Aaaq2 2015 Ir Presentation

Second Quarter 2015 Results
Investor Presentation
July 21, 2015
Disclaimer
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there be any guarantee that the announced transaction with CSL will be completed in the expected form or within the expected time frame or at all. Neither can there be any guarantee
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guarantee that the Novartis Group or any of its divisions or associated companies will achieve any particular financial results in the future. Nor can there be any guarantee that
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unexpected clinical trial results and additional analysis of existing clinical data; the Companys ability to obtain or maintain proprietary intellectual property protection, including the
ultimate extent of the impact on the Company of the loss of patent protection and exclusivity on key products which will continue this year; unexpected manufacturing or quality issues;
global trends toward health care cost containment, including ongoing pricing pressures; uncertainties regarding actual or potential legal proceedings, including, among others, actual or
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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; 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 the Companys information technology systems; and other risks and factors referred to in Novartis AGs 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 forwardlooking statements as a result of new information, future events or otherwise.
| Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation
Agenda
Group overview
Joseph Jimenez, Chief Executive Officer
Financial review
Harry Kirsch, Chief Financial Officer
Pharmaceuticals
David Epstein, Division Head, Novartis Pharmaceuticals
Closing
Q&A session
Executive team
In Q2 2015, financial and innovation momentum continues

Sales of USD 12.7 billion, up +6% versus PY in cc1
Core operating income +6% in cc1
Pharmaceuticals momentum, strong Sandoz performance and weak

Alcon quarter
Entresto and Glatopa launched in the US2
All growth shown vs. PY in constant currencies (cc), rounded. All numbers refer to continuing operations (incl. the newly acquired oncology assets and the OTC JV in 2015) and do not include divested businesses. An
explanation of continuing operations can be found on page 42 of the Condensed Interim Financial Report
Entresto launched July 7, not in Q2 2015
Summary of Q2 2015 financial results

Continuing operations1
Q2
Change vs. PY
(in USD bn)
2015
Net Sales
12.7
-5
Core Operating Income
3.6
-7
Operating Income
2.3
-28
-14
Net Income
1.9
-32
-18
Core EPS (USD)
1.27
-7
EPS (USD)
0.77
-31
-16
Free Cash Flow
2.1
-23
% USD
% cc
Continuing operations are defined on page 42 of the Condensed Interim Financial Report. Constant currencies (cc), core results, and free cash flow are non-IFRS measures. An explanation of these measures and
reconciliation tables can be found beginning on page 52 of the Condensed Interim Financial Report.
Our priorities for 2015 are clear

Deliver strong
Financial Results
Strengthen
2
3
Innovation
Complete the
Portfolio Transformation
Capture
Build a
Cross-Divisional Synergies
High-Performing Organization
Pharmaceuticals: Strong sales growth and margin expansion in Q2

Deliver strong
Financial
Results1
+6%
+9%
Sales
Core operating
income
2
3
+
+
+
Growth Products2 sales +38%
4
5
1
2
3
Emerging Growth Markets3 sales +10%

Absorbed generic impact e.g., Diovan, Exforge
All growth shown vs. PY in constant currencies (cc)

Growth Products comprise products launched in a key market (EU, US, Japan) in 2010 or later, or products with exclusivity in key markets until at least 2019. They include
the acquisition effect of the GSK oncology assets.
Emerging Growth Markets comprise all markets except the US, Canada, Western Europe, Japan, Australia and New Zealand
Sandoz: Very strong performance in Q2

Deliver strong
Financial
Results1
+11%
+30%
Sales
Core operating
income
2
3
+
+
+
US sales +23%, driven by Glatopa, Dermatology

Biopharmaceuticals2 sales +57%
Margin Accretion: ROS improvement of 2.6 ppts
5
1
2

Includes biosimilars, biopharmaceutical contract manufacturing and Glatopa
Alcon: Weak Q2
Deliver strong
Financial
Results1
0%
-10%
Sales
Core operating
income
2
3
-
-
-
IOL competitive pressure

