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Name | Symbol | Market | Type |
---|---|---|---|
Novartis AG | NYSE:NVS | NYSE | Depository Receipt |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.44 | 0.44% | 100.04 | 100.08 | 99.44 | 99.72 | 563,839 | 19:23:48 |
Form 20-F: x
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Form 40-F: o
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Yes: o
|
No: x
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Novartis AG
|
|||
Date:
January 31, 2024
|
By:
|
/s/ PAUL PENEPENT
|
|
Name:
|
Paul Penepent
|
||
Title:
|
Head Financial Reporting and Accounting
|
||
Ad hoc announcement pursuant to Art. 53 LR
FINANCIAL RESULTS | RÉSULTATS FINANCIERS | FINANZERGEBNISSE
|
Novartis International AG
Novartis Global Communications CH-4002 Basel Switzerland https://www.novartis.com |
•
|
Net sales grew +10% (cc, +8% USD) with core operating income growing +18% (cc, +11% USD)
|
•
|
Sales growth was mainly driven by continued strong performance from Entresto (+31% cc), Kesimpta (+99% cc), Kisqali (+75% cc), Pluvicto (+261% cc) and Scemblix (+179% cc)
|
•
|
Operating income increased +39% (cc, +23% USD). Net income increased +62% (cc, +42%
USD). Free cash flow from continuing operations was USD 13.2 billion (+9% USD)
|
•
|
EPS grew +70% (cc, +49% USD) to USD 4.13. Core EPS was USD 6.47 growing +25% (cc, +18% USD)
|
•
|
Net sales grew +10% (cc, +8% USD) with core operating income growing +13% (cc, +5% USD),
|
•
|
Sales growth was mainly driven by continued strong performance from Entresto (+26% cc), Kisqali (+76% cc), Kesimpta (+73% cc), Cosentyx (+21% cc) and Pluvicto (+53% cc)
|
•
|
Q4 selected innovation milestones:
|
o
|
Fabhalta FDA approval for treatment of adults with PNH (both previously treated and treatment-naïve)
|
o
|
Cosentyx FDA approval for the treatment of moderate to severe HS in adults
|
o
|
Cosentyx FDA approval for intravenous formulation in three indications (PsA, AS, nr-axSpA)
|
o
|
Iptacopan Ph3 APPLAUSE-IgAN met its primary endpoint in IgAN
patients
|
o
|
Atrasentan Ph3 ALIGN study met its primary endpoint in IgAN patients
|
o
|
Iptacopan Ph3 APPEAR-C3G met its primary endpoint in C3G
patients
|
o
|
Scemblix Ph3 ASC4FIRST study met its primary endpoints in 1L
Ph+ CML-CP patients (January)
|
•
|
Dividend of CHF 3.30 per share, an increase of 3.1%, proposed for 2023
|
•
|
2024 guidance3 – Net
sales expected to grow mid single digit and core operating income expected to grow high single digit
|
•
|
Updated mid-term guidance – Net sales expected to grow 5% cc CAGR 2023-2028 with core operating income margin expanding to ~40%+ by 2027
|
Continuing operations
|
|||||||||
Q4 2023
|
Q4 2022
|
% change
|
FY 2023
|
FY 2022
|
% change
|
||||
|
USD m
|
USD m
|
USD
|
cc
|
|
USD m
|
USD m
|
USD
|
cc
|
Net sales
|
11 423
|
10 576
|
8
|
10
|
|
45 440
|
42 206
|
8
|
10
|
Operating income
|
2 582
|
1 755
|
47
|
68
|
|
9 769
|
7 946
|
23
|
39
|
Net income
|
2 638
|
1 315
|
101
|
130
|
|
8 572
|
6 049
|
42
|
62
|
EPS (USD)
|
1.29
|
0.62
|
108
|
140
|
|
4.13
|
2.77
|
49
|
70
|
Free cash flow
|
2 141
|
3 462
|
-38
|
|
|
13 160
|
12 123
|
9
|
|
Core operating income
|
3 821
|
3 645
|
5
|
13
|
|
16 372
|
14 794
|
11
|
18
|
Core net income
|
3 126
|
2 963
|
6
|
11
|
|
13 446
|
11 946
|
13
|
19
|
Core EPS (USD)
|
1.53
|
1.39
|
10
|
16
|
|
6.47
|
5.48
|
18
|
25
|
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.
|
Entresto
|
(USD 1 635 million, +26% cc) sustained robust demand-led growth, with increased patient share across all geographies
|
Kisqali
|
(USD 610 million, +76% cc) sales grew strongly across all regions, based on increasing recognition of consistently reported overall survival in HR+/HER2- advanced
breast cancer
|
Kesimpta
|
(USD 641 million, +73% cc) sales grew across all regions driven by increased demand and strong access
|
Cosentyx
|
(USD 1 303 million, +21% cc) US sales grew (+17%) and ex-US sales (+26% cc), benefitting from lower prior year base (including revenue deduction adjustments in
the US)
|
Pluvicto
|
(USD 273 million, +53% cc) continued sales growth in the US. Supply now unconstrained, focusing on initiating new patients
|
Ilaris
|
(USD 376 million, +29% cc) sales grew across all regions
|
Leqvio
|
(USD 123 million, +190% cc) launch is ongoing, with focus on patient on-boarding, removing access hurdles and enhancing medical education
|
Scemblix
|
(USD 125 million, +143% cc) continued its strong launch uptake demonstrating the high unmet need in CML
|
Jakavi
|
(USD 444 million, +14% cc) sales grew in emerging growth markets, Europe and Japan, driven by strong demand in both myelofibrosis and polycythemia vera
indications
|
Xolair
|
(USD 378 million, +16% cc) sales grew across all regions
|
Tafinlar + Mekinist
|
(USD 486 million, +7% cc) sales grew mainly in the US and emerging growth markets, partly offset by decline in Europe
|
Promacta/Revolade
|
(USD 563 million, +4% cc) sales grew mainly in the US driven by increased use in chronic ITP and severe aplastic anemia
|
Piqray
|
(USD 131 million, +18% cc) sales grew mainly in the US
|
Lutathera
|
(USD 147 million, +13% cc) sales grew across all regions due to increased demand
|
Emerging Growth Markets*
|
Grew +18% (cc) overall. China grew (+38% cc) to USD 0.8 billion, due to lower prior year base. For the full year, China grew +17% (cc)
*All markets except the US, Canada, Western Europe, Japan, Australia, and New Zealand
|
Q4 2023
|
% change
|
FY 2023
|
% change
|
|||
USD m
|
USD
|
cc
|
USD m
|
USD
|
cc
|
|
Entresto
|
1 635
|
27
|
26
|
6 035
|
30
|
31
|
Cosentyx
|
1 303
|
21
|
21
|
4 980
|
4
|
5
|
Promacta/Revolade
|
563
|
4
|
4
|
2 269
|
9
|
10
|
Kesimpta
|
641
|
74
|
73
|
2 171
|
99
|
99
|
Kisqali
|
610
|
71
|
76
|
2 080
|
69
|
75
|
Tafinlar + Mekinist
|
486
|
5
|
7
|
1 922
|
9
|
11
|
Tasigna
|
446
|
-6
|
- 6
|
1 848
|
-4
|
-3
|
Jakavi
|
444
|
14
|
14
|
1 720
|
10
|
12
|
Lucentis
|
301
|
-24
|
- 25
|
1 475
|
-21
|
-20
|
Xolair
|
378
|
17
|
16
|
1 463
|
7
|
9
|
Ilaris
|
376
|
25
|
29
|
1 355
|
20
|
22
|
Sandostatin
|
316
|
4
|
5
|
1 314
|
6
|
8
|
Zolgensma
|
286
|
-7
|
- 4
|
1 214
|
-11
|
-9
|
Pluvicto
|
273
|
53
|
53
|
980
|
262
|
261
|
Gilenya
|
154
|
-55
|
- 55
|
925
|
-54
|
-54
|
Exforge Group
|
156
|
-2
|
- 1
|
713
|
-4
|
-1
|
Galvus Group
|
153
|
-27
|
- 17
|
692
|
-19
|
-11
|
Diovan Group
|
147
|
4
|
6
|
613
|
-6
|
-1
|
Lutathera
|
147
|
15
|
13
|
605
|
28
|
28
|
Gleevec/Glivec
|
128
|
-27
|
- 25
|
561
|
-25
|
-22
|
Top 20 brands total
|
8 943
|
13
|
14
|
34 935
|
10
|
12
|
Fabhalta
(iptacopan)
|
Approved in the US as the first oral monotherapy for the treatment of adults (both previously treated and treatment-naïve patients) with paroxysmal nocturnal
hemoglobinuria (PNH)
|
Cosentyx
|
Approved in the US as the first new biologic therapy for the treatment of moderate to severe hidradenitis suppurativa (HS) in adults in nearly a decade
Approved in the US as an intravenous formulation in three indications: psoriatic arthritis, ankylosing spondylitis, and non-radiographic axial SpA
|
Scemblix
(asciminib)
|
Ph3 ASC4FIRST study met both primary endpoints (major molecular response rate vs. imatinib or investigator-selected tyrosine kinase inhibitors) with clinically
meaningful and statistically significant results in newly diagnosed patients with Philadelphia chromosome-positive chronic myeloid leukemia in chronic phase (Ph+ CML-CP). Additionally, Scemblix
showed a favorable safety and tolerability profile. Data will be presented at an upcoming medical conference and submitted to regulatory authorities in 2024
|
Ph3 ASCEMBL study, median follow-up of almost 4 years, in patients with Ph+ CML-CP continue to support the efficacy, safety and tolerability profile compared
with bosutinib in 3L+ setting. Data presented at ASH 2023
|
|
Fabhalta
(iptacopan)
|
Ph3 APPLAUSE-IgAN study interim analysis demonstrated clinically meaningful and highly statistically significant proteinuria reduction in patients with IgA
nephropathy. The trial met its pre-specified interim analysis (9 months) primary endpoint, demonstrating superiority vs. placebo in proteinuria reduction, with safety consistent with previously reported data. Novartis plans to
review interim data with regulatory authorities for accelerated approval; study continues with final readout at 24 months
Ph3 APPEAR-C3G study met its primary endpoint, demonstrating superiority of iptacopan vs placebo in proteinuria reduction at six-month analysis and provided
clinically meaningful and statistically significant proteinuria reduction in patients with C3G on top of background therapy. Iptacopan’s safety profile was consistent with previously reported data. Data to be presented at an
upcoming medical meeting. Study continues with all patients receiving active therapy for six-months
Ph3 APPLY-PNH extension data showed sustained efficacy and long-term safety of Fabhalta in adults with paroxysmal
nocturnal hemoglobinuria (PNH). Data showed sustained clinically meaningful hemoglobin-level increases to near-normal (≥12 g/dL), blood transfusion avoidance, and improved patient-reported fatigue in the majority of patients.
Comparable benefits were seen in those patients switching from anti-C5 therapy to Fabhalta. Safety profile at 48 weeks was similar to 24 week data. Data presented at ASH 2023
|
atrasentan
|
Ph3 ALIGN study met its primary endpoint, demonstrating superiority of atrasentan vs placebo in proteinuria reduction at 36-week interim analysis with
clinically meaningful and highly statistically significant reduction in proteinuria in IgAN patients receiving supportive care. Safety profile of atrasentan was consistent with previously reported data. Data to be presented at
an upcoming medical meeting. Study continues with final readout expected in 2026
|
remibrutinib
|
Ph3 REMIX-1 and REMIX-2 trials showed clinically meaningful and statistically significant reduction in weekly urticaria activity (UAS7), itch (ISS7) and hives
(HSS7) at Week 12 vs placebo in patients with CSU. Significant improvement in symptom control was seen as early as Week 2 and sustained up to Week 12. Remibrutinib was well-tolerated and demonstrated a favorable safety profile
with rates of overall adverse events comparable to placebo and balanced liver function tests across both studies. Studies are ongoing with final (52-week) readout and regulatory submissions in 2024. Data presented at AAAI 2023
|
Kisqali
(ribociclib)
|
Final protocol-specified iDFS analysis of Ph3 NATALEE trial (with a median follow-up of 33.3 months and 78.3% of patients having completed ribociclib)
reinforces 25% reduction in risk of recurrence across broad population of patients with HR+/HER2- early breast cancer and continues to support regulatory submissions. iDFS benefit remains consistent across key patient subgroups,
with stability in secondary endpoints including overall survival (OS). Among patients with stage II and stage III tumors, ribociclib lowered risk of disease recurrence by 30% and 24.5%, respectively. Safety profile was in line
with previously reported results. Data presented at SABCS 2023. NATALEE data submitted to the FDA in December 2023
|
Early-stage business development in core therapeutic areas and technologies
|
Cardiovascular-Renal-Metabolic:
• Chong Kun Dang (LMW, lead asset CKD-510 for diseases in which the enzyme HDAC6 is thought to play a role, including some cardiovascular diseases)
• SanReno (LMW and mAb, securing worldwide rights for Atrasentan/Zigakibart)
• Argo Biopharma (xRNA, undisclosed targets)
Neuroscience:
• Voyager Therapeutics (Gene therapy, strategic collaboration and capsid license agreement for potential Huntington’s Disease and spinal muscular atrophy therapies)
|
|
Immunology:
• Calypso (Biotherapeutics, lead asset CALY-002 a promising anti-IL-15 mAB, to be investigated in a range of autoimmune indications)
Oncology:
• Legend Biotech (Cell Therapy, targeting DLL3, a ligand highly expressed in several cancers)
Isomorphic Labs – Leveraging AI including next generation AlphaFold model, to discover novel
small molecule therapeutics against undisclosed targets
|
Net sales
|
Expected to grow mid single digit
|
Core operating income
|
Expected to grow high single digit
|
•
|
Our guidance assumes that no Entresto generics launch in the US in 2024
|
Continuing operations2 |
Q4 2023
|
Q4 2022
|
% change
|
FY 2023
|
FY 2022
|
% change
|
||||
|
USD m
|
USD m
|
USD
|
cc
|
|
USD m
|
USD m
|
USD
|
cc
|
|
Net sales
|
11 423
|
10 576
|
8
|
10
|
Net sales
|
45 440
|
42 206
|
8
|
10
|
|
Operating income
|
2 582
|
1 755
|
47
|
68
|
Operating income
|
9 769
|
7 946
|
23
|
39
|
|
As a % of sales
|
22.6
|
16.6
|
|
|
As a % of sales
|
21.5
|
18.8
|
|
|
|
Net income
|
2 638
|
1 315
|
101
|
130
|
Net income
|
8 572
|
6 049
|
42
|
62
|
|
EPS (USD)
|
1.29
|
0.62
|
108
|
140
|
EPS (USD)
|
4.13
|
2.77
|
49
|
70
|
|
Cash flows from
operating activities |
2 547
|
3 768
|
-32
|
|
Cash flows from
operating activities |
14 220
|
13 039
|
9
|
|
|
Non-IFRS measures
|
|
|
|
|
Non-IFRS measures
|
|
|
|
|
|
Free cash flow
|
2 141
|
3 462
|
-38
|
|
Free cash flow
|
13 160
|
12 123
|
9
|
|
|
Core operating income
|
3 821
|
3 645
|
5
|
13
|
Core operating income
|
16 372
|
14 794
|
11
|
18
|
|
As a % of sales
|
33.5
|
34.5
|
|
|
As a % of sales
|
36.0
|
35.1
|
|
|
|
Core net income
|
3 126
|
2 963
|
6
|
11
|
Core net income
|
13 446
|
11 946
|
13
|
19
|
|
Core EPS (USD)
|
1.53
|
1.39
|
10
|
16
|
Core EPS (USD)
|
6.47
|
5.48
|
18
|
25
|
|
Discontinued operations2
|
Q4 2023
|
Q4 2022
|
% change |
FY 2023
|
FY 2022
|
% change
|
||||
|
USD m
|
USD m
|
USD
|
cc
|
|
USD m
|
USD m
|
USD
|
cc
|
|
Net sales
|
|
2 374
|
nm
|
nm
|
Net sales
|
7 428
|
9 372
|
nm
|
nm
|
|
Operating income
|
|
194
|
nm
|
nm
|
Operating income
|
265
|
1 251
|
nm
|
nm
|
|
As a % of sales
|
|
8.2
|
|
|
As a % of sales
|
3.6
|
13.3
|
|
|
|
Net income
|
5 842
|
151
|
nm
|
nm
|
Net income
|
6 282
|
906
|
nm
|
nm
|
|
Non-IFRS measures
|
|
|
|
|
Non-IFRS measures
|
|
|
|
|
|
Core operating
income
|
385
|
nm
|
nm
|
Core operating
income
|
1 185
|
1 871
|
nm
|
nm
|
||
As a % of sales
|
|
16.2
|
|
|
As a % of sales
|
16.0
|
20.0
|
|
|
|
Total Company
|
Q4 2023
|
Q4 2022
|
% change
|
FY 2023
|
FY 2022
|
% change
|
||||
|
USD m
|
USD m
|
USD
|
cc
|
|
USD m
|
USD m
|
USD
|
cc
|
|
Net income
|
8 480
|
1 466
|
nm
|
nm
|
Net income
|
14 854
|
6 955
|
nm
|
nm
|
|
EPS (USD)
|
4.14
|
0.69
|
nm
|
nm
|
EPS (USD)
|
7.15
|
3.19
|
nm
|
nm
|
|
Cash flows from
operating activities |
2 547
|
4 111
|
nm
|
nm
|
Cash flows from
operating activities |
14 458
|
14 236
|
nm
|
nm
|
|
Non-IFRS measures
|
|
|
|
|
Non-IFRS measures
|
|
|
|
|
|
Free cash flow
|
2 141
|
3 713
|
nm
|
nm
|
Free cash flow
|
13 179
|
13 038
|
nm
|
nm
|
|
Core net income
|
3 127
|
3 251
|
nm
|
nm
|
Core net income
|
14 336
|
13 352
|
nm
|
nm
|
|
Core EPS (USD)
|
1.53
|
1.52
|
nm
|
nm
|
Core EPS (USD)
|
6.90
|
6.12
|
nm
|
nm
|
|
nm= not meaningful
|
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 49 of the Condensed Financial Report. Unless otherwise noted, all growth rates in this Release refer to same period in prior year.
