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First Quarter 2016 Results

Investor Presentation

April 21, 2016

Disclaimer This presentation contains forward-looking statements that can be identified by terminology such as such as “potential,” “expected,” “will,” “planned,” or similar

expressions, or by express or implied discussions regarding potential new products, potential new indications for existing products, or regarding potential future revenues

from any such products; potential shareholder returns or credit ratings; or regarding any potential financial or other impact on Novartis or any of our divisions of the

strategic actions announced in January 2016 to focus our divisions, integrate certain functions and leverage our scale; or regarding any potential financial or other impact

on Novartis as a result of the creation and operation of NBS; or regarding the potential financial or other impact on Novartis of the transactions with GSK, Lilly or CSL; or

regarding potential future sales or earnings of the Novartis Group or any of its divisions; or by discussions of strategy, plans, expectations or intentions. You should not

place undue reliance on these statements. Such forward looking statements are based on the current beliefs and expectations of management regarding future events,

and are subject to significant known and unknown risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying

assumptions prove incorrect, actual results may vary materially from those set forth in the forward looking statements. There can be no guarantee that any new products

will be approved for sale in any market, or that any new indications will be approved for any existing products in any market, or that any approvals which are obtained will

be obtained at any particular time, or that any such products will achieve any particular revenue levels. Nor can there be any guarantee that Novartis will be able to

realize any of the potential strategic benefits, synergies or opportunities as a result of the strategic actions announced in January 2016, the creation and operation of

NBS, or the transactions with GSK, Lilly and CSL. Neither can there be any guarantee that Novartis or any of the businesses involved in the transactions will achieve any

particular financial results in the future. Neither can there be any guarantee that shareholders will achieve any particular level of shareholder returns. Nor can there be

any guarantee that the Group, or any of its divisions, will be commercially successful in the future, or achieve any particular credit rating. In particular, management’s

expectations could be affected by, among other things: unexpected regulatory actions or delays or government regulation generally; the potential that the strategic

benefits, synergies or opportunities expected from the strategic actions announced in January 2016, the creation and operation of NBS, or the transactions with GSK,

Lilly and CSL may not be realized or may take longer to realize than expected; the inherent uncertainties involved in predicting shareholder returns or credit ratings; the

uncertainties inherent in research and development, including unexpected clinical trial results and additional analysis of existing clinical data; our ability to obtain or

maintain proprietary intellectual property protection, including the ultimate extent of the impact on Novartis of the loss of patent protection and exclusivity on key products

which commenced in prior years and continues this year; unexpected safety, quality or manufacturing issues; global trends toward health care cost containment,

including ongoing pricing pressures, in particular from increased publicity on pharmaceuticals pricing; uncertainties regarding actual or potential legal proceedings,

including, among others, actual or potential product liability litigation, litigation and investigations regarding sales and marketing practices, government investigations and

intellectual property disputes; general economic and industry conditions, including uncertainties regarding the effects of the persistently weak economic and financial

environment in many countries; uncertainties regarding future global exchange rates, including the continued increases in value of the US dollar, our reporting currency,

against a number of currencies; uncertainties regarding future demand for our products; uncertainties involved in the development of new healthcare products;

uncertainties regarding potential significant breaches of data security or disruptions of our information technology systems; and other risks and factors referred to in

Novartis AG’s current Form 20-F on file with the US Securities and Exchange Commission. Novartis is providing the information in this presentation as of this date and

does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise.

| Novartis Q1 2016 Results | April 21, 2016 | Novartis Investor Presentation 2

Agenda


Group overview Joseph Jimenez, Chief Executive Officer

Financial review Harry Kirsch, Chief Financial Officer

Pharmaceuticals David Epstein, Division Head, Novartis Pharmaceuticals

Closing Joseph Jimenez, Chief Executive Officer

Q&A session Executive team

Solid quarter as we absorb Gleevec® LoE impact and invest for long-term growth1

Net sales up +1% (cc), with growth products offsetting Gleevec® impact

Core operating income down (-5% in cc), reflecting generic erosion as well as

growth investments behind new launches and Alcon

Launches progressing: Cosentyx® ahead of expectations; encouraging

Entresto™ launches in Europe

Alcon: growth plan being executed, on track

LoE: Loss of exclusivity 1 All growth shown vs. prior year (PY) in constant currencies (cc). All numbers refer to continuing operations (incl. the newly acquired oncology assets and the OTC JV formed in 2015)

and do not include divested businesses. An explanation of continuing operations can be found on page 32 of the Condensed Financial Report.