Contact lens care decline
Emerging markets slowdown
5
1
Alcon is taking short and long term actions to turn performance,

but will take time
1
Short-term
Strengthen
Mid- to long-term
New IOL platform: bestin-class material, optics,
and mechanics
Innovation
3
AcrySof
PanOptix
UltraSertTM
Next-Gen pre-loaded IOL
RTH258: Positive Ph II data

in wet AMD
5
Dailies Total1
10
Entresto approved and launched in US

1
Strengthen
Innovation
20
20%%
Reduction in
CV mortality1,2
21%
~6m Americans with HF3
~2m eligible patients4,5
First hospitalizations
for HF1,2
1 McMurray et al. NEJM 2014;371:9931004; Packer et al. Circulation 2015;131:54-61

2 Individual components of primary endpoint
3 Mozaffarian D, Benjamin EJ, Go AS, et al. Heart Disease and Stroke Statistics 2015 Update: A Report from the American Heart Association. Circulation. 2015;131:e242-e248
4 Decision Resources Patient Base 2012
5 LEK research and LCZ696 Dual Workstream Plan in HFrEF and HFpEF, Marketing Sciences. Oct 2012
5
11
Progress in immuno-oncology continues

1
Strengthen
Innovation
PD-1, LAG-3 entered clinic, CSF-1 dosing

imminently, TIM-3 expected in 2015
STING and GITR first-in-human expected 2016
CTL019: >150 patients dosed; first cells

processed at commercial facility
4
5
12
Glatopa US launch strengthens our Multiple Sclerosis portfolio

1
First FDA approved substitutable generic
version of Copaxone 20 mg1
Strengthen
Innovation
Launched June 18, 2015 with positive
reception
Glatopa
Multiple sclerosis
Glatopa joins Novartis strong MS portfolio

(e.g., Gilenya, Extavia)
5
1
13
20 mg one-time-daily injection. Copaxone is a registered trademark of Teva
Portfolio changes on track

Oncology
Oncology sales grew 30% (cc) vs. PY in Q2
Transfer of marketing authorizations complete for ~75% of sales
Field forces operational in over 50 markets

Complete the
Portfolio
Transformation
OTC JV, Vaccines, Animal Health
Separations on track, ~13,000 associates transferred
Influenza Vaccines divestment to CSL on track for H2 2015
5
14
NBS is executing on its objectives

1
2
3
9,000 people transferred as of end of Q2

5 locations selected for Global Service Centers; offshoring scaling up
Capture
Cross-Divisional
Synergies
Implementation underway to reduce IT applications by 40%
5
15
Strong Quality performance across divisions

1
% Inspections good or acceptable1
Number of
inspections
Pharmaceuticals
100%
35
Alcon
100%
17
Sandoz
100%
27
Build a
High-Performing
Organization
16
Results status as of June 30, 2015, for continuing operations: Pharmaceuticals, Alcon and Sandoz. The outcome of two FDA inspections of manufacturing sites in India, which
were conducted in August 2014, are still pending.
Agenda
Group overview
Financial review
Pharmaceuticals
Closing
Q&A session
Executive team
17
Net sales grew 6% in the quarter, with core operating leverage

in both Q2 and H1
Continuing operations1
Q2
(in USD m)
2015
Net Sales
Change vs. PY
% USD
% cc
12 694
-5
3 593
-7
Operating Income
2 281
Net Income
H1
% USD
% cc
24 629
-6
7 244
-5
-28
-14
5 066
-16
-1
1 856
-32
-18
4 162
-20
-5
Core EPS (USD)
1.27
-7
2.60
-4
EPS (USD)
0.77
-31
-16
1.72
-18
-3
2 064
-23
3 529
-8
Free Cash Flow
An explanation of continuing operations can be found on page 42 of the Condensed Interim Financial Report
18
2015
Change vs. PY
Sales volume more than offsetting generic impact

