Novartis International AG / Novartis delivered solid Q2 despite full quarter of US Gleevec generic impact; significant positive innovation news strengthens future growth prospects . Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.
Key figures[1] | Continuing operations[3] | ||||||||
Q2 2016 | Q2 2015 | % change | H1 2016 | H1 2015 | % change | ||||
USD m | USD m | USD | cc | USD m | USD m | USD | cc | ||
Net sales | 12 470 | 12 694 | -2 | 0 | 24 070 | 24 629 | -2 | 1 | |
Operating income | 2 093 | 2 281 | -8 | -4 | 4 544 | 5 066 | -10 | -4 | |
Net income | 1 806 | 1 856 | -3 | 0 | 3 817 | 4 162 | -8 | -2 | |
EPS (USD) | 0.76 | 0.77 | -1 | 2 | 1.60 | 1.72 | -7 | -1 | |
Free cash flow | 2 526 | 2 064 | 22 | 3 888 | 3 529 | 10 | |||
Core | |||||||||
Operating income | 3 332 | 3 593 | -7 | -4 | 6 593 | 7 244 | -9 | -4 | |
Net income | 2 930 | 3 074 | -5 | -2 | 5 718 | 6 273 | -9 | -4 | |
EPS (USD) | 1.23 | 1.27 | -3 | -1 | 2.40 | 2.60 | -8 | -3 |
[1] Constant currencies (cc), core results and free cash flow are non-IFRS measures. An explanation of non-IFRS measures can be found on page 48 of the Condensed Interim Financial Report. Unless otherwise noted, all growth rates in this Release refer to same period in prior year.
[2] Growth Products are defined on page 2. AS = ankylosing spondylists; PsA = psoriatic arthritis; AdCom = advisory committee.
[3] Refers to continuing operations, defined on page 40 of the Condensed Interim Financial Report.
Basel, July 19, 2016 - Commenting on the results, Joseph Jimenez, CEO of Novartis, said:
"Performance in Q2 was solid despite a full quarter of Gleevec loss of exclusivity impact in the US. We have strong innovation momentum from earlier-than-anticipated Class I Entresto guidelines, positive Cosentyx data showing durability of response in AS and PsA, the early stop of the LEE011 trial, and positive FLAME results for Ultibro. We will increase investments behind these growth opportunities, particularly Entresto, in the second half of 2016 for long-term growth."
GROUP REVIEW
Novartis laid out five priorities for 2016: deliver strong financial results; strengthen innovation; improve Alcon performance; capture cross-divisional synergies; and build a higher-performing organization. We made progress in each of these areas in the second quarter.
Financial results
On January 27, 2016, Novartis announced plans to further focus its divisions, integrating businesses that share therapeutic areas to better leverage our development and marketing capabilities. These plans included a new divisional structure. In compliance with International Financial Reporting Standards (IFRS), Novartis updated its segment financials to reflect the new structure, both for the current and prior year, to aid comparability of year-on-year results. As a result, all comparisons of divisional results from 2016 to 2015 reflect the new structure.
In addition, as a result of the portfolio transformation transactions completed in 2015, Novartis reported the Group's financial results in 2015 as "continuing operations" and "discontinued operations." All comparisons from 2016 to 2015 are versus continuing operations, unless otherwise noted. See page 40 of the Condensed Interim Financial Report for a full explanation.
Second quarter
Continuing operations
Net sales were USD 12.5 billion (-2%, 0% cc) in the second quarter, as volume growth of 5 percentage points offset the negative impact of generic competition (-4 percentage points) and pricing (-1 percentage points). Growth Products[1] contributed USD 4.4 billion or 35% of net sales, up 19% (USD) over the prior-year quarter.
Operating income was USD 2.1 billion (-8%, -4% cc). Core adjustments amounted to USD 1.2 billion (2015: USD 1.3 billion), broadly in line with the prior-year quarter.
Core operating income was USD 3.3 billion (-7%, -4% cc). Core operating income margin in constant currencies decreased 1.1 percentage points, mainly due to loss of exclusivity on Gleevec, investments behind new launches and the Alcon growth plan. Currency had a negative impact of 0.5 percentage points, resulting in a net decrease of 1.6 percentage points in US dollar terms to 26.7% of net sales.
