{"success":true,"data":{"pressRelease":{"id":"180435","rtpr_id":"nGNE8KBVks-20261027","ticker":"NOVN","exchange":"","all_tickers":["NOVN"],"title":"Novartis delivered sales growth and core margin expansion in Q3; raised FY core operating income guidance","author":"Globe Newswire","published_at":"2026-10-27T06:00:00.215Z","article_body":"Ad hoc announcement pursuant to Art. 53 LR\n\nThird quarter\n* Q3 net sales grew +4% (cc(¹), +4% USD), with core operating income(¹) +10%\n(cc, +11% USD)      * Sales growth driven by priority brands including Kisqali\n(+37% cc), Kesimpta (+22% cc), Scemblix (+67% cc), Leqvio (+63% cc) and\nCosentyx (+9% cc)\n* Core operating income margin(¹ )was 41.6%, +2 percentage points (cc)\n      \n* Q3 operating income declined -61% (cc, -59% USD) mainly due to a partial\nimpairment of the del-desiran asset; net income down -71% (cc, -70% USD) \n* Q3 core EPS(¹) grew +8% (cc, +9% USD) to USD 2.46\n* Q3 free cash flow(¹) was USD 5.1 billion (-18% USD)\n* 9 months net sales (0% cc, +2% USD) and core operating income (-2% cc, -1%\nUSD) broadly in line with PY\n* Q3 selected innovation milestones:      * Remibrutinib positive PhIII\nREMODEL-1 and -2 results in RMS\n* Rhapsido FDA approval in most prevalent form of CIndU\n* Pluvicto FDA and CN approvals in mAPMN/S prostate cancer\n* Pelabresib EU submission completed in MF\n* Del-zota FDA priority review granted for DMD44\n      \n* Full-year 2026 guidance²  raised for core operating income      * Net\nsales expected to grow low single-digit (unchanged) \n* Core operating income expected to be in line to grow low single-digit (from\ndecline low single-digit)\nBasel, October 27, 2026 – Commenting on Q3 2026 results, Vas Narasimhan,\nCEO of Novartis, said:\n“Novartis delivered solid sales growth in Q3, as priority brands and\nlaunches more than offset generic erosion, demonstrating the replacement power\nof the business. Combined with productivity efforts, this drove strong\nbottom-line performance and allowed us to upgrade our full-year guidance. At\nthe same time, we continued to advance our pipeline, with positive Phase III\nresults for remibrutinib in RMS, label expansions for Rhapsido and Pluvicto in\nthe US, and the first submission for pelabresib in the EU. While the\ndel-desiran readout in DM1 was not what we had hoped, we saw evidence of\nclinical activity in the data and are working through the development path for\nthis medicine. Importantly, our programs in FSHD and DMD continue to progress\nwell. With continued momentum across the business and pipeline, we remain well\non track to deliver our mid- and long-term outlook.”\n\n Key figures                                                                                     \n                        Q3 2026    Q3 2025    % change       9M 2026    9M 2025    % change      \n                        USD m (3)  USD m (3)  USD  cc        USD m (3)  USD m (3)  USD    cc     \n Net sales              14 522     13 909     4    4         42 043     41 196     2      0      \n Operating income       1 843      4 501      -59  -61       10 828     14 028     -23    -24    \n Net income             1 196      3 930      -70  -71       7 609      11 563     -34    -35    \n EPS (USD)              0.63       2.04       -69  -70       4.01       5.94       -32    -33    \n Free cash flow         5 111      6 217      -18            14 002     15 941     -12           \n Core operating income  6 036      5 460      11   10        16 873     16 960     -1     -2     \n Core net income        4 655      4 330      8    6         13 027     13 522     -4     -5     \n Core EPS (USD)         2.46       2.25       9    8         6.85       6.94       -1     -3     \n\n1. Constant currencies (cc), core results and free cash flow are non-IFRS\nmeasures. An explanation of non-IFRS measures can be found on page 45 of the\nCondensed Interim Financial Report. Unless otherwise noted, all growth rates\nin this Release refer to same period in prior year.    2. Please see\ndetailed guidance assumptions on page 7.    3. USD millions unless\nindicated otherwise.\n\nStrategy\n\nOur focus\n\nNovartis is a “pure-play” innovative medicines company. We have a clear\nfocus on four core therapeutic areas (cardiovascular-renal-metabolic,\nimmunology, neuroscience and oncology), with multiple significant in-market\nand pipeline assets in each of these areas, that address high disease burden\nand have substantial growth potential. In addition to two established\ntechnology platforms (chemistry and biotherapeutics), three emerging platforms\n(gene & cell therapy, radioligand therapy and xRNA) are being prioritized for\ncontinued investment into new R&D capabilities and manufacturing scale.