Deliver strong

Financial Results

Improve

Alcon performance

Capture

Cross-Divisional Synergies

Strengthen

Innovation

Build a

Higher-Performing Organization

Our priorities for 2016

1

4

2

3

5


Divisional performance

Sales +1% despite Gleevec® LoE (+4% ex.

Gleevec®)2

1

4

2

3

5

Deliver strong

Financial

Results1

1 All growth shown vs. PY in constant currencies (cc). All figures reflect the transfers of certain products between divisions, as announced on January 27, 2016.

See page 34 of the Condensed Interim Financial Report for a full explanation. 2 In the US, Gleevec® lost exclusivity on February 1, 2016. +4% vs. PY excl. Glivec®, excludes all Gleevec® / Glivec® sales worldwide

Sales +4% driven by Biopharmaceuticals

(+50%, mainly GlatopaTM US)

Sales -3% growth plan being executed


Cosentyx® and Entresto™ launches are progressing

1 Value share in biologics segment of PsO (IMS PADDS, Feb. 2016)

1

4

3

5

2 Strengthen

Innovation

US key focus areas

• Access: 65% Medicare low co-pay

• Commercial: Physician reach and frequency increased

Encouraging launches in Europe: Germany, Switzerland

Confident in peak sales

Q1 Sales: USD 176 m

Growing share: US 7%, Germany 17%, Switzerland 15%1

New launches in PsA and AS


Pipeline has exciting near-term milestones


1

4

3

5

2

Molecule Indication MoA Expected

Readout

Potential

blockbuster?

LEE011

(ribociclib)

HR+ HER2- advanced

breast cancer CDK4/6 inhibitor

Q4 2016

(PIII) ✓ OAP030

(Fovista®) Neovascular AMD Aptamer anti-PDGF

Q4 2016

(PIII) ✓

AMG 3341 Prophylaxis of

migraine

CGRP receptor

antagonist

H2 2016

(PIIb, PIII)2 ✓ RLX030

(serelaxin) Acute heart failure

Relaxin receptor

agonist

H1 2017

(PIII) ✓

1 In collaboration with Amgen; Novartis has AMG 334 rights outside of US, Canada and Japan 2 PIIb for chronic migraine, PIII for episodic migraine

Strengthen

Innovation

Molecule Indication1 Originator2 Agency Expected

Filing

Epoetin alfa Anemia3 FDA 2016

Adalimumab Rheumatoid arthritis FDA 2016

Rituximab Non-Hodgkin’s

lymphoma EMA 2016

Adalimumab Rheumatoid arthritis EMA 2017

Rituximab Non-Hodgkin’s

lymphoma FDA 2017

And we are working to expand patient access to biologics with our

biosimilar pipeline


1

4

3

5

2

1 Main indication only 2 All trademarks are the property of their respective owners 3 In chemotherapy induced anemia, chronic kidney disease and others

Strengthen

Innovation

Top talent named to lead future of R&D

Prof. Jay Bradner Dr. Vas Narasimhan

Research Development 1

4

3

5

2


Strengthen

Innovation

Alcon growth plan underway, with clear focus on fixing the basics

1

4

2

5

3 Improve

Alcon performance

Reinforce strong customer relationships Hiring underway for additional customer service roles

Actions underway to improve customer experience

Extensive physician discussions to define future state

Improve basic operations Projects underway to improve Surgical manufacturing agility

Deployed global pricing initiatives across all regions

Further engaging and building confidence with associates

Accelerate innovation and sales UltraSertTM and PanOptix® launched in EU and UltraSertTM in US

Transcend Medical acquisition

Executing promotional programs in Vision Care


Increasing cross-divisional synergies

Focus the divisions Transferred Ophtha Pharma from Alcon to Pharma

Transferred 19 mature products from Pharma to Sandoz

Integrate drug development Integration planning for safety, pharmacovigilance and regulatory