Continuing operations Q2 2015
(growth vs. PY in %)
Net sales
Volume before Gx
12
21
Price
-1
-2
Growth before Gx
11
19
Generics impact1
-5
-13
CC growth
Currency
USD growth
-11
-5
Generics impact on sales amounted to USD 0.7 billion for Q2 2015
19
Core operating income
6
-13
-7
Negative currency impact in Q2 from strong USD

Currency impact vs. PY
(in % pts)
Net sales
-2
Core operating income

0
-1
-6
-6
Q1
Q2
Q3
Q4
-10
-11
Q1
Q2
2014
FY impact: -2%
Assuming mid-July exchange rates prevail for the remainder of the year
20
-3
-3
2015
-8
-9
FY1
Q1
Q2
Q3
2014
FY impact: -5%
Q4
-13
-13 -13 to -14
Q1
Q2
2015
FY1
Core margin improved due to Pharmaceuticals and Sandoz

Q2 2015
Net sales
change vs. PY
(in % cc)
Core operating
income
change vs. PY
(in % cc)
Core ROS
(%)
Core margin
change vs. PY
(% pts cc)
Pharmaceuticals
31.6
1.0
Alcon
-10
31.1
-3.7
Sandoz
11
30
18.5
2.6
Q2 continuing operations
28.3
0.3
H1 continuing operations
29.4
0.9
21
Alcon Q2 key performance drivers and full-year outlook

Alcon Division net sales growth
(% in cc)
5.5%
2%
2%
0%
Prior 4 Quarter
1
average
Q2 2015
underlying
IOL competitive pressure

Contact lens care decline
Lower surgical equipment
1
Phasing Pharma seasonal

products
Trade inventory reduction
Average of Alcon Division Q2 2014 to Q1 2015 growth (in cc)
22
Q2 2015
reported
Q2 2015
underlying
Full-year Alcon
sales guidance
lowered to low
single-digit
growth (in cc)
Q2 core margin significantly above prior year due to both

portfolio transformation and productivity improvements
Core margin USD at period rates
(in % pts)
+2.4pts
0.3
28.3
-0.9
25.9
3.0
Q2 2014 Total
Group Core ROS
23
Portfolio
Transformation
Sales and Productivity
Fx
Q2 2015 Continuing
Operations Core ROS
H1 free cash flow was USD 3.5 bn

Continuing operations free cash flow
(in USD bn)
-0.3
3.8
Key drivers vs. PY

3.5
Negative currency impact

Hedging gains
Favorable net working capital1
H1 2014
1
24
H1 2015
Free cash flow from net working capital defined as free cash flow from changes in inventory, trade receivables and trade payables
Net debt increased mainly due to GSK oncology acquisition

(in USD bn)
-10.9
-6.5
3.2
-6.6
Dec 31,
2014
1
2
3
Free Cash Flow 1
Dividends
Total Group including discontinued operations

Related to employee participation programs
Mainly from tax payments on divestments
25
-16.0
9.9
Acquired GSK
oncology
assets
Net proceeds
from portfolio
transformation
transactions
1.6
-2.1
Proceeds
from options
exercised2
Share
repurchases
-0.9
-17.4
Others3
Jun 30,
2015
Full year outlook for continuing operations confirmed

Barring unforeseen events
Continuing operations net sales expected to grow mid-single digit (cc):

Pharmaceuticals: confirmed at mid-single digit growth (cc)
Alcon: revised downward to low-single digit growth (cc)
Sandoz: revised upward to high-single digit growth (cc)
Continuing operations core operating income expected to grow ahead of

sales at a high-single digit rate (cc)
26
Agenda
Group overview
Financial review
Pharmaceuticals
Closing
Q&A session
Executive team
27
Pharmaceuticals Division delivered leverage with solid growth (cc)

in both sales and core operating income
Q2
Q2
(in USD m)
2015
2014
Net Sales
7 847
8 199
-4
2 477
2 593
-4
Operating Income
1 986
2 406
-17
-4
Core Operating Income Margin
31.6%
31.6%
Operating Income Margin
25.3%
29.3%
28
Change vs. PY
% USD
% cc
Growth Products now represent 44% of total division sales