Net income was USD 1.8 billion (-3%, 0% cc), down less than operating income mainly due to higher income from associated companies.
EPS was USD 0.76 (-1%, +2% cc), benefitting from a reduction in the number of shares outstanding.
Core net income was USD 2.9 billion (-5%, -2% cc), down less than core operating income mainly due to higher income from associated companies.
Core EPS was USD 1.23 (-3%, -1% cc), benefitting from a reduction in the number of shares outstanding.
Free cash flow was USD 2.5 billion (+22% USD), an increase of USD 0.5 billion compared to the prior-year quarter. The increase was driven by lower investments in property, plant, equipment and intangible assets and higher cash flows from operating activities from continuing operations, which includes lower operating income and dividends received from GSK Consumer Healthcare Holdings Ltd.
[1] "Growth Products" are an indicator of the rejuvenation of the portfolio, and comprise products launched in a key market (EU, US, Japan) in 2011 or later, or products with exclusivity in key markets until at least 2020 (except Sandoz, which includes only products launched in the last 24 months). They include the acquisition effect of the GSK oncology assets.
Innovative Medicines (formerly named the Pharmaceuticals Division) net sales were USD 8.4 billion (-3%, -1% cc) in the second quarter, with volume growth of 6 percentage points. Generic competition had a negative impact of 6 percentage points and pricing had a negative impact of 1 percentage point, both largely due to Gleevec/Glivec genericization in the US, which impacted a full quarter for the first time. Growth Products grew 23% (cc) to USD 3.8 billion, or 45% of division net sales.
Operating income was USD 1.9 billion (-6%, -3% cc). Core operating income was USD 2.7 billion (-7%, -4% cc), reflecting generic erosion and launch investments. Core operating income margin in constant currencies decreased by 1.0 percentage points; currency had a negative impact of 0.5 percentage points, resulting in a net decrease of 1.5 percentage points to 31.8% of net sales.
Sandoz net sales were USD 2.6 billion (+2%, +3% cc) in the second quarter, as volume growth of 8 percentage points more than offset 5 percentage points of price erosion. Global sales of Biopharmaceuticals, which include biosimilars, biopharmaceutical contract manufacturing and Glatopa, grew 11% (cc) to USD 249 million, despite lapping the Glatopa launch in the prior-year quarter. Anti-Infectives franchise sales were USD 324 million (-3% cc), reflecting the discontinuation of low-margin products.
Operating income was USD 380 million (+35%, +43% cc), driven by lower restructuring charges for site exits compared to the prior-year quarter. Core operating income was USD 535 million (0%, +4% cc). Core operating income margin in constant currencies increased 0.2 percentage points; currency had a negative impact of 0.6 percentage points, resulting in a net decrease of 0.4 percentage points to 20.8% of net sales.
Alcon net sales were USD 1.5 billion (-2%, -1% cc) in the second quarter. Surgical sales (-1% cc) were down slightly, as strong performance of cataract consumables was more than offset by weaker sales of intraocular lenses (IOLs). Vision Care sales were flat (0% cc), with growth in contact lenses offsetting a decline in contact lens care.
Operating income was USD 7 million (-87%, -77% cc). Core operating income was USD 238 million (-17%, -15% cc), primarily impacted by higher investment spending in M&S and R&D behind the growth plan. Core operating income margin in constant currencies decreased by 2.6 percentage points; currency had a negative impact of 0.3 percentage points, resulting in a net decrease of 2.9 percentage points to 15.8% of net sales.
Total Group
For the total Group, net income amounted to USD 1.8 billion, broadly in line with the prior-year quarter, and basic earnings per share was USD 0.76.
Total Group free cash flow amounted to USD 2.5 billion, compared to USD 2.0 billion in the prior-year quarter.
First half
Continuing operations
Net sales were USD 24.1 billion (-2%, +1% cc) in the first half. Growth Products contributed USD 8.2 billion or 34% of net sales, up 21% (USD) over the prior-year period.
Operating income was USD 4.5 billion (-10%, -4% cc). Core adjustments amounted to USD 2.0 billion (2015: USD 2.2 billion), slightly below prior year mainly due to higher divestment gains in the first half of 2016.
