Press Release: Novartis continues to deliver -2-

As the Sandoz spin-off was completed on October 3, 2023, there were no operating results in the second quarter of 2024 related to discontinued operations. In the second quarter of 2023, discontinued operations net sales were USD 2.4 billion, operating income amounted to USD 113 million and net income from discontinued operations was USD 46 million. For further details see Note 3 "Significant acquisition of businesses and spin-off of Sandoz business" and Note 11 "Discontinued operations" to the condensed interim consolidated financial statements.

First half

As the Sandoz spin-off was completed on October 3, 2023, there were no operating results in the first half 2024 related to discontinued operations. In the first half 2023, discontinued operations net sales were USD 5.0 billion, operating income amounted to USD 351 million and net income from discontinued operations was USD 190 million. For further details see Note 3 "Significant acquisition of businesses and spin-off of Sandoz business" and Note 11 "Discontinued operations" to the condensed interim consolidated financial statements.

Total Company

Second quarter

Total Company net income was USD 3.2 billion in 2024, compared to USD 2.3 billion in 2023 and basic EPS was USD 1.60 compared to USD 1.11 in prior year quarter. Net cash flows from operating activities for total Company amounted to USD 4.9 billion and free cash flow amounted to USD 4.6 billion.

First half

Total Company net income was USD 5.9 billion in 2024, compared to USD 4.6 billion in 2023 and basic EPS was USD 2.91 compared to USD 2.20 in prior year. Net cash flows from operating activities for total Company amounted to USD 7.1 billion and free cash flow amounted to USD 6.7 billion.

Q2 key growth drivers

Underpinning our financial results in the quarter is a continued focus on key growth drivers (ranked in order of contribution to Q2 growth) including:

Entresto (USD 1 898 million, +28% cc) sustained robust demand-led

growth, with increased penetration in the US and

Europe following guideline-directed medical therapy

in heart failure, as well as in China with increased

penetration in hypertension

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Kesimpta (USD 799 million, +65% cc) sales grew across all regions

reflecting increased demand and strong access for

a high efficacy product with convenient self-administered

dosing

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Cosentyx (USD 1 526 million, +22% cc) sales grew mainly in

the US, driven by recent launches (including the HS

indication and the IV formulation in the US) in addition

to volume growth in core indications

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Kisqali (USD 717 million, +50% cc) sales grew strongly across

all regions, based on increasing recognition of its

overall survival benefit in HR+/HER2- advanced breast

cancer and Category 1 NCCN guidelines recommendation

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Leqvio (USD 182 million, +134% cc) continued to show steady

growth, with a focus on increasing account and patient

adoption, growing customer confidence in acquisition

and access, and continuing medical education

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Pluvicto (USD 345 million, +44% cc) grew in the US and Europe.

With supply now unconstrained, the focus is on increasing

share in established RLT sites, opening new sites

and referral pathways, and initiating new patients

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Xolair (USD 427 million, +22% cc) growth was driven mainly

by emerging growth markets and Europe

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Ilaris (USD 368 million, +20% cc) sales grew across all regions,

mainly US and Europe

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Scemblix (USD 164 million, +56% cc) sales grew across all regions,

demonstrating the high unmet need in later lines of

CML

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Jakavi (USD 471 million, +13% cc) sales grew across all regions,

with strong demand in both myelofibrosis and polycythemia

vera indications

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Tafinlar + (USD 523 million, +9% cc) sales grew in all regions,

Mekinist led by emerging growth markets

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Lutathera (USD 175 million, +17% cc) sales grew across all regions

due to increased demand, following the presentation

of NETTER-2 results in 1L GEP-NET

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Fabhalta (USD 22 million) continued to show encouraging early

launch indicators in the US, as the first oral monotherapy

approved for PNH patients

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Emerging Growth Grew +16% (cc) overall. China grew +27% (cc) to USD

Markets* 1.1 billion, mainly driven by Entresto and Xolair

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*All markets except the US, Canada, Western Europe, Japan, Australia, and New Zealand

Net sales of the top 20 brands in Q2 2024

Q2 2024 % change H1 2024 % change

USD m USD cc USD m USD cc

------- ---- ---- ------- ---- ----

Entresto 1 898 25 28 3 777 30 32

Cosentyx 1 526 20 22 2 852 21 23

Kesimpta 799 63 65 1 436 64 66

Kisqali 717 45 50 1 344 48 52

Promacta/Revolade 544 -7 -5 1 064 -6 -4

Tafinlar + Mekinist 523 5 9 997 5 7

Jakavi 471 8 13 949 12 15

Tasigna 446 -6 -4 841 -10 -9

Xolair 427 18 22 826 15 18

Ilaris 368 16 20 724 12 17

Sandostatin Group 313 -5 -4 668 1 3

Pluvicto 345 44 44 655 45 45

Zolgensma 349 12 14 644 4 6

Lucentis 275 -30 -28 589 -27 -26

Exforge Group 178 -3 1 370 0 3

Lutathera 175 17 17 344 15 16

Leqvio 182 133 134 333 135 137

Gilenya 138 -49 -47 313 -38 -36

Scemblix 164 55 56 300 65 67

Diovan Group 160 3 9 300 -4 1

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Top 20 brands total 9 998 15 18 19 326 16 18

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R&D update - key developments from the second quarter

New approvals

Fabhalta EU, Japan and China approval for the treatment of

(iptacopan) adults with the rare blood disorder paroxysmal nocturnal

hemoglobinuria (PNH).

Lutathera FDA approval for the treatment of pediatric patients

(lutetium Lu 177 dotatate) (>=12 years) with somatostatin receptor-positive gastroenteropancreatic

neuroendocrine tumors (GEP-NETs).

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Regulatory updates

Scemblix FDA granted Breakthrough Therapy designation to Scemblix

(asciminib) for the treatment of adult patients with newly diagnosed

Philadelphia chromosome-positive chronic myeloid

leukemia in chronic phase (Ph+ CML-CP).

FDA submission for first-line CML is completed and

under Real-Time Oncology Review.

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Atrasentan FDA filing accepted for the treatment of adult patients

with IgA nephropathy (IgAN).

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Lutathera EU filing accepted for the treatment of newly diagnosed,

(lutetium Lu 177 dotatate) unresectable or metastatic, well-differentiated (G2

and G3), somatostatin receptor-positive GEP-NETs in

adults.

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July 18, 2024 01:00 ET (05:00 GMT)