sales from continuing operations |
9 |
12 512 |
11 437 |
||||
Other revenues |
9 |
360 |
308 |
||||
Cost of goods sold |
-3 173 |
-3 342 |
|||||
Gross profit from continuing operations |
9 699 |
8 403 |
|||||
Selling, general and administration |
-3 091 |
-3 091 |
|||||
Research and development |
-2 367 |
-2 304 |
|||||
Other income |
273 |
135 |
|||||
Other expense |
-500 |
-336 |
|||||
Operating income from continuing operations |
4 014 |
2 807 |
|||||
Loss from associated companies |
-2 |
-2 |
|||||
Interest expense |
-246 |
-216 |
|||||
Other financial income and expense |
75 |
85 |
|||||
Income before taxes from continuing operations |
3 841 |
2 674 |
|||||
Income taxes |
-595 |
-403 |
|||||
Net income from continuing operations |
3 246 |
2 271 |
|||||
Net income from discontinued operations |
11 |
46 |
|||||
Net income |
3 246 |
2 317 |
|||||
Attributable to: |
|||||||
Shareholders of Novartis AG |
3 246 |
2 316 |
|||||
Non-controlling interests |
0 |
1 |
|||||
Weighted average number of shares outstanding – Basic (million) |
2 033 |
2 083 |
|||||
Basic earnings per share from continuing operations (USD) 1 |
1.60 |
1.09 |
|||||
Basic earnings per share from discontinued operations (USD) 1 |
0.02 |
||||||
Total basic earnings per share (USD) 1 |
1.60 |
1.11 |
|||||
Weighted average number of shares outstanding – Diluted (million) |
2 046 |
2 095 |
|||||
Diluted earnings per share from continuing operations (USD) 1 |
1.59 |
1.09 |
|||||
Diluted earnings per share from discontinued operations (USD) 1 |
0.02 |
||||||
Total diluted earnings per share (USD) 1 |
1.59 |
1.11 |
|||||
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 |
H1 2024 |
H1 2023 |
||||
Net sales from continuing operations |
9 |
24 341 |
22 235 |
||||
Other revenues |
9 |
651 |
557 |
||||
Cost of goods sold |
-6 269 |
-6 333 |
|||||
Gross profit from continuing operations |
18 723 |
16 459 |
|||||
Selling, general and administration |
-5 931 |
-5 982 |
|||||
Research and development |
-4 788 |
-4 879 |
|||||
Other income |
522 |
1 098 |
|||||
Other expense |
-1 139 |
-1 271 |
|||||
Operating income from continuing operations |
7 387 |
5 425 |
|||||
Loss from associated companies |
-31 |
-4 |
|||||
Interest expense |
-467 |
-416 |
|||||
Other financial income and expense |
81 |
189 |
|||||
Income before taxes from continuing operations |
6 970 |
5 194 |
|||||
Income taxes |
-1 036 |
-773 |
|||||
Net income from continuing operations |
5 934 |
4 421 |
|||||
Net income from discontinued operations |
11 |
190 |
|||||
Net income |
5 934 |
4 611 |
|||||
Attributable to: |
|||||||
Shareholders of Novartis AG |
5 934 |
4 609 |
|||||
Non-controlling interests |
0 |
2 |
|||||
Weighted average number of shares outstanding – Basic (million) |
2 038 |
2 097 |
|||||
Basic earnings per share from continuing operations (USD) 1 |
2.91 |
2.12 |
|||||
Basic earnings per share from discontinued operations (USD) 1 |
0.08 |
||||||
Total basic earnings per share (USD) 1 |
2.91 |
2.20 |
|||||
Weighted average number of shares outstanding – Diluted (million) |
2 052 |
2 109 |
|||||
Diluted earnings per share from continuing operations (USD) 1 |
2.89 |
2.10 |
|||||
Diluted earnings per share from discontinued operations (USD) 1 |
0.09 |
||||||
Total diluted earnings per share (USD) 1 |
2.89 |
2.19 |
|||||
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) |
Q2 2024 |
Q2 2023 |
|||
Net income |
3 246 |
2 317 |
|||
Other comprehensive income |
|||||
Items that are or may be recycled into the consolidated income statement |
|||||
Net investment hedge, net of taxes |
14 |
6 |
|||
Currency translation effects, net of taxes |
40 |
216 |
|||
Total of items that are or may be recycled |
54 |
222 |
|||
Items that will never be recycled into the consolidated income statement |
|||||
Actuarial gains/(losses) from defined benefit plans, net of taxes |
57 |
-1 |
|||
Fair value adjustments on equity securities, net of taxes |
94 |
-2 |
|||
Total of items that will never be recycled |
151 |
-3 |
|||
Total other comprehensive income |
205 |
219 |
|||
Total comprehensive income |
3 451 |
2 536 |
|||
Total comprehensive income for the period attributable to: |
|||||
Shareholders of Novartis AG |
3 453 |
2 535 |
|||
Continuing operations |
3 453 |
2 502 |
|||
Discontinued operations |
33 |
||||
Non-controlling interests |
-2 |
1 |
|||
The accompanying Notes form an integral part of the condensed interim consolidated financial statements | |||||
(USD millions) |
H1 2024 |
H1 2023 |
|||
Net income |
5 934 |
4 611 |
|||
Other comprehensive income |
|||||
Items that are or may be recycled into the consolidated income statement |
|||||
Net investment hedge, net of taxes |
51 |
-29 |
|||
Currency translation effects, net of taxes |
-1 364 |
522 |
|||
Total of items that are or may be recycled |
-1 313 |
493 |
|||
Items that will never be recycled into the consolidated income statement |
|||||
Actuarial gains/(losses) from defined benefit plans, net of taxes |
136 |
-59 |
|||
Fair value adjustments on equity securities, net of taxes |
119 |
-46 |
|||
Total of items that will never be recycled |
255 |
-105 |
|||
Total other comprehensive income |
-1 058 |
388 |
|||
Total comprehensive income |
4 876 |
4 999 |
|||
Total comprehensive income for the period attributable to: |
|||||
Shareholders of Novartis AG |
4 880 |
4 996 |
|||
Continuing operations |
4 880 |
4 761 |
|||
Discontinued operations |
235 |
||||
Non-controlling interests |
-4 |
3 |
|||
The accompanying Notes form an integral part of the condensed interim consolidated financial statements | |||||
(USD millions) |
Jun 30, 2024 (unaudited) |
Dec 31, 2023 (audited) |
|||
Assets |
|||||
Non-current assets |
|||||
Property, plant and equipment |
9 254 |
9 514 |
|||
Right-of-use assets |
1 368 |
1 410 |
|||
Goodwill |
25 234 |
23 341 |
|||
Intangible assets other than goodwill |
27 775 |
26 879 |
|||
Investments in associated companies |
103 |
205 |
|||
Deferred tax assets |
4 400 |
4 309 |
|||
Financial assets |
2 023 |
2 607 |
|||
Other non-current assets |
1 655 |
1 199 |
|||
Total non-current assets |
71 812 |
69 464 |
|||
Current assets |
|||||
Inventories |
5 747 |
5 913 |
|||
Trade receivables |
8 228 |
7 107 |
|||
Income tax receivables |
252 |
426 |
|||
Marketable securities, commodities, time deposits and derivative financial instruments |
532 |
1 035 |
|||
Cash and cash equivalents |
7 903 |
13 393 |
|||
Other current assets |
3 031 |
2 607 |
|||
Total current assets |
25 693 |
30 481 |
|||
Total assets |
97 505 |
99 945 |
|||
Equity and liabilities |
|||||
Equity |
|||||
Share capital |
793 |
825 |
|||
Treasury shares |
-25 |
-41 |
|||
Reserves |
40 965 |
45 883 |
|||
Equity attributable to Novartis AG shareholders |
41 733 |
46 667 |
|||
Non-controlling interests |
169 |
83 |
|||
Total equity |
41 902 |
46 750 |
|||
Liabilities |
|||||
Non-current liabilities |
|||||
Financial debts |
19 663 |
18 436 |
|||
Lease liabilities |
1 560 |
1 598 |
|||
Deferred tax liabilities |
2 456 |
2 248 |
|||
Provisions and other non-current liabilities |
4 312 |
4 523 |
|||
Total non-current liabilities |
27 991 |
26 805 |
|||
Current liabilities |
|||||
Trade payables |
4 146 |
4 926 |
|||
Financial debts and derivative financial instruments |
7 532 |
6 175 |
|||
Lease liabilities |
232 |
230 |
|||
Current income tax liabilities |
1 919 |
1 893 |
|||
Provisions and other current liabilities |
13 783 |
13 166 |
|||
Total current liabilities |
27 612 |
26 390 |
|||
Total liabilities |
55 603 |
53 195 |
|||
Total equity and liabilities |
97 505 |
99 945 |
|||
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 April 1, 2024 |
793 |
-17 |
43 834 |
-4 935 |
39 675 |
81 |
39 756 |
||||||||||
Net income |
3 246 |
3 246 |
0 |
3 246 |
|||||||||||||
Other comprehensive income |
207 |
207 |
-2 |
205 |
|||||||||||||
Total comprehensive income |
3 246 |
207 |
3 453 |
-2 |
3 451 |
||||||||||||
Purchase of treasury shares |
-9 |
-1 663 |
-1 672 |
-1 672 |
|||||||||||||
Exercise of options and employee transactions |
-1 |
-1 |
-1 |
||||||||||||||
Equity-based compensation |
1 |
267 |
268 |
268 |
|||||||||||||
Shares delivered to Sandoz employees as a result of the Sandoz spin-off |
2 |
2 |
2 |
||||||||||||||
Taxes on treasury share transactions |
-12 |
-12 |
-12 |
||||||||||||||
Fair value adjustments on financial assets sold |
143 |
-143 |
|||||||||||||||
Impact of change in ownership of consolidated entities |
-28 |
-28 |
90 |
62 |
|||||||||||||