Core operating income was USD 6.6 billion (-9%, -4% cc). Core operating income margin in constant currencies decreased 1.5 percentage points, mainly due to loss of exclusivity on Gleevec, investments behind new launches and the Alcon growth plan. Currency had a negative impact of 0.5 percentage points, resulting in a net decrease of 2.0 percentage points to 27.4% of net sales.
Net income was USD 3.8 billion (-8%, -2% cc), down less than operating income mainly due to higher income from associated companies.
EPS was USD 1.60 (-7%, -1% cc), broadly in line with net income.
Core net income was USD 5.7 billion (-9%, -4% cc), in line with core operating income.
Core EPS was USD 2.40 (-8%, -3% cc), broadly in line with core net income.
Free cash flow was USD 3.9 billion (+10% USD), an increase of USD 0.4 billion compared to the prior-year period. The increase was driven by lower net investments in property, plant, equipment and intangible assets, partially offset by lower cash flows from operating activities from continuing operations.
Innovative Medicines net sales were USD 16.1 billion (-3%, 0% cc) in the first half, as volume growth (+7 percentage points) was fully offset by the impact of generic competition (-6 percentage points) and pricing (-1 percentage point).
Operating income was USD 4.0 billion (-9%, -4% cc). Core operating income was USD 5.3 billion (-8%, -3% cc). Core operating income margin in constant currencies decreased by 1.2 percentage points; currency had a negative impact of 0.6 percentage points, resulting in a net decrease of 1.8 percentage points to 32.7% of net sales.
Sandoz net sales were USD 5.0 billion (+1%, +4% cc) in the first half, as volume growth of 10 percentage points more than offset 6 percentage points of price erosion. Global sales of Biopharmaceuticals grew 27% (cc) to USD 462 million, benefitting from the performance of prior-year launches in the US (Glatopa in June 2015 and Zarxio in September 2015). Anti-Infectives franchise sales were USD 684 million (-3% cc), reflecting discontinued low-margin products and the weak flu season in the first quarter.
Operating income was USD 726 million (+17%, +25% cc), driven by higher restructuring charges for site exits in the prior-year period. Core operating income was USD 1.0 billion (0%, +5% cc). Core operating income margin in constant currencies increased by 0.4 percentage points; currency had a negative impact of 0.6 percentage points, resulting in a net decrease of 0.2 percentage points to 20.3% of net sales.
Alcon net sales were USD 2.9 billion (-4%, -2% cc) in the first half. Surgical sales (-2% cc) declined, driven by a slowdown in cataract equipment placements and weaker sales of IOLs, partially offset by continued growth in cataract consumables. Vision Care performance (-2% cc) was impacted by weaker contact lens sales in the US and a decline in contact lens care.
Operating income was USD 38 million (-81%, -59% cc). Core operating income was USD 481 million (-28%, -21% cc), primarily impacted by higher spending in M&S and R&D behind the growth plan. Core operating income margin in constant currencies decreased by 4.3 percentage points; currency had a negative impact of 1.1 percentage points, resulting in a net decrease of 5.4 percentage points to 16.4% of net sales.
Total Group
For the total Group, net income amounted to USD 3.8 billion compared to USD 14.8 billion in the prior-year period, and basic earnings per share decreased to USD 1.60 from USD 6.15. The decrease was due to the net income from discontinued operations, which in the prior-year period included USD 12.8 billion exceptional pre-tax divestment gains from the portfolio transformation transactions and USD 0.5 billion additional pre-tax transaction related expenses.
Free cash flow was USD 3.9 billion compared to USD 3.2 billion in the first half of 2015.
Key growth drivers
Underpinning our financial results in the second quarter is a continued focus on key growth drivers, including Gilenya, Tasigna, Cosentyx, Tafinlar + Mekinist, Jakavi, Promacta/Revolade and Entresto, as well as Biopharmaceuticals and Emerging Growth Markets.
Growth Products
Emerging Growth Markets
Strengthen innovation
The second quarter saw pipeline progress with positive regulatory decisions and significant clinical trial data released. Key developments are included below.