2 As defined on page 37 of the Condensed Financial Report, Continuing operations include the retained
business activities of Novartis, comprising the innovative medicines business and the continuing Corporate activities and Discontinued operations include operational results from the Sandoz business.
Detailed financial results accompanying this press release are included in the Condensed Financial Report at the link below:
https://ml-eu.globenewswire.com/resource/download/a507329c-1dd6-43c6-8a9b-9d0b86d9bf20/
|
March 5, 2024 | Annual General Meeting |
April 23, 2024 | First quarter 2024 results |
May 15-16, 2024 | Meet Novartis Management 2024 (Cambridge, MA, USA) |
July 18, 2024 |
Second quarter & Half year 2024 results
|
October 29, 2024 | Third quarter & Nine months 2024 results |
Novartis Fourth Quarter and Full Year 2023 Condensed Financial Report – Supplementary Data
(USD millions unless indicated otherwise) |
Q4 2023
USD m |
Q4 2022
USD m |
% change
USD |
% change
cc 1 |
FY 2023
USD m |
FY 2022
USD m |
% change
USD |
% change
cc 1 |
|||||||||
Net sales from continuing operations
|
11 423
|
10 576
|
8
|
10
|
45 440
|
42 206
|
8
|
10
|
|||||||||
Other revenues
|
353
|
390
|
-9
|
-11
|
1 220
|
1 255
|
-3
|
-3
|
|||||||||
Cost of goods sold
|
-3 022
|
-3 041
|
1
|
3
|
-12 472
|
-11 582
|
-8
|
-6
|
|||||||||
Gross profit
from continuing operations |
8 754 |
7 925 |
10 |
14 |
34 188 |
31 879 |
7 |
11 |
|||||||||
Selling, general and administration
|
-3 444
|
-3 183
|
-8
|
-8
|
-12 517
|
-12 193
|
-3
|
-3
|
|||||||||
Research and development
|
-2 567
|
-2 216
|
-16
|
-12
|
-11 371
|
-9 172
|
-24
|
-22
|
|||||||||
Other income
|
450
|
155
|
190
|
172
|
1 772
|
696
|
155
|
147
|
|||||||||
Other expense
|
-611
|
-926
|
34
|
36
|
-2 303
|
-3 264
|
29
|
31
|
|||||||||
Operating income
from continuing operations |
2 582 |
1 755 |
47 |
68 |
9 769 |
7 946 |
23 |
39 |
|||||||||
% of net sales
|
22.6
|
16.6
|
|
|
21.5
|
18.8
|
|
|
|||||||||
Loss from associated companies
|
-6
|
-3
|
-100
|
-66
|
-13
|
-11
|
-18
|
1
|
|||||||||
Interest expense
|
-217
|
-207
|
-5
|
-12
|
-855
|
-800
|
-7
|
-11
|
|||||||||
Other financial income and expense
|
18
|
24
|
-25
|
nm
|
222
|
42
|
nm
|
nm
|
|||||||||
Income before taxes
from continuing operations |
2 377 |
1 569 |
51 |
74 |
9 123 |
7 177 |
27 |
45 |
|||||||||
Income taxes
|
261
|
-254
|
203
|
219
|
-551
|
-1 128
|
51
|
44
|
|||||||||
Net income from continuing operations
|
2 638
|
1 315
|
101
|
130
|
8 572
|
6 049
|
42
|
62
|
|||||||||
Net income from discontinued operations
|
5 842
|
151
|
nm
|
nm
|
6 282
|
906
|
nm
|
nm
|
|||||||||
Net income
|
8 480
|
1 466
|
nm
|
nm
|
14 854
|
6 955
|
nm
|
nm
|
|||||||||
Basic earnings per share from continuing operations (USD)
|
1.29
|
0.62
|
108
|
140
|
4.13
|
2.77
|
49
|
70
|
|||||||||
Basic earnings per share from discontinued operations (USD)
|
2.85
|
0.07
|
nm
|
nm
|
3.02
|
0.42
|
nm
|
nm
|
|||||||||
Total basic earnings per share (USD)
|
4.14
|
0.69
|
nm
|
nm
|
7.15
|
3.19
|
nm
|
nm
|
|||||||||
Net cash flows from operating activities from continuing operations
|
2 547
|
3 768
|
-32
|
|
14 220
|
13 039
|
9
|
|
|||||||||
|
|
|
|
|
|
|
|
||||||||||
Non-IFRS measures 1
|
|
|
|
|
|
|
|
|
|||||||||
Free cash-flow from continuing operations 2
|
2 141
|
3 462
|
-38
|
|
13 160
|
12 123
|
9
|
|
|||||||||
Core operating income from continuing operations
|
3 821
|
3 645
|
5
|
13
|
16 372
|
14 794
|
11
|
18
|
|||||||||
% of net sales
|
33.5
|
34.5
|
|
|
36.0
|
35.1
|
|
|
|||||||||
Core net income from continuing operations
|
3 126
|
2 963
|
6
|
11
|
13 446
|
11 946
|
13
|
19
|
|||||||||
Core basic earnings per share (USD) from continuing operations
|
1.53
|
1.39
|
10
|
16
|
6.47
|
5.48
|
18
|
25
|
|||||||||
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 49. Unless otherwise noted,
all growth rates in this release refer to same period in prior year.
|
|||||||||||||||||
2 Effective January 1, 2023, Novartis revised its definition of free cash flow, to define
free cash flow as net cash flows from operating activities less purchases of property,
plant and equipment. To aid in comparability, the prior year free cash flow amounts
have been revised to conform with the new free cash flow definition. See page 49 of
the Condensed Financial Report.
|
|||||||||||||||||
nm = not meaningful
|
Q4 2023
|
Q4 2022
|
% change
|
% change
|
FY 2023
|
FY 2022
|
% change
|
% change
|
||||||||||
USD m
|
USD m
|
USD
|
cc
|
USD m
|
USD m
|
USD
|
cc
|
||||||||||
Cardiovascular, renal and metabolic
|
|
|
|
|
|
|
|
|
|||||||||
Entresto
|
1 635
|
1 291
|
27
|
26
|
6 035
|
4 644
|
30
|
31
|
|||||||||
Leqvio
|
123
|
42
|
193
|
190
|
355
|
112
|
217
|
217
|
|||||||||
Other
|
1
|
|
nm
|
nm
|
1
|
|
nm
|
nm
|
|||||||||
Total cardiovascular, renal and metabolic
|
1 759
|
1 333
|
32
|
32
|
6 391
|
4 756
|
34
|
36
|
|||||||||
nm = not meaningful
|
Q4 2023
|
Q4 2022
|
% change
|
% change
|
FY 2023
|
FY 2022
|
% change
|
% change
|
||||||||||
USD m
|
USD m
|
USD
|
cc
|
USD m
|
USD m
|
USD
|
cc
|
||||||||||
Immunology
|
|
|
|
|
|
|
|
|
|||||||||
Cosentyx
|
1 303
|
1 080
|
21
|
21
|
4 980
|
4 788
|
4
|
5
|
|||||||||
Xolair 1
|
378
|
323
|
17
|
16
|
1 463
|
1 365
|
7
|
9
|
|||||||||
Ilaris
|
376
|
301
|
25
|
29
|
1 355
|
1 133
|
20
|
22
|
|||||||||
Other
|
|
|
|
|
|
1
|
nm
|
nm
|
|||||||||
Total immunology
|
2 057
|
1 704
|
21
|
21
|
7 798
|
7 287
|
7
|
8
|
|||||||||
1 Net sales reflect Xolair sales for all indications.
|
|||||||||||||||||
nm = not meaningful
|
Q4 2023
|
Q4 2022
|
% change
|
% change
|
FY 2023
|
FY 2022
|
% change
|
% change
|
||||||||||
USD m
|
USD m
|
USD
|
cc
|
USD m
|
USD m
|
USD
|
cc
|
||||||||||
Neuroscience
|
|
|
|
|
|
|
|
|
|||||||||
Kesimpta
|
641
|
369
|
74
|
73
|
2 171
|
1 092
|
99
|
99
|
|||||||||
Zolgensma
|
286
|
309
|
-7
|
-4
|
1 214
|
1 370
|
-11
|
-9
|
|||||||||
Mayzent
|
106
|
99
|
7
|
7
|
392
|
357
|
10
|
10
|
|||||||||
Aimovig
|
69
|
59
|
17
|
14
|
266
|
218
|
22
|
21
|
|||||||||
Other
|
|
|
|
|
|
1
|
nm
|
nm
|
|||||||||
Total neuroscience
|
1 102
|
836
|
32
|
33
|
4 043
|
3 038
|
33
|
34
|
|||||||||
nm = not meaningful
|
Q4 2023
|
Q4 2022
|
% change
|
% change
|
FY 2023
|
FY 2022
|
% change
|
% change
|
||||||||||
USD m
|
USD m
|
USD
|
cc
|
USD m
|
USD m
|
USD
|
cc
|
||||||||||
Oncology
|
|
|
|
|
|
|
|
|
|||||||||
Promacta/Revolade
|
563
|
540
|
4
|
4
|
2 269
|
2 088
|
9
|
10
|
|||||||||
Kisqali
|
610
|
357
|
71
|
76
|
2 080
|
1 231
|
69
|
75
|
|||||||||
Tafinlar + Mekinist 1
|
486
|
465
|
5
|
7
|
1 922
|
1 770
|
9
|
11
|
|||||||||
Tasigna
|
446
|
475
|
-6
|
-6
|
1 848
|
1 923
|
-4
|
-3
|
|||||||||
Jakavi
|
444
|
388
|
14
|
14
|
1 720
|
1 561
|
10
|
12
|
|||||||||
Pluvicto
|
273
|
179
|
53
|
53
|
980
|
271
|
262
|
261
|
|||||||||
Lutathera
|
147
|
128
|
15
|
13
|
605
|
471
|
28
|
28
|
|||||||||
Kymriah
|
120
|
139
|
-14
|
-14
|
508
|
536
|
-5
|
-5
|
|||||||||
Piqray/Vijoice
|
131
|
112
|
17
|
18
|
505
|
373
|
35
|
37
|
|||||||||
Scemblix
|
125
|
52
|
140
|
143
|
413
|
149
|
177
|
179
|
|||||||||
Votrient
|
77
|
103
|
-25
|
-26
|
390
|
474
|
-18
|
-17
|
|||||||||
Adakveo
|
45
|
51
|
-12
|
-11
|
195
|
194
|
1
|
0
|
|||||||||
Tabrecta
|
41
|
36
|
14
|
13
|
154
|
133
|
16
|
16
|
|||||||||
Other
|
|
|
|
|
1
|
2
|
-50
|
nm
|
|||||||||
Total oncology
|
3 508
|
3 025
|
16
|
17
|
13 590
|
11 176
|
22
|
23
|
|||||||||
1 Majority of sales for Mekinist and Tafinlar are combination, but both
can be used as monotherapy.
|
|||||||||||||||||
nm = not meaningful
|
Q4 2023
|
Q4 2022
|
% change
|
% change
|
FY 2023
|
FY 2022
|
% change
|
% change
|
||||||||||
USD m
|
USD m
|
USD
|
cc
|
USD m
|
USD m
|
USD
|
cc
|
||||||||||
Established brands
|
|
|
|
|
|
|
|
|
|||||||||
Lucentis
|
301
|
398
|
-24
|
-25
|
1 475
|
1 874
|
-21
|
-20
|
|||||||||
Sandostatin
|
316
|
305
|
4
|
5
|
1 314
|
1 238
|
6
|
8
|
|||||||||
Gilenya
|
154
|
346
|
-55
|
-55
|
925
|
2 013
|
-54
|
-54
|
|||||||||
Exforge Group
|
156
|
159
|
-2
|
-1
|
713
|
743
|
-4
|
-1
|
|||||||||
Galvus Group
|
153
|
209
|
-27
|
-17
|
692
|
859
|
-19
|
-11
|
|||||||||
Diovan Group
|
147
|
142
|
4
|
6
|
613
|
652
|
-6
|
-1
|
|||||||||
Gleevec/Glivec
|
128
|
175
|
-27
|
-25
|
561
|
745
|
-25
|
-22
|
|||||||||
Afinitor/Votubia
|
97
|
106
|
-8
|
-7
|
408
|
512
|
-20
|
-18
|
|||||||||
Contract manufacturing 1
|
302
|
313
|
-4
|
-5
|
1 490
|
1 200
|
24
|
22
|
|||||||||
Other 1
|
1 243
|
1 525
|
-18
|
-11
|
5 427
|
6 113
|
-11
|
-6
|
|||||||||
Total established brands 1
|
2 997
|
3 678
|
-19
|
-15
|
13 618
|
15 949
|
-15
|
-12
|
|||||||||
1 Effective January 1, 2023, the discontinued operations Sandoz business transferred
to Novartis continuing operations its bio-technology manufacturing services to other
companies’ activities (included in Contract manufacturing) and the Coartem brand
(included in Other). The financial information of the Novartis continuing operations
and discontinued operations were adapted accordingly in 2022 and 2021, in compliance
with IFRS Accounting Standards. See Note 10 for additional information.
