Occasional announcement in accordance with art. 53LR

• Medium-term sales forecasts revised upwards to +6% CAGR 2023-2028 and +5% 2024-2029
• Strong business momentum with 8 brands in the market with peak sales potential of over $3 billion to over $8 billion and over 15 readings enabling short term bidding
• More than 30 high-value drugs in development expected to support continued single-digit sales growth beyond 2029

Basel, November 21, 2024 – Novartis today announced an update to its mid-term forecast, ahead of its Meet Novartis Management event for investors and analysts in London. Previous forecasts of a sales CAGR of +5% over the period 2023-2028 have been raised to +6%, driven by strong momentum from growth drivers in the market and upcoming launches, most of which forecast a American exclusivity in the 2030s or beyond.

Continuing its mid-term forecast with strong performance for 2024 as the base year, Novartis now expects sales growth of +5% CAGR over the period 2024-2029. Company remains on track to generate core operating margin¹ by 40%+ by 2027, benefiting from continued strong sales growth and productivity improvements.

“Novartis has completed its transformation into an innovative medicines company with deep expertise and capabilities in our core therapeutic areas and technology platforms. Our focus has allowed us to refine our commercial execution and increase our estimates of maximum sales for Cosentyx, Kisqali, Kesimpta, Pluvicto and Leqvio, and we have more than 15 statements enabling submission in the coming years to further strengthen our growth profile,” said Vas Narasimhan, CEO of Novartis. “Longer term, we have identified more than 30 assets in the pipeline with significant potential to rejuvenate our portfolio and support mid-single-digit growth beyond 2029. Overall, we remain confident in our focused strategy and our ability to create sustainable value for shareholders.

Although the majority of the company’s portfolio comes from its internal innovation engine, value creation remains an important part of Novartis’ capital allocation policy. Novartis has completed more than 30 strategic transactions over the past two years, primarily from exploratory to preclinical stages. Recent examples include the acquisition of Kate Therapeutics, which complements the company’s ongoing efforts to innovate new gene therapies for neuromuscular disorders, as well as the global licensing and collaboration agreement with Ratio Therapeutics for a candidate next-generation radiotherapeutic targeting SSTR2, which adds to the company’s expertise. deep radioligand therapy pipeline.

During today’s event, investors and analysts will hear from CEO Vas Narasimhan and have the opportunity to engage with senior leaders from across the company in an open Q&A format. A live webcast of the event will be available on our website at /investors/events-calendaraccompanied by a copy of the CEO’s presentation. A replay will be available once the event has concluded.

¹ The main results are non-IFRS measures. An explanation of non-IFRS measures can be found on page 46 of the 3Q24 interim financial report.

Disclaimer
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can generally be identified by words such as “potential”, “may”, “will”, “expected”, “pipeline”. “. », “launchs”, “directions”, “momentum”, “growth”, “expected”, “continued”, “remains”, “on track”, “deliver” or similar expressions, or by express discussions or implied regarding potential new products, potential new indications for existing products, potential product launches or regarding potential future revenues from such products; or concerning the results of ongoing clinical trials; or concerning possible future, ongoing or announced transactions; regarding potential future sales or profits; or through discussions of strategy, plans, expectations or intentions, including discussions regarding our continued investment in new R&D and manufacturing capabilities; or relating to our capital structure; or regarding the consequences of the spin-off of Sandoz and our transformation into a pure-play innovative pharmaceutical company. These forward-looking statements are based on management’s current beliefs and expectations regarding future events and are subject to known material events and unknown risks and uncertainties. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may differ materially from those in the forward-looking statements. You should not place undue reliance on these statements. can be no guarantee that the investigational or approved products described in this press release will be submitted or approved for sale or for any additional indication or labeling in any market, or at any particular time. Nor can there be any assurance that these products will achieve commercial success in this market. It is also not possible to guarantee that the expected benefits or synergies from the transactions described in this press release will be realized within the expected timeframes, if at all. In particular, our expectations could be affected by, among other things: uncertainties regarding the success of key products, business priorities and strategy; uncertainties in the research and development of new products, including clinical trial results and additional analysis of existing clinical data; uncertainties regarding the use of new and disruptive technologies, including artificial intelligence; global trends toward health care cost containment, including current pricing and reimbursement pressures from governments, payers and the general public and demands for increased price transparency; uncertainties regarding our ability to realize the strategic benefits, operational efficiencies or opportunities expected from our external business opportunities; our ability to realize the anticipated benefits of our separation from Sandoz into a new standalone publicly traded company; our ability to obtain or maintain exclusive intellectual property protection, including the ultimate extent of the impact on Novartis of the loss of patent protection and exclusivity on key products; uncertainties related to the development or adoption of potentially transformational digital technologies and business models; uncertainties surrounding the implementation of our new projects and IT systems; uncertainties regarding possible material information security breaches or disruptions to our information technology systems; uncertainties regarding actual or potential legal proceedings, including regulatory actions or delays or governmental regulation relating to the products and pipeline products described in this press release; safety, quality, data integrity or manufacturing issues; our performance and ability to comply with environmental, social and governance measures and requirements; major political, macroeconomic and business developments, including the impact of war in certain regions of the world; uncertainties regarding future global exchange rates; uncertainties regarding future demand for our products; and other risks and factors discussed in Novartis AG’s most recently filed Form 20-F and subsequent reports filed with or furnished to the United States Securities and Exchange Commission. Novartis provides the information contained in this press release as of this date and undertakes no obligation to update any forward-looking statements as a result of new information, future events or otherwise.

All product names appearing are trademarks owned or licensed to Novartis.

This press release includes non-IFRS financial measures, including key results. An explanation of non-IFRS measures can be found on page 46 of the 3Q24 interim financial report.

About Novartis
Novartis is an innovative pharmaceutical company. Every day, we work to reinvent medicine to improve and extend people’s lives so that patients, healthcare professionals and society are empowered in the face of serious illnesses. Our medicines are used by more than 250 million people worldwide.

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