Transferred Alcon Pharma development to new global function

1

2

3

5

4 Capture


Centralize manufacturing Appointed single Global Head of Technical Operations

Organizing by technology platform; global support functions

New organization to be in place by July 1st


These changes also expected to generate significant savings

USD 1 billion savings annually by 2020

Savings to be used to:

Support margin expansion

Free up resources for growth priorities

1

2

3

5

4 Capture



1

2

3

5

NBS continues to execute on its objectives

4

Consolidation of Facility Services, from >100 suppliers to 3

Selective offshoring ongoing to 5 Global Service Centers

Expansion of NBS to improve in-country commercial efficiency

Capture



1

4

2

3

Strong Quality performance across our ~80 sites, with 100% of

inspections good or acceptable

5

100%

100%

100%

Sandoz

Alcon

Pharmaceuticals

Number of inspections

% Inspections good or acceptable1

8

5

19

1 Results status March 31, 2016. Ongoing MHRA inspection in the UK is still pending. Final outcome to be reported upon closure.

Build a Higher-Performing Organization


Agenda







Summary of Q1 2016 financial results


1 An explanation of continuing operations can be found on page 32 of the Condensed Interim Financial Report

Q1 Continuing Operations1

(in USD m) 2016 % USD % cc

Net Sales 11 600 -3 1

Core Operating Income 3 261 -11 -5

Operating Income 2 451 -12 -5

Net Income 2 011 -13 -4

Core EPS (USD) 1.17 -12 -5

EPS (USD) 0.85 -11 -3

Free Cash Flow 1 362 -7

Change vs. PY

7

1

-3

Price1 -2

Volume before Gx

USD growth

Currency

CC growth

Gx volume impact -4

15

-5

-11

-8

-12

Sales volume more than offset generic impact

Continuing operations Q1 2016 (growth vs. PY in %)

Core operating income Net sales

-4 -6


1 Includes the price impact of generic entries

Currency impact -4% and -6% in Q1, FY outlook -2% and -3%

Net sales Core operating income

Currency impact vs. PY (in % pts)

2015

Q1 Q2 Q3 Q4

FY impact: -10%

FY

20161

Q1

-2-3-4

-8

-12-11-10

2015

Q1 Q2 Q3 Q4

FY impact: -15%

FY

20161

Q1

-3-4-6

-14-17

-13-13

1 Assuming March average rates prevail for the reminder of the year

Q2 Q2


Q1 2016

Net sales

change vs. PY

Core operating

income

change vs. PY Core ROS

Core margin

change vs. PY

(in % cc) (in % cc) (%) (% pts cc)

Pharmaceuticals 1 -3 33.7 -1.5

Sandoz 4 6 19.8 0.5

Alcon -3 -26 17.0 -5.9

Q1 continuing operations 1 -5 28.1 -1.8

Core margin decline mainly due to LoE and growth investments


-0.6-0.4

-23.0-0.2

-6.5

-16.5

-0.4-24

-22

-20

-18

-16

-14

-12

-10

-8

-6

-4

-2

0

-6.5

Mar 31,

2016

Others Share

repurchases

Proceeds

from options

exercised1

0.2

Portfolio

transformation

transactions

costs

Acquisitions &

divestments

of businesses

Dividends Free Cash

Flow

1.4

Dec 31,

2015

Net debt increased by USD 6.5 billion to USD 23.0 billion in Q1


(in USD bn)

1 Related to equity-based participation plans of associates

Core OpInc expected to decline in H1 due to higher investments,

with growth expected in H2 from sales uptake

Core OpInc vs. PY in cc (in % pts)

H1 2016: expected mid to

high single digit decline

H2 2016: expected mid to

high single digit growth

Launch and growth

investments

Alcon slowdown

versus prior year

Cosentyx® and EntrestoTM

sales uptake

Growth products uptake

Productivity programs


Full year outlook confirmed

Barring unforeseen events

Continuing operations net sales expected to be broadly in line with PY (cc)