New approvals and regulatory opinions
Regulatory submissions and filings
Results from important clinical trials and other highlights
Improve Alcon performance
Alcon continued to make investments in the second quarter to accelerate innovation and sales, strengthen customer relationships and improve basic operations.
In operations, Alcon upgraded order and inventory management, which has resulted in improved supply stability. To further reinforce customer relationships, Alcon has redefined and launched new customer experience standards, and created a global organization focused on delivering customer excellence. At the same time, Alcon has increased M&S investment behind key products in both Surgical and Vision Care to accelerate sales. These investments have depressed margins in Q2, but are expected to accelerate sales and result in higher margins longer term. The division is expected to return to top-line growth later in the year.
Alcon also made significant progress on innovation in the second quarter, strengthening future growth prospects. Alcon received CE Mark in Europe for Dailies Total1 Multifocal as well as PanOptix with UltraSert. Pivotal data on CyPass, the minimally invasive glaucoma surgery device, was also presented at the American Society of Cataract and Refractive Surgery annual meeting in the second quarter.
Capture cross-divisional synergies
We continued to advance our productivity programs in the second quarter, helping to support margins for the Group.
In total, our productivity initiatives generated gross savings of approximately USD 0.7 billion in the second quarter.
Build a higher-performing organization
Novartis continues to proactively drive compliance, reliable product quality and sustainable efficiency as part of the quality strategy. The company's focus on quality continued to yield results in the second quarter of 2016. A total of 74 global health authority inspections were completed and closed in the first half of the year (42 in Q2), 13 of which were conducted by the FDA (4 in Q2). All but one were deemed good or acceptable. The inspection of the UK country organization by the UK Medicines & Healthcare Products Regulatory Agency (MHRA), which was still pending as of Q1, resulted in an unsatisfactory outcome. The main finding of the MHRA related to ease of access for health authorities to trial data in the current systems, which is being addressed through an existing project.
Capital structure and net debt
Retaining a good balance between investment in the business, a strong capital structure and attractive shareholder returns will remain a priority. Strong cash flows and a sound capital structure have allowed Novartis to focus on driving innovation and growth across its diversified healthcare portfolio, while keeping its double-A credit rating as a reflection of financial strength and discipline.
During the first six months of 2016, 12.3 million treasury shares were delivered as a result of options exercised and share deliveries related to equity-based participation plans of associates. To partially offset the dilutive impact related to such transactions, 5.0 million Novartis shares were repurchased on the SIX Swiss Exchange second trading line and from employees. Despite these transactions, the total number of shares outstanding increased by 7.3 million versus December 31, 2015. Novartis aims to further offset the dilutive impact from equity-based participation plans of associates that occurred in the first quarter over the remainder of the year through additional share purchases.
As of June 30, 2016, the net debt increased by USD 4.1 billion to USD 20.6 billion, compared to USD 16.5 billion at December 31, 2015. The net debt increase was mainly driven by the USD 6.5 billion annual dividend payment, acquisition of businesses, and share repurchases, partly offset by USD 3.9 billion free cash flow generation in the first half of 2016.
The long-term credit rating for the company continues to be double-A (Moody's Aa3; Standard & Poor's AA-; Fitch AA).
2016 Outlook
Barring unforeseen events
Group net sales are expected to be broadly in line with the prior year (cc), with Growth Products offsetting the impact of generic competition.
Based on the positive treatment guidelines on Entresto, we have made the decision to increase spending significantly in the second half of 2016 to build a US primary care field force, and add incremental medical support. We expect this to accelerate the uptake of Entresto and maximize future peak sales.
As a consequence of this additional investment, and depending on the erosion curve of Gleevec, core operating income is expected to be broadly in line with the prior year or decline low-single digit (cc).
These comparisons are versus 2015 continuing operations.
If early July exchange rates prevail for the remainder of 2016, the currency impact for the year would be negative 1 percentage point on sales and negative 3 percentage points on core operating income.