\nGeographically, we are focused on growing in our priority geographies – the\nUS, China, Germany and Japan.\n\nOur priorities\n1. Accelerate growth: Renewed attention to deliver high-value medicines (NMEs)\nand focus on launch excellence, with a rich pipeline across our core\ntherapeutic areas.\n2. Deliver returns: Continuing to embed operational excellence and deliver\nimproved financials. Novartis remains disciplined and shareholder-focused in\nour approach to capital allocation, with substantial cash generation and a\nstrong capital structure supporting continued flexibility. \n3. Strengthen foundations: Unleashing the power of our people, scaling data\nscience and technology, and continuing to build trust with society.\nFinancials\n\nThird quarter\n\nNet sales were USD 14.5 billion (+4%, +4% cc), with volume growth contributing\n14 percentage points, partly offset by 9 percentage points from generic\ncompetition. Pricing had a negative impact of 1 percentage point, and currency\nhad no impact.\n\nOperating income was USD 1.8 billion (-59%, -61% cc), declining mainly due to\nhigher R&D expenses, including a USD 1.9 billion partial impairment charge of\nthe del-desiran IPR&D asset, and higher other expense, partly offset by higher\nnet sales.\n\nNet income was USD 1.2 billion (-70%, -71% cc), declining mainly due to lower\noperating income and higher interest expense. EPS was USD 0.63 (-69%, -70%\ncc).\n\nCore operating income was USD 6.0 billion (+11%, +10% cc), mainly driven by\nhigher net sales. Core operating income margin was 41.6% of net sales,\nincreasing 2.3 percentage points (2.0 percentage points in cc).\n\nCore net income was USD 4.7 billion (+8%, +6% cc), driven by higher core\noperating income, partly offset by higher interest expense. Core EPS was USD\n2.46 (+9%, +8% cc), benefiting from the lower weighted average number of\nshares outstanding.\n\nFree cash flow amounted to USD 5.1 billion (-18%), declining due to lower net\ncash flows from operating activities.\n\nNine months\n\nNet sales were USD 42.0 billion (+2%, 0% cc), with volume growth contributing\n14 percentage points, partly offset by 12 percentage points from generic\ncompetition. Pricing had a negative impact of 2 percentage points, and\ncurrency had a positive impact of 2 percentage points.\n\nOperating income was USD 10.8 billion (-23%, -24% cc), declining mainly due to\nhigher R&D expenses, including a USD 1.9 billion partial impairment charge of\nthe del-desiran IPR&D asset, and higher other expense.\n\nNet income was USD 7.6 billion (-34%, -35% cc), mainly due to lower operating\nincome, higher interest expense and higher income taxes. EPS was USD 4.01\n(-32%, -33% cc).\n\nCore operating income was USD 16.9 billion (-1%, -2% cc), declining mainly due\nto higher R&D expenses and higher other expense, partly offset by lower SG&A\nexpenses. Core operating income margin was 40.1% of net sales, decreasing 1.1\npercentage points (0.8 percentage points in cc).\n\nCore net income was USD 13.0 billion (-4%, -5% cc), mainly due to lower core\noperating income and higher interest expense. Core EPS was USD 6.85 (-1%, -3%\ncc), benefiting from the lower weighted average number of shares outstanding.\n\nFree cash flow amounted to USD 14.0 billion (-12%), declining due to lower net\ncash flows from operating activities.\n\nQ3 priority brands\n\nUnderpinning our financial results in the quarter is a continued focus on key\ngrowth drivers (ranked in order of contribution to Q3 growth) including:\n\n Kisqali          (USD 1 821 million, +37% cc) continued to grow strongly across all regions, with market share growth in early breast cancer and leadership in metastatic breast cancer.                                                                           \n Kesimpta         (USD 1 484 million, +22% cc) sales showed continued strong momentum globally, driven by increased demand and broad access.                                                                                                                        \n Scemblix         (USD 593 million, +67% cc) sales grew across all regions, with continued strong momentum in the early-line setting in the US, Japan and Germany.                                                                                                  \n L eqvio          (USD 506 million, +63% cc) sales grew across all regions, with continued uptake in China following NRDL inclusion.                                                                                                                                \n Cosentyx         (USD 1 857 million, +9% cc) sales grew in most markets, driven by the HS and SpA indications. US growth benefited from prior-year revenue deduction adjustments.                                                                                  \n P luvicto        (USD 674 million, +20% cc) sales showed continued strong demand driven by the mAPMR¹ setting, with US and China approvals in mAPMN/S² in Q3, and ongoing access expansion ex-US.                                                                  \n Zolgensma Group  (USD 404 million, +35% cc) sales grew strongly, reflecting continued launch momentum from Itvisma in the US, Japan and other ex-US countries.                                                                                                     \n R hapsido        (USD 101 million) continued to show strong launch uptake in the US, supported by sustained prescription growth and a free drug program facilitating patient access. Ex-US, sales were mainly driven by early launch uptake in Germany and China.  \n F abhalta        (USD 237 million, +60% cc) sales grew, with expansion in PNH and renal indications.                                                                                                                                                               \n\n(1) Metastatic androgen pathway modulation-resistant prostate cancer (mAPMR),\nalso known as metastatic castration resistant prostate cancer (mCRPC).\n(² ) Metastatic androgen pathway modulation-naïve or sensitive prostate\ncancer (mAPMN/S), also known as metastatic hormone-sensitive prostate cancer\n(mHSPC).\n\nNet sales of the top 20 brands in the third quarter and nine months\n\n                      Q3 2026  % change      9M 2026  % change      \n                      USD m    USD    cc     USD m    USD    cc     \n Cosentyx             1 857    9      9      5 247    8      6      \n Kisqali              1 821    37     37     5 032    45     44     \n Kesimpta             1 484    21     22     4 072    27     26     \n Entresto             1 165    -38    -38    3 651    -44    -45    \n Pluvicto             674      20     20     1 967    42     41     \n Jakavi               564      5      5      1 697    9      6      \n Tafinlar + Mekinist  570      4      4      1 644    -2     -4     \n Ilaris               591      25     26     1 616    18     17     \n Scemblix             593      66     67     1 588    78     78     \n Leqvio               506      64     63     1 438    67     63     \n Zolgensma Group      404      34     35     1 071    16     13     \n Xolair               331      -25    -25    1 061    -21    -23    \n Sandostatin Group    311      3      3      900      -2     -4     \n Lutathera            219      3      3      655      7      6      \n Fabhalta             237      59     60     631      80     79     \n Exforge Group        183      4      1      577      6      2      \n Promacta/Revolade    142      -61    -61    505      -64    -65    \n Diovan Group         137      -4     -6     447      0      -3     \n Tasigna              141      -36    -37    438      -53    -54    \n Piqray/Vijoice       122      36     37     326      8      8      \n Top 20 brands total  12 052   7      7      34 563   3      1      \n\nR&D update – key developments from the third quarter\n\nNew approvals\n\n Rhapsido (remibrutinib)                          In October, FDA approved Rhapsido as the first treatment for adults with symptomatic dermographism (SD) inadequately controlled by H1 antihistamines, expanding its use beyond chronic spontaneous urticaria (CSU) into chronic inducible urticaria (CIndU). Novartis plans to submit the full RemIND dataset to health authorities globally.  \n Pluvicto (lutetium Lu177 vipivotide tetraxetan)  FDA and China’s NMPA approved Pluvicto in combination with an androgen receptor pathway inhibitor (ARPI) for patients with PSMA+ metastatic androgen pathway modulation-naive/sensitive (mAPMN/S) prostate cancer¹. Pluvicto is now approved across all stages of PSMA+ metastatic prostate cancer.                                            \n Fabhalta (iptacopan)                             Japan’s MHLW approved Fabhalta for the treatment of IgA nephropathy (IgAN), making it the first approved treatment for this indication in Japan.  Additionally, FDA granted traditional approval of Fabhalta in IgAN.                                                                                                                          \n\n¹  Also known as metastatic hormone-sensitive prostate cancer (mHSPC).\n\nRegulatory updates\n\n Cosentyx (secukinumab)         CHMP adopted a positive opinion recommending approval for Cosentyx in polymyalgia rheumatica (PMR), based on positive Phase III REPLENISH data. If approved, Cosentyx will be the first IL-17A inhibitor approved in Europe for PMR.                                                                                                                                           \n DAK539 (pelabresib)            Regulatory submission for pelabresib in myelofibrosis was completed in the EU, based on the positive Phase III MANIFEST-2 study, which showed deep and durable disease control, with a safety profile comparable to ruxolitinib alone, including numerically fewer deaths and disease progressions in the pelabresib arm.                                                      \n KPE179 (del-zota)              Del-zota was granted priority review by FDA for people living with Duchenne muscular dystrophy who have a genetic variant that may be amenable to exon 44 skipping (DMD44). Del-zota previously received FDA Breakthrough Therapy designation.                                                                                                                                 \n Leqvio (inclisiran)            FDA updated the Leqvio label to include language recognizing that lowering LDL-C reduces the risk of major adverse cardiovascular events (MACE) in adults at increased cardiovascular risk. This update reflects established evidence from statins and monoclonal antibody PCSK9 inhibitors, supporting LDL-C reduction as a key component of cardiovascular risk management.  \n Vanrafia (atrasentan)          Regulatory submissions for Vanrafia in IgAN were completed in Japan and China.                                                                                                                                                                                                                                                                                                 \n KLU156                         Regulatory submission for KLU156 in uncomplicated malaria was completed in the US and received priority review.                                                                                                                                                                                                                                                                \n (ganaplacide + lumefantrine)                                                                                                                                                                                                                                                                                                                                                                                  \n\nResults from ongoing trials and other highlights\n\n LOU064                 Positive results from the Phase III REMODEL-1 and -2 trials showed oral remibrutinib met its primary endpoint in relapsing multiple sclerosis (RMS), significantly reducing annualized relapse rate (ARR) versus teriflunomide. Remibrutinib also showed        \n (remibrutinib)         superiority on all key secondary endpoints, including MRI lesion reduction, and a clinically meaningful delay in disability progression. The safety profile was favorable and consistent with remibrutinib in CSU, with no liver safety signal. Data were       \n                        presented at MSToronto2026 in October.                                                                                                                                                                                                                          \n EWF980 (del-desiran)   In the Phase III HARBOR study, del-desiran did not meet its primary endpoint of video hand opening time (vHOT) versus placebo in myotonic dystrophy type 1 (DM1). Evidence of clinical activity was observed in secondary endpoints and exploratory analyses.   \n                        Novartis is evaluating the full HARBOR dataset and will engage with health authorities to determine the most appropriate development path. Data will be presented at an upcoming medical congress.                                                              \n TQJ230 (pelacarsen)    In the Phase III HORIZON trial, pelacarsen did not meet its primary endpoint of reducing the risk of cardiovascular events versus placebo in patients with elevated Lp(a) and established cardiovascular disease (CVD), despite reducing Lp(a) levels in this   \n                        study population. The findings provide important new evidence on the relationship between Lp(a) lowering and cardiovascular outcomes and may help inform future approaches to cardiovascular risk management. Data will be presented at an upcoming medical     \n                        congress.                                                                                                                                                                                                                                                       \n Kisqali (ribociclib)   The six-year follow-up analysis of the Phase III NATALEE trial showed a clinically meaningful overall survival (OS) benefit with Kisqali plus endocrine therapy (ET) versus ET alone in the broadest HR+/HER2- early breast cancer (eBC) population at high risk \n                        of recurrence, reducing the risk of death by nearly 20%. Patients had been off Kisqali treatment for a median of 38 months, with clinical benefit continuing to deepen after treatment completion. The safety profile remained consistent with previous         \n                        analyses. Data were presented at ESMO 2026.                                                                                                                                                                                                                     \n LOU064 (remibrutinib)  Novartis has discontinued the Phase III study of remibrutinib in generalized myasthenia gravis (gMG) following a futility analysis, which indicated the treatment was unlikely to meet its efficacy objectives. No safety concerns were identified, and there is \n                        no impact on remibrutinib studies in other indications.                                                                                                                                                                                                         \n Selected transactions  Novartis completed the acquisition of Myricx Bio, strengthening the oncology pipeline with a new class of antibody-drug conjugates (ADCs), including two lead assets targeting B7-H3 and HER2, as well as a broader payload platform with potential impact      \n                        across multiple solid tumor settings.  Novartis exercised its exclusive option to acquire full global rights to Sironax's proprietary Brain Delivery Module (BDM) platform, a next-generation blood-brain barrier crossing technology with the potential to     \n                        transform the treatment of central nervous system diseases.  Novartis entered into an exclusive global licensing agreement with BoomRay Pharmaceuticals for an undisclosed preclinical radioligand therapy asset, further strengthening its radioligand therapy \n                        portfolio.  In October, Novartis entered into a strategic licensing and option agreement with Abogen Biosciences to advance RNA-encoded therapeutics, including an exclusive worldwide license to ABO2203, a novel mRNA-encoded CD19xCD3 T-cell engager with the \n                        potential to transform the treatment landscape for autoimmune diseases. The transaction is subject to the completion of customary closing conditions.                                                                                                           \n\nCapital structure and net debt\n\nRetaining a good balance between investment in the business, a strong capital\nstructure, and attractive shareholder returns remains a priority.\n\nDuring the first nine months of 2026, Novartis repurchased 30.9 million shares\nfor USD 4.7 billion on the SIX Swiss Exchange second trading line. These\nrepurchases included 18.8 million shares (USD 2.8 billion) under the up-to USD\n10 billion share buyback announced in July 2025 (with up to USD 4.9 billion\nstill to be executed). In addition, 12.1 million shares (USD 1.8 billion) were\nrepurchased to mitigate the anticipated full-year dilution related to\nparticipation plans of employees. Further, 2.0 million shares (USD 0.3\nbillion) were repurchased from employees. During the same period, USD 0.9\nbillion of equity-based compensation plan expenses were recognized to equity\nand 13.3 million shares were delivered to employees related to equity-based\ncompensation plans from prior years. As a result, the total number of shares\noutstanding decreased by 19.6 million compared with December 31, 2025. These\ntreasury share transactions resulted in an equity decrease of USD 4.1 billion\nand a cash outflow of USD 4.8 billion.