Pharmaceuticals Growth Products net sales in Q2
(in USD bn, growth in % cc)
+38% cc
3.5
2.8
Q2 2014
Q2 2015
% of total division sales

34%
29
44%
Emerging Growth Markets represented 26% of total division sales

Pharmaceuticals Division net sales in Q2
(share in %, growth in % cc)
26%
+5% vs. PY in Q2
74%
Established Markets
1
All markets excluding the US, Canada, Western Europe, Japan, Australia, and New Zealand
30
+10% vs. PY in Q2
Emerging Growth Markets1
Unparalleled growth platform1 with exclusivity to 2019 and beyond

Q2 2015
Net sales
(USD m)
Indication
MS
700
26
wAMD, DME, RVO, mCNV
537
aRCC, TSC/SEGA, pNET, HR+/HER2 aBC
423
19
CML
412
21
Type 2 diabetes mellitus
273
-1
Severe allergic asthma and CSU/CIU

aRCC
194
18
165
n/a
COPD
151 4
57 4
BRAF V600+ metastatic melanoma
131 5
n/a
Thrombocytopenia6 and SAA
116
n/a
98
68
MF and PV
1
2
3
Selected key products for growth of Pharmaceuticals Division

Impacted by Galvus in Germany, where distribution was stopped July 1, 2014; excluding Germany, Q2 2015 growth vs. PY was +5% (cc)
Onbrez Breezhaler approved as Arcapta Neohaler in the US
31
Q2 2015
Growth vs. PY
(% cc)
4
5
6
Net sales and growth of Onbrez, Seebri and Ultibro

Net sales of Tafinlar and Mekinist
cITP and thrombocytopenia associated with hepatitis C
Oncology achieved strong growth momentum

Oncology Franchise net sales
(in USD m, growth in % cc)
+30% cc
3 536
2 951
Sales grew 30% vs. PY in Q2

Base business grew 11% vs. PY in Q2
New assets sales (USD 0.5 bn) represented
15% of total Oncology sales
+11% cc
Integration of new assets and onboarding of

new associates progressing well
Q2 2014
Base business1
1
2
Q2 2015
New assets2
Continuing Oncology assets unaffected by the GSK transaction

Assets acquired in the GSK transaction which closed on March 2, 2015. These include among others Votrient, Promacta, Tafinlar and Mekinist
32
Tafinlar / Mekinist: Sales growth, new data in melanoma

and breakthrough designation in NSCLC
1
2
3
4
Strong commercial
performance
Compelling clinical data in

BRAF V600+ metastatic melanoma1
Regulatory
milestones
USD 131 m
25.1 months
EU & JP
net sales2
in Q2 2015
median overall
survival
submissions completed
in melanoma3
Jan 2014
Low (11%)
Breakthrough
combination
launched in US
discontinuation
rate
therapy designation
in BRAF V600E+ NSCLC4
COMBI-d results in BRAF V600E/K+ metastatic melanoma. Ph III study with 423 patients. Long et al. Lancet 31 May 2015 (on-line publication http://dx.doi.org/10.1016/S0140-6736(15)60898-4)
Net sales of Tafinlar and Mekinist
Submission of 1st line combination therapy (Tafinlar + Mekinist) in unresectable or metastatic melanoma with BRAF V600E or V600K mutations in both EU and Japan achieved in Q2
FDA Breakthrough Therapy designation for combination therapy in BRAF V600E+ NSCLC obtained in July 2015; Tafinlar monotherapy received FDA Breakthrough Therapy designation in this indication in January 2014
33
Hematology portfolio: Sales growth, launches and approvals

2
USD 412m
+21%1
Increased usage
of Tasigna in 1st
line CML patients
in the US
ENEST1st results
confirmed the
benefit of 1st line
Tasigna in newlydiagnosed CML
1
2
USD 262m
+17%1 USD 98m
Growth driven by
US launch of
Jadenu
Growth in MF
indication across
geographies
ECLIPSE study
Jakavi launched
(Exjade vs.
Jadenu)
expected in H2
2016
in PV in Germany
(Apr)
Net sales in Q2 in USD million and growth in cc vs. PY