Summary Financial Performance | |||||||||
Continuing operations[1] | Q2 2016 | Q2 2015 | % change | H1 2016 | H1 2015 | % change | |||
USD m | USD m | USD | cc | USD m | USD m | USD | cc | ||
Net sales | 12 470 | 12 694 | -2 | 0 | 24 070 | 24 629 | -2 | 1 | |
Operating income | 2 093 | 2 281 | -8 | -4 | 4 544 | 5 066 | -10 | -4 | |
As a % of sales | 16.8 | 18.0 | 18.9 | 20.6 | |||||
Core operating income | 3 332 | 3 593 | -7 | -4 | 6 593 | 7 244 | -9 | -4 | |
As a % of sales | 26.7 | 28.3 | 27.4 | 29.4 | |||||
Net income | 1 806 | 1 856 | -3 | 0 | 3 817 | 4 162 | -8 | -2 | |
EPS (USD) | 0.76 | 0.77 | -1 | 2 | 1.60 | 1.72 | -7 | -1 | |
Free cash flow | 2 526 | 2 064 | 22 | 3 888 | 3 529 | 10 | |||
Innovative Medicines | Q2 2016 | Q2 2015[2] | % change | H1 2016 | H1 2015[2] | % change | |||
USD m | USD m | USD | cc | USD m | USD m | USD | cc | ||
Net sales | 8 387 | 8 633 | -3 | -1 | 16 116 | 16 593 | -3 | 0 | |
Operating income | 1 866 | 1 994 | -6 | -3 | 4 046 | 4 444 | -9 | -4 | |
As a % of sales | 22.2 | 23.1 | 25.1 | 26.8 | |||||
Core operating income | 2 669 | 2 872 | -7 | -4 | 5 271 | 5 727 | -8 | -3 | |
As a % of sales | 31.8 | 33.3 | 32.7 | 34.5 | |||||
Sandoz | Q2 2016 | Q2 2015[2] | % change | H1 2016 | H1 2015[2] | % change | |||
USD m | USD m | USD | cc | USD m | USD m | USD | cc | ||
Net sales | 2 577 | 2 530 | 2 | 3 | 5 022 | 4 974 | 1 | 4 | |
Operating income | 380 | 281 | 35 | 43 | 726 | 621 | 17 | 25 | |
As a % of sales | 14.7 | 11.1 | 14.5 | 12.5 | |||||
Core operating income | 535 | 537 | 0 | 4 | 1 020 | 1 020 | 0 | 5 | |
As a % of sales | 20.8 | 21.2 | 20.3 | 20.5 | |||||
Alcon | Q2 2016 | Q2 2015[2] | % change | H1 2016 | H1 2015[2] | % change | |||
USD m | USD m | USD | cc | USD m | USD m | USD | cc | ||
Net sales | 1 506 | 1 531 | -2 | -1 | 2 932 | 3 062 | -4 | -2 | |
Operating income | 7 | 54 | -87 | -77 | 38 | 195 | -81 | -59 | |
As a % of sales | 0.5 | 3.5 | 1.3 | 6.4 | |||||
Core operating income | 238 | 287 | -17 | -15 | 481 | 669 | -28 | -21 | |
As a % of sales | 15.8 | 18.7 | 16.4 | 21.8 | |||||
Corporate | Q2 2016 | Q2 2015 | % change | H1 2016 | H1 2015 | % change | |||
USD m | USD m | USD | cc | USD m | USD m | USD | cc | ||
Operating loss | -160 | -48 | -233 | -250 | -266 | -194 | -37 | -47 | |
Core operating loss | -110 | -103 | -7 | -15 | -179 | -172 | -4 | -16 | |
Discontinued operations | Q2 2016 | Q2 2015 | % change | H1 2016 | H1 2015 | % change | |||
USD m | USD m | USD | cc | USD m | USD m | USD | cc | ||
Net sales | 39 | 587 | |||||||
Operating loss/income | -96 | 12 526 | |||||||
As a % of sales | nm | nm | |||||||
Core operating loss | -72 | -174 | |||||||
As a % of sales | nm | -29.6 | |||||||
Total Group[3] | Q2 2016 | Q2 2015 | % change | H1 2016 | H1 2015 | % change | |||
USD m | USD m | USD | cc | USD m | USD m | USD | cc | ||
Net income | 1 806 | 1 838 | -2 | 1 | 3 817 | 14 843 | -74 | -73 | |
EPS (USD) | 0.76 | 0.76 | 0 | 3 | 1.60 | 6.15 | -74 | -72 | |
Free cash flow | 2 526 | 2 013 | 25 | 3 888 | 3 239 | 20 |
nm= not meaningful
[1] Continuing operations include the businesses of Innovative Medicines (formerly named the Pharmaceuticals Division), Alcon, Sandoz and Corporate activities, and starting on March 2, 2015, the results from the new oncology assets acquired from GSK and the 36.5% interest in the GSK Consumer Healthcare Holdings Ltd. (the latter reported as part of income from associated companies). See page 40 of the Condensed Interim Financial Report for full explanation.