|
|||||||||||||||||
|
Product |
Active ingredient/
Descriptor |
Indication |
Region |
|||||
Fabhalta
|
iptacopan
|
Paroxysmal nocturnal hemoglobinuria
|
US
|
|||||
Cosentyx
|
secukinumab
|
Hidradenitis suppurativa
|
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
|
|
– US filing
|
||||||
LNP023
(iptacopan) |
Paroxysmal nocturnal
hemoglobinuria |
Approved
|
Q2 2023
|
Q3 2023
|
– US approval
|
||||||
Xolair
|
Food allergy
|
Q4 2023
|
|
|
– Genentech submission
|
||||||
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
|
|
|||||
Coartem
|
Malaria, uncomplicated (<5 kg patients)
|
2024
|
3
|
– Submission will use the MAGHP procedure
in Switzerland to facilitate rapid approvals in the developing countries who are included in the MAGHP procedure |
|||||
Cosentyx
|
Giant cell arteritis
|
2025
|
3
|
|
|||||
Polymyalgia rheumatica
|
2026
|
3
|
|
||||||
Rotator cuff tendinopathy
|
≥2027
|
3
|
|
||||||
EXV811
(atrasentan) |
IgA nephropathy
|
2024
|
3
|
– Ph3 ALIGN met its primary endpoint
|
|||||
FUB523
(zigakibart) |
IgA nephropathy
|
≥2027
|
3
|
|
|||||
JDQ443
(opnurasib) |
Non-small cell lung cancer
(mono/combos) |
≥2027
|
3
|
–Asset submission plan revised following
strategy update |
|||||
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) |
IgA nephropathy
|
2024
|
3
|
– EU Orphan Drug designation
– Ph3 APPLAUSE-IgAN met its primary endpoint |
|||||
C3 glomerulopathy
|
2024
|
3
|
– EU Orphan Drug designation
– EU PRIME designation – FDA Rare Pediatric designation – China Breakthrough Therapy designation – FDA Breakthrough Therapy designation – Ph3 APPEAR-C3G study met its primary endpoint |
||||||
IC-MPGN
|
≥2027
|
3
|
|
||||||
Atypical haemolytic uraemic syndrome
|
≥2027
|
3
|
|
||||||
LOU064
(remibrutinib) |
Chronic spontaneous urticaria
|
2024
|
3
|
|
|||||
Multiple sclerosis
|
≥2027
|
3
|
|
||||||
CINDU
|
≥2027
|
3
|
|
||||||
Sjögren's syndrome
|
|
2
|
– Further development will not be pursued
to prioritize other key programs in portfolio |
||||||
Lutathera
|
Gastroenteropancreatic
neuroendocrine tumors, 1L in G2/3 tumors |
2024
|
3
|
|
|||||
177Lu-NeoB
|
Multiple solid tumors
|
≥2027
|
1
|
|
|||||
LXE408
|
Visceral leishmaniasis
|
≥2027
|
2
|
|
|||||
MBG453
(sabatolimab) |
Myelodysplastic syndrome
|
|
3
|
– Ph3 STIMULUS MDS2 did not meet
primary endpoint; Program discontinued to prioritize other key programs in portfolio |
|||||
Unfit acute myeloid leukemia
|
|
2
|
|
||||||
Pluvicto
|
Metastatic castration-resistant
prostate cancer pre-taxane |
2024
|
3
|
|
|||||
Metastatic hormone sensitive prostate cancer
|
2025
|
3
|
– Event driven trial endpoint
|
||||||
Oligometastatic prostate cancer
|
≥2027
|
3
|
|
||||||
QGE031
(ligelizumab) |
Food allergy
|
≥2027
|
3
|
|
|||||
Scemblix
|
1L Chronic myeloid leukemia
|
2024
|
3
|
– Ph3 ASC4FIRST met both primary endpoints
|
|||||
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
|
|
|||||
Sjögren’s syndrome
|
2026
|
3
|
– FDA Fast Track designation
|
||||||
Lupus nephritis
|
≥2027
|
3
|
|
||||||
Systemic lupus erythematosus
|
≥2027
|
3
|
|
||||||
1L Immune thrombocytopenia
|
2026
|
3
|
|
||||||
2L Immune thrombocytopenia
|
2026
|
3
|
|
||||||
warm Autoimmune hemolytic anemia
|
2026
|
3
|
|
||||||
Vijoyce
|
Lymphatic malformations
|
≥2027
|
3
|
– US, EU Orphan Drug designation granted
– Ph3 Study EPIK-L1 recruiting |
|||||
XXB750
|
Hypertension
|
≥2027
|
2
|
|
|||||
YTB323
|
sr Lupus nephritis /
Systemic lupus erythematosus |
≥2027
|
2
|
|
|||||
1L High-risk large B-cell lymphoma
|
≥2027
|
2
|
|
||||||
Condensed Consolidated Financial Statements
(USD millions unless indicated otherwise)
|
Note
|
Q4 2023
|
Q4 2022
|
||||
Net sales from continuing operations
|
11
|
11 423
|
10 576
|
||||
Other revenues
|
11
|
353
|
390
|
||||
Cost of goods sold
|
|
-3 022
|
-3 041
|
||||
Gross profit from continuing operations
|
|
8 754
|
7 925
|
||||
Selling, general and administration
|
|
-3 444
|
-3 183
|
||||
Research and development
|
|
-2 567
|
-2 216
|
||||
Other income
|
|
450
|
155
|
||||
Other expense
|
|
-611
|
-926
|
||||
Operating income from continuing operations
|
|
2 582
|
1 755
|
||||
Loss from associated companies
|
|
-6
|
-3
|
||||
Interest expense
|
|
-217
|
-207
|
||||
Other financial income and expense
|
|
18
|
24
|
||||
Income before taxes from continuing operations
|
|
2 377
|
1 569
|
||||
Income taxes
|
|
261
|
-254
|
||||
Net income from continuing operations
|
|
2 638
|
1 315
|
||||
Net (loss)/income from discontinued operations before gain on
distribution of Sandoz Group AG to Novartis AG shareholders |
13 |
-18 |
151 |
||||
Gain on distribution of Sandoz Group AG to Novartis AG shareholders
|
3, 13
|
5 860
|
|
||||
Net income from discontinued operations
|
|
5 842
|
151
|
||||
Net income
|
|
8 480
|
1 466
|
||||
Attributable to:
|
|
|
|
||||
Shareholders of Novartis AG
|
|
8 480
|
1 466
|
||||
Non-controlling interests
|
|
0
|
0
|
||||
|
|
|
|||||
Weighted average number of shares outstanding – Basic (million)
|
|
2 050
|
2 135
|
||||
Basic earnings per share from continuing operations (USD) 1
|
|
1.29
|
0.62
|
||||
Basic earnings per share from discontinued operations (USD) 1
|
|
2.85
|
0.07
|
||||
Total basic earnings per share (USD) 1
|
|
4.14
|
0.69
|
||||
|
|
|
|||||
Weighted average number of shares outstanding – Diluted (million)
|
|
2 065
|
2 150
|
||||
Diluted earnings per share from continuing operations (USD) 1
|
|
1.28
|
0.61
|
||||
Diluted earnings per share from discontinued operations (USD) 1
|
|
2.83
|
0.07
|
||||
Total diluted earnings per share (USD) 1
|
|
4.11
|
0.68
|
||||
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 consolidated financial
statements
|
(USD millions unless indicated otherwise)
|
Note
|
FY 2023
|
FY 2022
|
||||
Net sales from continuing operations
|
11
|
45 440
|
42 206
|
||||
Other revenues
|
11
|
1 220
|
1 255
|
||||
Cost of goods sold
|
|
-12 472
|
-11 582
|
||||
Gross profit from continuing operations
|
|
34 188
|
31 879
|
||||
Selling, general and administration
|
|
-12 517
|
-12 193
|
||||
Research and development
|
|
-11 371
|
-9 172
|
||||
Other income
|
|
1 772
|
696
|
||||
Other expense
|
|
-2 303
|
-3 264
|
||||
Operating income from continuing operations
|
|
9 769
|
7 946
|
||||
Loss from associated companies
|
|
-13
|
-11
|
||||
Interest expense
|
|
-855
|
-800
|
||||
Other financial income and expense
|
|
222
|
42
|
||||
Income before taxes from continuing operations
|
|
9 123
|
7 177
|
||||
Income taxes
|
|
-551
|
-1 128
|
||||
Net income from continuing operations
|
|
8 572
|
6 049
|
||||
Net income from discontinued operations before gain on
distribution of Sandoz Group AG to Novartis AG shareholders |
13 |
422 |
906 |
||||
Gain on distribution of Sandoz Group AG to Novartis AG shareholders
|
3, 13
|
5 860
|
|
||||
Net income from discontinued operations
|
|
6 282
|
906
|
||||
Net income
|
|
14 854
|
6 955
|
||||
Attributable to:
|
|
|
|
||||
Shareholders of Novartis AG
|
|
14 850
|
6 955
|
||||
Non-controlling interests
|
|
4
|
0
|
||||
|
|
|
|||||
Weighted average number of shares outstanding – Basic (million)
|
|
2 077
|
2 181
|
||||
Basic earnings per share from continuing operations (USD) 1
|
|
4.13
|
2.77
|
||||
Basic earnings per share from discontinued operations (USD) 1
|
|
3.02
|
0.42
|
||||
Total basic earnings per share (USD) 1
|
|
7.15
|
3.19
|
||||
|
|
|
|||||
Weighted average number of shares outstanding – Diluted (million)
|
|
2 092
|
2 197
|
||||
Diluted earnings per share from continuing operations (USD) 1
|
|
4.10
|
2.75
|
||||
Diluted earnings per share from discontinued operations (USD) 1
|
|
3.00
|
0.42
|
||||
Total diluted earnings per share (USD) 1
|
|
7.10
|
3.17
|
||||
|
|||||||
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 consolidated financial
statements
|
(USD millions)
|
Q4 2023
|
Q4 2022
|
|||
Net income
|
8 480
|
1 466
|
|||
|
|
||||
Other comprehensive income
|
|
|
|||
Items that are or may be recycled into the consolidated income statement
|
|
|
|||
Net investment hedge, net of taxes
|
-59
|
-118
|
|||
Currency translation effects, net of taxes
|
1 320
|
1 652
|
|||
Total of items that are or may be recycled
|
1 261
|
1 534
|
|||
|
|
||||
Items that will never be recycled into the consolidated income statement
|
|
|
|||
Actuarial gains/(losses) from defined benefit plans, net of taxes
|
-217
|
-1 920
|
|||
Fair value adjustments on equity securities, net of taxes
|
56
|
-97
|
|||
Total of items that will never be recycled
|
-161
|
-2 017
|
|||
|
|
||||
Total comprehensive income
|
9 580
|
983
|
|||
Total comprehensive income for the year attributable to:
|
|
|
|||
Shareholders of Novartis AG
|
9 578
|
980
|
|||
Continuing operations
|
4 062
|
630
|
|||
Discontinued operations
|
5 516
|
350
|
|||
Non-controlling interests
|
2
|
3
|
|||
The accompanying Notes form an integral part of the condensed consolidated financial
statements
|
(USD millions)
|
FY 2023
|
FY 2022
|
|||
Net income
|
14 854
|
6 955
|
|||
|
|
||||
Other comprehensive income
|
|
|
|
||
Items that are or may be recycled into the consolidated income statement
|
|
|
|
||
Net investment hedge, net of taxes
|
-50
|
91
|
|||
Currency translation effects, net of taxes
|
1 375
|
-450
|
|||
Total of items that are or may be recycled
|
1 325
|
-359
|
|||
|
|
||||
Items that will never be recycled into the consolidated income statement
|
|
|
|
||
Actuarial gains from defined benefit plans, net of taxes
|
-160
|
-103
|
|||
Fair value adjustments on equity securities, net of taxes
|
37
|
-382
|
|||
Total of items that will never be recycled
|
-123
|
-485
|
|||
|
|
||||
Total comprehensive income
|
16 056
|
6 111
|
|||
Total comprehensive income for the year attributable to:
|
|
|
|||
Shareholders of Novartis AG
|
16 050
|
6 116
|
|||
Continuing operations
|
10 115
|
5 181
|
|||
Discontinued operations
|
5 935
|
935
|
|||
Non-controlling interests
|
6
|
-5
|
|||
|
|||||
The accompanying Notes form an integral part of the condensed consolidated financial
statements
|
(USD millions) |
Note |
Dec 31,
2023 (audited) |
Dec 31,
2022 (audited) |
||||
Assets
|
|
|
|
||||
Non-current assets
|
|
|
|
||||
Property, plant and equipment
|
|
9 514
|
10 764
|
||||
Right-of-use assets
|
|
1 410
|
1 431
|
||||
Goodwill
|
|
23 341
|
29 301
|
||||
Intangible assets other than goodwill
|
|
26 879
|
31 644
|
||||
Investments in associated companies
|
|
205
|
143
|
||||
Deferred tax assets
|
|
4 309
|
3 739
|
||||
Financial assets
|
|
2 607
|
2 411
|
||||
Other non-current assets
|
|
1 199
|
1 110
|
||||
Total non-current assets
|
|
69 464
|
80 543
|
||||
Current assets
|
|
|
|
||||
Inventories
|
|
5 913
|
7 175
|
||||
Trade receivables
|
|
7 107
|
8 066
|
||||
Income tax receivables
|
|
426
|
268
|
||||
Marketable securities, commodities, time deposits and derivative financial instruments
|
|
1 035
|
11 413
|
||||
Cash and cash equivalents
|
|
13 393
|
7 517
|
||||
Other current assets
|
|
2 607
|
2 471
|
||||
Total current assets
|
|
30 481
|
36 910
|
||||
Total assets
|
|
99 945
|
117 453
|
||||
|
|
|
|||||
Equity and liabilities
|
|
|
|
||||
Equity
|
|
|
|
||||
Share capital
|
|
825
|
890
|
||||
Treasury shares
|
|
-41
|
-92
|
||||
Reserves
|
|
45 883
|
58 544
|
||||
Equity attributable to Novartis AG shareholders
|
|
46 667
|
59 342
|
||||
Non-controlling interests
|
|
83
|
81
|
||||
Total equity
|
|
46 750
|
59 423
|
||||
Liabilities
|
|
|
|
||||
Non-current liabilities
|
|
|
|
||||
Financial debts
|
|
18 436
|
20 244
|
||||
Lease liabilities
|
|
1 598
|
1 538
|
||||
Deferred tax liabilities
|
|
2 248
|
2 686
|
||||
Provisions and other non-current liabilities
|
|
4 523
|
4 906
|
||||
Total non-current liabilities
|
|
26 805
|
29 374
|
||||
Current liabilities
|
|
|
|
||||
Trade payables
|
|
4 926
|
5 146
|
||||
Financial debts and derivative financial instruments
|
|
6 175
|
5 931
|
||||
Lease liabilities
|
|
230
|
251
|
||||
Current income tax liabilities
|
|
1 893
|
2 533
|
||||
Provisions and other current liabilities
|
|
13 166
|
14 795
|
||||
Total current liabilities
|
|
26 390
|
28 656
|
||||
Total liabilities
|
|
53 195
|
58 030
|
||||
Total equity and liabilities
|
|
99 945
|
117 453
|
||||
The accompanying Notes form an integral part of the condensed 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 September 30, 2023
|
|
825
|
-32
|
42 333
|
-4 962
|
38 164
|
81
|
38 245
|
|||||||||
Net income
|
|
|
|
8 480
|
|
8 480
|
0
|
8 480
|
|||||||||
Other comprehensive income
|
|
|
|
|
1 098
|
1 098
|
2
|
1 100
|
|||||||||
Total comprehensive income
|
|
|
|
8 480
|
1 098
|
9 578
|
2
|
9 580
|
|||||||||
Purchase of treasury shares
|
|
|
-10
|
-1 223
|
|
-1 233
|
|
-1 233
|
|||||||||
Exercise of options and employee transactions
|
4.2
|
|
|
-5
|
|
-5
|
|
-5
|
|||||||||
Equity-based compensation
|
|
|
1
|
249
|
|
250
|
|
250
|
|||||||||
Shares delivered to Sandoz employees
as a result of the Sandoz spin-off |
|
|
|
30 |
|
30 |
|
30 |
|||||||||
Taxes on treasury share transactions
|
|
|
|
3
|
|
3
|
|
3
|
|||||||||
Transaction costs, net of taxes
|
4.4
|
|
|
-140
|
|
-140
|
|
-140
|
|||||||||
Fair value adjustments on financial assets sold
|
|
|
|
-69
|
69
|
|
|
|
|||||||||
Value adjustments related to divestments
|
|
|
|
-29
|
29
|
|
|
|
|||||||||
Other movements
|
4.5
|
|
|
20
|
|
20
|
|
20
|
|||||||||
Total of other equity movements
|
|
|
-9
|
-1 164
|
98
|
-1 075
|
|
-1 075
|
|||||||||
Total equity at December 31, 2023
|
|
825
|
-41
|
49 649
|
-3 766
|
46 667
|
83
|
46 750
|
|||||||||
The accompanying Notes form an integral part of the condensed 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 October 1, 2022
|
|
890
|
-70
|
64 543
|
-4 543
|
60 820
|
78
|
60 898
|
|||||||||
Net income
|
|
|
|
1 466
|
|
1 466
|
0
|
1 466
|
|||||||||
Other comprehensive income
|
|
|
|
|
-486
|
-486
|
3
|
-483
|
|||||||||
Total comprehensive income
|
|
|
|
1 466
|
-486
|
980
|
3
|
983
|
|||||||||
Purchase of treasury shares
|
|
|
-22
|
-2 685
|
|
-2 707
|
|
-2 707
|
|||||||||
Exercise of options and employee transactions
|
4.2
|
|
|
-1
|
|
-1
|
|
-1
|
|||||||||
Equity-based compensation
|
|
|
0
|
203
|
|
203
|
|
203
|
|||||||||
Taxes on treasury share transactions
|
|
|
|
2
|
|
2
|
|
2
|
|||||||||
Fair value adjustments on financial assets sold
|
|
|
|
1
|
-1
|
|
|
|
|||||||||
Value adjustments related to divestments
|
|
|
|
-34
|
34
|
|
|
|
|||||||||
Other movements
|
4.5
|
|
|
45
|
|
45
|
|
45
|
|||||||||
Total of other equity movements
|
|
|
-22
|
-2 469
|
33
|
-2 458
|
|
-2 458
|
|||||||||
Total equity at December 31, 2022
|
|
890
|
-92
|
63 540
|
-4 996
|
59 342
|
81
|
59 423
|
|||||||||
The accompanying Notes form an integral part of the condensed 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
|
|
|
|
14 850
|
|
14 850
|
4
|
14 854
|
|||||||||
Other comprehensive income
|
|
|
|
|
1 200
|
1 200
|
2
|
1 202
|
|||||||||
Total comprehensive income
|
|
|
|
14 850
|
1 200
|
16 050
|
6
|
16 056
|
|||||||||
Dividends
|
|
|
|
-7 255
|
|
-7 255
|
|
-7 255
|
|||||||||
Dividend in kind to effect the spin-off of
Sandoz Group AG |
3 |
|
|
-13 962 |
|
-13 962 |
|
-13 962 |
|||||||||
Purchase of treasury shares
|
|
|
-51
|
-8 466
|
|
-8 517
|
|
-8 517
|
|||||||||
Reduction of share capital
|
4.1
|
-65
|
94
|
-29
|
|
|
|
|
|||||||||
Exercise of options and employee transactions
|
4.2
|
|
2
|
144
|
|
146
|
|
146
|
|||||||||
Equity-based compensation
|
|
|
6
|
898
|
|
904
|
|
904
|
|||||||||
Shares delivered to Sandoz employees
as a result of the Sandoz spin-off |
|
|
|
30 |
|
30 |
|
30 |
|||||||||
Taxes on treasury share transactions
|
|
|
|
14
|
|
14
|
|
14
|
|||||||||
Transaction costs, net of taxes
