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5 Aug 2013

Novartis Delivered Growth Across all Divisions in Second Quarter

  • Group net sales increased 1% (+3% cc[1]) versus year ago to USD 14.5 billion in second quarter, up 2% (+4% cc) to USD 28.5 billion in first half
  • Core operating income was USD 3.8 billion (-2%, +2% cc) in second quarter, USD 7.5 billion (0%, +4% cc) in first half
  • Core EPS was USD 1.30 (-4%, +1% cc) in second quarter, USD 2.62 (+1%, +5% cc) in first half
  • Free cash flow was USD 1.8 billion in second quarter, USD 3.1 billion in first half.


  • Excluding impact of patent expiries, underlying performance demonstrates strong growth
  • Underlying net sales growth was 8% (cc) in second quarter and first half
  • Underlying core operating income up 18% (cc) in second quarter and up 17% (cc) in first half.


  • Strong innovation continued, reinforcing growth prospects
  • Phase III study of AIN457 in psoriasis demonstrated superiority to current standard of care
  • Lucentis received EU approval for myopic choroidal neovascularization; FDA approved Ilaris in systemic juvenile idiopathic arthritis, Exelon Patch in severe Alzheimer's disease and Simbrinza Suspension in glaucoma
  • RLX030 granted Breakthrough Therapy designation from FDA in acute heart failure.


  • Successful execution on growth products and performance in Emerging Growth Markets
  • Growth products[2] including Gilenya, Afinitor, Tasigna, Galvus and Jakavi grew 13% to USD 4.5 billion, accounting for 31% of Group net sales in second quarter; achieved net sales of USD 8.7 billion (+14%) in first half
  • Emerging Growth Markets up 11% (cc) in the second quarter, led by China (+25% cc), Russia (+18% cc) and South Korea (+16% cc).


  • 2013 Group outlook increased: sales upgraded to low-single digit growth versus year ago (cc); core operating income improved to low-single digit decline (cc).

[1] Core results, constant currencies and free cash flow are non-IFRS measures. An explanation of these non-IFRS measures and reconciliation tables can be found beginning on page 42 of the Condensed Financial Report.
[2] Growth products are defined on page 2.


Commenting on the results, Joseph Jimenez, CEO of Novartis, said: "Novartis delivered a solid second quarter, resulting in a good first half in 2013. Successful execution on growth brands allowed us to navigate patent expiries and new competition, while deepening our footprint in Emerging Growth Markets such as China and Russia. Our underlying business showed strong growth behind significant innovation, with sales up 8% and core operating income up 17% in constant currencies in the first half excluding the impact of generics."

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