• Pharmaceuticals: broadly in line with PY to a slight decline (cc)

• Sandoz: low to mid-single digit growth (cc)

• Alcon: low single digit growth (cc)

Continuing operations core operating income expected to be broadly in line with PY (cc)


Agenda







Q1 Q1 Change vs. PY

2016 2015 % USD % cc

Net Sales 7 729 7 960 -3 1

Core Operating Income 2 602 2 855 -9 -3

Operating Income 2 180 2 450 -11 -4

Core Operating Income Margin 33.7% 35.9%

Operating Income Margin 28.2% 30.8%

Pharmaceuticals Division net sales +1% and Core OpInc -3% vs. PY1

(in USD bn)

1 All figures reflect the transfers of certain products between divisions, as announced on January 27, 2016. See page 34 of the Condensed Interim Financial Report for a full explanation. Pharmaceuticals Division financials

without the adjustment to the new divisional structure would have yielded net sales growth (+3%), core operating income (0%) and operating income (-1%); all in cc vs. PY.


Indication

Q1 2016

Net sales

(USD m)

Q1 2016

Growth vs. PY

(% cc)

MS 698 12%

CML 382 6%

Type 2 diabetes mellitus 283 4%

Severe allergic asthma, CSU/CIU 192 14%

aRCC 166 n/a

PsO, PsA, AS 176 n/a

COPD 146 15%

BRAF V600+ metastatic melanoma 150 n/a

MF, PV 124 44%

Thrombocytopenia6, SAA 131 n/a

HFrEF 17 n/a

Key growth drivers1 with exclusivity to 2020 and beyond

1 Selected key products for growth of Pharmaceuticals Division 2 In the US, Onbrez® Breezhaler® is approved as Arcapta® Neohaler®, Seebri® Breezhaler® as Seebri® Neohaler® and Ultibro®

Breezhaler® as Utibron® Neohaler®

3 Net sales and growth of Onbrez®, Seebri® and Ultibro®

3 3

4 Net sales of Tafinlar® + Mekinist®

5 Approved as Promacta® in the US 6 cITP and thrombocytopenia associated with hepatitis C

4

2

5


http://www.novartisoncology.com/products/jakavi.jsp

Oncology base business1 ex-Glivec® grew 7% vs. PY (in cc)

Oncology net sales (in USD m, growth in % cc)

Total Oncology sales grew 9% vs. PY in Q1, with base business1 growing 7%

In the US, Gleevec® volume share remains >50%3 with volume retention ahead of benchmark

Main growth drivers included Tasigna®, Jakavi® and Jadenu® / Exjade®

504

834

1 630

+9%

Q1 2016

3 030

Q1 2015

2 856

156

1 070

1 692

+7%

Base business1

New assets2

1 Continuing Oncology assets unaffected by the GSK transaction and excluding Gleevec® / Glivec® 2 Assets acquired in the GSK transaction which closed on March 2, 2015. These include, among others, Votrient®, Promacta®, Tafinlar® + Mekinist®

3 Volume share in the imatinib segment, i.e. Gleevec® and Gx imatinib (Source: Symphony APLD with data up to week of March 18, 2016)

Gleevec® / Glivec®


Jakavi® demonstrated promising efficacy in GvHD patients

Up to 80% of patients with HSCT develop

GvHD

JAK1/2 signaling is a key pathway leading to

inflammation and tissue damage in GvHD

Promising efficacy results incl. high ORR and

OS in both acute and chronic SR GvHD1

Pivotal trial planned (starting by Q1 2017)

Before ruxolitinib 3 weeks after ruxolitinib


Reprinted by permission from Macmillan Publishers Ltd: Zeiser R, et al. Leukemia. 2015;29(10):2062-2068, copyright 2015 (data from a trial with 95 patients with SR GvHD)

Ruxolitinib is in-licensed from Incyte Corp. ex-US for hematology, oncology and GvHD indications 1 ORR was 81.5%; 6-months OS was 79.0% and 97.4% in acute and chronic SR GvHD respectively (Leukemia 2015)