\n\nNet debt increased to USD 37.4 billion at September 30, 2026, compared with\nUSD 21.9 billion at December 31, 2025. The increase was mainly due to the free\ncash flow of USD 14.0 billion being more than offset by the net cash outflow\nfor M&A, intangible assets transactions and other acquisitions of USD 16.7\nbillion, the USD 9.1 billion annual dividend payment and cash outflows for\ntreasury share transactions of USD 4.8 billion.\n\nAs of Q3 2026, the long-term credit rating for the company is Aa3 with\nMoody’s Ratings and AA- with S&P Global Ratings.\n\n2026 outlook\n\n Barring unforeseen events; growth vs. prior year in cc                                                   \n Net sales              Expected to grow low single-digit                                                 \n Core operating income  Expected to be in line to grow low single-digit  (from decline low single-digit)  \n\nForeign exchange impact\n\nIf late-October exchange rates prevail for the remainder of 2026, the foreign\nexchange impact for the year would be positive 1 percentage point on net sales\nand positive 1 percentage point on core operating income. The estimated impact\nof exchange rates on our results is provided monthly on our website.\n\n2027 Annual General Meeting\n\nNomination for election to the Board of Directors\n\nThe Novartis Board of Directors announced today that it is nominating Rajesh\nJha for election to the Board. During a 36-year career at Microsoft, Mr. Jha\nheld a series of senior leadership roles across software engineering,\nproductivity platforms and enterprise technologies, and served on the\ncompany's Senior Leadership Team from 2016 until his retirement. Most\nrecently, he served as Executive Vice President, Experiences + Devices, where\nhe led the product teams for Microsoft 365, Office, Teams, Windows + Devices,\nand Dynamics, and played a key role in the integration of artificial\nintelligence across Microsoft's product portfolio. His extensive experience in\ntechnology, AI and large-scale digital platforms would add significantly to\nthe Novartis Board of Directors.\n\nKey figures¹ \n\n                        Q3 2026  Q3 2025  % change       9M 2026  9M 2025  % change      \n                        USD m²   USD m²   USD  cc        USD m²   USD m²   USD    cc     \n Net sales              14 522   13 909   4    4         42 043   41 196   2      0      \n Operating income       1 843    4 501    -59  -61       10 828   14 028   -23    -24    \n As a % of sales        12.7     32.4                    25.8     34.1                   \n Net income             1 196    3 930    -70  -71       7 609    11 563   -34    -35    \n EPS (USD)              0.63     2.04     -69  -70       4.01     5.94     -32    -33    \n Net cash flows from    5 503    6 571    -16            15 061   16 880   -11           \n operating activities                                                                    \n Non-IFRS measures                                                                       \n Free cash flow         5 111    6 217    -18            14 002   15 941   -12           \n Core operating income  6 036    5 460    11   10        16 873   16 960   -1     -2     \n As a % of sales        41.6     39.3                    40.1     41.2                   \n Core net income        4 655    4 330    8    6         13 027   13 522   -4     -5     \n Core EPS (USD)         2.46     2.25     9    8         6.85     6.94     -1     -3     \n\n1. Constant currencies (cc), core results and free cash flow are non-IFRS\nmeasures. An explanation of non-IFRS measures can be found on page 45 of the\nCondensed Interim Financial Report. Unless otherwise noted, all growth rates\nin this Release refer to same period in prior year.     2. USD millions\nunless indicated otherwise.\n\nDetailed financial results accompanying this press release are included in the\nCondensed Interim Financial Report at the link below:\nhttps://www.novartis.com/sites/novartis_com/files/q3-2026-interim-financial-report-en.pdf\n\nDisclaimer\nThis communication contains forward-looking statements within the meaning of\nthe United States Private Securities Litigation Reform Act of 1995, that can\ngenerally be identified by words such as “expected,” “anticipated,”\n“can,” “will,” “continue,” “ongoing,” “growth,”\n“launch,” “expanding,” “deliver,” “accelerate,”\n“guidance,” “outlook,” “priority,” “potential,”\n“momentum,” “on track,” “pipeline,” “evidence,”\n“progress,” “emerging,” or similar expressions, or by express or\nimplied discussions regarding: potential new products, potential new\nindications