Other movements |
4.3 |
48 |
48 |
48 |
|||||||||||||
Total of other equity movements |
-8 |
-1 244 |
-143 |
-1 395 |
90 |
-1 305 |
|||||||||||
Total equity at June 30, 2024 |
793 |
-25 |
45 836 |
-4 871 |
41 733 |
169 |
41 902 |
||||||||||
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 April 1, 2023 |
842 |
-36 |
56 089 |
-4 836 |
52 059 |
83 |
52 142 |
||||||||||
Net income |
2 316 |
2 316 |
1 |
2 317 |
|||||||||||||
Other comprehensive income |
219 |
219 |
0 |
219 |
|||||||||||||
Total comprehensive income |
2 316 |
219 |
2 535 |
1 |
2 536 |
||||||||||||
Purchase of treasury shares |
-17 |
-2 994 |
-3 011 |
-3 011 |
|||||||||||||
Equity-based compensation |
1 |
241 |
242 |
242 |
|||||||||||||
Fair value adjustments on financial assets sold |
8 |
-8 |
|||||||||||||||
Other movements |
4.3 |
22 |
22 |
22 |
|||||||||||||
Total of other equity movements |
-16 |
-2 723 |
-8 |
-2 747 |
-2 747 |
||||||||||||
Total equity at June 30, 2023 |
842 |
-52 |
55 682 |
-4 625 |
51 847 |
84 |
51 931 |
||||||||||
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, 2024 |
825 |
-41 |
49 649 |
-3 766 |
46 667 |
83 |
46 750 |
||||||||||
Net income |
5 934 |
5 934 |
0 |
5 934 |
|||||||||||||
Other comprehensive income |
-1 054 |
-1 054 |
-4 |
-1 058 |
|||||||||||||
Total comprehensive income |
5 934 |
-1 054 |
4 880 |
-4 |
4 876 |
||||||||||||
Dividends |
4.1 |
-7 624 |
-7 624 |
-7 624 |
|||||||||||||
Purchase of treasury shares |
-15 |
-2 798 |
-2 813 |
-2 813 |
|||||||||||||
Reduction of share capital |
4.2 |
-32 |
26 |
6 |
|||||||||||||
Exercise of options and employee transactions |
-35 |
-35 |
-35 |
||||||||||||||
Equity-based compensation |
5 |
547 |
552 |
552 |
|||||||||||||
Shares delivered to Sandoz employees as a result of the Sandoz spin-off |
12 |
12 |
12 |
||||||||||||||
Taxes on treasury share transactions |
8 |
8 |
8 |
||||||||||||||
Fair value adjustments on financial assets sold |
51 |
-51 |
|||||||||||||||
Impact of change in ownership of consolidated entities |
-28 |
-28 |
90 |
62 |
|||||||||||||
Other movements |
4.3 |
114 |
114 |
114 |
|||||||||||||
Total of other equity movements |
-32 |
16 |
-9 747 |
-51 |
-9 814 |
90 |
-9 724 |
||||||||||
Total equity at June 30, 2024 |
793 |
-25 |
45 836 |
-4 871 |
41 733 |
169 |
41 902 |
||||||||||
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 |
4 609 |
4 609 |
2 |
4 611 |
|||||||||||||
Other comprehensive income |
387 |
387 |
1 |
388 |
|||||||||||||
Total comprehensive income |
4 609 |
387 |
4 996 |
3 |
4 999 |
||||||||||||
Dividends |
-7 255 |
-7 255 |
-7 255 |
||||||||||||||
Purchase of treasury shares |
-35 |
-5 853 |
-5 888 |
-5 888 |
|||||||||||||
Reduction of share capital |
-48 |
68 |
-20 |
||||||||||||||
Exercise of options and employee transactions |
2 |
151 |
153 |
153 |
|||||||||||||
Equity-based compensation |
5 |
428 |
433 |
433 |
|||||||||||||
Taxes on treasury share transactions |
8 |
8 |
8 |
||||||||||||||
Fair value adjustments on financial assets sold |
16 |
-16 |
|||||||||||||||
Other movements |
4.3 |
58 |
58 |
58 |
|||||||||||||
Total of other equity movements |
-48 |
40 |
-12 467 |
-16 |
-12 491 |
-12 491 |
|||||||||||
Total equity at June 30, 2023 |
842 |
-52 |
55 682 |
-4 625 |
51 847 |
84 |
51 931 |
||||||||||
The accompanying Notes form an integral part of the condensed interim consolidated financial statements | |||||||||||||||||
(USD millions) |
Note |
Q2 2024 |
Q2 2023 |
||||
Net income from continuing operations |
3 246 |
2 271 |
|||||
Adjustments to reconcile net income from continuing operations to net cash flows from operating activities from continuing operations |
|||||||
Reversal of non-cash items and other adjustments |
6.1 |
2 400 |
2 567 |
||||
Dividends received from associated companies and others |
1 |
||||||
Interest received |
71 |
117 |
|||||
Interest paid |
-255 |
-220 |
|||||
Change in other financial receipts |
-53 |
||||||
Change in other financial payments |
-65 |
-4 |
|||||
Income taxes paid |
6.2 |
-473 |
-973 |
||||
Net cash flows from operating activities from continuing operations before working capital and provision changes |
4 925 |
3 705 |
|||||
Payments out of provisions and other net cash movements in non-current liabilities |
-288 |
-243 |
|||||
Change in net current assets and other operating cash flow items |
6.3 |
238 |
55 |
||||
Net cash flows from operating activities from continuing operations |
4 875 |
3 517 |
|||||
Net cash flows from operating activities from discontinued operations |
59 |
||||||
Total net cash flows from operating activities |
4 875 |
3 576 |
|||||
Purchases of property, plant and equipment |
-260 |
-225 |
|||||
Proceeds from sale of property, plant and equipment |
37 |
4 |
|||||
Purchases of intangible assets |
-468 |
-673 |
|||||
Proceeds from sale of intangible assets |
20 |
||||||
Purchases of financial assets |
-45 |
-26 |
|||||
Proceeds from sale of financial assets |
647 |
47 |
|||||
Divestments and acquisitions of interests in associated companies, net |
-12 |
-2 |
|||||
Acquisitions and divestments of businesses, net |
6.4 |
-3 319 |
-84 |
||||
Purchases of marketable securities, commodities and time deposits |
-237 |
-4 |
|||||
Proceeds from sale of marketable securities, commodities and time deposits |
430 |
3 |
|||||
Net cash flows used in investing activities from continuing operations |
-3 207 |
-960 |
|||||
Net cash flows used in investing activities from discontinued operations |
-93 |
||||||
Total net cash flows used in investing activities |
-3 207 |
-1 053 |
|||||
Dividends paid to shareholders of Novartis AG |
4.1 |
-2 417 |
|||||
Purchases of treasury shares |
-1 616 |
-2 957 |
|||||
Proceeds from exercised options and other treasury share transactions, net |
25 |
||||||
Increase in non-current financial debts |
2 473 |
||||||
Repayments of the current portion of non-current financial debts |
-2 150 |
||||||
Change in current financial debts |
569 |
-709 |
|||||
Payments of lease liabilities |
-59 |
-65 |
|||||
Payments from changes in ownership interests in consolidated subsidiaries |
-47 |
||||||
Other financing cash flows, net |
22 |
-35 |
|||||
Net cash flows used in financing activities from continuing operations |
-3 200 |
-3 766 |
|||||
Net cash flows from financing activities from discontinued operations |
129 |
||||||
Total net cash flows used in financing activities |
-3 200 |
-3 637 |
|||||
Net change in cash and cash equivalents before effect of exchange rate changes |
-1 532 |
-1 114 |
|||||
Effect of exchange rate changes on cash and cash equivalents |
-34 |
-1 |
|||||
Net change in cash and cash equivalents |
-1 566 |
-1 115 |
|||||
Cash and cash equivalents at April 1 |
9 469 |
12 000 |
|||||
Cash and cash equivalents at June 30 |
7 903 |
10 885 |
|||||
The accompanying Notes form an integral part of the condensed interim consolidated financial statements | |||||||
(USD millions) |
Note |
H1 2024 |
H1 2023 |
||||
Net income from continuing operations |
5 934 |
4 421 |
|||||
Adjustments to reconcile net income from continuing operations to net cash flows from operating activities from continuing operations |
|||||||
Reversal of non-cash items and other adjustments |
6.1 |
4 897 |
5 249 |
||||
Dividends received from associated companies and others |
1 |
1 |
|||||
Interest received |
235 |
373 |
|||||
Interest paid |
-402 |
-335 |
|||||
Other financial receipts |
27 |
||||||
Other financial payments |
-94 |
-10 |
|||||
Income taxes paid |
6.2 |
-1 049 |
-1 268 |
||||
Net cash flows from operating activities from continuing operations before working capital and provision changes |
9 522 |
8 458 |
|||||
Payments out of provisions and other net cash movements in non-current liabilities |
-631 |
-926 |
|||||
Change in net current assets and other operating cash flow items |
6.3 |
-1 751 |
-1 163 |
||||
Net cash flows from operating activities from continuing operations |
7 140 |
6 369 |
|||||
Net cash flows from operating activities from discontinued operations |
164 |
||||||
Total net cash flows from operating activities |
7 140 |
6 533 |
|||||
Purchases of property, plant and equipment |
-487 |
-393 |
|||||
Proceeds from sale of property, plant and equipment |
38 |
22 |
|||||
Purchases of intangible assets |
-1 397 |
-894 |
|||||
Proceeds from sale of intangible assets |
20 |
130 |
|||||
Purchases of financial assets |
-92 |
-66 |
|||||
Proceeds from sale of financial assets |
710 |
110 |
|||||