Gilenya® share in MS segment1 steadily increasing

1 Value share defined as % share of the MS segment incl. Aubagio®, Copaxone®, Gilenya®, Glatopa®,

Lemtrada®, Tecfidera®, Tysabri® and approved interferons. Source: IMS PADDS. All trademarks are the

property of their respective owners

Gilenya® value share in MS segment (US)¹ (%)

9%

10%

11%

12%

13% Sales grew 12% vs. PY in Q1

Both US and ex-US sales grew double digit

Leading ex-US value share2

Over 148,000 patients treated to date3

Gilenya® is increasingly recognized for early

efficacy switch in RMS4

2 Leading share in the MS segment (as per footnote 1) defined as global sales excl. US (Source: Evaluate Pharma) 3 Worldwide Novartis estimate in clinical trials and in post-marketing setting 4 Gilenya® Physician Attitude Trial Usage market research study (March 2016)


Entresto™: US formularies now open after being almost

fully blocked before January – but PAs remain a challenge

PA = Prior Authorization 1 Patient access calculated based on EntrestoTM inclusion in national insurance plan formularies. Patient access is total number of patients whose insurance plan includes EntrestoTM on formulary (whether or not a heart failure

patient). Percentage shown is calculated as number of patients covered by an insurance plan with EntrestoTM on formulary, divided by all patients covered by insurance plans (Medicare and Commercial respectively)

Patient access1 – Medicare

(% coverage over time)

Patient access1 – Commercial insurance (% coverage over time)

Not covered (i.e. not listed on formulary) On formulary; higher co-pay On formulary; lower co-pay

100 91

30

9

26

26

9

44

65

0%

25%

50%

75%

100%

Jul 15 Oct 15 Jan 16 Apr 16

81

35 23

22

23

44

19

43 54 56

0%

25%

50%

75%

100%

Jul 15 Oct 15 Jan 16 Apr 16


Entresto™ launch in Europe off to a much faster start than US

0.0%

0.4%

0.8%

1.2%

1.6%US

CH

DE

FR

Relative uptake (US and Europe)2

(% patient penetration)

2 Monthly patient penetration calculated as number of patients on EntrestoTM divided by pool of HFrEF

patients in country. Estimates based on sales (treated) and prevalence (pool). Data per March 31, 2016

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

TRxs NRxs

Weekly Rx trend (US only)1

(#)


1 Source: IMS TM-1 NPA (data till week ending April 1, 2016)

Entresto™ has significant potential across indications

PARAGON3

PARADISE3

PARADIGM

- ILLUSTRATIVE -

Eligible and potentially eligible patients1,2

(patient potential over time)

Post acute MI at risk of HF

(planned filing 2020+)

HFpEF (planned filing 2019)

Estimated 2016 sales of ~USD 200 m; Confident in peak sales of ~USD 5 bn in HFrEF

3 Pivotal trials with outcomes endpoints to support new indications 4 Novartis press release (April 2, 2016)

1 Currently eligible patients are defined by the label in each geography 2 Potentially eligible patients are defined by the indications studied in the ongoing / planned trials in HFpEF and post acute MI


Approved in US and Europe1

HFrEF, NYHA II-IV

CH only: QoL / symptom benefit

New analyses4 showed benefits:

In both clinically stable and least-stable patients

Vs. enalapril regardless of background therapy

With formulary access addressed, now scaling up to

deliver on Entresto™ for appropriate patients in the US

Expand promotion and SoV

Field force expanded by 50%

Evaluating further PCP field force expansion

Launched “Tomorrow” direct to consumer campaign

3

Inform patients and practices about reimbursement process

Continue EntrestoTM Central1 platform and CoverMyMeds1 services as well as the distribution of blank plan specific

PA forms directly to the HCP offices

Educate on office challenges with PA process and managed care issues, given most cardiology practices have

limited experience with PA process; each payer issues its own PA2

Expand and execute the clinical program “FortiHFy”

Two pivotal trials with outcomes endpoints to support new indications (HFpEF 2019, HF post acute MI 2020)