Jakavi is in-licensed from Incyte Corporation ex-US; Incyte markets product as Jakafi in the US
34
+68%1 USD 116m
n/a
US approval in
pediatric cITP
(Jun)
EU approval in
SAA expected in
H2 2015
nm
Farydak
approved in US
(Feb) and Japan
(Jul)
CHMP positive
opinion (Jun)
Afinitor delivered double-digit growth

Afinitor net sales
(in USD m, growth in % cc)
Sales grew 19% vs. PY in Q2
+19% cc
+29%
423
384
4%
10%
5%
8%
10%
+80%
22%
+5%
7%
26%
54%
+4%
54%
+21%
Other5
pNET
TSC/SEGA
RCC
BC
RADIANT-4 met its primary endpoint1

Regulatory filings expected in H2 2015
Prevalence of advanced GI / Lung NET is estimated
at appr. 80k patients2,3
Pending final label 30-40% of these patients are
expected to be eligible3
RECORD-4 results (Ph II)4 reinforce efficacy

(PFS) in 2nd line aRCC
Q2 2014
1
2
3
4
5
Q2 2015
The primary endpoint was met: significant extension of PFS compared to placebo plus best supportive care (Novartis Press Release, 21 May 2015)
Estimated prevalence in US, Top-5 EU, Japan
Novartis estimate
Motzer R, Alyasova A, Ye D, et al. RECORD-4: A multicenter, phase II trial of second-line everolimus in patients with mRCC. J Clin Oncol 33, 2015 (suppl; abstract # 4518)
Indeterminate usage
35
Ultibro Breezhaler outperformed competitors1,2

Value share uptake since launch1,2
(in %)
3%
2.8%
Ultibro Breezhaler
Competitor 1
Competitor 2
2%
2.6%
2.0%
Ultibro was the first to market dual

bronchodilator (LABA/LAMA) in the EU
and Japan
1.7%
1.3%
1%
COPD portfolio3 grew 57% vs. PY in Q2
Most recent launches included Italy (May)
0.8%
0.4%
0.1%
0.4%
0.2%
0.1%
0%
1
10 11 12 13 14 15 16 17 18
Months Since Launch

1
2
3
IMS Midas Monthly, April 2015; Value share calculated in LABA, LAMA, ICS/LABA, LABA/LAMA, PDE-IV drug classes (note: includes sales from asthma as well)
Only markets where both Ultibro and its LABA/LAMA competitors have launched. These six markets in the EU include Germany and the UK
COPD portfolio consists of Onbrez, Seebri and Ultibro Breezhaler
36
Cosentyx built further momentum in psoriasis

Cosentyx demand in the US
Worldwide sales of USD 30 m in Q2
(Monthly Rx1)
US launch2
Cumulatively >6,500 SRFs3 in process / processed
3,000
Patient support programs bridge gap between

demand and access
2,000
Around 130k moderate-to-severe psoriasis

patients are estimated to be on biologics4
New data in difficult-to-treat psoriasis (which
1,000
0
Feb
affects ~50% of patients), strengthen clinical

profile5,6
Mar
Apr
May
Jun
Regulatory filings in US and EU completed for

AS and PsA in Q2
Dispensed Rx (IMS)
1
2
3
Dispensed Rxs as per IMS

Approval on 23 January 2015 and product commercially available since March 2015
Service Request Forms (SRFs)
37
4
5
6
Novartis estimate for the segment of patients on biologics (Bx) based on IMS and Decision Resources
Gottlieb A, et al. Oral presentation 23rd World Congress of Dermatology 2015, 11 June 2015
Reich K, et al. Poster presented at 23rd World Congress of Dermatology 2015. Poster # 3086561
Entresto: First major approval achieved