Divestments and acquisitions of interests in associated companies, net |
4 |
-5 |
|||||
Acquisitions and divestments of businesses, net |
6.4 |
-3 598 |
-107 |
||||
Purchases of marketable securities, commodities and time deposits |
-240 |
-69 |
|||||
Proceeds from sale of marketable securities, commodities and time deposits |
936 |
11 017 |
|||||
Net cash flows (used in)/from investing activities from continuing operations |
-4 106 |
9 745 |
|||||
Net cash flows used in investing activities from discontinued operations |
-177 |
||||||
Total net cash flows (used in)/from investing activities |
-4 106 |
9 568 |
|||||
Dividends paid to shareholders of Novartis AG |
4.1 |
-7 624 |
-7 255 |
||||
Purchases of treasury shares |
-2 715 |
-5 843 |
|||||
Proceeds from exercised options and other treasury share transactions, net |
25 |
159 |
|||||
Increase in non-current financial debts |
2 473 |
||||||
Repayments of the current portion of non-current financial debts |
-2 150 |
||||||
Change in current financial debts |
1 789 |
290 |
|||||
Payments of lease liabilities |
-126 |
-131 |
|||||
Payments from changes in ownership interests in consolidated subsidiaries |
-47 |
||||||
Other financing cash flows, net |
11 |
18 |
|||||
Net cash flows used in financing activities from continuing operations |
-8 364 |
-12 762 |
|||||
Net cash flows used in financing activities from discontinued operations |
-77 |
||||||
Total net cash flows used in financing activities |
-8 364 |
-12 839 |
|||||
Net change in cash and cash equivalents before effect of exchange rate changes |
-5 330 |
3 262 |
|||||
Effect of exchange rate changes on cash and cash equivalents |
-160 |
106 |
|||||
Net change in cash and cash equivalents |
-5 490 |
3 368 |
|||||
Cash and cash equivalents at January 1 |
13 393 |
7 517 |
|||||
Cash and cash equivalents at June 30 |
7 903 |
10 885 |
|||||
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 six month period ended June 30, 2024 (unaudited)
(USD millions) |
Jun 30, 2024 |
Dec 31, 2023 |
|||
Property, plant and equipment |
23 |
18 |
|||
Right-of-use assets |
32 |
16 |
|||
In-process research and development |
1 746 |
2 931 |
|||
Other intangible assets 1 |
419 |
15 |
|||
Deferred tax assets |
315 |
34 |
|||
Non-current financial and other assets |
421 |
164 |
|||
Trade receivable and financial and other current assets |
658 |
183 |
|||
Cash and cash equivalents |
236 |
226 |
|||
Deferred tax liabilities |
-600 |
-474 |
|||
Current and non-current financial debts |
-905 |
||||
Current and non-current lease liabilities |
-41 |
-51 |
|||
Trade payables and other liabilities |
-289 |
-231 |
|||
Net identifiable assets acquired |
2 015 |
2 831 |
|||
Non-controlling interests |
-108 |
||||
Goodwill |
2 198 |
1 094 |
|||
Total purchase consideration for acquisitions of businesses |
4 105 |
3 925 |
|||
1 Other intangible assets represent technologies (scientific infrastructure). | |||||
(USD millions) |
Oct 3, 2023 |
||
Net assets derecognized |
-8 647 |
||
Derecognition of distribution liability |
13 962 |
||
Difference between net assets and distribution liability |
5 315 |
||
Recognition of Sandoz Group AG shares obtained through consolidated foundations |
492 |
||
Currency translation gains recycled into the consolidated income statement |
357 |
||
Transaction costs and other items recognized in the consolidated income statement |
-304 |
||
Gain on distribution of Sandoz Group AG to Novartis AG shareholders |
5 860 |
||
Number of outstanding shares (in millions) |
Issued share capital and reserves attributable to Novartis AG shareholders (in USD millions) |
||||||||||
Note |
2024 |
2023 |
H1 2024 |
H1 2023 |
|||||||
Balance at beginning of year |
2 044.0 |
2 119.6 |
46 667 |
59 342 |
|||||||
Shares acquired to be canceled |
-26.7 |
-61.3 |
-2 698 |
-5 767 |
|||||||
Other share purchases |
-1.1 |
-1.3 |
-115 |
-121 |
|||||||
Exercise of options and employee transactions |
0.0 |
2.8 |
-35 |
153 |
|||||||
Equity-based compensation |
8.3 |
8.5 |
552 |
433 |
|||||||
Shares delivered to Sandoz employees as a result of the Sandoz spin-off |
0.1 |
12 |
|||||||||
Taxes on treasury share transactions |
8 |
8 |
|||||||||
Dividends |
4.1 |
-7 624 |
-7 255 |
||||||||
Net income of the period attributable to shareholders of Novartis AG |
5 934 |
4 609 |
|||||||||
Other comprehensive income attributable to shareholders of Novartis AG |
-1 054 |
387 |
|||||||||
Impact of change in ownership of consolidated entities |
-28 |
||||||||||
Other movements |
4.3 |
114 |
58 |
||||||||
Balance at June 30 |
2 024.6 |
2 068.3 |
41 733 |
51 847 |
|||||||
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||||
(USD millions) |
Jun 30, 2024 |
Dec 31, 2023 |
Jun 30, 2024 |
Dec 31, 2023 |
Jun 30, 2024 |
Dec 31, 2023 |
Jun 30, 2024 |
Dec 31, 2023 |
|||||||||
Financial assets |
|||||||||||||||||
Cash and cash equivalents |
|||||||||||||||||
Debt securities |
50 |
50 |
50 |
50 |
|||||||||||||
Total cash and cash equivalents at fair value |
50 |
50 |
50 |
50 |
|||||||||||||
Marketable securities |
|||||||||||||||||
Fund investments |
405 |
405 |
|||||||||||||||
Derivative financial instruments |
60 |
355 |
60 |
355 |
|||||||||||||
Total marketable securities and derivative financial instruments at fair value |
405 |
60 |
355 |
465 |
355 |
||||||||||||
Current contingent consideration receivables |
90 |
65 |
90 |
65 |
|||||||||||||
Current fund investments and equity securities |
34 |
94 |
22 |
31 |
56 |
125 |
|||||||||||
Long-term financial investments |
|||||||||||||||||
Debt and equity securities |
275 |
796 |
7 |
20 |
642 |
616 |
924 |
1 432 |
|||||||||
Fund investments |
12 |
7 |
191 |
183 |
203 |
190 |
|||||||||||
Non-current contingent consideration receivables |
501 |
553 |
501 |
553 |
|||||||||||||
Total long-term financial investments at fair value |
287 |
803 |
7 |
20 |
1 334 |
1 352 |
1 628 |
2 175 |
|||||||||
Associated companies at fair value through profit or loss |
101 |
101 |
101 |
101 |
|||||||||||||
Financial liabilities |
|||||||||||||||||
Current contingent consideration liabilities |
-154 |
-14 |
-154 |
-14 |
|||||||||||||
Current other financial liabilities |
-88 |
-88 |
|||||||||||||||
Derivative financial instruments |
-54 |
-91 |
-54 |
-91 |
|||||||||||||
Total current financial liabilities at fair value |
-54 |
-91 |
-154 |
-102 |
-208 |
-193 |
|||||||||||
Non-current contingent consideration liabilities |
-546 |
-389 |
-546 |
-389 |
|||||||||||||
(USD millions) |
Q2 2024 |
Q2 2023 |
|||
Depreciation, amortization and impairments on: |
|||||
Property, plant and equipment |
228 |
213 |
|||
Right-of-use assets |
61 |
68 |
|||
Intangible assets |
873 |
1 427 |
|||
Financial assets 1 |
-22 |
29 |
|||
Change in provisions and other non-current liabilities |
204 |
-53 |
|||
Losses on disposal on property, plant and equipment; intangible assets; other non-current assets; and other adjustments on financial assets and other non-current assets, net |
72 |
86 |
|||
Equity-settled compensation expense |
257 |
222 |
|||
Loss from associated companies |
2 |
2 |
|||
Income taxes |
595 |
403 |
|||
Net financial expense |
171 |
131 |
|||
Other |
-41 |
39 |
|||
Total |
2 400 |
2 567 |
|||
1 Includes fair value changes | |||||
(USD millions) |
H1 2024 |
H1 2023 |
|||
Depreciation, amortization and impairments on: |
|||||
Property, plant and equipment |
447 |
465 |
|||
Right-of-use assets |
124 |
133 |
|||
Intangible assets |
1 905 |
2 980 |
|||
Financial assets 1 |
6 |
75 |
|||
Change in provisions and other non-current liabilities |
367 |
362 |
|||
Losses/(gains) on disposal on property, plant and equipment; intangible assets; other non-current assets; and other adjustments on financial assets and other non-current assets, net |
142 |
-216 |
|||
Equity-settled compensation expense |
517 |
412 |
|||
Loss from associated companies |
31 |
4 |
|||
Income taxes |
1 036 |
773 |
|||
Net financial expense |
386 |
227 |
|||
Other |
-64 |
34 |
|||
Total |
4 897 |
5 249 |
|||
1 Includes fair value changes | |||||
(USD millions) |
Q2 2024 |
Q2 2023 |
H1 2024 |
H1 2023 |
|||||
Increase in inventories |
-18 |
-185 |
-146 |
-546 |
|||||
Increase in trade receivables |
-501 |
-447 |
-1 421 |
-1 147 |
|||||
(Decrease)/increase in trade payables |
-142 |
73 |
-551 |
99 |
|||||
Change in other current and non-current assets |
-105 |
9 |
-377 |
-100 |
|||||
Change in other current liabilities |
1 004 |
605 |
744 |
531 |
|||||
Total |
238 |
55 |
-1 751 |
-1 163 |
|||||
(USD millions) |