for existing products, potential product launches or potential\nfuture revenues from any such products; or results of ongoing clinical trials;\npotential future, pending or announced transactions; potential future sales or\nearnings; strategy, plans, expectations or intentions, including discussions\nregarding our continued investment into new R&D capabilities and\nmanufacturing; our capital structure. You should not place undue reliance on\nthese statements. Such forward-looking statements are based on the current\nbeliefs and expectations of management regarding future events and are subject\nto significant known and unknown risks and uncertainties. Should one or more\nof these risks or uncertainties materialize, or should underlying assumptions\nprove incorrect, actual results may vary materially from those set forth in\nthe forward-looking statements. There can be no guarantee that the\ninvestigational or approved products described in this communication will be\nsubmitted or approved for sale or for any additional indications or labeling\nin any market, or at any particular time. Nor can there be any guarantee that\nsuch products will be commercially successful in the future. Neither can there\nbe any guarantee that the expected benefits or synergies from the transactions\ndescribed in this communication will be achieved in the expected timeframe, or\nat all. In particular, our expectations could be affected by, among other\nthings, uncertainties concerning: global healthcare cost containment,\nincluding ongoing government, payer and general public pricing and\nreimbursement pressures and requirements for increased pricing transparency;\nthe success of key products, commercial priorities and strategy; the research\nand development of new products, including clinical trial results and\nadditional analysis of existing clinical data; our ability to obtain or\nmaintain proprietary intellectual property protection, including the ultimate\nextent of the impact on Novartis of the loss of patent protection and\nexclusivity on key products; our ability to realize the strategic benefits,\noperational efficiencies or opportunities expected from our external business\nopportunities; the development or adoption of new technologies, including\nartificial intelligence, and new business models; the implementation of our\nnew IT projects and systems; potential significant breaches of information\nsecurity or disruptions of our information technology systems; actual or\npotential legal proceedings, including regulatory actions or delays or\ngovernment regulation related to the products and pipeline products described\nin this communication; safety, quality, data integrity, or manufacturing\nissues; our performance on and ability to comply with environmental, social\nand governance measures and requirements; major macroeconomic and geo- and\nsocio-political developments, including the impact of any potential tariffs on\nour products or the impact of war in certain parts of the world; future global\nexchange rates; future demand for our products; and other risks and factors\nreferred to in Novartis AG’s most recently filed Form 20-F and in subsequent\nreports filed with, or furnished to, the US Securities and Exchange\nCommission. Novartis is providing the information in this communication as of\nthis date and does not undertake any obligation to update any forward-looking\nstatements as a result of new information, future events or otherwise.\n\nAll product names appearing in italics are trademarks owned by or licensed to\nNovartis.\n\nAbout Novartis \nNovartis is an innovative medicines company. Every day, we work to reimagine\nmedicine to improve and extend people’s lives so that patients, healthcare\nprofessionals and societies are empowered in the face of serious disease. Our\nmedicines reach more than 300 million people worldwide.\n\nReimagine medicine with us: Visit us at https://www.novartis.com and connect\nwith us on LinkedIn (https://www.linkedin.com/company/novartis/), Facebook\n(https://www.facebook.com/novartis/), X/Twitter (https://twitter.com/Novartis)\nand Instagram\n(https://instagram.com/novartis?igshid=MzRlODBiNWFlZA==__;!!N3hqHg43uw!pjp8z253J5NjaOYrW65UbAAlHeHRdQ-w0m4ezZxEQEl0ptafXN2M99VRIk39pf49PAc8NbK93Pxp3uaSBQkAf8oEnzWXG8Sk$).\n\nNovartis will conduct a conference call with investors to discuss this news\nrelease today at 13:00 Central European time and 8:00 Eastern Time. A\nsimultaneous webcast of the call for investors and other interested parties\nmay be accessed by visiting the Novartis website. A replay will be available\nafter the live webcast by visiting\nhttps://www.novartis.com/investors/event-calendar.