Entresto achieved first
approval in the US on July 7
Product shipped and Field

Force is interacting with
customers
Indication includes reduce[s]

the risk of cardiovascular death
and hospitalization for heart
failure
Superiority vs. enalapril also

included in label
38
CHMP opinion expected in Q4

Submission for HFpEF
expected in 2019, based on
outcome of ongoing
PARAGON trial
Achieved and expected highlights from Pharmaceuticals newsflow
H1 2015
H2 2015
Cosentyx
FDA action in psoriasis
Cosentyx
EU approval in psoriasis
Jakavi
CHMP opinion in polycythemia vera
Cosentyx
Regulatory filings in US and EU for ankylosing spondylitis and psoriatic arthritis
Zykadia
CHMP opinion in ALK+ NSCLC
Jadenu
FDA action in new formulation film-coated tablets
Tafinlar + Mekinist
Submission in EU and Japan for metastatic melanoma
Farydak
Multiple myeloma FDA approval, PMDA approval, CHMP positive opinion
Arzerra
Submission for CLL maintenance and CLL relapse in US and EU1
BKM120
Submission for mBC ER+ (Al resistant / mTOR naive) in US, EU & Japan
LDE225
FDA action and CHMP opinion2 in advanced basal cell carcinoma
Afinitor
Submission for advanced non-functional GI and lung NET in US, EU & Japan
Entresto
FDA action in chronic heart failure with reduced ejection fraction3
LCZ696
CHMP opinion in chronic heart failure with reduced ejection fraction
QVA149 / NVA237
FDA action in chronic obstructive pulmonary disease (COPD)
Arzerra submitted in EU for CLL maintenance in July
39
Positive CHMP opinion for LDE225 (Odomzo) obtained in June
EntrestoTM approval obtained in July
Agenda
Group overview
Financial review
Pharmaceuticals
Closing
Q&A session
Executive team
40
Financial and innovation momentum continues
On track for full year guidance

EntrestoTM and GlatopaTM launches
Strong pipeline progress
41
Agenda
Group overview
Financial review
Pharmaceuticals
Closing
Q&A session
Executive team
42
Appendix
Planned filings 2015 to 2019

2016
2017
BKM120 + fulv
BYM338
KAE609
EGF816
ABL001
KAF156
mBC1 ER+ AI resistant/mTOR naive 2nd line
sIBM6
Malaria
Solid tumors
CML11
Malaria
LCI699
INC280
ASB183
LJM716
NSCLC10
Solid and hematological tumors
Solid tumors
PKC412
CTL019
AML2
Acute lymphoblastic leukemia
Afinitor
LEE011 + ltz
ACZ885
Afinitor
BAF312
PIM447
Sec. prev. cv events14
DLBCL16
Multiple sclerosis
Hematological tumors
Arzerra
Arzerra
BCT197
QAW039
NHL15 (refractory)
NHL15 (relapse)
COPD20
Asthma
Arzerra*
E10030***
CLL4 (maintenance)
Wet AMD
Arzerra
RLX030
CTL019
Cosentyx
BGJ398
QAX576
CLL4 (relapse)
Acute heart failure
DLBCL16
nrAxSpA18
Solid tumors
Allergic diseases
LEE011+ tmx + gsn/or NSAI + gsn
BGS649
QGE031
OHH21
Asthma
Cosentyx**
Afinitor
Gilenya
Ankylosing spondylitis
TSC7 seizures
CIDP17
Cosentyx**
BKM120 + fulv
ASM5
****
Cushings disease
HR+, HER2 (-) postmenopausal

Adv. BC1 1st line
PKC412
***
2018
Non-functioning GI and Lung NET3
Psoriatic arthritis
*
**
2019
2015
Regulatory application submitted in EU July 2015

Regulatory submissions filed in EU and US in Q2
2015
Also known as OAP030. E10030 (Fovista) is
being developed by Ophthotech Corp.
Ophthotech has licensed ex-US
commercialization rights to Novartis under a
Licensing and Commercialization Agreement
Spinifex transaction signed on June 27; closing
pending and expected in the second half of 2015
New molecule
New indication
New formulation
44
Promacta/
HR+, HER2(-) premenopausal