[2] In compliance with IFRS, Novartis updated its segment financials to reflect the new divisional structure announced on January 27, 2016, to aid comparability of year-on-year results.
[3] Total Group net income and EPS include in the prior year the impact of the exceptional divestment gains and the operating results of the discontinued operations. Total Group free cash flow comprises the free cash flow from continuing operations and discontinued operations.
A condensed interim financial report with the information listed in the index below can be found on our website at http://hugin.info/134323/R/2029257/754504.pdf.
Novartis Q2 and H1 2016 Condensed Interim Financial Report - Supplementary Data
INDEX | Page |
GROUP AND DIVISIONAL OPERATING PERFORMANCE Q2 and H1 2016 | |
Group | 2 |
Innovative Medicines | 6 |
Sandoz | 14 |
Alcon | 16 |
CASH FLOW AND GROUP BALANCE SHEET | 19 |
INNOVATION REVIEW | 22 |
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |
Condensed consolidated income statements | 31 |
Condensed consolidated statements of comprehensive income | 33 |
Condensed consolidated balance sheets | 34 |
Condensed consolidated changes in equity | 35 |
Condensed consolidated cash flow statements | 36 |
Notes to condensed interim consolidated financial statements, including update on legal proceedings | 38 |
SUPPLEMENTARY INFORMATION | 48 |
CORE RESULTS | |
Reconciliation from IFRS to core results | 50 |
Group | 52 |
Innovative Medicines | 54 |
Sandoz | 56 |
Alcon | 58 |
Corporate | 60 |
Discontinued operations | 62 |
ADDITIONAL INFORMATION | |
Condensed consolidated changes in net debt / Share information | 63 |
Free cash flow | 64 |
Net sales of the top 20 Innovative Medicines products | 65 |
Innovative Medicines sales by business franchise | 67 |
Net sales by region | 69 |
Currency translation rates | 71 |
Income from associated companies | 72 |
DISCLAIMER | 73 |
Disclaimer
This press release contains forward-looking statements that can be identified by words such as "innovation," "prospects," "growth products," "building," "increasing," "growth investments," "recommendation," "planned," "submitted," "will," "growth plan," "progressing," "expected," "momentum," "long-term," "priorities," "progress," "plans," "launches," "launch," "growth drivers," "focus," "ongoing," "launched," "continues," "pipeline," "Breakthrough Therapy," "Priority Review," "could," "investigational," "growing," "continued," "accelerate," "longer term," "later in the year," "initiatives," "priority," "to focus," "aims," "outlook," "plan," "opportunities," "would," "guidance," "contingent," "underway," "encouraging," "potential," "seeking," "upcoming," "pending," or similar terms, or by express or implied discussions regarding potential new products, potential new indications for existing products, or regarding potential future revenues from any such products; potential shareholder returns or credit ratings; or regarding any potential financial or other impact on Novartis or any of our divisions of the strategic actions announced in January 2016 to focus our divisions, integrate certain functions and leverage our scale; or regarding any potential financial or other impact on Novartis from the creation of the Pharmaceuticals business unit and Oncology business unit to form the Innovative Medicines Division; or regarding any potential financial or other impact on Novartis as a result of the creation and operation of NBS; or regarding the potential financial or other impact on Novartis of the transactions with GSK, Lilly or CSL; or regarding potential future sales or earnings of the Novartis Group or any of its divisions; or by discussions of strategy, plans, expectations or intentions. You should not place undue reliance on these statements. Such forward looking statements are based on the current beliefs and expectations of management regarding future events, and are subject to significant known and unknown risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those set forth in the forward looking statements. There can be no guarantee that any new products will be approved for sale in any market, or that any new indications will be approved for any existing products in any market, or that any approvals which are obtained will be obtained at any particular time, or that any such products will achieve any particular revenue levels. Nor can there be any guarantee that Novartis will be able to realize any of the potential strategic benefits, synergies or opportunities as a result of the creation of the Pharmaceuticals business unit and Oncology business unit to form the Innovative Medicines Division, the strategic actions announced in January 2016, the creation and operation of NBS, or the transactions with GSK, Lilly and CSL. Neither can there be any guarantee that Novartis or any of the businesses involved in the transactions