Q2 2024 |
Q2 2023 |
H1 2024 |
H1 2023 |
|||||
Total purchase consideration for acquisitions of businesses |
-3 807 |
0 |
-4 105 |
0 |
|||||
Acquired cash and cash equivalents |
234 |
236 |
|||||||
Contingent consideration payable, net |
233 |
280 |
-10 |
||||||
Payments (incl. prepayments), deferred consideration and other adjustments, net |
47 |
-100 |
55 |
-100 |
|||||
Cash flows used for acquisitions of businesses 1 |
-3 293 |
-100 |
-3 534 |
-110 |
|||||
Cash flows (used for)/from divestments of businesses, net 2 |
-26 |
16 |
-64 |
3 |
|||||
Cash flows used for acquisitions and divestments of businesses, net |
-3 319 |
-84 |
-3 598 |
-107 |
|||||
1 The second quarter and the first half of 2024 include the payments for purchases of MorphoSys shares by Novartis during the Offer period totaling EUR 0.3 billion (USD 0.3 billion), see Note 3 for further information. | |||||||||
2 In the first half of 2024, USD 64 million (Q2 2024: USD 26 million) represented the net cash outflows from divestments in prior years. | |||||||||
In the first half of 2023, USD 3 million (Q2 2023: USD 16 million) represented the net cash inflows from divestments from the 2023 periods and prior years. | |||||||||
(USD millions) |
Q2 2024 |
Q2 2023 |
H1 2024 |
H1 2023 |
|||||
Net sales to third parties from continuing operations |
12 512 |
11 231 |
24 341 |
21 776 |
|||||
Sales to discontinued operations |
206 |
459 |
|||||||
Net sales from continuing operations |
12 512 |
11 437 |
24 341 |
22 235 |
|||||
Q2 2024 USD m |
Q2 2023 USD m |
% change USD |
% change cc2 |
Q2 2024 % of total |
Q2 2023 % of total |
||||||||
US |
5 146 |
4 498 |
14 |
14 |
41 |
39 |
|||||||
Europe |
3 867 |
3 688 |
5 |
6 |
31 |
32 |
|||||||
Asia/Africa/Australasia |
2 594 |
2 425 |
7 |
13 |
21 |
21 |
|||||||
Canada and Latin America |
905 |
826 |
10 |
15 |
7 |
8 |
|||||||
Total |
12 512 |
11 437 |
9 |
11 |
100 |
100 |
|||||||
Of which in established markets |
9 162 |
8 456 |
8 |
10 |
73 |
74 |
|||||||
Of which in emerging growth markets |
3 350 |
2 981 |
12 |
16 |
27 |
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. Novartis definition of Western Europe includes Austria, Belgium, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Malta, The Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. | |||||||||||||
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 43. | |||||||||||||
H1 2024 USD m |
H1 2023 USD m |
% change USD |
% change cc2 |
H1 2024 % of total |
H1 2023 % of total |
||||||||
US |
9 734 |
8 548 |
14 |
14 |
40 |
38 |
|||||||
Europe |
7 631 |
7 351 |
4 |
5 |
31 |
33 |
|||||||
Asia/Africa/Australasia |
5 174 |
4 728 |
9 |
15 |
21 |
21 |
|||||||
Canada and Latin America |
1 802 |
1 608 |
12 |
15 |
8 |
8 |
|||||||
Total |
24 341 |
22 235 |
9 |
11 |
100 |
100 |
|||||||
Of which in established markets |
17 650 |
16 351 |
8 |
9 |
73 |
74 |
|||||||
Of which in emerging growth markets |
6 691 |
5 884 |
14 |
19 |
27 |
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. Novartis definition of Western Europe includes Austria, Belgium, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Malta, The Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. | |||||||||||||
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 43. | |||||||||||||
Q2 2024 |
Q2 2023 |
% change |
% change |
||||||
USD m |
USD m1 |
USD |
cc2 |
||||||
Cardiovascular, renal and metabolic |
|||||||||
Entresto |
1 898 |
1 516 |
25 |
28 |
|||||
Leqvio |
182 |
78 |
133 |
134 |
|||||
Total cardiovascular, renal and metabolic |
2 080 |
1 594 |
30 |
33 |
|||||
Immunology |
|||||||||
Cosentyx |
1 526 |
1 272 |
20 |
22 |
|||||
Xolair 3 |
427 |
362 |
18 |
22 |
|||||
Ilaris |
368 |
316 |
16 |
20 |
|||||
Other |
1 |
nm |
nm |
||||||
Total immunology |
2 322 |
1 950 |
19 |
22 |
|||||
Neuroscience |
|||||||||
Kesimpta |
799 |
489 |
63 |
65 |
|||||
Zolgensma |
349 |
311 |
12 |
14 |
|||||
Aimovig |
77 |
67 |
15 |
16 |
|||||
Total neuroscience |
1 225 |
867 |
41 |
43 |
|||||
Oncology |
|||||||||
Kisqali |
717 |
493 |
45 |
50 |
|||||
Promacta/Revolade |
544 |
583 |
-7 |
-5 |
|||||
Tafinlar + Mekinist |
523 |
496 |
5 |
9 |
|||||
Jakavi |
471 |
435 |
8 |
13 |
|||||
Tasigna |
446 |
476 |
-6 |
-4 |
|||||
Pluvicto |
345 |
240 |
44 |
44 |
|||||
Lutathera |
175 |
150 |
17 |
17 |
|||||
Scemblix |
164 |
106 |
55 |
56 |
|||||
Kymriah |
113 |
129 |
-12 |
-11 |
|||||
Piqray/Vijoice |
120 |
130 |
-8 |
-7 |
|||||
Fabhalta |
22 |
nm |
nm |
||||||
Total oncology |
3 640 |
3 238 |
12 |
15 |
|||||
Total promoted brands |
9 267 |
7 649 |
21 |
24 |
|||||
Established brands |
|||||||||
Sandostatin Group |
313 |
331 |
-5 |
-4 |
|||||
Lucentis |
275 |
395 |
-30 |
-28 |
|||||
Exforge Group |
178 |
184 |
-3 |
1 |
|||||
Gilenya |
138 |
269 |
-49 |
-47 |
|||||
Diovan Group |
160 |
155 |
3 |
9 |
|||||
Galvus Group |
150 |
175 |
-14 |
-5 |
|||||
Contract manufacturing |
271 |
339 |
-20 |
-19 |
|||||
Other |
1 760 |
1 940 |
-9 |
-10 |
|||||
Total established brands |
3 245 |
3 788 |
-14 |
-13 |
|||||
Total net sales from continuing operations |
12 512 |
11 437 |
9 |
11 |
|||||
1 Reclassified to conform with 2024 presentation of brands by therapeutic area and established brands. | |||||||||
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 43. | |||||||||
3 Net sales from continuing operations reflect Xolair sales for all indications. | |||||||||
nm = not meaningful | |||||||||
H1 2024 |
H1 2023 |
% change |
% change |
||||||
USD m |
USD m1 |
USD |
cc2 |
||||||
Cardiovascular, renal and metabolic |
|||||||||
Entresto |
3 777 |
2 915 |
30 |
32 |
|||||
Leqvio |
333 |
142 |
135 |
137 |
|||||
Total cardiovascular, renal and metabolic |
4 110 |
3 057 |
34 |
37 |
|||||
Immunology |
|||||||||
Cosentyx |
2 852 |
2 348 |
21 |
23 |
|||||
Xolair 3 |
826 |
716 |
15 |
18 |
|||||
Ilaris |
724 |
644 |
12 |
17 |
|||||
Other |
1 |
nm |
nm |
||||||
Total immunology |
4 403 |
3 708 |
19 |
21 |
|||||
Neuroscience |
|||||||||
Kesimpta |
1 436 |
873 |
64 |
66 |
|||||
Zolgensma |
644 |
620 |
4 |
6 |
|||||
Aimovig |
153 |
128 |
20 |
19 |
|||||
Other |
1 |
nm |
nm |
||||||
Total neuroscience |
2 234 |
1 621 |
38 |
39 |
|||||
Oncology |
|||||||||
Kisqali |
1 344 |
908 |
48 |
52 |
|||||
Promacta/Revolade |
1 064 |
1 130 |
-6 |
-4 |
|||||
Tafinlar + Mekinist |
997 |
954 |
5 |
7 |
|||||
Jakavi |
949 |
849 |
12 |
15 |
|||||
Tasigna |
841 |
938 |
-10 |
-9 |
|||||
Pluvicto |
655 |
451 |
45 |
45 |
|||||
Lutathera |
344 |
299 |
15 |
16 |
|||||
Scemblix |
300 |
182 |
65 |
67 |
|||||
Kymriah |
233 |
264 |
-12 |
-10 |
|||||
Piqray/Vijoice |
229 |
246 |
-7 |
-6 |
|||||
Fabhalta |
28 |
nm |
nm |
||||||
Other |
1 |
nm |
nm |
||||||
Total oncology |
6 984 |
6 222 |
12 |
14 |
|||||
Total promoted brands |
17 731 |
14 608 |
21 |
23 |
|||||
Established brands |
|||||||||
Sandostatin Group |
668 |
660 |
1 |
3 |
|||||
Lucentis |
589 |
811 |
-27 |
-26 |
|||||
Exforge Group |
370 |
370 |
0 |
3 |
|||||
Gilenya |
313 |
501 |
-38 |
-36 |
|||||
Diovan Group |
300 |
313 |
-4 |
1 |
|||||
Galvus Group |
299 |
358 |
-16 |
-9 |
|||||
Contract manufacturing |
550 |
714 |
-23 |
-23 |
|||||
Other |
3 521 |
3 900 |
-10 |
-10 |
|||||
Total established brands |
6 610 |
7 627 |
-13 |
-12 |
|||||
Total net sales from continuing operations |
24 341 |
22 235 |
9 |
11 |
|||||
1 Reclassified to conform with 2024 presentation of brands by therapeutic area and established brands. | |||||||||
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 43. | |||||||||
3 Net sales from continuing operations reflect Xolair sales for all indications. | |||||||||
nm = not meaningful | |||||||||
US |
Rest of world |
Total |
|||||||||||||||||||
Brands |
Brand classification by therapeutic area or established brands |
Key indications |
USD m |
% change USD/cc1 |
USD m |
% change USD |
% change cc1 |
USD m |
% change USD |
% change cc1 |
|||||||||||
Entresto |
Cardiovascular, renal and metabolic |
Chronic heart failure, hypertension |
947 |
25 |
951 |
25 |
30 |
1 898 |
25 |
28 |
|||||||||||
Cosentyx |
Immunology |
Psoriasis (PsO), ankylosing spondylitis (AS), psoriatic arthritis (PsA), non-radiographic axial spondyloarthritis (nr-axSPA), hidradenitis suppurativa (HS) |
868 |
34 |
658 |
6 |
10 |
1 526 |
20 |
22 |
|||||||||||
Kesimpta |
Neuroscience |
Relapsing-remitting multiple sclerosis (RRMS) |
555 |
49 |
244 |
110 |
118 |
799 |
63 |
65 |
|||||||||||
Kisqali |
Oncology |
HR+/HER2- metastatic breast cancer |
375 |
67 |
342 |
27 |
35 |
717 |
45 |
50 |
|||||||||||
Promacta/Revolade |
Oncology |