Broaden data in HFrEF beyond PARADIGM population

Generate additional data regarding symptomatic / QoL benefits

Generate real world evidence

1 http://www.entresto.com/info/entresto-central.jsp?usertrack.filter_applied=true&NovaId=4029462161607648418 and https://www.covermymeds.com/main/ (accessed April 11, 2016) 2 Different insurers have different PAs for the same medicine (e.g. EntrestoTM); cardiology practices face various brands which recently launched and require PAs, like EntrestoTM, PCKS9s and Corlanor®. All trademarks

are the property of their respective owners

2

1


http://www.entresto.com/info/entresto-central.jsp?usertrack.filter_applied=true&NovaId=4029462161607648418






https://www.covermymeds.com/main/

Cosentyx®: Above expectations, outpacing competition

through strong gains in PsO

0

1000

2000

3000

4000

Cosentyx® Stelara®

0%

15%

30%

45%

Feb-15 Mar 15 Apr-15 May 15 Jun-15 Jul-15 Aug-15 Sep-15 Oct 15 Nov-15 Dec 15 Jan-16 Feb-16

Cosentyx® Humira® Stelara® Otezla®

Value share in biologics segment2

(%; office based dermatologists only)

Weekly TRx1

(#; US across indications and specialties)


1 Total TRx data across indications and specialties incl. dermatologists and rheumatologists. (Source: NPA weekly data; data till week ending April 1, 2016) 2 Biologics segment defined as Humira®, Enbrel®, Simponi®, Stelara®, Cimzia®, Cosentyx®, Otezla®, Infliximab (Source: IMS). All trademarks are the property of their respective owners

Cosentyx®: Early use in PsO ex-US expected to further expand opportunity

0% 20% 40% 60% 80% 100%

Patients naive to conventional systemics Patients naive to biologics Patients switched from biologics

1 Patients who have not been treated with a biologic therapy (i.e. anti TNFs or Stelara®) prior to starting Cosentyx® 2 Patients who have been treated with one or several biologic therapies prior to starting Cosentyx®

Note: Novartis analysis based on IMS prescription data and Service Request Forms (SRFs) in the US

1 2

Prior treatment (by treatment class)


Cosentyx®: Building a mega-blockbuster across three indications

Sales of USD 176 m in Q1

>25,000 patients on Cosentyx® worldwide3

Combined industry sales of >USD 15 bn; sales

grew >20% (MAT Nov. 2015 vs PY)4

Rheumatology launch

Encouraging early uptake in AS/PsA indications

Anti-IL17A included in GRAPPA and EULAR

treatment guidelines

Head to head superiority studies planned in PsA

and AS with Cosentyx® vs. Humira®

1 Blauvelt A et al. 52-week results from the CLEAR study. Late breaking abstract (AAD March 5, 2016) 2 ≥ 90% improvement from baseline psoriasis area & severity index score. Missing data calculated using

multiple imputation 3 Novartis analysis based on sales force reports

PASI 90 response at Week 521,2

0

10

20

30

40

50

60

70

80

90

0 4 8 12 16 20 24 28 32 36 40 44 48 52

Secukinumab 300 mg (n = 334)

Ustekinumab (n = 335)

60.6%

76.2%

p<0.0001

Week

Pe

rce

nta

ge R

esp

on

de

rs

4 Estimated worldwide industry sales in PsO/PsA/AS. PsO (US, EU, JP) was USD 7.9 bn; PsA (US, EU) was

USD 3.6 bn; AS (US, EU) was USD 3.0 bn (Source: IMS). Novartis estimates the rest of world (and JP in PsA and

AS) to account for at least USD 0.5 bn, making the total segment >USD 15 bn. The vast majority of sales comes

from biologics, incl. anti-TNFs and Stelara®

All trademarks are the property of their respective owners


H1 2016

Cosentyx®

Cosentyx®

Ilaris®

Afinitor®

PKC412

Tafinlar® + Mekinist®

FDA action in ankylosing spondylitis

FDA action in psoriatic arthritis

Regulatory filings in EU and US for hereditary periodic fevers1

FDA action for advanced non functional NET (GI / lung origin)

Regulatory filings in US and EU for both ASM and AML

PMDA action in BRAF V600+ metastatic melanoma

H2 2016

BYM338


Votrient®

Afinitor®

LEE011 (+ letrozole)

