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2021-10-26

Novartis delivers solid Q3 results, with strong growth in Innovative Medicines. Announces strategic review of Sandoz

Ad hoc announcement pursuant to Art. 53 LR

  • Q3 net sales grew +5% (cc¹, +6% USD)
    • Innovative Medicines grew +7% (cc, +8% USD)
    • Strong performance of key growth drivers: Entresto (+44% cc), Cosentyx (+22% cc), Kesimpta (USD 109 million), Jakavi (+26% cc), Zolgensma (+28% cc), Promacta/Revolade (+18% cc) and Kisqali (+27% cc)
    • Sandoz declined -2% (cc, -1% USD), affected by continued pricing pressures. Ex-US sales grew +3% (cc)
  • Q3 core¹ operating income grew +9% (cc, +10% USD)
    • Innovative Medicines grew +13% (cc, +14% USD), due to higher sales and productivity programs
    • Sandoz declined -15% (cc, -13% USD), impacted by gross margin
  • Q3 operating income grew +32% (cc, +34% USD)
  • Q3 net income increased +41% (cc, +43% USD)
  • Q3 free cash flow1 of USD 4.4 billion (+64% USD), with higher operating income, lower payments out of provisions and favorable changes in working capital
  • Nine months sales grew +4% (cc, +7% USD) and core operating income grew +4% (cc, +7% USD)
    • Innovative Medicines sales grew +6% (cc, +9% USD) and core operating income +8% (cc, +11% USD)
    • Sandoz sales declined -4% (cc, 0% USD) and core operating income declined -18% (cc, -15% USD)
  • Increasing peak sales guidance for Cosentyx (at least USD 7.0 billion) and Entresto (at least USD 5.0 billion)
  • Key innovation milestones
    • Zolgensma partial clinical trial hold lifted by FDA; Ph3 IT clinical trial for SMA to proceed Q4 2021
    • Kisqali demonstrated statistically significant OS benefit for 1L HR+/HER2- advanced breast cancer
    • Cosentyx met primary endpoint in Ph2 Giant Cell Arteritis study; Ph3 started
    • Remibrutinib met primary endpoint in Ph2b CSU study; Ph3 in CSU and MS planned
    • 177Lu-PSMA-617 and Asciminib granted priority review by FDA
  • Commencing a strategic review of Sandoz to maximize shareholder value, options range from retaining the business to separation
  • 2021 Group guidance² unchanged

Basel, October 26, 2021 - commenting on the quarter, Vas Narasimhan, CEO of Novartis, said:

“Novartis delivered strong Innovative Medicines performance, driven by the continued momentum of Cosentyx and Entresto, allowing us to raise peak sales guidance for these products. Rejuvenation of our portfolio continues, from our key brands which include Kesimpta, Leqvio, Zolgensma and the oncology portfolio. We are also commencing a strategic review of Sandoz to maximize shareholder value. We remain confident in the strength of our pipeline and launch brands to fuel the growth of our company in the mid to longer term.”

Key figures¹                
  Q3 2021 Q3 2020 % change 9M 2021 9M 2020 % change
  USD m USD m USD cc USD m USD m USD cc
Net sales 13 030 12 259 6 5 38 397 35 889 7 4
Operating income 3 233 2 412 34 32 9 127 7 508 22 18
Net income 2 758 1 932 43 41 7 712 5 972 29 26
EPS (USD) 1.23 0.85 45 44 3.44 2.62 31 28
Free cash flow 4 423 2 697 64
Författare GlobeNewswire