Immune thrombocytopenia (ITP), severe aplastic anemia (SAA) |
283 |
-10 |
261 |
-3 |
1 |
544 |
-7 |
-5 |
|||||||||||
Tafinlar + Mekinist |
Oncology |
BRAF V600+ metastatic adjuvant melanoma, advanced non-small cell lung cancer (NSCLC), tumor agnostic with BRAF mutation indication |
202 |
3 |
321 |
7 |
13 |
523 |
5 |
9 |
|||||||||||
Jakavi |
Oncology |
Myelofibrosis (MF), polycytomia vera (PV), graft-versus-host disease (GvHD) |
471 |
8 |
13 |
471 |
8 |
13 |
|||||||||||||
Tasigna |
Oncology |
Chronic myeloid leukemia (CML) |
230 |
-1 |
216 |
-11 |
-7 |
446 |
-6 |
-4 |
|||||||||||
Xolair 2 |
Immunology |
Severe allergic asthma (SAA), chronic spontaneous urticaria (CSU), nasal polyps |
427 |
18 |
22 |
427 |
18 |
22 |
|||||||||||||
Ilaris |
Immunology |
Auto-inflammatory (CAPS, TRAPS, HIDS/MKD, FMF, SJIA, AOSD, gout) |
194 |
19 |
174 |
14 |
22 |
368 |
16 |
20 |
|||||||||||
Sandostatin Group |
Established brands |
Carcinoid tumors, acromegaly |
187 |
-8 |
126 |
-2 |
3 |
313 |
-5 |
-4 |
|||||||||||
Pluvicto |
Oncology |
PSMA-positive mCRPC patients post-ARPI, post-Taxane |
295 |
30 |
50 |
285 |
274 |
345 |
44 |
44 |
|||||||||||
Zolgensma |
Neuroscience |
Spinal muscular atrophy (SMA) |
134 |
60 |
215 |
-5 |
-3 |
349 |
12 |
14 |
|||||||||||
Lucentis |
Established brands |
Age-related macular degeneration (AMD), diabetic macular edema (DME), retinal vein occlusion (RVO) |
275 |
-30 |
-28 |
275 |
-30 |
-28 |
|||||||||||||
Exforge Group |
Established brands |
Hypertension |
1 |
-75 |
177 |
-2 |
2 |
178 |
-3 |
1 |
|||||||||||
Lutathera |
Oncology |
GEP-NETs gastroenteropancreatic neuroendocrine tumors |
124 |
17 |
51 |
16 |
19 |
175 |
17 |
17 |
|||||||||||
Leqvio |
Cardiovascular, renal and metabolic |
Atherosclerotic cardiovascular disease (ASCVD) |
94 |
114 |
88 |
159 |
165 |
182 |
133 |
134 |
|||||||||||
Gilenya |
Established brands |
Relapsing multiple sclerosis (RMS) |
30 |
-71 |
108 |
-35 |
-31 |
138 |
-49 |
-47 |
|||||||||||
Scemblix |
Oncology |
Philadelphia chromosome- positive chronic myeloid leukemia (Ph+ CML) |
105 |
35 |
59 |
111 |
112 |
164 |
55 |
56 |
|||||||||||
Diovan Group |
Established brands |
Hypertension |
6 |
-50 |
154 |
8 |
15 |
160 |
3 |
9 |
|||||||||||
Top 20 brands total |
4 630 |
23 |
5 368 |
10 |
14 |
9 998 |
15 |
18 |
|||||||||||||
Rest of portfolio |
516 |
-29 |
1 998 |
-3 |
-3 |
2 514 |
-10 |
-10 |
|||||||||||||
Total net sales from continuing operations |
5 146 |
14 |
7 366 |
6 |
9 |
12 512 |
9 |
11 |
|||||||||||||
1 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 43. | |||||||||||||||||||||
2 Net sales from continuing operations reflect Xolair sales for all indications. | |||||||||||||||||||||
US |
Rest of world |
Total |
|||||||||||||||||||
Brands |
Brand classification by therapeutic area or established brands |
Key indications |
USD m |
% change USD/cc1 |
USD m |
% change USD |
% change cc1 |
USD m |
% change USD |
% change cc1 |
|||||||||||
Entresto |
Cardiovascular, renal and metabolic |
Chronic heart failure, hypertension |
1 895 |
30 |
1 882 |
29 |
34 |
3 777 |
30 |
32 |
|||||||||||
Cosentyx |
Immunology |
Psoriasis (PsO), ankylosing spondylitis (AS), psoriatic arthritis (PsA), non-radiographic axial spondyloarthritis (nr-axSPA), hidradenitis suppurativa (HS) |
1 529 |
30 |
1 323 |
13 |
16 |
2 852 |
21 |
23 |
|||||||||||
Kesimpta |
Neuroscience |
Relapsing-remitting multiple sclerosis (RRMS) |
970 |
45 |
466 |
127 |
133 |
1 436 |
64 |
66 |
|||||||||||
Kisqali |
Oncology |
HR+/HER2- metastatic breast cancer |
688 |
69 |
656 |
31 |
37 |
1 344 |
48 |
52 |
|||||||||||
Promacta/Revolade |
Oncology |
Immune thrombocytopenia (ITP), severe aplastic anemia (SAA) |
549 |
-7 |
515 |
-5 |
-1 |
1 064 |
-6 |
-4 |
|||||||||||
Tafinlar + Mekinist |
Oncology |
BRAF V600+ metastatic adjuvant melanoma, advanced non-small cell lung cancer (NSCLC), tumor agnostic with BRAF mutation indication |
386 |
-1 |
611 |
8 |
13 |
997 |
5 |
7 |
|||||||||||
Jakavi |
Oncology |
Myelofibrosis (MF), polycytomia vera (PV), graft-versus-host disease (GvHD) |
949 |
12 |
15 |
949 |
12 |
15 |
|||||||||||||
Tasigna |
Oncology |
Chronic myeloid leukemia (CML) |
404 |
-9 |
437 |
-12 |
-9 |
841 |
-10 |
-9 |
|||||||||||
Xolair 2 |
Immunology |
Severe allergic asthma (SAA), chronic spontaneous urticaria (CSU), nasal polyps |
826 |
15 |
18 |
826 |
15 |
18 |
|||||||||||||
Ilaris |
Immunology |
Auto-inflammatory (CAPS, TRAPS, HIDS/MKD, FMF, SJIA, AOSD, gout) |
360 |
18 |
364 |
7 |
16 |
724 |
12 |
17 |
|||||||||||
Sandostatin Group |
Established brands |
Carcinoid tumors, acromegaly |
426 |
3 |
242 |
-2 |
2 |
668 |
1 |
3 |
|||||||||||
Pluvicto |
Oncology |
PSMA-positive mCRPC patients post-ARPI, post-Taxane |
576 |
33 |
79 |
nm |
nm |
655 |
45 |
45 |
|||||||||||
Zolgensma |
Neuroscience |
Spinal muscular atrophy (SMA) |
238 |
23 |
406 |
-5 |
-3 |
644 |
4 |
6 |
|||||||||||
Lucentis |
Established brands |
Age-related macular degeneration (AMD), diabetic macular edema (DME), retinal vein occlusion (RVO) |
589 |
-27 |
-26 |
589 |
-27 |
-26 |
|||||||||||||
Exforge Group |
Established brands |
Hypertension |
5 |
-38 |
365 |
1 |
4 |
370 |
0 |
3 |
|||||||||||
Lutathera |
Oncology |
GEP-NETs gastroenteropancreatic neuroendocrine tumors |
241 |
15 |
103 |
16 |
17 |
344 |
15 |
16 |
|||||||||||
Leqvio |
Cardiovascular, renal and metabolic |
Atherosclerotic cardiovascular disease (ASCVD) |
168 |
107 |
165 |
170 |
175 |
333 |
135 |
137 |
|||||||||||
Gilenya |
Established brands |
Relapsing multiple sclerosis (RMS) |
82 |
-55 |
231 |
-27 |
-25 |
313 |
-38 |
-36 |
|||||||||||
Scemblix |
Oncology |
Philadelphia chromosome- positive chronic myeloid leukemia (Ph+ CML) |
193 |
39 |
107 |
149 |
154 |
300 |
65 |
67 |
|||||||||||
Diovan Group |
Established brands |
Hypertension |
15 |
-44 |
285 |
0 |
5 |
300 |
-4 |
1 |
|||||||||||
Top 20 brands total |
8 725 |
22 |
10 601 |
12 |
15 |
19 326 |
16 |
18 |
|||||||||||||
Rest of portfolio |
1 009 |
-29 |
4 006 |
-4 |
-3 |
5 015 |
-11 |
-10 |
|||||||||||||
Total net sales from continuing operations |
9 734 |
14 |
14 607 |
7 |
10 |
24 341 |
9 |
11 |
|||||||||||||
1 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 43. | |||||||||||||||||||||
2 Net sales from continuing operations reflect Xolair sales for all indications. | |||||||||||||||||||||
nm = not meaningful | |||||||||||||||||||||
(USD millions) |
Q2 2024 |
Q2 2023 |
H1 2024 |
H1 2023 |
|||||
Profit sharing income |
268 |
246 |
482 |
445 |
|||||
Royalty income |
5 |
19 |
24 |
41 |
|||||
Milestone income |
14 |
25 |
20 |
28 |
|||||
Other 1 |
73 |
18 |
125 |
43 |
|||||
Total other revenues |
360 |
308 |
651 |
557 |
|||||
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) |
Q2 2024 |
Q2 2023 |
H1 2024 |
H1 2023 |
|||||
Property, plant and equipment impairment charges |
-9 |
-31 |
-10 |
-58 |
|||||
Property, plant and equipment impairment reversal |
39 |
48 |
|||||||
Property, plant and equipment depreciation charge |
-219 |
-222 |
-437 |
-455 |
|||||
Right-of-use assets depreciation charge |
-61 |
-68 |
-124 |
-133 |
|||||
Intangible assets impairment charges 1 |
-37 |
-454 |
-194 |
-927 |
|||||
Intangible assets amortization charge |
-836 |
-974 |
-1 711 |
-2 053 |
|||||
1 The first half of 2023 includes an impairment of USD 0.3 billion due to the write-down of IPR&D related to cessation of clinical development program NIZ985. The second quarter and first half of 2023 include an impairment of USD 0.3 billion for the write-down of a currently marketed product to reflect reduction in recoverable amount. | |||||||||
(USD millions) |
Q2 2024 |
Q2 2023 |
H1 2024 |
H1 2023 |
|||||
Additions to property, plant and equipment |
283 |
211 |
506 |
388 |
|||||
Additions to right-of-use assets |
69 |
49 |
97 |
192 |
|||||
Additions to intangible assets other than goodwill |
512 |
521 |
1 175 |
716 |
|||||
Coupon |
Currency |
Notional amount (millions) |
Maturity year |
Issuer |
Issue price |
Carrying value June 30, 2024 (USD millions) |
|||||||
1.600% |
CHF |
650 |
2027 |
Novartis AG, Basel, Switzerland |
100.138% |
723 |
|||||||
1.650% |
CHF |
435 |
2031 |
Novartis AG, Basel, Switzerland |
100.148% |
483 |
|||||||
1.750% |
CHF |
645 |
2034 |
Novartis AG, Basel, Switzerland |
100.229% |
717 |
|||||||
1.850% |
CHF |
280 |
2040 |
Novartis AG, Basel, Switzerland |
100.268% |
311 |
|||||||
1.850% |
CHF |
190 |
2049 |
Novartis AG, Basel, Switzerland |
100.149% |
211 |
|||||||
(USD millions) |
2024 |
||
2024 |
226 |
||
2025 |
209 |
||
2026 |
460 |
||
2027 |
396 |
||