Adv. BC1 1st line
Revolade
LEE011
BYL719
BKM120
MDS9
Solid tumors
Solid tumors
Solid tumors
Ilaris
Tafinlar + Mekinist
Lucentis
Hereditary periodic fevers
BRAF V600+ Melanoma (adjuvant)
ROP19
Lucentis
Votrient
CNV and ME8
Renal cell carcinoma (adjuvant)
Zykadia
QVM149
mBC1 ER+ post Al and mTOR inhibitor

3rd line
Promacta/
Revolade
9
2
ALK+ NSCLC10
(1st line, treatment naive)
MDS /AML assoc.

thrombocytopenia
Tafinlar + Mekinist
BRAF V600+ NSCLC10
Tasigna
CML11 treatment free remission
Tekturna
Heart failure12
Signifor LAR13
Cushings disease
1.
2.
3.
4.
5.
6.
7.
Breast Cancer
Acute myeloid leukemia
Neuroendocrine tumors
Chronic lymphocytic leukemia
Aggressive systemic mastocytosis
Sporadic inclusion body myositis
Tuberous sclerosis complex
8. Choroidal neovascularization (CNV) and
macular edema (ME) secondary to conditions
other than macular degeneration, diabetic
macular edema retinal vein occlusion and
pathologic myopia
9. Myelodysplastic syndrome
10. Non-small cell lung cancer
11. Chronic myeloid leukemia
QMF149
CJM112
BYM338
Asthma
Immune disorders
Sarcopenia
Zykadia
ALK+ NSCLC10
(Brain metastasis)
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
BYM338
Hip fracture
Asthma
12.
CAD106
Alzheimers disease
Reduction of CV death/hospitalization in
chronic heart failure patients
Long-acting release
Secondary prevention of cardiovascular
events
Non-Hodgkins lymphoma
Diffuse large B-cell lymphoma
Chronic inflammatory demyelinating
polyradiculoneuropathy
Non-radiographic axial spondyloarthritis
Retinopathy of prematurity
Chronic obstructive pulmonary disease
Obese hypogonadotropic hypogonadism
Preserved ejection fraction
CNP520
Alzheimers disease
EMA401****
Neuropathic pain
LCZ696
Heart failure (PEF)22
LEE011+ fulv
HR+, HER2(-) postmenopausal

Adv. BC1 1st /2nd line
FCR001
QAW039
Renal transplantation
Atopic dermatitis
HSC835
Tafinlar + Mekinist
Stem cell transplantation
BRAF V600+ Colorectal cancer
Combination Abbreviations:
fulv
fulvestrant
ltz
letrozole
tmx tamoxifen
gsn goserelin
NSAI Non-steroidal aromatase inhibitor
Key Definitions
This presentation contains several important words or phrases that we define as below:
aBC: advanced Breast Cancer
In cc: In constant currencies
AI: Aromatase Inhibitor
LABA: Long-Acting Beta-adrenoceptor Agonists (2-agonists)
ALK+ NSCLC: Anaplastic Lymphoma Kinase positive (ALK+) Non-Small Cell Lung Cancer (NSCLC)
LAMA: Long-Acting Muscarinic receptor Antagonist
Approval: In Pharmaceuticals, Alcon and Vaccines in US and EU; each indication and regulator
combination counts as approval; excludes label updates, CHMP opinions alone, and minor approvals
mBC: metastatic Breast Cancer
aRCC: advanced Renal Cell Cancer