Regulatory filings in EU and US for sporadic inclusion body myositis

Regulatory filings in US and EU for BRAF V600+ NSCLC

Regulatory filings in US and EU for adjuvant RCC

EU and PMDA action in advanced non functional NET

Submission2 in US 1st line HR+ HER2(-) mBC

1 Submission of Ilaris® in HPF completed in the US; EU not submitted yet 2 Submission late 2016 or early 2017 with final analysis based on the predefined progression free survival (PFS) data of the MONALEESA-2 trial, provided that events occur no later than early Q3, 2016

Achieved and expected highlights from Pharmaceuticals

regulatory newsflow


( )

Agenda







Solid Q1, on track for full year guidance

Absorbing Gleevec® loss of exclusivity

Delivering key launches

Alcon plan being executed

On track for full year guidance


Agenda







Appendix

KAE609 Malaria

CAD106 Alzheimer’s disease

HSC835 Stem cell transplantation

BGJ398 Solid tumors

LJM716 Solid tumors

FCR001 Renal transplantation

CJM112 Immune disorders

ABL001 CML9

ASB183 Solid and hematologic tumors

EMA401

Neuropathic pain

CNP520 Alzheimer’s disease

LJN452 NASH22

QGE031 CSU/IU23

QAX576 Allergic diseases

BYM338 Hip fracture

BYM338 Sarcopenia

PIM447 Hematologic tumors

BYL719 Solid tumors

VAY736 Primary Sjoegren’s syndrome

Entresto™

Post-acute myocardial infarction

LEE011 Solid tumors

QAW039 Atopic dermatitis


BRAF V600+ Colorectal cancer

RTH258

DME24

Jakavi®

Early myelofibrosis

BKM120 Solid tumors

PKC412 ASM7

CTL019 Pediatric acute lymphoblastic leukemia

Tasigna® CML9 treatment free remission

LCI699 Cushing’s disease

BAF312 SPMS17

QAW039 Asthma

Entresto™

Heart failure (PEF)18

Lucentis®

ROP20

Signifor® LAR10

Cushing’s disease

INC280 NSCLC8

KAF156 Malaria


BRAF V600+ NSCLC8

Votrient®

Renal cell carcinoma (adjuvant)

QVM149 Asthma

QMF149 Asthma

LEE011+ fulv HR+, HER2 (-) postmenopausal

adv. BC2 1st /2nd line

LEE011+ tmx + gsn/or NSAI + gsn HR+, HER2 (-) premenopausal

Adv. BC2 1st line

Zykadia™ ALK+ adv. NSCLC8

(Brain metastases)

Cosentyx®

nrAxSpA16

BYL719 + fulv HR+, HER2 (-) postmenopausal

Adv. BC2 2nd line

Ilaris®d Hereditary periodic fevers

Afinitor® TSC4 seizures

LEE011 + ltzb

HR+, HER2 (-) postmenopausal adv. BC2 1st line

Arzerra®c

CLL5 (relapse)

PKC412 AML3

OMB157

RMS21

ACZ885 Sec. prev. CV events12

RLX030 Acute heart failure

OAP030f

nAMD11

CTL019 DLBCL14

Arzerra®

NHL13 (refractory)

Tafinlar® + Mekinist® BRAF V600+ Melanoma (adjuvant)

Zykadia™ ALK+ adv. NSCLC8

(1st line, treatment naive)

RTH258 nAMD11

Lucentis®e

CNV6

2020 2018 2017 2016

Planned filings 2016 to 2020a


2019

New molecule

New indication

New formulation

Combination Abbreviations: fulv fulvestrant ltz letrozole tmx tamoxifen gsn goserelin NSAI Non-steroidal aromatase inhibitor