2028 |
566 |
||
2029 |
487 |
||
Thereafter |
4 855 |
||
Total |
7 199 |
||
(USD millions unless indicated otherwise) |
Q2 2023 |
H1 2023 |
|||
Net sales to third parties from discontinued operations |
2 391 |
4 799 |
|||
Sales to continuing operations |
58 |
153 |
|||
Net sales from discontinued operations |
2 449 |
4 952 |
|||
Other revenues |
6 |
12 |
|||
Cost from goods sold |
-1 263 |
-2 551 |
|||
Gross profit from discontinued operations |
1 192 |
2 413 |
|||
Selling, general and administration |
-595 |
-1 147 |
|||
Research and development |
-222 |
-441 |
|||
Other income |
21 |
28 |
|||
Other expense |
-283 |
-502 |
|||
Operating income from discontinued operations |
113 |
351 |
|||
Income from associated companies |
1 |
||||
Interest expense |
-8 |
-19 |
|||
Other financial income and expense |
-10 |
-18 |
|||
Income before taxes from discontinued operations |
95 |
315 |
|||
Income taxes 1 |
-49 |
-125 |
|||
Net income from discontinued operations |
46 |
190 |
|||
1 The tax rate in the second quarter of 2023 and in the first half of 2023 was impacted by non-recurring items such as net increases in uncertain tax positions of the Sandoz business and non-deductible expenses recognized related to a legal matter. Excluding these impacts, the tax rate would have been 31.5% in the second quarter of 2023 and 28.6% in the first half of 2023. | |||||
(USD millions unless indicated otherwise) |
Q2 2023 |
H1 2023 |
|||
Interest income |
1 |
||||
Depreciation of property, plant and equipment |
-48 |
-99 |
|||
Depreciation of right-of-use assets |
-10 |
-18 |
|||
Amortization of intangible assets |
-56 |
-111 |
|||
Impairment charges on property, plant and equipment |
-1 |
-2 |
|||
Impairment charges on intangible assets |
-1 |
-13 |
|||
Impairment reversals of property, plant and equipment |
1 |
1 |
|||
Additions to restructuring provisions |
-11 |
-16 |
|||
Equity-based compensation expense related to Novartis equity-based participation plans |
-18 |
-36 |
|||
(USD millions) |
Q2 2023 |
H1 2023 |
|||
Additions to property, plant and equipment |
82 |
160 |
|||
Additions to right-of-use assets |
24 |
33 |
|||
Additions to goodwill and intangible assets |
35 |
56 |
|||
Supplementary information (unaudited)
(USD millions unless indicated otherwise) |
Q2 2024 |
Q2 2023 |
H1 2024 |
H1 2023 |
|||||
IFRS Accounting Standards operating income from continuing operations |
4 014 |
2 807 |
7 387 |
5 425 |
|||||
Amortization of intangible assets |
768 |
914 |
1 575 |
1 941 |
|||||
Impairments |
|||||||||
Intangible assets |
37 |
453 |
194 |
926 |
|||||
Property, plant and equipment related to the company-wide rationalization of manufacturing sites |
-36 |
-43 |
|||||||
Other property, plant and equipment |
6 |
22 |
6 |
22 |
|||||
Total impairment charges |
43 |
439 |
200 |
905 |
|||||
Acquisition or divestment of businesses and related items |
|||||||||
- Income |
-103 |
-59 |
-215 |
-63 |
|||||
- Expense |
110 |
1 |
230 |
3 |
|||||
Total acquisition or divestment of businesses and related items, net |
7 |
-58 |
15 |
-60 |
|||||
Other items |
|||||||||
Divestment gains |
-7 |
-6 |
-19 |
-132 |
|||||
Financial assets - fair value adjustments |
-22 |
29 |
6 |
75 |
|||||
Restructuring and related items |
|||||||||
- Income |
-23 |
-64 |
-81 |
-95 |
|||||
- Expense |
167 |
145 |
258 |
795 |
|||||
Legal-related items |
|||||||||
- Income |
-484 |
||||||||
- Expense |
2 |
50 |
31 |
||||||
Additional income |
-3 |
25 |
-15 |
-270 |
|||||
Additional expense |
9 |
7 |
114 |
15 |
|||||
Total other items |
121 |
138 |
313 |
-65 |
|||||
Total adjustments |
939 |
1 433 |
2 103 |
2 721 |
|||||
Core operating income from continuing operations |
4 953 |
4 240 |
9 490 |
8 146 |
|||||
as % of net sales |
39.6% |
37.1% |
39.0% |
36.6% |
|||||
Loss from associated companies |
-2 |
-2 |
-31 |
-4 |
|||||
Core adjustments to loss from associated companies, net of tax |
26 |
||||||||
Interest expense |
-246 |
-216 |
-467 |
-416 |
|||||
Other financial income and expense |
75 |
85 |
81 |
189 |
|||||
Core adjustments to other financial income and expense |
-15 |
44 |
75 |
58 |
|||||
Income taxes, adjusted for above items (core income taxes) |
-757 |
-649 |
-1 485 |
-1 238 |
|||||
Core net income from continuing operations |
4 008 |
3 502 |
7 689 |
6 735 |
|||||
Core net income from discontinued operations 1 |
309 |
690 |
|||||||
Core net income |
4 008 |
3 811 |
7 689 |
7 425 |
|||||
Core net income attributable to shareholders of Novartis AG |
4 008 |
3 810 |
7 689 |
7 423 |
|||||
Core basic EPS from continuing operations (USD) 2 |
1.97 |
1.69 |
3.77 |
3.23 |
|||||
Core basic EPS from discontinued operations (USD) 1, 2 |
0.14 |
0.31 |
|||||||
Core basic EPS (USD) 2 |
1.97 |
1.83 |
3.77 |
3.54 |
|||||
1 For details on discontinued operations core results refer to page 48. | |||||||||
2 Core earnings per share (EPS) is calculated by dividing core net income attributable to shareholders of Novartis AG by the weighted average number of shares used in the basic EPS calculation outstanding in a reporting period. | |||||||||
(USD millions unless indicated otherwise) |
Q2 2024 IFRS Accounting Standards results |
Amortization of intangible assets1 |
Impairments2 |
Acquisition or divestment of businesses and related items3 |
Other items4 |
Q2 2024 Core results |
Q2 2023 Core results |
||||||||
Gross profit from continuing operations |
9 699 |
724 |
4 |
10 427 |
9 591 |
||||||||||
Operating income from continuing operations |
4 014 |
768 |
43 |
7 |
121 |
4 953 |
4 240 |
||||||||
Income before taxes from continuing operations |
3 841 |
768 |
43 |
7 |
106 |
4 765 |
4 151 |
||||||||
Income taxes 5 |
-595 |
-145 |
-5 |
-3 |
-9 |
-757 |
-649 |
||||||||
Net income from continuing operations |
3 246 |
4 008 |
3 502 |
||||||||||||
Net income from discontinued operations 6 |
309 |
||||||||||||||
Net income |
3 246 |
4 008 |
3 811 |
||||||||||||
Basic EPS from continuing operations (USD) 7 |
1.60 |
1.97 |
1.69 |
||||||||||||
Basic EPS from discontinued operations (USD) 6, 7 |
0.14 |
||||||||||||||
Basic EPS (USD) 7 |
1.60 |
1.97 |
1.83 |
||||||||||||
The following are adjustments to arrive at core gross profit from continuing operations |
|||||||||||||||
Cost of goods sold |
-3 173 |
724 |
4 |
-2 445 |
-2 154 |
||||||||||
The following are adjustments to arrive at core operating income from continuing operations |
|||||||||||||||
Selling, general and administration |
-3 091 |
1 |
-3 090 |
-3 088 |
|||||||||||
Research and development |
-2 367 |
44 |
37 |
10 |
-2 276 |
-2 129 |
|||||||||
Other income |
273 |
-103 |
-69 |
101 |
36 |
||||||||||
Other expense |
-500 |
6 |
100 |
185 |
-209 |
-170 |
|||||||||
The following are adjustments to arrive at core income before taxes from continuing operations |
|||||||||||||||
Other financial income and expense |
75 |
-15 |
60 |
129 |
|||||||||||
1 Amortization of intangible assets: cost of goods sold includes the amortization of acquired rights to currently marketed products; research and development includes the amortization of acquired rights to technologies | |||||||||||||||
2 Impairments: research and development includes net impairment charges related to intangible assets; other expense includes net impairment charges related to property, plant and equipment | |||||||||||||||
3 Acquisition or divestment of businesses and related items, including integration charges: research and development and other expense include integration cost charges; other income and other expense includes transitional service-fee income and expenses related to the Sandoz distribution | |||||||||||||||
4 Other items: cost of goods sold, selling, general and administration, and 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; other income and other expense includes fair value adjustments; other income also includes divestment gains; other financial income and expense includes the impact of IAS Standards 29 "Financial Reporting in Hyperinflationary Economies" for subsidiaries operating in hyperinflationary economies, currency devaluation losses and an adjustment related to the gain on sale of financial assets. | |||||||||||||||
5 Taxes on the adjustments between IFRS Accounting Standards 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. Due to these factors and the differing effective tax rates in the various jurisdictions, the tax on the total adjustments of USD 0.9 billion to arrive at the core results before tax amounts to USD 162 million. The average tax rate on the total adjustments was 17.5% since the quarterly core tax charge of 15.9% has been applied to the pre-tax income of the period. | |||||||||||||||