will achieve any particular financial results in the future. Neither can there be any guarantee that shareholders will achieve any particular level of shareholder returns. Nor can there be any guarantee that the Group, or any of its divisions, will be commercially successful in the future, or achieve any particular credit rating. In particular, management's expectations could be affected by, among other things: unexpected regulatory actions or delays or government regulation generally; the potential that the strategic benefits, synergies or opportunities expected from the creation of the Pharmaceuticals business unit and Oncology business unit to form the Innovative Medicines Division, the strategic actions announced in January 2016, the creation and operation of NBS, or the transactions with GSK, Lilly and CSL may not be realized or may take longer to realize than expected; the inherent uncertainties involved in predicting shareholder returns or credit ratings; the uncertainties inherent in research and development, including unexpected clinical trial results and additional analysis of existing clinical data; our ability to obtain or maintain proprietary intellectual property protection, including the ultimate extent of the impact on Novartis of the loss of patent protection and exclusivity on key products which commenced in prior years and continues this year; unexpected safety, quality or manufacturing issues; global trends toward health care cost containment, including ongoing pricing pressures, in particular from increased publicity on pharmaceuticals pricing; uncertainties regarding actual or potential legal proceedings, including, among others, actual or potential product liability litigation, litigation and investigations regarding sales and marketing practices, intellectual property disputes, and government investigations generally; general economic and industry conditions, including uncertainties regarding the effects of the persistently weak economic and financial environment in many countries; uncertainties regarding future global exchange rates, including the continued increases in value of the US dollar, our reporting currency, against a number of currencies; uncertainties regarding future demand for our products; uncertainties involved in the development of new healthcare products; uncertainties regarding potential significant breaches of data security or disruptions of our information technology systems; and other risks and factors referred to in Novartis AG's current Form 20-F on file with the US Securities and Exchange Commission. Novartis is providing the information in this press release as of this date and does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise.
All product names appearing in italics are trademarks owned by or licensed to Novartis Group Companies. Seretide® is a registered trademark of GlaxoSmithKline Ltd. Humira® is a registered trademark of AbbVie Inc. Enbrel® and Neulasta® are registered trademarks of Amgen Inc. MabThera® is a registered trademark of F. Hoffmann-La Roche Ltd. Jakafi® is a registered trademark of Incyte Corporation. Stelara® is a registered trademark of Janssen Biotech, Inc. FluidCrystal® is a registered trademark of Camurus AB. Lenvima® is a registered trademark of Eisai Inc.
About Novartis
Novartis provides innovative healthcare solutions that address the evolving needs of patients and societies. Headquartered in Basel, Switzerland, Novartis offers a diversified portfolio to best meet these needs: innovative medicines, eye care and cost-saving generic pharmaceuticals. Novartis is the only global company with leading positions in these areas. In 2015, the Group achieved net sales of USD 49.4 billion, while R&D throughout the Group amounted to approximately USD 8.9 billion (USD 8.7 billion excluding impairment and amortization charges). Novartis Group companies employ approximately 118,000 full-time-equivalent associates. Novartis products are available in more than 180 countries around the world. For more information, please visit http://www.novartis.com.
Important dates | |
October 25, 2016 | Third quarter results 2016 |
January 25, 2017 | Fourth quarter and full year results 2016 |
February 28, 2017 | Annual General Meeting |
Please find full media release in English attached and on the following link:
http://hugin.info/134323/R/2029257/754517.pdf
Further language versions are available through the following links:
German version is available through the following link:
http://hugin.info/134323/R/2029259/754519.pdf
French version is available through the following link:
http://hugin.info/134323/R/2029258/754518.pdf
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Novartis International AG
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WKN: 904278;ISIN: CH0012005267;
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