1. Sporadic inclusion body myositis

2. Breast cancer

3. Acute myeloid leukemia

4. Tuberous sclerosis complex

5. Chronic lymphocytic leukemia

6. Choroidal neovascularization (CNV) secondary to

conditions other than macular degeneration and

pathologic myopia

7. Aggressive systemic mastocytosis

8. Non-small cell lung cancer

9. Chronic myeloid leukemia

10. Long-acting release

11. Neovascular age-related macular degeneration

12. Secondary prevention of cardiovascular events

13. Non-Hodgkin’s lymphoma

14. Diffuse large B-cell lymphoma

15. Multiple Sclerosis

16. Non-radiographic axial spondyloarthritis

17. Secondary progressive multiple sclerosis

18. Preserved ejection fraction

19. Graft-Versus-Host Disease

20. Retinopathy of prematurity

21. Relapsing multiple sclerosis

22. Non-alcoholic steatohepatitis

23. Chronic spontaneous urticaria / Inducible urticaria

24. Diabetic macular edema

a) AMG 334 is not included in this view. AMG 334 is part of the global collaboration

with Amgen to commercialize and develop neuroscience treatments

b) Submission anticipated late 2016 or early 2017

c) Submitted in US and EU in Q1 2016

d) Submitted in US in Q1 2016

e) Submitted in EU in Q1 2016

f) Also known as Fovista® (pegpleranib) and E10030. This product is being

developed by Ophthotech Corp. Ophthotech has licensed ex-US

commercialization rights to Novartis under a Licensing and Commercialization

Agreement

Jakavi®

GVHD19

Gilenya® Pediatric MS15

http://deis.novartis.intra/deis.asp?ATI355A

http://deis.novartis.intra/deis.asp?DNK333B

Key definitions and trademarks

This presentation contains several important words or phrases that we define as below: AML: Acute myeloid leukemia

AS: Ankylosing spondylitis

ASM: Aggressive systemic mastocytosis

Approval: In Pharmaceuticals and Alcon in US and EU; each indication and regulator combination counts

as approval; excludes label updates, CHMP opinions alone and minor approvals

aRCC: advanced renal cell cancer

AS: Ankylosing Spondylitis

Base business: continuing Oncology assets unaffected by the GSK transaction

cc: constant currencies

cITP: chronic immune thrombocytopenia

CML: Chronic myeloid leukemia

COPD: Chronic Obstructive Pulmonary Disease

CSU / CIU: Chronic spontaneous urticaria / Chronic idiopathic urticaria

Growth Products: Products launched in a key markets (EU, US, Japan) in 2010 or later, or products with

exclusivity in key markets until at least 2019 (except Sandoz, which includes only products launched in the

last 24 months). They include the acquisition effect of the GSK oncology assets

GvHD: Graft vs. Host Disease

GI: Gastrointestinal

HF: Heart Failure

HFrEF: Heart failure with reduced ejection fraction

HR+/HER2- mBC: Hormone Receptor positive / Human Epidermal growth factor Receptor 2 negative

metastatic breast cancer

HSCT: Hematopoietic stem cell transplantation

LoE: Loss of exclusivity

MAT: Moving annual total

MF: Myelofibrosis

MI: Myocardial infarction

MS: Multiple sclerosis

New assets: Assets acquired in the GSK transaction which closed on March 2, 2015

NET: Neuroendocrine tumor

NYHA: New York Heart Association (functional classification class I – IV)

NSCLC: Non-small cell lung cancer

ORR: Overall response rate

OS: Overall Survival

PA: Prior authorization

PASI 90: 90% reduction in Psoriasis Area Severity Index from baseline

PsA: Psoriatic arthritis

PsO: Psoriasis

PY: Prior Year

PV: Polycythemia Vera

QoL: Quality of life

RCC: Renal cell cancer

SAA: Severe aplastic anemia

SR GvHD: Steroid resistant graft vs host disease

Trademarks

Aubagio® and Lemtrada® are registered trademarks of Genzyme Corporation

Cimzia® is a registered trademark of UCB Group of Companies

Copaxone® is a registered trademark of Teva Pharmaceutical Industries Ltd

Corlanor® and Enbrel® are registered trademarks of Amgen Inc.

Humira® is a registered trademark of AbbVie Ltd.

Jardiance® is a registered trademark of Boehringer Ingelheim

Otezla® is a registered trademark of Celgene Corporation

Stelara® and Simponi® are registered trademarks of Janssen Biotech, Inc.

Tecfidera® and Tysabri® are registered trademarks of Biogen MA Inc.


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