6 For details on discontinued operations core results refer to page 48. | |||||||||||||||
7 Earnings per share (EPS) is calculated on the amount of net income attributable to shareholders of Novartis AG. | |||||||||||||||
(USD millions unless indicated otherwise) |
H1 2024 IFRS Accounting Standards results |
Amortization of intangible assets1 |
Impairments2 |
Acquisition or divestment of businesses and related items3 |
Other items4 |
H1 2024 Core results |
H1 2023 Core results |
||||||||
Gross profit from continuing operations |
18 723 |
1 497 |
9 |
20 229 |
18 591 |
||||||||||
Operating income from continuing operations |
7 387 |
1 575 |
200 |
15 |
313 |
9 490 |
8 146 |
||||||||
Income before taxes from continuing operations |
6 970 |
1 575 |
200 |
15 |
414 |
9 174 |
7 973 |
||||||||
Income taxes 5 |
-1 036 |
-295 |
-26 |
-5 |
-123 |
-1 485 |
-1 238 |
||||||||
Net income from continuing operations |
5 934 |
7 689 |
6 735 |
||||||||||||
Net income from discontinued operations 6 |
690 |
||||||||||||||
Net income |
5 934 |
7 689 |
7 425 |
||||||||||||
Basic EPS from continuing operations (USD) 7 |
2.91 |
3.77 |
3.23 |
||||||||||||
Basic EPS from discontinued operations (USD) 7 |
0.31 |
||||||||||||||
Basic EPS (USD) 7 |
2.91 |
3.77 |
3.54 |
||||||||||||
The following are adjustments to arrive at core gross profit from continuing operations |
|||||||||||||||
Cost of goods sold |
-6 269 |
1 497 |
9 |
-4 763 |
-4 201 |
||||||||||
The following are adjustments to arrive at core operating income from continuing operations |
|||||||||||||||
Selling, general and administration |
-5 931 |
1 |
-5 930 |
-5 952 |
|||||||||||
Research and development |
-4 788 |
78 |
194 |
21 |
16 |
-4 479 |
-4 182 |
||||||||
Other income |
522 |
-215 |
-151 |
156 |
140 |
||||||||||
Other expense |
-1 139 |
6 |
209 |
438 |
-486 |
-451 |
|||||||||
The following are adjustments to arrive at core income before taxes from continuing operations |
|||||||||||||||
Loss from associated companies |
-31 |
26 |
-5 |
-4 |
|||||||||||
Other financial income and expense |
81 |
75 |
156 |
247 |
|||||||||||
1 Amortization of intangible assets: cost of goods sold includes the amortization of acquired rights to currently marketed products; research and development includes the amortization of acquired rights to technologies | |||||||||||||||
2 Impairments: research and development includes net impairment charges related to intangible assets; other expense includes net impairment charges related to property, plant and equipment | |||||||||||||||
3 Acquisition or divestment of businesses and related items, including integration charges: research and development and other expense include integration cost charges; other income and other expense includes transitional service-fee income and expenses related to the Sandoz distribution | |||||||||||||||
4 Other items: cost of goods sold, selling, general and administration, and other income and other expense includes 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; research and development includes contingent consideration adjustments; other income and other expense includes fair value adjustments; other income also includes divestment gains; other expense includes legal related items and a fair value adjustment on a contingent receivable and other costs and items; loss from associated companies includes a divestment adjustment related to the sale of an investment in associated companies; other financial income and expense includes the impact of IAS Standards 29 "Financial Reporting in Hyperinflationary Economies" for subsidiaries operating in hyperinflationary economies, currency devaluation losses, an adjustment related to the gain on sale of financial assets and release of provisions for interests on tax matters. | |||||||||||||||
5 Taxes on the adjustments between IFRS Accounting Standards 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 2.2 billion to arrive at the core results before tax amounts to USD 449 million. The average tax rate on the total adjustments was 20.4% since the estimated full year core tax charge of 16.2% has been applied to the pre-tax income of the period. | |||||||||||||||
6 For details on discontinued operations core results refer to page 48. | |||||||||||||||
7 Earnings per share (EPS) is calculated on the amount of net income attributable to shareholders of Novartis AG. | |||||||||||||||
(USD millions unless indicated otherwise) |
Q2 2023 Core results |
||
Gross profit from discontinued operations |
1 265 |
||
Operating income from discontinued operations |
428 |
||
Income before taxes from discontinued operations |
404 |
||
Income taxes |
-95 |
||
Net income from discontinued operations |
309 |
||
Basic EPS from discontinued operations (USD) 1 |
0.14 |
||
The following are adjustments to arrive at core gross profit from discontinued operations |
|||
Cost of goods sold |
-1 538 |
||
The following are adjustments to arrive at core operating income from discontinued operations |
|||
Selling, general and administration |
-585 |
||
Research and development |
-220 |
||
Other expense |
-32 |
||
The following are adjustments to arrive at core income before taxes from discontinued operations |
|||
Other financial income and expense |
-16 |
||
1 Earnings per share (EPS) is calculated on the amount of net income from discontinued operations attributable to shareholders of Novartis AG. | |||
(USD millions unless indicated otherwise) |
H1 2023 Core results |
||
Gross profit from discontinued operations |
2 572 |
||
Operating income from discontinued operations |
935 |
||
Income before taxes from discontinued operations |
900 |
||
Income taxes |
-210 |
||
Net income from discontinued operations |
690 |
||
Basic EPS from discontinued operations (USD) 1 |
0.31 |
||
The following are adjustments to arrive at core gross profit from discontinued operations |
|||
Cost of goods sold |
-2 392 |
||
The following are adjustments to arrive at core operating income from discontinued operations |
|||
Selling, general and administration |
-1 122 |
||
Research and development |
-439 |
||
Other income |
5 |
||
Other expense |
-81 |
||
The following are adjustments to arrive at core income before taxes from discontinued operations |
|||
Other financial income and expense |
-17 |
||
1 Earnings per share (EPS) is calculated on the amount of net income from discontinued operations attributable to shareholders of Novartis AG. | |||
Q2 2024 |
Q2 2023 |
||||||||||||
(USD millions) |
IFRS Accounting Standards cash flow |
Adjustments |
Free cash flow |
IFRS Accounting Standards cash flow |
Adjustments |
Free cash flow |
|||||||
Net cash flows from operating activities from continuing operations |
4 875 |
4 875 |
3 517 |
3 517 |
|||||||||
Net cash flows from operating activities from discontinued operations |
59 |
59 |
|||||||||||
Total net cash flows from operating activities |
4 875 |
4 875 |
3 576 |
3 576 |
|||||||||
Net cash flows used in investing activities from continuing operations |
-3 207 |
2 947 |
-260 |
-960 |
735 |
-225 |
|||||||
Net cash flows used in investing activities from discontinued operations |
-93 |
17 |
-76 |
||||||||||
Total net cash flows used in investing activities 1 |
-3 207 |
2 947 |
-260 |
-1 053 |
752 |
-301 |
|||||||
Net cash flows used in financing activities from continuing operations |
-3 200 |
3 200 |
0 |
-3 766 |
3 766 |
0 |
|||||||
Net cash flows from financing activities from discontinued operations |
129 |
-129 |
0 |
||||||||||
Total net cash flows used in financing activities 2 |
-3 200 |
3 200 |
0 |
-3 637 |
3 637 |
0 |
|||||||
Non-IFRS measure free cash flow from continuing operations |
4 615 |
3 292 |
|||||||||||
Non-IFRS measure free cash flow from discontinued operations |
-17 |
||||||||||||
Total non-IFRS measure free cash flow |
4 615 |
3 275 |
|||||||||||
1 With the exception of purchases of property, plant and equipment, all net cash flows used in investing activities from continuing operations and from discontinued operations are excluded from the free cash flow. | |||||||||||||
2 Net cash flows (used in)/from financing activities from continuing operations and from discontinued operations are excluded from the free cash flow. | |||||||||||||
H1 2024 |
H1 2023 |
||||||||||||
(USD millions) |