ASH: American Society of Hematology
Base business: Continuing Oncology assets unaffected by the GSK transaction
BC: Breast Cancer

cITP: chronic Immune ThrombocytoPenia
CML: Chronic Myeloid Leukemia
COPD: Chronic Obstructive Pulmonary Disease
CHMP: Committee for Medicinal Products for Human Use
CSU / CIU: Chronic Spontaneous Urticaria / Chronic Idiopathic Urticaria
DME: Diabetic Macular Edema
Emerging Growth Markets (EGM): All markets excluding the US, Canada, Western Europe, Japan,
Australia, and New Zealand
ER+: Estrogen Receptor positive
FDA: US Food and Drug Administration
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
HFpEF: Heart Failure with preserved Ejection Fraction
HR+/HER2-: Hormone Receptor positive / Human Epidermal growth factor Receptor 2 negative
45
mCNV: Choroidal Neovascularization (CNV) secondary to pathologic myopia (myopic CNV)

MF: MyeloFibrosis
mRCC: metastatic Renal Cell Carcinoma
mTOR: mammalian Target Of Rapamycin
MS: Multiple Sclerosis

NEJM: New England Journal of Medicine
New assets: Assets acquired in the GSK transaction which closed on March 2, 2015
NSCLC: Non-small cell lung cancer
OS: Overall Survival
PFS: Progression Free Survival
PMDA: Pharmaceuticals and Medical Devices Agency (Japan)
pNET: pancreatic NeuroEndocrine Tumor
PV: Polycythemia Vera
RCC: Renal Cell Carcinoma
RVO: Retinal Vein Occlusion
SAA: Severe Aplastic Anemia
TSC/SEGA: Tuberous Sclerosis Complex Subependymal Giant Cell Astrocytoma
wAMD: Wet (neovascular) Age-related Macular Degeneration

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Second Quarter 2015 Results

July 21, 2015

| Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation

Joseph Jimenez, Chief Executive Officer

Harry Kirsch, Chief Financial Officer

David Epstein, Division Head, Novartis Pharmaceuticals

Joseph Jimenez, Chief Executive Officer

| Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation

In Q2 2015, financial and innovation momentum continues

Pharmaceuticals momentum, strong Sandoz performance and weak

Entresto and Glatopa launched in the US2

Summary of Q2 2015 financial results

(in USD bn)

Core Operating Income

Core EPS (USD)

Free Cash Flow

Our priorities for 2015 are clear

| Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation

Pharmaceuticals: Strong sales growth and margin expansion in Q2

Growth Products2 sales +38%

Emerging Growth Markets3 sales +10%

All growth shown vs. PY in constant currencies (cc)

| Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation

Sandoz: Very strong performance in Q2

US sales +23%, driven by Glatopa, Dermatology

All growth shown vs. PY in constant currencies (cc)

| Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation

IOL competitive pressure

All growth shown vs. PY in constant currencies (cc)

| Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation

Alcon is taking short and long term actions to turn performance,

Next-Gen pre-loaded IOL

RTH258: Positive Ph II data

| Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation

Entresto approved and launched in US

1 McMurray et al. NEJM 2014;371:9931004; Packer et al. Circulation 2015;131:54-61

| Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation

Progress in immuno-oncology continues

PD-1, LAG-3 entered clinic, CSF-1 dosing

CTL019: >150 patients dosed; first cells

| Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation

Glatopa US launch strengthens our Multiple Sclerosis portfolio

Glatopa joins Novartis strong MS portfolio

20 mg one-time-daily injection. Copaxone is a registered trademark of Teva

| Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation

Portfolio changes on track

Oncology sales grew 30% (cc) vs. PY in Q2

Transfer of marketing authorizations complete for ~75% of sales

Field forces operational in over 50 markets

OTC JV, Vaccines, Animal Health

Separations on track, ~13,000 associates transferred

Influenza Vaccines divestment to CSL on track for H2 2015

| Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation

NBS is executing on its objectives

9,000 people transferred as of end of Q2

Implementation underway to reduce IT applications by 40%

| Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation

Strong Quality performance across divisions

% Inspections good or acceptable1

| Novartis Q2 2015 Results | July 21, 2015 | Novartis Investor Presentation

Joseph Jimenez, Chief Executive Officer

Harry Kirsch, Chief Financial Officer

David Epstein, Division Head, Novartis Pharmaceuticals

Joseph Jimenez, Chief Executive Officer