|
4.4
|
|
|
-214
|
|
-214
|
|
-214
|
|||||||||
Changes in non-controlling interests
|
|
|
|
|
|
|
-4
|
-4
|
|||||||||
Fair value adjustments on financial assets sold
|
|
|
|
-1
|
1
|
|
|
|
|||||||||
Value adjustments related to divestments
|
|
|
|
-29
|
29
|
|
|
|
|||||||||
Other movements
|
4.5
|
|
|
129
|
|
129
|
|
129
|
|||||||||
Total of other equity movements
|
|
-65
|
51
|
-28 741
|
30
|
-28 725
|
-4
|
-28 729
|
|||||||||
Total equity at December 31, 2023
|
|
825
|
-41
|
49 649
|
-3 766
|
46 667
|
83
|
46 750
|
|||||||||
|
|||||||||||||||||
The accompanying Notes form an integral part of the condensed consolidated financial
statements
|
|
|
|
Reserves
|
|
|
|
|||||||||||
(USD millions) |
Note |
Share capital |
Treasury shares |
Retained earnings |
Total value adjustments |
Issued share
capital and reserves attributable to Novartis shareholders |
Non- controlling interests |
Total equity |
|||||||||
Total equity at January 1, 2022
|
|
901
|
-48
|
70 989
|
-4 187
|
67 655
|
167
|
67 822
|
|||||||||
Net income
|
|
|
|
6 955
|
|
6 955
|
0
|
6 955
|
|||||||||
Other comprehensive income
|
|
|
|
|
-839
|
-839
|
-5
|
-844
|
|||||||||
Total comprehensive income
|
|
|
|
6 955
|
-839
|
6 116
|
-5
|
6 111
|
|||||||||
Dividends
|
|
|
|
-7 506
|
|
-7 506
|
|
-7 506
|
|||||||||
Purchase of treasury shares
|
|
|
-66
|
-10 844
|
|
-10 910
|
|
-10 910
|
|||||||||
Reduction of share capital
|
4.1
|
-11
|
15
|
-4
|
|
|
|
|
|||||||||
Exercise of options and employee transactions
|
4.2
|
|
1
|
87
|
|
88
|
|
88
|
|||||||||
Equity-based compensation
|
|
|
6
|
848
|
|
854
|
|
854
|
|||||||||
Shares delivered to Alcon employees
as a result of the Alcon spin-off |
|
|
0 |
5 |
|
5 |
|
5 |
|||||||||
Taxes on treasury share transactions
|
|
|
|
14
|
|
14
|
|
14
|
|||||||||
Decrease of treasury share repurchase obligation
under a share buyback trading plan |
4.3 |
|
|
2 809 |
|
2 809 |
|
2 809 |
|||||||||
Changes in non-controlling interests
|
|
|
|
|
|
|
-81
|
-81
|
|||||||||
Fair value adjustments on financial assets sold
|
|
|
|
4
|
-4
|
|
|
|
|||||||||
Value adjustments related to divestments
|
|
|
|
-34
|
34
|
|
|
|
|||||||||
Other movements
|
4.5
|
|
|
217
|
|
217
|
|
217
|
|||||||||
Total of other equity movements
|
|
-11
|
-44
|
-14 404
|
30
|
-14 429
|
-81
|
-14 510
|
|||||||||
Total equity at December 31, 2022
|
|
890
|
-92
|
63 540
|
-4 996
|
59 342
|
81
|
59 423
|
|||||||||
The accompanying Notes form an integral part of the condensed consolidated financial
statements
|
(USD millions)
|
Note
|
Q4 2023
|
Q4 2022
|
||||
Net income from continuing operations
|
|
2 638
|
1 315
|
||||
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
|
7.1
|
1 791
|
2 756
|
||||
Interest received
|
|
163
|
133
|
||||
Interest paid
|
|
-238
|
-212
|
||||
Change in other financial receipts
|
|
26
|
-18
|
||||
Change in other financial payments
|
|
-3
|
-5
|
||||
Income taxes paid
|
7.2
|
-1 093
|
-334
|
||||
Net cash flows from operating activities from continuing operations
before working capital and provision changes |
|
3 284 |
3 635 |
||||
Payments out of provisions and other net cash movements in non-current liabilities
|
|
-353
|
-323
|
||||
Change in net current assets and other operating cash flow items
|
7.3
|
-384
|
456
|
||||
Net cash flows from operating activities from continuing operations
|
|
2 547
|
|
3 768
|
|
||
Net cash flows from operating activities from discontinued operations
|
|
|
343
|
||||
Total net cash flows from operating activities
|
|
2 547
|
4 111
|
||||
Purchases of property, plant and equipment
|
|
-406
|
-306
|
||||
Proceeds from sale of property, plant and equipment
|
|
164
|
102
|
||||
Purchases of intangible assets
|
|
-377
|
-192
|
||||
Proceeds from sale of intangible assets
|
|
2
|
|
||||
Purchases of financial assets
|
|
-29
|
-29
|
||||
Proceeds from sale of financial assets
|
|
147
|
12
|
||||
Acquisitions and divestments of interests in associated companies, net
|
|
-3
|
-2
|
||||
Acquisitions and divestments of businesses, net
|
7.4
|
-8
|
-7
|
||||
Purchases of marketable securities, commodities and time deposits
|
|
-544
|
-10 548
|
||||
Proceeds from sale of marketable securities, commodities and time deposits
|
|
32
|
9 651
|
||||
Net cash flows used in investing activities from continuing operations
|
|
-1 022
|
-1 319
|
||||
Net cash flows used in investing activities from discontinued operations
|
13
|
-738
|
-148
|
||||
Total net cash flows used in investing activities
|
|
-1 760
|
-1 467
|
||||
Purchases of treasury shares
|
|
-1 251
|
-2 678
|
||||
Proceeds from exercised options and other treasury share transactions, net
|
|
-5
|
|
||||
Change in current financial debts
|
|
674
|
-1 196
|
||||
Payments of lease liabilities
|
|
-64
|
-64
|
||||
Other financing cash flows, net
|
|
150
|
-161
|
||||
Net cash flows used in financing activities from continuing operations
|
|
-496
|
-4 099
|
||||
Net cash flows (used in)/from financing activities from discontinued operations
|
13
|
-111
|
105
|
||||
Total net cash flows used in financing activities
|
|
-607
|
-3 994
|
||||
Net change in cash and cash equivalents before effect of exchange rate changes
|
|
180
|
-1 350
|
||||
Cash and cash equivalents from discontinued operations at September 30, 2023
|
|
648
|
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
|
160
|
141
|
||||
Net change in cash and cash equivalents
|
|
988
|
-1 209
|
||||
Cash and cash equivalents at October 1
|
|
12 405
|
8 726
|
||||
Cash and cash equivalents at December 31
|
|
13 393
|
7 517
|
||||
The accompanying Notes form an integral part of the condensed consolidated financial
statements
|
(USD millions)
|
Note
|
FY 2023
|
FY 2022
|
||||
Net income from continuing operations
|
|
8 572
|
6 049
|
||||
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
|
7.1
|
10 369
|
10 631
|
||||
Dividends received from associated companies and others
|
|
2
|
1
|
||||
Interest received
|
|
645
|
252
|
||||
Interest paid
|
|
-751
|
-667
|
||||
Other financial receipts
|
|
90
|
71
|
||||
Other financial payments
|
|
-17
|
-26
|
||||
Income taxes paid
|
7.2
|
-2 787
|
-1 702
|
||||
Net cash flows from operating activities from continuing operations
before working capital and provision changes |
|
16 123 |
14 609 |
||||
Payments out of provisions and other net cash movements in non-current liabilities
|
|
-1 534
|
-774
|
||||
Change in net current assets and other operating cash flow items
|
7.3
|
-369
|
-796
|
||||
Net cash flows from operating activities from continuing operations
|
|
14 220
|
|
13 039
|
|
||
Net cash flows from operating activities from discontinued operations
|
|
238
|
1 197
|
||||
Total net cash flows from operating activities
|
|
14 458
|
14 236
|
||||
Purchases of property, plant and equipment
|
|
-1 060
|
-916
|
||||
Proceeds from sale of property, plant and equipment
|
|
237
|
158
|
||||
Purchases of intangible assets
|
|
-1 693
|
-1 323
|
||||
Proceeds from sale of intangible assets
|
|
1 955
|
170
|
||||
Purchases of financial assets
|
|
-106
|
-115
|
||||
Proceeds from sale of financial assets
|
|
348
|
133
|
||||
Purchases of other non-current assets
|
|
|
-1
|
||||
Acquisitions and divestments of interests in associated companies, net
|
|
-11
|
-24
|
||||
Acquisitions and divestments of businesses, net
|
7.4
|
-3 558
|
-840
|
||||
Purchases of marketable securities, commodities and time deposits
|
|
-641
|
-34 695
|
||||
Proceeds from sale of marketable securities, commodities and time deposits
|
|
11 248
|
39 357
|
||||
Net cash flows from investing activities from continuing operations
|
|
6 719
|
1 904
|
||||
Net cash flows used in investing activities from discontinued operations
|
13
|
-1 123
|
-436
|
||||
Total net cash flows from investing activities
|
|
5 596
|
1 468
|
||||
Dividends paid to shareholders of Novartis AG
|
|
-7 255
|
-7 506
|
||||
Purchases of treasury shares
|
|
-8 719
|
-10 652
|
||||
Proceeds from exercised options and other treasury share transactions, net
|
|
153
|
100
|
||||
Repayments of the current portion of non-current financial debts
|
|
-2 223
|
-2 575
|
||||
Change in current financial debts
|
|
546
|
252
|
||||
Payments of lease liabilities
|
|
-258
|
-262
|
||||
Other financing cash flows, net
|
|
192
|
-38
|
||||
Net cash flows used in financing activities from continuing operations
|
|
-17 564
|
-20 681
|
||||
Net cash flows from financing activities from discontinued operations
|
13
|
3 286
|
119
|
||||
Total net cash flows used in financing activities
|
|
-14 278
|
-20 562
|
||||
Net change in cash and cash equivalents before effect of exchange rate changes
|
|
5 776
|
-4 858
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
|
100
|
-32
|
||||
Net change in cash and cash equivalents
|
|
5 876
|
-4 890
|
||||
Cash and cash equivalents at January 1
|
|
7 517
|
12 407
|
||||
Cash and cash equivalents at December 31
|
|
13 393
|
7 517
|
||||
The accompanying Notes form an integral part of the condensed consolidated financial
statements
|
Notes to the Condensed Consolidated Financial Statements for the three month interim period (unaudited) and year ended December 31, 2023 (audited)
(USD millions) |
Oct 3,
2023 |
||
Net assets derecognized 1
|
-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
|
||
1 See Note 13 for additional information.
|
|
Number of outstanding shares (in millions)
|
Issued share capital and reserves attributable to Novartis AG shareholders (in USD millions)
|
|||||||||
Note
|
2023
|
2022
|
FY 2023
|
FY 2022
|
|||||||
Balance at beginning of year
|
|
2 119.6
|
2 234.9
|
59 342
|
67 655
|
||||||
Shares acquired to be canceled
|
|
-87.5
|
-126.2
|
-8 369
|
-10 787
|
||||||
Other share purchases
|
|
-1.6
|
-1.4
|
-148
|
-123
|
||||||
Exercise of options and employee transactions
|
4.2
|
2.8
|
1.9
|
146
|
88
|
||||||
Equity-based compensation
|
|
10.4
|
10.4
|
904
|
854
|
||||||
Shares delivered to Alcon employees as a result of the Alcon spin-off
|
|
|
0.0
|
|
5
|
||||||
Shares delivered to Sandoz employees as a result of the Sandoz spin-off
|
|
0.3
|
|
30
|
|
||||||
Taxes on treasury share transactions
|
|
|
|
14
|
14
|
||||||
Decrease of treasury share repurchase obligation
under a share buyback trading plan |
4.3 |
|
|
|
2 809 |
||||||
Transaction costs, net of taxes
|
4.4
|
|
|
-214
|
|
||||||
Dividends
|
|
|
|
-7 255
|
-7 506
|
||||||
Dividend in kind
|
3
|
|
|
-13 962
|
|
||||||
Net income of the period attributable to shareholders of Novartis AG
|
|
|
|
14 850
|
6 955
|
||||||
Other comprehensive income attributable to shareholders of Novartis AG
|
|
|
|
1 200
|
-839
|
||||||
Other movements
|
4.5
|
|
|
129
|
217
|
||||||
Balance at December 31
|
|
2 044.0
|
2 119.6
|
46 667
|
59 342
|
|
|||||
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||
(USD millions) |
Dec 31,
2023 |
Dec 31,
2022 |
Dec 31,
2023 |
Dec 31,
2022 |
Dec 31,
2023 |
Dec 31,
2022 |
Dec 31,
2023 |
Dec 31,
2022 |
|||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|||||||||
Debt securities
|
50
|
|
|
|
|
|
50
|
|
|||||||||
Total cash and cash equivalents at fair value
|
50
|
|
|
|
|
|
50
|
|
|||||||||
Marketable securities
|
|
|
|
|
|
|
|
|
|||||||||
Debt securities
|
|
|
|
9
|
|
|
|
9
|
|||||||||
Derivative financial instruments
|
|
|
355
|
204
|
|
|
355
|
204
|
|||||||||
Total marketable securities and derivative financial instruments at fair value
|
|
|
355
|
213
|
|
|
355
|
213
|
|||||||||
Current contingent consideration receivables
|
|
|
|
|
65
|
43
|
65
|
43
|
|||||||||
Current fund investments and equity securities
|
94
|
|
|
|
31
|
|
125
|
|
|||||||||
Long-term financial investments
|
|
|
|
|
|
|
|
|
|||||||||
Debt and equity securities
|
796
|
473
|
20
|
10
|
616
|
699
|
1 432
|
1 182
|
|||||||||
Fund investments
|
7
|
20
|
|
|
183
|
261
|
190
|
281
|
|||||||||
Non-current contingent consideration receivables
|
|
|
|
|
553
|
607
|
553
|
607
|
|||||||||
Total long-term financial investments at fair value
|
803
|
493
|
20
|
10
|
1 352
|
1 567
|
2 175
|
2 070
|
|||||||||
Associated companies at fair value through profit or loss
|
|
|
|
|
101
|
129
|
101
|
129
|
|||||||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|||||||||
Current contingent consideration liabilities
|
|
|
|
|
-14
|
-131
|
-14
|
-131
|
|||||||||
Current other financial liabilities
|
|
|
|
|
-88
|
|
-88
|
|
|||||||||
Derivative financial instruments
|
|
|
-91
|
-55
|
|
|
-91
|
-55
|
|||||||||
Total current financial liabilities at fair value
|
|
|
-91
|
-55
|
-102
|
-131
|
-193
|
-186
|
|||||||||
Non-current contingent consideration liabilities
|
|
|
|
|
-389
|
-704
|
-389
|
-704
|
|||||||||
Non-current other financial liabilities
|
|
|
|
|
|
-232
|
|
-232
|
|||||||||
Total non-current financial liabilities at fair value
|
|
|
|
|
-389
|
-936
|
-389
|
-936
|
|||||||||
(USD millions)
|
Q4 2023
|
Q4 2022
|
|||
Depreciation, amortization and impairments on:
|
|
|
|||
Property, plant and equipment
|
246
|
349
|
|||
Right-of-use assets
|
66
|
70
|
|||
Intangible assets
|
1 276
|
1 403
|
|||
Financial assets 1
|
37
|
-28
|
|||
Change in provisions and other non-current liabilities
|
-171
|
483
|
|||
Losses/(gains) on disposal and other adjustments on property, plant and equipment;
intangible assets;
financial assets; and other non-current assets, net |
101 |
-127 |
|||
Equity-settled compensation expense
|
248
|
189
|
|||
Loss from associated companies
|
6
|
3
|
|||
Income taxes
|
-261
|
254
|
|||
Net financial expense
|
199
|
183
|
|||
Other
|
44
|
-23
|
|||
Total
|
1 791
|
2 756
|
|||
1 Includes fair value changes
|
(USD millions)
|
FY 2023
|
FY 2022
|
|||
Depreciation, amortization and impairments on:
|
|
|
|||
Property, plant and equipment
|
1 006
|
1 374
|
|||
Right-of-use assets
|
263
|
270
|
|||
Intangible assets
|
7 008
|
5 061
|
|||
Financial assets 1
|
106
|
260
|
|||
Change in provisions and other non-current liabilities
|
61
|
1 318
|
|||
Gains on disposal and other adjustments on property, plant and equipment; intangible
assets;
financial assets; and other non-current assets, net |
-180 |
-308 |
|||
Equity-settled compensation expense
|
865
|
791
|
|||
Loss from associated companies
|
13
|
11
|
|||
Income taxes
|
551
|
1 128
|
|||
Net financial expense
|
633
|
758
|
|||
Other
|
43
|
-32
|
|||
Total
|
10 369
|
10 631
|
|||
1 Includes fair value changes
|
(USD millions)
|
Q4 2023
|
Q4 2022
|
FY 2023
|
FY 2022
|
|||||
(Increase)/decrease in inventories
|
33
|
-46
|
-546
|
-560
|
|||||
(Increase)/decrease in trade receivables
|
-240
|
428
|
-1 504
|
-397
|
|||||
Increase/(decrease) in trade payables
|
564
|
144
|
479
|
-181
|
|||||
Change in other current and non-current assets
|
-41
|
2
|
-125
|
-84
|
|||||
Change in other current liabilities
|
-700
|
-72
|
1 327
|
426
|
|||||
Total
|
-384
|
456
|
-369
|
-796
|
|||||
(USD millions)
|
Q4 2023
|
Q4 2022
|
FY 2023
|
FY 2022
|
|||||
Net assets recognized as a result of acquisitions of businesses
|
-3
|
|
-3 699
|
-1 077
|
|||||
Fair value of previously held equity interests
|
-1
|
-1
|
26
|
21
|
|||||
Contingent consideration payable, net
|
-7
|
|
146
|
224
|
|||||
Payments, deferred consideration and other adjustments, net
|
5
|
-1
|
-34
|
0
|
|||||
Cash flows used for acquisitions of businesses
|
-6
|
-2
|
-3 561
|
-832
|
|||||
Cash flows (used for)/from divestments of businesses, net 1
|
-2
|
-5
|
3
|
-8
|
|||||
Cash flows used for acquisitions and divestments of businesses, net
|
-8
|
-7
|
-3 558
|
-840
|
|||||
1 In 2023, USD 3 million (Q4 2023: USD 2 million net cash outflows) represented the net cash inflows from divestments in prior
years.