IFRS Accounting Standards cash flow |
Adjustments |
Free cash flow |
IFRS Accounting Standards cash flow |
Adjustments |
Free cash flow |
|||||||
Net cash flows from operating activities from continuing operations |
7 140 |
7 140 |
6 369 |
6 369 |
|||||||||
Net cash flows from operating activities from discontinued operations |
164 |
164 |
|||||||||||
Total net cash flows from operating activities |
7 140 |
7 140 |
6 533 |
6 533 |
|||||||||
Net cash flows (used in)/from investing activities from continuing operations |
-4 106 |
3 619 |
-487 |
9 745 |
-10 138 |
-393 |
|||||||
Net cash flows used in investing activities from discontinued operations |
-177 |
32 |
-145 |
||||||||||
Total net cash flows (used in)/from investing activities 1 |
-4 106 |
3 619 |
-487 |
9 568 |
-10 106 |
-538 |
|||||||
Net cash flows used in financing activities from continuing operations |
-8 364 |
8 364 |
0 |
-12 762 |
12 762 |
0 |
|||||||
Net cash flows used in financing activities from discontinued operations |
-77 |
77 |
0 |
||||||||||
Total net cash flows used in financing activities 2 |
-8 364 |
8 364 |
0 |
-12 839 |
12 839 |
0 |
|||||||
Non-IFRS measure free cash flow from continuing operations |
6 653 |
5 976 |
|||||||||||
Non-IFRS measure free cash flow from discontinued operations |
19 |
||||||||||||
Total non-IFRS measure free cash flow |
6 653 |
5 995 |
|||||||||||
1 With the exception of purchases of property, plant and equipment, all net cash flows (used in)/from investing activities from continuing operations and from discontinued operations are excluded from the free cash flow. | |||||||||||||
2 Net cash flows used in financing activities from continuing operations and from discontinued operations are excluded from the free cash flow. | |||||||||||||
(USD millions) |
Q2 2024 |
Q2 2023 |
|||
Operating income from continuing operations |
4 014 |
2 807 |
|||
Adjustments for non-cash items |
|||||
Depreciation, amortization and impairments |
1 140 |
1 737 |
|||
Change in provisions and other non-current liabilities |
204 |
-53 |
|||
Other |
288 |
347 |
|||
Operating income adjusted for non-cash items from continuing operations |
5 646 |
4 838 |
|||
Dividends received from associated companies and others |
1 |
||||
Interest received and change in other financial receipts |
71 |
64 |
|||
Interest paid and change in other financial payments |
-320 |
-224 |
|||
Income taxes paid |
-473 |
-973 |
|||
Payments out of provisions and other net cash movements in non-current liabilities |
-288 |
-243 |
|||
Change in inventories and trade receivables less trade payables |
-661 |
-559 |
|||
Change in other net current assets and other operating cash flow items |
899 |
614 |
|||
Net cash flows from operating activities from continuing operations |
4 875 |
3 517 |
|||
Purchases of property, plant and equipment |
-260 |
-225 |
|||
Non-IFRS measure free cash flow from continuing operations |
4 615 |
3 292 |
|||
Non-IFRS measure free cash flow from discontinued operations 1 |
-17 |
||||
Total non-IFRS measure free cash flow |
4 615 |
3 275 |
|||
1 In the second quarter of 2023 the free cash flow from discontinued operations was a cash outflow of USD 17 million consisting of USD 59 million net cash inflows from operating activities from discontinued operations, less purchases of property, plant and equipment by discontinued operations of USD 76 million. | |||||
(USD millions) |
H1 2024 |
H1 2023 |
|||
Operating income from continuing operations |
7 387 |
5 425 |
|||
Adjustments for non-cash items |
|||||
Depreciation, amortization and impairments |
2 482 |
3 653 |
|||
Change in provisions and other non-current liabilities |
367 |
362 |
|||
Other |
595 |
230 |
|||
Operating income adjusted for non-cash items from continuing operations |
10 831 |
9 670 |
|||
Dividends received from associated companies and others |
1 |
1 |
|||
Interest received and other financial receipts |
235 |
400 |
|||
Interest paid and other financial payments |
-496 |
-345 |
|||
Income taxes paid |
-1 049 |
-1 268 |
|||
Payments out of provisions and other net cash movements in non-current liabilities |
-631 |
-926 |
|||
Change in inventories and trade receivables less trade payables |
-2 118 |
-1 594 |
|||
Change in other net current assets and other operating cash flow items |
367 |
431 |
|||
Net cash flows from operating activities from continuing operations |
7 140 |
6 369 |
|||
Purchases of property, plant and equipment |
-487 |
-393 |
|||
Non-IFRS measure free cash flow from continuing operations |
6 653 |
5 976 |
|||
Non-IFRS measure free cash flow from discontinued operations 1 |
19 |
||||
Total non-IFRS measure free cash flow |
6 653 |
5 995 |
|||
1 In the first half of 2023, the free cash flow from discontinued operations was a cash inflow of USD 19 million consisting of USD 164 million net cash inflows from operating activities from discontinued operations, less purchases of property, plant and equipment by discontinued operations of USD 145 million. | |||||
(USD millions) |
Q2 2024 |
Q2 2023 |
|||
Net change in cash and cash equivalents |
-1 566 |
-1 115 |
|||
Change in marketable securities, commodities, time deposits, financial debts and derivatives financial instruments |
-1 358 |
845 |
|||
Change in net debt |
-2 924 |
-270 |
|||
Net debt at April 1 |
-15 836 |
-15 104 |
|||
Net debt at June 30 |
-18 760 |
-15 374 |
|||
(USD millions) |
H1 2024 |
H1 2023 |
|||
Net change in cash and cash equivalents |
-5 490 |
3 368 |
|||
Change in marketable securities, commodities, time deposits, financial debts and derivatives financial instruments |
-3 087 |
-11 497 |
|||
Change in net debt |
-8 577 |
-8 129 |
|||
Net debt at January 1 |
-10 183 |
-7 245 |
|||
Net debt at June 30 |
-18 760 |
-15 374 |
|||
(USD millions) |
Jun 30, 2024 |
Dec 31, 2023 |
Jun 30, 2023 |
||||
Non-current financial debts |
-19 663 |
-18 436 |
-18 259 |
||||
Current financial debts and derivative financial instruments |
-7 532 |
-6 175 |
-8 289 |
||||
Total financial debts |
-27 195 |
-24 611 |
-26 548 |
||||
Less liquidity |
|||||||
Cash and cash equivalents |
7 903 |
13 393 |
10 885 |
||||
Marketable securities, commodities, time deposits and derivative financial instruments |
532 |
1 035 |
289 |
||||
Total liquidity |
8 435 |
14 428 |
11 174 |
||||
Net debt at end of period |
-18 760 |
-10 183 |
-15 374 |
||||
Jun 30, 2024 |
Jun 30, 2023 |
||||
Number of shares outstanding |
2 024 579 175 |
2 068 263 550 |
|||
Registered share price (CHF) |
96.17 |
90.00 |
|||
ADR price (USD) |
106.46 |
100.91 |
|||
Market capitalization (USD billions) 1 |
216.5 |
207.0 |
|||
Market capitalization (CHF billions) 1 |
194.7 |
186.1 |
|||
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 Q2 2024 |
Average rates Q2 2023 |
Average rates H1 2024 |
Average rates H1 2023 |
Period-end rates Jun 30, 2024 |
Period-end rates Jun 30, 2023 |
|||||||
1 CHF |
1.106 |
1.113 |
1.125 |
1.097 |
1.112 |
1.112 |
|||||||
1 CNY |
0.138 |
0.143 |
0.138 |
0.144 |
0.137 |
0.138 |
|||||||
1 EUR |
1.077 |
1.089 |
1.081 |
1.081 |
1.070 |
1.086 |
|||||||
1 GBP |
1.262 |
1.252 |
1.265 |
1.233 |
1.264 |
1.262 |
|||||||
100 JPY |
0.642 |
0.729 |
0.658 |
0.742 |
0.621 |
0.692 |
|||||||
100 RUB |
1.102 |
1.230 |
1.101 |
1.300 |
1.156 |
1.133 |
|||||||
Change in USD % Q2 2024 |
Change in constant currencies % Q2 2024 |
Percentage point currency impact Q2 2024 |
|||||
Net sales from continuing operations |
9 |
11 |
-2 |
||||
Operating income from continuing operations |
43 |
47 |
-4 |
||||
Net income from continuing operations |
43 |
49 |
-6 |
||||
Basic earnings per share (USD) from continuing operations |
47 |
52 |
-5 |
||||
Core operating income from continuing operations |
17 |
19 |
-2 |
||||
Core net income from continuing operations |
14 |
18 |
-4 |
||||
Core basic earnings per share (USD) from continuing operations |
17 |
21 |
-4 |
||||
Change in USD % H1 2024 |
Change in constant currencies % H1 2024 |
Percentage point currency impact H1 2024 |
|||||
Net sales from continuing operations |
9 |
11 |
-2 |
||||
Operating income from continuing operations |
36 |
43 |
-7 |
||||
Net income from continuing operations |
34 |
43 |
-9 |
||||
Basic earnings per share (USD) from continuing operations |
37 |
47 |
-10 |
||||
Core operating income from continuing operations |
16 |
21 |
-5 |
||||
Core net income from continuing operations |
14 |
19 |
-5 |
||||
Core basic earnings per share (USD) from continuing operations |
17 |
22 |
-5 |
||||