|
|||||||||
In 2022, USD 8 million (Q4 2022: USD 5 million) net cash outflows from divestments of businesses included USD 20 million (Q4 2022: nil) reduction to cash and cash equivalents due to the derecognized cash and cash equivalents
following a loss of control of a company upon expiry of an option to purchase the
company, partly offset by USD 12 million net cash inflows (Q4 2022: USD 5 million net cash outflows) from business divestments in 2022 and in prior years.
|
|||||||||
In 2022, the net identifiable assets of divested businesses amounted to USD 139 million (Q4 2022: USD 33 million), comprised of non-current assets of USD 127 million (Q4 2022: USD 14 million), current assets of USD 70 million (Q4 2022: USD 48 million), including USD 62 million (Q4 2022: USD 42 million) cash and cash equivalents and of non-current and current liabilities of
USD 58 million (Q4 2022: USD 29 million). The deferred sale price receivable and other adjustments amounted to USD
19 million (Q4 2022: USD 19 million).
|
(USD millions)
|
FY 2023
|
FY 2022
|
|||
Property, plant and equipment
|
18
|
13
|
|||
Right-of-use assets
|
16
|
12
|
|||
Acquired research and development
|
2 931
|
1 209
|
|||
Other intangible assets
|
15
|
|
|||
Deferred tax assets
|
34
|
56
|
|||
Non-current financial and other assets
|
164
|
|
|||
Trade receivable and financial and other current assets
|
183
|
5
|
|||
Cash and cash equivalents
|
226
|
89
|
|||
Deferred tax liabilities
|
-474
|
-300
|
|||
Current and non-current lease liabilities
|
-51
|
-12
|
|||
Trade payables and other liabilities
|
-231
|
-67
|
|||
Net identifiable assets acquired
|
2 831
|
1 005
|
|||
Acquired cash and cash equivalents
|
-226
|
-89
|
|||
Goodwill
|
1 094
|
161
|
|||
Net assets recognized as a result of acquisitions of businesses 1
|
3 699
|
1 077
|
|||
1 All net assets recognized relate to business combinations of continuing operations.
|
(USD millions)
|
Q4 2023
|
Q4 2022
|
FY 2023
|
FY 2022
|
|||||
Net sales to third parties from continuing operations
|
11 423
|
10 379
|
44 635
|
41 385
|
|||||
Sales to discontinued operations
|
|
197
|
805
|
821
|
|||||
Net sales from continuing operations
|
11 423
|
10 576
|
45 440
|
42 206
|
|||||
Q4 2023
USD m |
Q4 2022
USD m |
% change
USD |
% change
cc 2 |
Q4 2023
% of total |
Q4 2022
% of total |
||||||||
US
|
4 763
|
4 218
|
13
|
13
|
42
|
40
|
|||||||
Europe
|
3 716
|
3 595
|
3
|
2
|
33
|
34
|
|||||||
Asia/Africa/Australasia
|
2 231
|
2 034
|
10
|
13
|
20
|
19
|
|||||||
Canada and Latin America
|
713
|
729
|
-2
|
22
|
5
|
7
|
|||||||
Total
|
11 423
|
10 576
|
8
|
10
|
100
|
100
|
|||||||
Of which in established markets
|
8 655
|
7 985
|
8
|
7
|
76
|
76
|
|||||||
Of which in emerging growth markets
|
2 768
|
2 591
|
7
|
18
|
24
|
24
|
|||||||
|
|
|
|
|
|
||||||||
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 49.
|
FY 2023
USD m |
FY 2022
USD m |
% change
USD |
% change
cc 2 |
FY 2023
% of total |
FY 2022
% of total |
||||||||
US
|
17 959
|
15 935
|
13
|
13
|
40
|
38
|
|||||||
Europe
|
14 997
|
14 371
|
4
|
4
|
33
|
34
|
|||||||
Asia/Africa/Australasia
|
9 308
|
8 978
|
4
|
10
|
20
|
21
|
|||||||
Canada and Latin America
|
3 176
|
2 922
|
9
|
20
|
7
|
7
|
|||||||
Total
|
45 440
|
42 206
|
8
|
10
|
100
|
100
|
|||||||
Of which in established markets
|
33 725
|
31 386
|
7
|
7
|
74
|
74
|
|||||||
Of which in emerging growth markets
|
11 715
|
10 820
|
8
|
17
|
26
|
26
|
|||||||
1 Net sales from continuing operations by location of customer. Emerging growth markets
comprise all markets other than the established markets of the US, Canada, Western
Europe, Japan, Australia and New Zealand. 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 49.
|
Q4 2023
|
Q4 2022
|
% change
|
% change
|
||||||
USD m
|
USD m 1
|
USD
|
cc 2
|
||||||
Cardiovascular, renal and metabolic
|
|
|
|
|
|||||
Entresto
|
1 635
|
1 291
|
27
|
26
|
|||||
Leqvio
|
123
|
42
|
193
|
190
|
|||||
Other
|
1
|
|
nm
|
nm
|
|||||
Total cardiovascular, renal and metabolic
|
1 759
|
1 333
|
32
|
32
|
|||||
|
|
|
|
||||||
Immunology
|
|
|
|
|
|||||
Cosentyx
|
1 303
|
1 080
|
21
|
21
|
|||||
Xolair 3
|
378
|
323
|
17
|
16
|
|||||
Ilaris
|
376
|
301
|
25
|
29
|
|||||
Total immunology
|
2 057
|
1 704
|
21
|
21
|
|||||
|
|
|
|
||||||
Neuroscience
|
|
|
|
|
|||||
Kesimpta
|
641
|
369
|
74
|
73
|
|||||
Zolgensma
|
286
|
309
|
-7
|
-4
|
|||||
Mayzent
|
106
|
99
|
7
|
7
|
|||||
Aimovig
|
69
|
59
|
17
|
14
|
|||||
Total neuroscience
|
1 102
|
836
|
32
|
33
|
|||||
|
|
|
|
||||||
Oncology
|
|
|
|
|
|||||
Promacta/Revolade
|
563
|
540
|
4
|
4
|
|||||
Kisqali
|
610
|
357
|
71
|
76
|
|||||
Tafinlar + Mekinist
|
486
|
465
|
5
|
7
|
|||||
Tasigna
|
446
|
475
|
-6
|
-6
|
|||||
Jakavi
|
444
|
388
|
14
|
14
|
|||||
Pluvicto
|
273
|
179
|
53
|
53
|
|||||
Lutathera
|
147
|
128
|
15
|
13
|
|||||
Kymriah
|
120
|
139
|
-14
|
-14
|
|||||
Piqray/Vijoice
|
131
|
112
|
17
|
18
|
|||||
Scemblix
|
125
|
52
|
140
|
143
|
|||||
Votrient
|
77
|
103
|
-25
|
-26
|
|||||
Adakveo
|
45
|
51
|
-12
|
-11
|
|||||
Tabrecta
|
41
|
36
|
14
|
13
|
|||||
Total oncology
|
3 508
|
3 025
|
16
|
17
|
|||||
|
|
|
|
||||||
Total promoted brands
|
8 426
|
6 898
|
22
|
23
|
|||||
|
|
|
|
||||||
Established brands
|
|
|
|
|
|||||
Lucentis
|
301
|
398
|
-24
|
-25
|
|||||
Sandostatin
|
316
|
305
|
4
|
5
|
|||||
Gilenya
|
154
|
346
|
-55
|
-55
|
|||||
Exforge Group
|
156
|
159
|
-2
|
-1
|
|||||
Galvus Group
|
153
|
209
|
-27
|
-17
|
|||||
Diovan Group
|
147
|
142
|
4
|
6
|
|||||
Gleevec/Glivec
|
128
|
175
|
-27
|
-25
|
|||||
Afinitor/Votubia
|
97
|
106
|
-8
|
-7
|
|||||
Contract manufacturing 4
|
302
|
313
|
-4
|
-5
|
|||||
Other 4
|
1 243
|
1 525
|
-18
|
-11
|
|||||
Total established brands 4
|
2 997
|
3 678
|
-19
|
-15
|
|||||
|
|
|
|
||||||
Total net sales from continuing operations
|
11 423
|
10 576
|
8
|
10
|
|||||
1 In Q1 2023 Lucentis was reclassified from other promoted brands to established
brands and Gilenya was reclassified from neuroscience to established brands.
These reclassifications have been reflected in Q3 2022.
|
|||||||||
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures
used by Novartis can be found starting on page 49.
|
|||||||||
3 Net sales to from continuing operations reflect Xolair sales for all indications.
|
|||||||||
4 Effective January 1, 2023, the discontinued operations Sandoz business transferred
to Novartis continuing operations its bio-technology manufacturing services to other
companies’ activities (included in Contract manufacturing) and the Coartem brand
(included in Other). The financial information of the Novartis continuing operations
and discontinued operations were adapted accordingly in 2022 and 2021, in compliance
with IFRS Accounting Standards. See Note 10 for additional information.
|
|||||||||
|
|||||||||
nm = not meaningful
|
|||||||||
FY 2023
|
FY 2022
|
% change
|
% change
|
||||||
USD m
|
USD m 1
|
USD
|
cc 2
|
||||||
Cardiovascular, renal and metabolic
|
|
|
|
|
|||||
Entresto
|
6 035
|
4 644
|
30
|
31
|
|||||
Leqvio
|
355
|
112
|
217
|
217
|
|||||
Other
|
1
|
|
nm
|
nm
|
|||||
Total cardiovascular, renal and metabolic
|
6 391
|
4 756
|
34
|
36
|
|||||
|
|
|
|
||||||
Immunology
|
|
|
|
|
|||||
Cosentyx
|
4 980
|
4 788
|
4
|
5
|
|||||
Xolair 3
|
1 463
|
1 365
|
7
|
9
|
|||||
Ilaris
|
1 355
|
1 133
|
20
|
22
|
|||||
Other
|
|
1
|
nm
|
nm
|
|||||
Total immunology
|
7 798
|
7 287
|
7
|
8
|
|||||
|
|
|
|
||||||
Neuroscience
|
|
|
|
|
|||||
Kesimpta
|
2 171
|
1 092
|
99
|
99
|
|||||
Zolgensma
|
1 214
|
1 370
|
-11
|
-9
|
|||||
Mayzent
|
392
|
357
|
10
|
10
|
|||||
Aimovig
|
266
|
218
|
22
|
21
|
|||||
Other
|
|
1
|
nm
|
nm
|
|||||
Total neuroscience
|
4 043
|
3 038
|
33
|
34
|
|||||
|
|
|
|
||||||
Oncology
|
|
|
|
|
|||||
Promacta/Revolade
|
2 269
|
2 088
|
9
|
10
|
|||||
Kisqali
|
2 080
|
1 231
|
69
|
75
|
|||||
Tafinlar + Mekinist
|
1 922
|
1 770
|
9
|
11
|
|||||
Tasigna
|
1 848
|
1 923
|
-4
|
-3
|
|||||
Jakavi
|
1 720
|
1 561
|
10
|
12
|
|||||
Pluvicto
|
980
|
271
|
262
|
261
|
|||||
Lutathera
|
605
|
471
|
28
|
28
|
|||||
Kymriah
|
508
|
536
|
-5
|
-5
|
|||||
Piqray/Vijoice
|
505
|
373
|
35
|
37
|
|||||
Scemblix
|
413
|
149
|
177
|
179
|
|||||
Votrient
|
390
|
474
|
-18
|
-17
|
|||||
Adakveo
|
195
|
194
|
1
|
0
|
|||||
Tabrecta
|
154
|
133
|
16
|
16
|
|||||
Other
|
1
|
2
|
-50
|
nm
|
|||||
Total oncology
|
13 590
|
11 176
|
22
|
23
|
|||||
|
|
|
|
||||||
Total promoted brands
|
31 822
|
26 257
|
21
|
23
|
|||||
|
|
|
|
||||||
Established brands
|
|
|
|
|
|||||
Lucentis
|
1 475
|
1 874
|
-21
|
-20
|
|||||
Sandostatin
|
1 314
|
1 238
|
6
|
8
|
|||||
Gilenya
|
925
|
2 013
|
-54
|
-54
|
|||||
Exforge Group
|
713
|
743
|
-4
|
-1
|
|||||
Galvus Group
|
692
|
859
|
-19
|
-11
|
|||||
Diovan Group
|
613
|
652
|
-6
|
-1
|
|||||
Gleevec/Glivec
|
561
|
745
|
-25
|
-22
|
|||||
Afinitor/Votubia
|
408
|
512
|
-20
|
-18
|
|||||
Contract manufacturing 4
|
1 490
|
1 200
|
24
|
22
|
|||||
Other 4
|
5 427
|
6 113
|
-11
|
-6
|
|||||
Total established brands 4
|
13 618
|
15 949
|
-15
|
-12
|
|||||
|
|
|
|
||||||
Total net sales from continuing operations
|
45 440
|
42 206
|
8
|
10
|
|||||
1 In Q1 2023 Lucentis was reclassified from other promoted brands to established
brands and Gilenya was reclassified from neuroscience to established brands.These
reclassifications have been reflected in 9M 2022.
|
|||||||||
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures
used by Novartis can be found starting on page 49.
|
|||||||||
3 Net sales from continuing operations reflect Xolair sales for all indications.
|
|||||||||
4 Effective January 1, 2023, the discontinued operations Sandoz business transferred
to Novartis continuing operations its bio-technology manufacturing services to other
companies’ activities (included in Contract manufacturing) and the Coartem brand
(included in Other). The financial information of the Novartis continuing operations
and discontinued operations were adapted accordingly in 2022 and 2021, in compliance
with IFRS Accounting Standards. See Note 10 for additional information.
|
|||||||||
|
|||||||||
nm = not meaningful
|
|||||||||
|
|
US
|
Rest of world
|
Total
|
|||||||||||||||||
Brands
|
Brand classification by therapeutic area or established brands
|
Key indications
|
USD m
|
% change USD/cc 1
|
USD m
|
% change USD
|
% change cc 1
|
USD m
|
% change USD
|
% change cc 1
|
|||||||||||
Entresto
|
Cardiovascular, renal and metabolic
|
Chronic heart failure, hypertension
|
880
|
27
|
755
|
26
|
26
|
1 635
|
27
|
26
|
|||||||||||
Cosentyx
|
Immunology
|
Psoriasis (PsO), ankylosing spondylitis (AS), psoriatic arthritis (PsA), non-radiographic axial spondyloarthritis (nr-axSPA), hidradenitis suppurativa (HS)
|
741
|
17
|
562
|
26
|
26
|
1 303
|
21
|
21
|
|||||||||||
Promacta/Revolade
|
Oncology
|
Immune thrombocytopenia (ITP), severe aplastic anemia (SAA)
|
301
|
7
|
262
|
2
|
1
|
563
|
4
|
4
|
|||||||||||
Kesimpta
|
Neuroscience
|
Relapsing-remitting multiple sclerosis (RRMS)
|
453
|
48
|
188
|
198
|
193
|
641
|
74
|
73
|
|||||||||||
Kisqali
|
Oncology
|
HR+/HER2- metastatic breast cancer
|
332
|
123
|
278
|
34
|
42
|
610
|
71
|
76
|
|||||||||||
Tafinlar + Mekinist
|
Oncology
|
BRAF V600+ metastatic adjuvant melanoma, advanced non-small cell lung cancer (NSCLC), tumor agnostic with BRAF mutation indication
|
200
|
14
|
286
|
-1
|
2
|
486
|
5
|
7
|
|||||||||||
Tasigna
|
Oncology
|
Chronic myeloid leukemia (CML)
|
220
|
-1
|
226
|
-10
|
-10
|
446
|
-6
|
-6
|
|||||||||||
Jakavi
|
Oncology
|
Myelofibrosis (MF), polycytomia vera (PV), graft-versus-host disease (GvHD)
|
|
|
444
|
14
|
14
|
444
|
14
|
14
|
|||||||||||
Lucentis 2
|
Established brands
|
Age-related macular degeneration (AMD), diabetic macular edema (DME), retinal vein occlusion (RVO)
|
|
|
301
|
-24
|
-25
|
301
|
-24
|
-25
|
|||||||||||
Xolair 3
|
Immunology
|
Severe allergic asthma (SAA), chronic spontaneous urticaria (CSU), nasal polyps
|
|
|
378
|
17
|
16
|
378
|
17
|
16
|
|||||||||||
Ilaris
|
Immunology
|
Auto-inflammatory (CAPS, TRAPS, HIDS/MKD, FMF, SJIA, AOSD, gout)
|
200
|
21
|
176
|
29
|
38
|
376
|
25
|
29
|
|||||||||||
Sandostatin
|
Established brands
|
Carcinoid tumors, acromegaly
|
199
|
-2
|
117
|
15
|
18
|
316
|
4
|
5
|
|||||||||||
Zolgensma
|
Neuroscience
|
Spinal muscular atrophy (SMA)
|
90
|
-9
|
196
|
-7
|
-1
|
286
|
-7
|
-4
|
|||||||||||
Pluvicto
|
Oncology
|
PSMA-positive mCRPC patients post-ARPI, post-Taxane
|
251
|
48
|
22
|
144
|
140
|
273
|
53
|
53
|
|||||||||||
Gilenya 2
|
Established brands
|
Relapsing multiple sclerosis (RMS)
|
55
|
-71
|
99
|
-37
|
-35
|
154
|
-55
|
-55
|
|||||||||||
Exforge Group
|
Established brands
|
Hypertension
|
2
|
0
|
154
|
-2
|
-1
|
156
|
-2
|
-1
|
|||||||||||
Galvus Group
|
Established brands
|
Type 2 diabetes
|
|
|
153
|
-27
|
-17
|
153
|
-27
|
-17
|
|||||||||||
Diovan Group
|
Established brands
|
Hypertension
|
14
|
-18
|
133
|
6
|
10
|
147
|
4
|
6
|
|||||||||||
Lutathera
|
Oncology
|
GEP-NETs gastroenteropancreatic neuroendocrine tumors
|
103
|
12
|
44
|
22
|
15
|
147
|
15
|
13
|
|||||||||||
Gleevec/Glivec
|
Established brands
|
Chronic myeloid leukemia (CML), gastrointestinal stromal tumors (GIST)
|
32
|
-35
|
96
|
-24
|
-20
|
128
|
-27
|
-25
|
|||||||||||
Top 20 brands total
|
|
|
4 073
|
18
|
4 870
|
8
|
10
|
8 943
|
13
|
14
|
|||||||||||
Rest of portfolio 4
|
|
|
690
|
-10
|
1 790
|
-4
|
2
|
2 480
|
-6
|
-2
|
|||||||||||
Total net sales from continuing operations 4
|
|
|
4 763
|
13
|
6 660
|
5
|
8
|
11 423
|
8
|
10
|
|||||||||||
1 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures
used by Novartis can be found starting on page 49.
|
|||||||||||||||||||||
2 In the first quarter of 2023 Lucentis was reclassified from other promoted brands
to established brands and Gilenya was reclassified from neuroscience to established
brands.
|
|||||||||||||||||||||
3 Net sales reflect Xolair sales for all indications.
|
|||||||||||||||||||||
4 Effective January 1, 2023, the discontinued operations Sandoz business bio-technology
manufacturing services to other companies’ activities and the Coartem brand
were transferred to the Novartis continuing operations. The financial information
of the Novartis continuing operations and discontinued operations were adapted accordingly
in 2022, in compliance with IFRS Accounting Standards. See Note 10.
|
|||||||||||||||||||||
nm = not meaningful
|
|
|
US
|
Rest of world
|
Total
|
|||||||||||||||||
Brands
|
Brand classification by therapeutic area or established brands
|
Key indications
|
USD m
|
% change USD/cc 1
|
USD m
|
% change USD
|
% change cc 1
|
USD m
|
% change USD
|
% change cc 1
|
|||||||||||
Entresto
|
Cardiovascular, renal and metabolic
|
Chronic heart failure, hypertension
|
3 067
|
30
|
2 968
|
30
|
32
|
6 035
|
30
|
31
|
|||||||||||
Cosentyx
|
Immunology
|
Psoriasis (PsO), ankylosing spondylitis (AS), psoriatic arthritis (PsA), non-radiographic axial spondyloarthritis (nr-axSPA), hidradenitis suppurativa (HS)
|
2 636
|
-5
|
2 344
|
16
|
19
|
4 980
|
4
|
5
|
|||||||||||
Promacta/Revolade
|
Oncology
|
Immune thrombocytopenia (ITP), severe aplastic anemia (SAA)
|
1 205
|
11
|
1 064
|
6
|
8
|
2 269
|
9
|
10
|
|||||||||||
Kesimpta
|
Neuroscience
|
Relapsing-remitting multiple sclerosis (RRMS)
|
1 528
|
66
|
643
|
276
|
272
|
2 171
|
99
|
99
|
|||||||||||
Kisqali
|
Oncology
|
HR+/HER2- metastatic breast cancer
|
1 032
|
119
|
1 048
|
38
|
47
|
2 080
|
69
|
75
|
|||||||||||
Tafinlar + Mekinist
|
Oncology
|
BRAF V600+ metastatic adjuvant melanoma, advanced non-small cell lung cancer (NSCLC), tumor agnostic with BRAF mutation indication
|
791
|
17
|
1 131
|
4
|
8
|
1 922
|
9
|
11
|
|||||||||||
Tasigna
|
Oncology
|
Chronic myeloid leukemia (CML)
|
884
|
1
|
964
|
-8
|
-5
|
1 848
|
-4
|
-3
|
|||||||||||
Jakavi
|
Oncology
|
Myelofibrosis (MF), polycytomia vera (PV), graft-versus-host disease (GvHD)
|
|
|
1 720
|
10
|
12
|
1 720
|
10
|
12
|
|||||||||||
Lucentis 2
|
Established brands
|
Age-related macular degeneration (AMD), diabetic macular edema (DME), retinal vein occlusion (RVO)
|
|
|
1 475
|
-21
|
-20
|
1 475
|
-21
|
-20
|
|||||||||||
Xolair 3
|
Immunology
|
Severe allergic asthma (SAA), chronic spontaneous urticaria (CSU), nasal polyps
|
|
|
1 463
|
7
|
9
|
1 463
|
7
|
9
|
|||||||||||
Ilaris
|
Immunology
|
Auto-inflammatory (CAPS, TRAPS, HIDS/MKD, FMF, SJIA, AOSD, gout)
|
686
|
20
|
669
|
19
|
24
|
1 355
|
20
|
22
|
|||||||||||
Sandostatin
|
Established brands
|
Carcinoid tumors, acromegaly
|
829
|
4
|
485
|
11
|
15
|
1 314
|
6
|
8
|
|||||||||||
Zolgensma
|
Neuroscience
|
Spinal muscular atrophy (SMA)
|
372
|
-14
|
842
|
-10
|
-7
|
1 214
|
-11
|
-9
|
|||||||||||
Pluvicto
|
Oncology
|
PSMA-positive mCRPC patients post-ARPI, post-Taxane
|
921
|
265
|
59
|
211
|
195
|
980
|
262
|
261
|
|||||||||||
Gilenya 2
|
Established brands
|
Relapsing multiple sclerosis (RMS)
|
359
|
-69
|
566
|
-34
|
-33
|
925
|
-54
|
-54
|
|||||||||||
Exforge Group
|
Established brands
|
Hypertension
|
13
|
-7
|
700
|
-4
|
-1
|
713
|
-4
|
-1
|
|||||||||||
Galvus Group
|
Established brands
|
Type 2 diabetes
|
|
|
692
|
-19
|
-11
|
692
|
-19
|
-11
|
|||||||||||
Diovan Group
|
Established brands
|
Hypertension
|
52
|
-5
|
561
|
-6
|
-1
|
613
|
-6
|
-1
|
|||||||||||
Lutathera
|
Oncology
|
GEP-NETs gastroenteropancreatic neuroendocrine tumors
|
427
|
29
|
178
|
27
|
26
|
605
|
28
|
28
|
|||||||||||
Gleevec/Glivec
|
Established brands
|
Chronic myeloid leukemia (CML), gastrointestinal stromal tumors (GIST)
|
150
|
-27
|
411
|
-24
|
-20
|
561
|
-25
|
-22
|
|||||||||||
Top 20 brands total
|
|
|
14 952
|
15
|
19 983
|
6
|
9
|
34 935
|
10
|
12
|
|||||||||||
Rest of portfolio 4
|
|
|
3 007
|
1
|
7 498
|
1
|
5
|
10 505
|
1
|
4
|
|||||||||||
Total net sales from continuing operations 4
|
|
|
17 959
|
13
|
27 481
|
5
|
8
|
45 440
|
8
|
10
|
|||||||||||
1 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures
used by Novartis can be found starting on page 49.
|
|||||||||||||||||||||
2 In the first quarter of 2023 Lucentis was reclassified from other promoted brands
to established brands and Gilenya was reclassified from neuroscience to established
brands.
|
|||||||||||||||||||||
3 Net sales reflect Xolair sales for all indications.
|
|||||||||||||||||||||
4 Effective January 1, 2023, the discontinued operations Sandoz business bio-technology
manufacturing services to other companies’ activities and the Coartem brand
were transferred to the Novartis continuing operations. The financial information
of the Novartis continuing operations and discontinued operations were adapted accordingly
in 2022, in compliance with IFRS Accounting Standards. See Note 10.
|
|||||||||||||||||||||
nm = not meaningful
|
(USD millions)
|
Q4 2023
|
Q4 2022
|
FY 2023
|
FY 2022
|
|||||
Profit sharing income
|
245
|
247
|
941
|
921
|
|||||
Royalty income
|
24
|
14
|
87
|
35
|
|||||
Milestone income
|
10
|
98
|
45
|
145
|
|||||
Other 1
|
74
|
31
|
147
|
154
|
|||||
Total other revenues
|
353
|
390
|
1 220
|
1 255
|
|||||
|
|||||||||
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)
|
Q4 2023
|
Q4 2022
|
FY 2023
|
FY 2022
|
|||||
Balance at beginning of period
|
809
|
903
|
1 131
|
345
|
|||||
Provisions related to
discontinued operations 1 |
|
|
-51 |
|
|||||
Additions to provisions 2
|
135
|
517
|
658
|
1 368
|
|||||
Cash payments 3
|
-171
|
-237
|
-816
|
-468
|
|||||
Releases of provisions 4
|
-78
|
-7
|
-193
|
-42
|
|||||
Transfers 5
|
-14
|
-52
|
-57
|
-53
|
|||||
Currency translation effects
|
22
|
7
|
31
|
-19
|
|||||
Balance at closing of period
|
703
|
1 131
|
703
|
1 131
|
|||||
|
|||||||||
1 Notes 2, 3 and 13 provide information related to discontinued operations.
|
|||||||||
2 Additions to provisions charged to the consolidated income statement from continuing
operations were USD 512 million in Q4 2022 and USD 1.3 billion in FY 2022.
|
|||||||||
3 Cash-payments from continuing operations were USD 224 million in Q4 2022 and USD 421
million in FY 2022
|
|||||||||
4 Releases of provisions credited to the consolidated income statement from continuing
operations were USD 8 million in Q4 2022 and USD 33 million in FY 2022.
|
|||||||||
5 Transfers from continuing operations were USD 51 million in Q4 2022 and USD 53 million
in FY 2022.
|
(USD millions)
|
Q4 2023
|
Q4 2022
|
FY 2023
|
FY 2022
|
|||||
Property, plant and equipment impairment charges
|
-21
|
-91
|
-106
|
-411
|
|||||
Property, plant and equipment impairment reversal
|
5
|
1
|
16
|
4
|
|||||
Property, plant and equipment depreciation charge
|
-230
|
-259
|
-916
|
-967
|
|||||
Property, plant and equipment additions
|
417
|
305
|
1 065
|
930
|
|||||
Right-of-use assets impairment charges
|
-2
|
-3
|
-4
|
-3
|
|||||
Right-of-use assets depreciation charge
|
-64
|
-67
|
-259
|
-267
|
|||||
Right-of-use assets additions
|
183
|
50
|
421
|
216
|
|||||
Intangible assets impairment charges 1
|
-383
|
-443
|
-3 048
|
-1 301
|
|||||
Intangible assets amortization charge
|
-893
|
-960
|
-3 960
|
-3 760
|
|||||
Intangible assets additions
|
543
|
284
|
1 576
|
1 930
|
|||||
1 FY 2023 intangible assets impairment charges include the write-down of IPR&D on the
cessation of clinical development programs, including the clinical development programs
PPY988 (USD 1.0 billion), which was acquired with the 2022 acquistion of Gyroscope
Therapeutics Holdings plc (See Note 3), VDT482 (USD 0.4 billion) and MBG453 (USD 0.3
billion), and the clinical research program NIZ985 (USD 0.3 billion); as well as the
write-down of a currently marketed product by USD 0.3 billion to reflect reduction
in its recoverable amount.
|
|||||||||
FY 2022 intangible assets impairment charges include the write-down of IPR&D on the
cessation of clinical development programs, including UNR844 (USD 0.6 billion).
|
(USD millions unless indicated otherwise)
|
Q4 2023
|
Q4 2022
|
FY 2023 1
|
FY 2022
|
|||||
Net sales to third parties from discontinued operations
|
|
2 311
|
7 128
|
9 160
|
|||||
Sales to continuing operations
|
|
63
|
300
|
212
|
|||||
Net sales from discontinued operations
|
|
2 374
|
7 428
|
9 372
|
|||||
Other revenues
|
|
7
|
19
|
28
|
|||||
Cost from goods sold
|
|
-1 292
|
-4 044
|
-4 937
|
|||||
Gross profit from discontinued operations
|
|
1 089
|
3 403
|
4 463
|
|||||
Selling, general and administration
|
|
-564
|
-1 728
|
-2 060
|
|||||
Research and development
|
|
-226
|
-671
|
-824
|
|||||
Other income
|
|
13
|
56
|
109
|
|||||
Other expense
|
|
-118
|
-795
|
-437
|
|||||
Operating income from discontinued operations
|
|
194
|
265
|
1 251
|
|||||
as % from net sales
|
|
8.2%
|
3.6%
|
13.3%
|
|||||
Income from associated companies
|
|
|
2
|
2
|
|||||
Interest expense
|
|
-12
|
-33
|
-37
|
|||||
Other financial income and expense
|
|
-10
|
-20
|
-22
|
|||||
Income before taxes from discontinued operations
|
|
172
|
214
|
1 194
|
|||||
Income taxes 2
|
-18
|
-21
|
208
|
-288
|
|||||
Net income from discontinued operations before gain on distribution from Sandoz Group AG to Novartis AG shareholders
|
-18
|
151
|
422
|
906
|
|||||
Gain on distribution from Sandoz Group AG to Novartis AG shareholders 3
|
5 860
|
|
5 860
|
|
|||||
Net income from discontinued operations
|
5 842
|
151
|
6 282
|
906
|
|||||
1 The net income from discontinued operations for 2023 is for the period from January
1, 2023, to the October 3, 2023, Distribution date.
|
|||||||||
2 The tax rate in 2023 was impacted by non-recurring items such as tax benefits arising
from intercompany transactions to effect the spin-off of the Sandoz business, net
decreases in uncertain tax positions of the Sandoz business and the favorable settlement
of a tax matter related to the Alcon business, which was spun-off in 2019. Excluding
these impacts, the tax rate would have been 31.2% in 2023, compared to 24.1% in 2022.
The tax rate in 2023 is higher than 2022 primarily due to a change in profit mix between
years. The tax expense in the fourth quarter 2023 mainly arose from transactions to
effect the spin-off of the Sandoz business.
|
|||||||||
3 See Note 3 for further details on the non-taxable, non-cash gain on distribution of
Sandoz Group AG to Novartis AG shareholders.
|
(USD millions) |
Oct 3,
2023 |
||
Property, plant and equipment
|
1 447
|
||
Right-of-use assets
|
133
|
||
Goodwill
|
7 424
|
||
Intangible assets other than goodwill
|
1 481
|
||
Deferred tax assets
|
624
|
||
Financial assets, investments in associated
companies and other non-current assets |
142 |
||
Inventories
|
2 565
|
||
Trade receivables and other current assets
|
2 935
|
||
Cash and cash equivalents
|
686
|
||
Deferred tax liabilities
|
-270
|
||
Current and non-current lease liabilities
|
-139
|
||
Current and non-current financial debts
|
-3 691
|
||
Trade payables, provisions, current income tax liabilities and other liabilities
|
-4 690
|
||
Net assets derecognized
|
8 647
|
||
(USD millions unless indicated otherwise)
|
Q4 2023
|
Q4 2022
|
FY 2023 1
|
FY 2022
|
|||||
Interest income
|
|
|
2
|
2
|
|||||
Depreciation of property, plant and equipment
|
|
-49
|
-144
|
-196
|
|||||
Depreciation of right-of-use assets
|
|
-8
|
-32
|
-33
|
|||||
Amortization of intangible assets
|
|
-54
|
-171
|
-222
|
|||||
Impairment charges on property, plant and equipment
|
|
-2
|
-5
|
-3
|
|||||
Impairment charges on right-of-use assets
|
|
1
|
-8
|
|
|||||
Impairment charges on intangible assets
|
|
-14
|
-44
|
-25
|
|||||
Impairment reversals of property, plant and equipment
|
|
|
1
|
3
|
|||||
Additions to restructuring provisions
|
|
-5
|
-27
|
-40
|
|||||
Equity-based compensation expense related to Novartis equity-based participation plans
|
|
-20
|
-60
|
-66
|
|||||
1 2023 amounts are for the period from January 1, 2023, to the October 3, 2023, Distribution
date.
|
(USD millions)
|
Q4 2023
|
Q4 2022
|
FY 2023 1
|
FY 2022
|
|||||
Additions to property, plant and equipment
|
|
75
|
245
|
289
|
|||||
Additions to right-of-use assets
|
|
11
|
66
|
32
|
|||||
Additions to goodwill and intangible assets
|
|
60
|
221
|
163
|
|||||
1 The additions for 2023 are for the period from January 1, 2023, to the October 3,
2023, Distribution date.
|
(USD millions)
|
Q4 2023
|
Q4 2022
|
FY 2023
|
FY 2022
|
|||||
Payments out of provisions for transaction
costs attributable to the spin-off of the Sandoz business |
-52 |
|
-52 |
|
|||||
Derecognized cash and cash equivalents attributable to the spin-off of the Sandoz business
|
-686
|
|
-686
|
|
|||||
Other cash flows used in investing activities, net
|
|
-148
|
-385
|
-436
|
|||||
Net cash flows used in investing activities from discontinued operations
|
-738
|
-148
|
-1 123
|
-436
|
|||||
Supplementary information (unaudited)
(USD millions unless indicated otherwise)
|
Q4 2023
|
Q4 2022
|
FY 2023
|
FY 2022
|
|||||
IFRS Accounting Standards operating income from continuing operations
|
2 582
|
1 755
|
9 769
|
7 946
|
|||||
Amortization of intangible assets
|
834
|
910
|
3 730
|
3 585
|
|||||
Impairments
|
|
|
|
|
|||||
Intangible assets
|
380
|
438
|
3 044
|
1 293
|
|||||
Property, plant and equipment related to the company-wide
rationalization of manufacturing sites |
2 |
-23 |
5 |
286 |
|||||
Other property, plant and equipment
|
6
|
84
|
39
|
85
|
|||||
Total impairment charges
|
388
|
499
|
3 088
|
1 664
|
|||||
Acquisition or divestment of businesses and related items
|
|
|
|
|
|||||
- Income
|
-110
|
-1
|
-174
|
-4
|
|||||
- Expense
|
126
|
1
|
149
|
8
|
|||||
Total acquisition or divestment of businesses and related items, net
|
16
|
|
-25
|
4
|
|||||
Other items
|
|
|
|
|
|||||
Divestment gains
|
-3
|
-27
|
-225
|
-166
|
|||||
Financial assets - fair value adjustments
|
36
|
-28
|
105
|
260
|
|||||
Restructuring and related items
|
|
|
|
|
|||||
- Income
|
-75
|
-5
|
-229
|
-34
|
|||||
- Expense
|
229
|
668
|
1 180
|
1 856
|
|||||
Legal-related items
|
|
|
|
|
|||||
- Income
|
-124
|
|
-608
|
-51
|
|||||
- Expense
|
35
|
244
|
66
|
364
|
|||||
Additional income
|
-163
|
-401
|
-602
|
-698
|
|||||
Additional expense
|
66
|
30
|
123
|
64
|
|||||
Total other items
|
1
|
481
|
-190
|
1 595
|
|||||
Total adjustments
|
1 239
|
1 890
|
6 603
|
6 848
|
|||||
Core operating income from continuing operations
|
3 821
|
3 645
|
16 372
|
14 794
|
|||||
as % of net sales
|
33.5%
|
34.5%
|
36.0%
|
35.1%
|
|||||
(Loss)/income from associated companies
|
-6
|
-3
|
-13
|
-11
|
|||||
Interest expense
|
-217
|
-207
|
-855
|
-800
|
|||||
Other financial income and expense
|
18
|
24
|
222
|
42
|
|||||
Core adjustments to other financial income and expense
|
119
|
26
|
208
|
98
|
|||||
Income taxes, adjusted for above items (core income taxes)
|
-609
|
-522
|
-2 488
|
-2 177
|
|||||
Core net income from continuing operations
|
3 126
|
2 963
|
13 446
|
11 946
|
|||||
Core net income from discontinued operations 1
|
|
288
|
889
|
1 406
|
|||||
Core net income
|
3 126
|
3 251
|
14 335
|
13 352
|
|||||
Core net income attributable to shareholders of Novartis AG
|
3 126
|
3 251
|
14 331
|
13 352
|
|||||
Core basic EPS from continuing operations (USD) 2
|
1.53
|
1.39
|
6.47
|
5.48
|
|||||
Core basic EPS from discontinued operations (USD) 1, 2
|
|
0.13
|
|
0.43
|
|
0.64
|
|||
Core basic EPS (USD) 2
|
1.53
|
1.52
|
|
6.90
|
|
6.12
|
|||
1 For details on discontinued operations reconciliation from IFRS Accounting Standards
net income to core net income, please refer to page 54.
|
|||||||||
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) |
Q4 2023
IFRS Accounting Standards results |
Amortization of intangible assets 1 |
Impairments 2 |
Acquisition or divestment of businesses and related items 3 |
Other items 4 |
Q4 2023 Core results |
Q4 2022 Core results |
||||||||
Gross profit from continuing operations
|
8 754
|
790
|
|
|
35
|
9 579
|
8 908
|
||||||||
Operating income from continuing operations
|
2 582
|
834
|
388
|
16
|
1
|
3 821
|
3 645
|
||||||||
Income before taxes from continuing operations
|
2 377
|
834
|
388
|
16
|
120
|
3 735
|
3 485
|
||||||||
Income taxes 5
|
261
|
|
|
|
|
-609
|
-522
|
||||||||
Net income from continuing operations
|
2 638
|
|
|
|
|
3 126
|
2 963
|
||||||||
Net income from discontinued operations 6
|
5 842
|
|
|
|
|
|
288
|
||||||||
Net income
|
8 480
|
|
|
|
|
3 126
|
3 251
|
||||||||
Basic EPS from continuing operations (USD) 7
|
1.29
|
|
|
|
|
1.53
|
1.39
|
||||||||
Basic EPS from discontinued operations (USD) 6, 7
|
2.85
|
|
|
|
|
|
0.13
|
||||||||
Basic EPS (USD) 7
|
4.14
|
|
|
|
|
1.53
|
1.52
|
||||||||
|
|||||||||||||||
The following are adjustments to arrive at core gross profit from continuing operations
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold
|
-3 022
|
790
|
|
|
35
|
-2 197
|
-1 972
|
||||||||
|
|||||||||||||||
The following are adjustments to arrive at core operating income from continuing operations
|
|
|
|
|
|
|
|
||||||||
Research and development
|
-2 567
|
44
|
381
|
14
|
-103
|
-2 231
|
-2 094
|
||||||||
Other income
|
450
|
|
|
-110
|
-267
|
73
|
82
|
||||||||
Other expense
|
-611
|
|
7
|
112
|
336
|
-156
|
-111
|
||||||||
|
|||||||||||||||
The following are adjustments to arrive at core income before taxes from continuing
operations
|
|
|
|
|
|
|
|
||||||||
Other financial income and expense
|
18
|
|
|
|
119
|
137
|
50
|
||||||||
|
|||||||||||||||
1 Amortization of intangible assets: cost of goods sold includes the amortization of
acquired rights to currently marketed products and other production-related intangible
assets; research and development includes the amortization of acquired rights to technologies
|
|||||||||||||||
2 Impairments: research and development include net impairment charges related to intangible
assets; other expense includes net impairment charges related to property, plant and
equipment
|
|||||||||||||||
3 Acquisition or divestment of businesses and related items, including restructuring
and integration charges: research and development inculde restructuring and integration
cost charges; other income and other expense include transitional service-fee income
and expenses related to the Sandoz distribution and integration costs charges
|
|||||||||||||||
4 Other items: cost of goods sold, selling, general and administration, research and
development, other income and other expense include restructuring income and charges
related to the initiative to implement a new streamlined organizational model, the
Group-wide rationalization of manufacturing sites and other net restructuring charges
and related items; research and development and cost of goods sold also include contingent
consideration adjustments; other income and other expense include fair value adjustments,
divestment gains and losses on financial assets, legal related items, curtailment
gains and adjustments to environmental provisions; other expenses also includes a
fair value adjustment on a contingent receivable and other costs and items; other
financial income and expense includes the impact of IAS 29 "Financial reporting in
Hyperinflation Economies" for subsidiaries operating in hyperinflation economies and
foreign exchange losses
|
|||||||||||||||
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 1.4 billion to arrive at the core results
before tax amounts to USD 870 million and the average tax rate on the adjustments
was 64.1%.
|
|||||||||||||||
6 For details on discontinued operations reconciliation from IFRS Accounting Standards
net income to core net income refer to page 54.
|
|||||||||||||||
7 Earnings per share (EPS) is calculated on the amount of net income attributable to
shareholders of Novartis AG.
|
(USD millions unless indicated otherwise) |
FY 2023
IFRS Accounting Standards results |
Amortization of intangible assets 1 |
Impairments 2 |
Acquisition or divestment of businesses and related items 3 |
Other items 4 |
FY 2023 Core results |
FY 2022 Core results |
||||||||
Gross profit from continuing operations
|
34 188
|
3 319
|
310
|
|
142
|
37 959
|
35 591
|
||||||||
Operating income from continuing operations
|
9 769
|
3 730
|
3 088
|
-25
|
-190
|
16 372
|
14 794
|
||||||||
Income before taxes from continuing operations
|
9 123
|
3 730
|
3 088
|
-25
|
18
|
15 934
|
14 123
|
||||||||
Income taxes 5
|
-551
|
|
|
|
|
-2 488
|
-2 177
|
||||||||
Net income from continuing operations
|
8 572
|
|
|
|
|
13 446
|
11 946
|
||||||||
Net income from discontinued operations 6
|
6 282
|
|
|
|
|
889
|
1 406
|
||||||||
Net income
|
14 854
|
|
|
|
|
14 335
|
13 352
|
||||||||
Basic EPS from continuing operations (USD) 7
|
4.13
|
|
|
|
|
6.47
|
5.48
|
||||||||
Basic EPS from discontinued operations (USD) 7
|
3.02
|
|
|
|
|
0.43
|
0.64
|
||||||||
Basic EPS (USD) 7
|
7.15
|
|
|
|
|
6.90
|
6.12
|
||||||||
|
|||||||||||||||
The following are adjustments to arrive at core gross profit from continuing operations
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold
|
-12 472
|
3 319
|
310
|
|
142
|
-8 701
|
-7 784
|
||||||||
|
|||||||||||||||
The following are adjustments to arrive at core operating income from continuing operations
|
|
|
|
|
|
|
|
||||||||
Selling, general and administration
|
-12 517
|
|
|
|
28
|
-12 489
|
-12 143
|
||||||||
Research and development
|
-11 371
|
411
|
2 737
|
32
|
-409
|
-8 600
|
-8 267
|
||||||||
Other income
|
1 772
|
|
-10
|
-174
|
-1 196
|
392
|
291
|
||||||||
Other expense
|
-2 303
|
|
51
|
117
|
1 245
|
-890
|
-678
|
||||||||
|
|||||||||||||||
The following are adjustments to arrive at core income before taxes from continuing
operations
|
|
|
|
|
|
|
|
||||||||
Other financial income and expense
|
222
|
|
|
|
208
|
430
|
140
|
||||||||
|
|||||||||||||||
1 Amortization of intangible assets: cost of goods sold includes the amortization of
acquired rights to currently marketed products and other production-related intangible
assets; research and development includes the amortization of acquired rights to technologies
|
|||||||||||||||
2 Impairments: cost of goods sold, research and development, other income and other
expense include net impairment charges related to intangible assets; other income
and other expense includes also net impairment charges related to property, plant
and equipment
|
|||||||||||||||
3 Acquisition or divestment of businesses and related items, including restructuring
and integration charges: research and development include restructuring and integration
cost charges; other income includes a favorable stamp duties tax settlement related
to a prior periods acquisition; other income and other expense include also transitional
service-fee income and expenses related to the Sandoz distribution, restructuring
and integration costs charges and reversals
|
|||||||||||||||
4 Other items: cost of goods sold, selling, general and administration, research and
development, other income and other expense include restructuring income and charges
related to the initiative to implement a new streamlined organizational model, the
company-wide rationalization of manufacturing sites and other net restructuring charges
and related items; cost of goods sold and research and development also include contingent
consideration adjustments; cost of goods sold and selling, general and administration
includes also adjustments to provisions; research and development also include a write-off
of prepaid expenses for a terminated development project; other income and other expense
include fair value adjustments, divestment gains, losses and gains on financial assets,
legal related items, adjustments to environmental provisions; other income includes
also gains from the divestment of products and curtailment gains; other expenses also
includes a fair value adjustment on a contingent receivable and other costs and items;
other financial income and expense includes the impact of IAS 29 "Financial reporting
in Hyperinflation Economies" for subsidiaries operating in hyperinflation economies
and foreign exchange losses
|
|||||||||||||||
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 6.8 billion to arrive at the core results
before tax amounts to USD 1.9 billion and the average tax rate on the adjustments
was 28.4%.
|
|||||||||||||||
6 For details on discontinued operations reconciliation from IFRS Accounting Standards
net ncome to core net income refer to page 55.
|
|||||||||||||||
7 Earnings per share (EPS) is calculated on the amount of net income attributable to
shareholders of Novartis AG.
|
(USD millions unless indicated otherwise) |
Q4 2023
IFRS Accounting Standards results |
Amortization of intangible assets |
Impairments |
Acquisition or divestment of businesses and related items |
Other items |
Q4 2023 Core results |
Q4 2022 Core results |
||||||||
Gross profit from discontinued operations
|
|
|
|
|
|
|
1 178
|
||||||||
Operating income from discontinued operations
|
|
|
|
|
|
|
385
|
||||||||
Income before taxes from discontinued operations
|
|
|
|
|
|
|
377
|
||||||||
Income taxes 1
|
-18
|
|
|
|
|
|
-89
|
||||||||
Net income from discontinued operations before
gain on distribution of Sandoz Group AG to Novartis AG shareholders |
-18 |
|
|
|
|
|
288 |
||||||||
Gain on distribution of Sandoz Group AG to Novartis AG shareholders
|
5 860
|
|
|
-5 860
|
|
|
|
||||||||
Net income from discontinued operations
|
5 842
|
|
|
|
|
|
288
|
||||||||
Basic EPS from discontinued operations (USD) 2
|
2.85
|
|
|
|
|
|
0.13
|
||||||||
1 Taxes on the adjustments between IFRS and core results, for each item included in
the adjustment, take into account the tax rate that will finally be applicable to
the item based on the jurisdiction where the adjustment will finally have a tax impact.
Generally, this results in amortization and impairment of intangible assets and acquisition-related
restructuring and integration items having a full tax impact. There is usually a tax
impact on other items, although this is not always the case for items arising from
legal settlements in certain jurisdictions. Adjustments related to income from associated
companies are recorded net of any related tax effect.
|
|||||||||||||||
2 Earnings per share (EPS) is calculated on the amount of net income attributable to
shareholders of Novartis AG.
|
|||||||||||||||
|
|||||||||||||||
|
(USD millions unless indicated otherwise) |
FY 2023
IFRS Accounting Standards results |
Amortization of intangible assets 1 |
Impairments 2 |
Acquisition or divestment of businesses and related items |
Other items 3 |
FY 2023 Core results |
FY 2022 Core results |
||||||||
Gross profit from discontinued operations
|
3 403
|
165
|
34
|
|
57
|
3 659
|
4 801
|
||||||||
Operating income from discontinued operations
|
265
|
165
|
43
|
|
712
|
1 185
|
1 871
|
||||||||
Income before taxes from discontinued operations
|
214
|
165
|
43
|
|
718
|
1 140
|
1 837
|
||||||||
Income taxes 4
|
208
|
|
|
|
|
-251
|
-431
|
||||||||
Net income from discontinued operations before
gain on distribution of Sandoz Group AG to Novartis AG shareholders |
422 |
|
|
|
|
889 |
1 406 |
||||||||
Gain on distribution of Sandoz Group AG to Novartis AG shareholders
|
5 860
|
|
|
-5 860
|
|
|
|
||||||||
Net income from discontinued operations
|
6 282
|
|
|
|
|
889
|
1 406
|
||||||||
Basic EPS from discontinued operations (USD) 5
|
3.02
|
|
|
|
|
0.43
|
0.64
|
||||||||
The following are adjustments to arrive at core gross profit from discontinued operations
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold
|
-4 044
|
165
|
34
|
|
57
|
-3 788
|
-4 599
|
||||||||
The following are adjustments to arrive at core operating income from discontinued
operations
|
|
|
|
|
|
|
|
||||||||
Selling, general and administration
|
-1 728
|
|
|
|
25
|
-1 703
|
-2 047
|
||||||||
Research and development
|
-671
|
|
10
|
|
|
-661
|
-821
|
||||||||
Other income
|
56
|
|
-1
|
|
-24
|
31
|
93
|
||||||||
Other expense
|
-795
|
|
|
|
654
|
-141
|
-155
|
||||||||
|
|
|
|
|
|
|
|||||||||
The following are adjustments to arrive at core income before taxes from discontinued
operations
|
|
|
|
|
|
|
|
||||||||
Other financial income and expense
|
-20
|
|
|
|
6
|
-14
|
1
|
||||||||
1 Amortization of intangible assets: cost of goods sold includes the amortization of
acquired rights to currently marketed products and other production-related intangible
assets
|
|||||||||||||||
2 Impairments: cost of goods sold and research and development include impairment charges
related to intangible assets; other income includes a reversal of impairment charges
related to property, plant and equipment
|
|||||||||||||||
3 Other items: cost of goods sold, selling, general and administration, other income
and other expense include charges related to the Sandoz distribution, the company-wide
rationalization of manufacturing sites and other net restructuring charges and related
items; cost of goods sold and selling, general and administration also include adjustments
to provisions; other expense includes legal-related items; other financial income
and expense includes the impact of IAS 29 "Financial reporting in Hyperinflation Economies"
for subsidiaries operating in hyperinflation economies
|
|||||||||||||||
4 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 926 million to arrive at the core results
before tax amounts to USD 459 million and the average tax rate on the adjustments
was 49.5%.
|
|||||||||||||||
5 Earnings per share (EPS) is calculated on the amount of net income attributable to
shareholders of Novartis AG.
|
Q4 2023
|
Q4 2022
|
||||||||||||
(USD millions) |
IFRS
Accounting Standards cash flow |
Adjustments |
Free cash flow |
IFRS
Accounting Standards cash flow |
Adjustments 1 |
Revised Free cash flow 1 |
|||||||
Net cash flows from operating activities from continuing operations
|
2 547
|
|
2 547
|
3 768
|
|
3 768
|
|||||||
Net cash flows from operating activities from discontinued operations
|
|
|
|
343
|
|
343
|
|||||||
Total net cash flows from operating activities
|
2 547
|
|
2 547
|
4 111
|
|
4 111
|
|||||||
|
|
|
|
|
|
||||||||
Net cash flows used in investing activities from continuing operations
|
-1 022
|
616
|
-406
|
-1 319
|
1 013
|
-306
|
|||||||
Net cash flows used in investing activities from discontinued operations
|
-738
|
738
|
0
|
-148
|
56
|
-92
|
|||||||
Total net cash flows used in investing activities 2
|
-1 760
|
1 354
|
-406
|
-1 467
|
1 069
|
-398
|
|||||||
Net cash flows used in financing activities from continuing operations
|
-496
|
496
|
0
|
-4 099
|
4 099
|
0
|
|||||||
Net cash flows from financing activities (used in)/from discontinued operations
|
-111
|
111
|
0
|
105
|
-105
|
0
|
|||||||
Total net cash flows used in financing activities 3
|
-607
|
607
|
0
|
-3 994
|
3 994
|
0
|
|||||||
Non-IFRS measure free cash flow from continuing operations 1
|
|
|
2 141
|
|
|
3 462
|
|||||||
Non-IFRS measure free cash flow from discontinued operations 1
|
|
|
|
|
|
251
|
|||||||
Total non-IFRS measure free cash flow 1
|
|
|
2 141
|
|
|
3 713
|
|||||||
1 To aid in comparability, the prior year adjustments and free cash flow amounts have
been revised to conform with the new free cash flow definition that was effective
as of January 1, 2023.
|
|||||||||||||
2 With the exception of purchases of property, plant and equipment, all net cash flows
from investing activities from continuing operations and from discontinued operations
are excluded from the free cash flow.
|
|||||||||||||
3 Net cash flows (used in)/from financing activities from continuing operations and
from discontinued operations are excluded from the free cash flow.
|
|||||||||||||
FY 2023
|
FY 2022
|
||||||||||||
(USD millions) |
IFRS
Accounting Standards cash flow |
Adjustments |
Free cash flow |
IFRS
Accounting Standards cash flow |
Adjustments 1 |
Revised Free cash flow 1 |
|||||||
Net cash flows from operating activities from continuing operations
|
14 220
|
|
14 220
|
13 039
|
|
13 039
|
|||||||
Net cash flows from operating activities from discontinued operations
|
238
|
|
238
|
1 197
|
|
1 197
|
|||||||
Total net cash flows from operating activities
|
14 458
|
|
14 458
|
14 236
|
|
14 236
|
|||||||
|
|
|
|
|
|
||||||||
Net cash flows from/(used in) investing activities from continuing operations
|
6 719
|
-7 779
|
-1 060
|
1 904
|
-2 820
|
-916
|
|||||||
Net cash flows used in investing activities from discontinued operations
|
-1 123
|
904
|
-219
|
-436
|
154
|
-282
|
|||||||
Total net cash flows from/(used in) investing activities 2
|
5 596
|
-6 875
|
-1 279
|
1 468
|
-2 666
|
-1 198
|
|||||||
Net cash flows used in financing activities from continuing operations
|
-17 564
|
17 564
|
0
|
-20 681
|
20 681
|
0
|
|||||||
Net cash flows from financing activities from discontinued operations
|
3 286
|
-3 286
|
0
|
119
|
-119
|
0
|
|||||||
Total net cash flows used in financing activities 3
|
-14 278
|
14 278
|
0
|
-20 562
|
20 562
|
0
|
|||||||
Non-IFRS measure free cash flow from continuing operations 1
|
|
|
13 160
|
|
|
12 123
|
|||||||
Non-IFRS measure free cash flow from discontinued operations 1
|
|
|
19
|
|
|
915
|
|||||||
Total non-IFRS measure free cash flow 1
|
|
|
13 179
|
|
|
13 038
|
|||||||
1 To aid in comparability, the prior year adjustments and free cash flow amounts have
been revised to conform with the new free cash flow definition that was effective
as of January 1, 2023.
|
|||||||||||||
2 With the exception of purchases of property, plant and equipment, all net cash flows
from/(used in) investing activities from continuing operations and from discontinued
operations are excluded from the free cash flow.
|
|||||||||||||
3 Net cash flows (used in)/from financing activities from continuing operations and
from discontinued operations are excluded from the free cash flow.
|
|||||||||||||
|
(USD millions)
|
Q4 2023
|
Q4 2022
|
|||
Operating income from continuing operations
|
2 582
|
1 755
|
|||
Adjustments for non-cash items
|
|
|
|||
Depreciation, amortization and impairments
|
1 625
|
1 794
|
|||
Change in provisions and other non-current liabilities
|
-171
|
483
|
|||
Other
|
393
|
39
|
|||
Operating income adjusted for non-cash items from continuing operations
|
4 429
|
4 071
|
|||
Interest received and change in other financial receipts
|
189
|
115
|
|||
Interest paid and change in other financial payments
|
-241
|
-217
|
|||
Income taxes paid
|
-1 093
|
-334
|
|||
Payments out of provisions and other net cash movements in non-current liabilities
|
-353
|
-323
|
|||
Change in inventories and trade receivables less trade payables
|
357
|
526
|
|||
Change in other net current assets and other operating cash flow items
|
-741
|
-70
|
|||
Net cash flows from operating activities from continuing operations
|
2 547
|
3 768
|
|||
Purchases of property, plant and equipment
|
-406
|
-306
|
|||
Non-IFRS measure free cash flow from continuing operations 1
|
2 141
|
3 462
|
|||
Non-IFRS measure free cash flow from discontinued operations 1, 2
|
|
251
|
|||
Total non-IFRS measure free cash flow 1
|
2 141
|
3 713
|
|||
1 To aid in comparability, the prior year free cash flow amounts have been revised to
conform with the new free cash flow definition that was effective as of January 1,
2023
|
|||||
2 In the fourth quarter of 2022 the free cash flow from discontinued operations was
a cash inflow of USD 251 million consisting of USD 343 million net cash inflows from
operating activities from discontinued operations, less purchases of property, plant
and equipment by discontinued operations of USD 92 million.
|
(USD millions)
|
FY 2023
|
FY 2022
|
|||
Operating income from continuing operations
|
9 769
|
7 946
|
|||
Adjustments for non-cash items
|
|
|
|||
Depreciation, amortization and impairments
|
8 383
|
6 965
|
|||
Change in provisions and other non-current liabilities
|
61
|
1 318
|
|||
Other
|
728
|
451
|
|||
Operating income adjusted for non-cash items from continuing operations
|
18 941
|
16 680
|
|||
Dividends received from associated companies and others
|
2
|
1
|
|||
Interest received and other financial receipts
|
735
|
323
|
|||
Interest paid and other financial payments
|
-768
|
-693
|
|||
Income taxes paid
|
-2 787
|
-1 702
|
|||
Payments out of provisions and other net cash movements in non-current liabilities
|
-1 534
|
-774
|
|||
Change in inventories and trade receivables less trade payables
|
-1 571
|
-1 138
|
|||
Change in other net current assets and other operating cash flow items
|
1 202
|
342
|
|||
Net cash flows from operating activities from continuing operations
|
14 220
|
13 039
|
|||
Purchases of property, plant and equipment
|
-1 060
|
-916
|
|||
Non-IFRS measure free cash flow from continuing operations 1
|
13 160
|
12 123
|
|||
Non-IFRS measure free cash flow from discontinued operations 1, 2
|
19
|
915
|
|||
Total non-IFRS measure free cash flow 1
|
13 179
|
13 038
|
|||
1 To aid in comparability, the prior year free cash flow amounts have been revised to
conform with the new free cash flow definition that was effective as of January 1,
2023
|
|||||
2 In 2023, the free cash flow from discontinued operations was a cash inflow of USD
19 million (2022: USD 915 million) consisting of USD 238 million (2022: USD 1 197
million) net cash inflows from operating activities from discontinued operations,
less purchases of property, plant and equipment by discontinued operations of USD
219 million (2022: USD 282 million).
|
|||||
|
(USD millions)
|
Q4 2023
|
Q4 2022
|
|||
Net change in cash and cash equivalents
|
988
|
-1 209
|
|||
Change in marketable securities, commodities, time deposits, financial debts and derivatives financial instruments
|
-340
|
1 648
|
|||
Change in net debt
|
648
|
439
|
|||
Net debt at October 1
|
-10 831
|
-7 684
|
|||
Net debt at December 31
|
-10 183
|
-7 245
|
|||
(USD millions)
|
FY 2023
|
FY 2022
|
|||
Net change in cash and cash equivalents
|
5 876
|
-4 890
|
|||
Change in marketable securities, commodities, time deposits, financial debts and derivatives financial instruments
|
-8 814
|
-1 487
|
|||
Change in net debt
|
-2 938
|
-6 377
|
|||
Net debt at January 1
|
-7 245
|
-868
|
|||
Net debt at December 31
|
-10 183
|
-7 245
|
|||
(USD millions) |
Dec 31,
2023 |
Dec 31,
2022 |
|||
Non-current financial debts
|
-18 436
|
-20 244
|
|||
Current financial debts and derivative financial instruments
|
-6 175
|
-5 931
|
|||
Total financial debts
|
-24 611
|
-26 175
|
|||
Less liquidity
|
|
|
|||
Cash and cash equivalents
|
13 393
|
7 517
|
|||
Marketable securities, commodities, time deposits and derivative financial instruments
|
1 035
|
11 413
|
|||
Total liquidity
|
14 428
|
18 930
|
|||
Net debt at end of period
|
-10 183
|
-7 245
|
|||
Dec 31,
2023 |
Dec 31,
2022 |
||||
Number of shares outstanding
|
2 044 033 986
|
2 119 609 057
|
|||
Registered share price (CHF)
|
84.87
|
83.59
|
|||
ADR price (USD)
|
100.97
|
90.72
|
|||
Market capitalization (USD billions) 1
|
206.3
|
191.5
|
|||
Market capitalization (CHF billions) 1
|
173.5
|
177.2
|
|||
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 Q4 2023 |
Average rates Q4 2022 |
Average rates FY 2023 |
Average rates FY 2022 |
Period-end
rates Dec 31, 2023 |
Period-end
rates Dec 31, 2022 |
|||||||
1 CHF
|
1.127
|
1.038
|
1.113
|
1.048
|
1.189
|
1.081
|
|||||||
1 CNY
|
0.138
|
0.141
|
0.141
|
0.149
|
0.141
|
0.144
|
|||||||
1 EUR
|
1.076
|
1.020
|
1.082
|
1.054
|
1.107
|
1.065
|
|||||||
1 GBP
|
1.241
|
1.173
|
1.243
|
1.237
|
1.275
|
1.207
|
|||||||
100 JPY
|
0.676
|
0.708
|
0.713
|
0.766
|
0.707
|
0.757
|
|||||||
100 RUB
|
1.079
|
1.589
|
1.185
|
1.481
|
1.111
|
1.380
|
|||||||
Change in USD % Q4 2023 |
Change in
constant currencies % Q4 2023 |
Percentage
point currency impact Q4 2023 |
|||||
Net sales from continuing operations
|
8
|
10
|
-2
|
||||
Operating income from continuing operations
|
47
|
68
|
-21
|
||||
Net income from continuing operations
|
101
|
130
|
-29
|
||||
Basic earnings per share (USD) from continuing operations
|
108
|
140
|
-32
|
||||
Core operating income from continuing operations
|
5
|
13
|
-8
|
||||
Core net income from continuing operations
|
6
|
11
|
-5
|
||||
Core basic earnings per share (USD) from continuing operations
|
10
|
16
|
-6
|
||||
|
|
|
|||||
|
Change in USD % FY 2023 |
Change in
constant currencies % FY 2023 |
Percentage
point currency impact FY 2023 |
|||||
Net sales from continuing operations
|
8
|
10
|
-2
|
||||
Operating income from continuing operations
|
23
|
39
|
-16
|
||||
Net income from continuing operations
|
42
|
62
|
-20
|
||||
Basic earnings per share (USD) from continuing operations
|
49
|
70
|
-21
|
||||
Core operating income from continuing operations
|
11
|
18
|
-7
|
||||
Core net income from continuing operations
|
13
|
19
|
-6
|
||||
Core basic earnings per share (USD) from continuing operations
|
18
|
25
|
-7
|
||||
|
|
|
|||||
|
1 Year Novartis Chart |
1 Month Novartis Chart |
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