\n\nDetailed financial results accompanying this press release are included in the\nCondensed Interim Financial Report at the link below. Additional information\nis provided on our business and pipeline of selected compounds in late-stage\ndevelopment. A copy of today's earnings call presentation can be found at\nhttps://www.novartis.com/investors/event-calendar.\n\n Important dates                                                   \n November 18-19, 2026  Meet Novartis Management 2026 (London, UK)  \n February 3, 2027      Fourth quarter & full year 2026 results     \n March 5, 2027         Annual General Meeting                      \n\n# # #\n\n Novartis Media Relations E-mail: media.relations@novartis.com                                                                   \n                                                                                                                                 \n Novartis Investor Relations Central investor relations line: +41 61 324 7944 E-mail: investor.relations@novartis.com            \n\nPlease find full media release in English attached and on the following link: \nMedia release (PDF)\n(http://ml-eu.globenewswire.com/Resource/Download/5b219601-8446-4bd3-9e35-a930589dcbea)\n\nFurther language versions are available through the following links:\n\nGerman version is available through the following link:\nMedienmitteilung (PDF)\n(http://ml-eu.globenewswire.com/Resource/Download/a4ce199a-b08d-41a6-99dd-0a69c2f72b49)","article_body_html":"","raw_payload":{"data":{"id":"nGNE8KBVks-20261027","title":"Novartis delivered sales growth and core margin expansion in Q3; raised FY core operating income guidance","author":"Globe Newswire","ticker":"NOVN","created":"2026-10-27T06:00:00.215Z","tickers":["NOVN"],"exchange":"","article_body":"Ad hoc announcement pursuant to Art. 53 LR\n\nThird quarter\n* Q3 net sales grew +4% (cc(¹), +4% USD), with core operating income(¹) +10%\n(cc, +11% USD)      * Sales growth driven by priority brands including Kisqali\n(+37% cc), Kesimpta (+22% cc), Scemblix (+67% cc), Leqvio (+63% cc) and\nCosentyx (+9% cc)\n* Core operating income margin(¹ )was 41.6%, +2 percentage points (cc)\n      \n* Q3 operating income declined -61% (cc, -59% USD) mainly due to a partial\nimpairment of the del-desiran asset; net income down -71% (cc, -70% USD) \n* Q3 core EPS(¹) grew +8% (cc, +9% USD) to USD 2.46\n* Q3 free cash flow(¹) was USD 5.1 billion (-18% USD)\n* 9 months net sales (0% cc, +2% USD) and core operating income (-2% cc, -1%\nUSD) broadly in line with PY\n* Q3 selected innovation milestones:      * Remibrutinib positive PhIII\nREMODEL-1 and -2 results in RMS\n* Rhapsido FDA approval in most prevalent form of CIndU\n* Pluvicto FDA and CN approvals in mAPMN/S prostate cancer\n* Pelabresib EU submission completed in MF\n* Del-zota FDA priority review granted for DMD44\n      \n* Full-year 2026 guidance²  raised for core operating income      * Net\nsales expected to grow low single-digit (unchanged) \n* Core operating income expected to be in line to grow low single-digit (from\ndecline low single-digit)\nBasel, October 27, 2026 – Commenting on Q3 2026 results, Vas Narasimhan,\nCEO of Novartis, said:\n“Novartis delivered solid sales growth in Q3, as priority brands and\nlaunches more than offset generic erosion, demonstrating the replacement power\nof the business. Combined with productivity efforts, this drove strong\nbottom-line performance and allowed us to upgrade our full-year guidance. At\nthe same time, we continued to advance our pipeline, with positive Phase III\nresults for remibrutinib in RMS, label expansions for Rhapsido and Pluvicto in\nthe US, and the first submission for pelabresib in the EU. While the\ndel-desiran readout in DM1 was not what we had hoped, we saw evidence of\nclinical activity in the data and are working through the development path for\nthis medicine. Importantly, our programs in FSHD and DMD continue to progress\nwell. With continued momentum across the business and pipeline, we remain well\non track to deliver our mid- and long-term outlook.”\n\n Key figures                                                                                     \n                        Q3 2026    Q3 2025    % change       9M 2026    9M 2025    % change      \n                        USD m (3)  USD m (3)  USD  cc        USD m (3)  USD m (3)  USD    cc     \n Net sales              14 522     13 909     4    4         42 043     41 196     2      0      \n Operating income       1 843      4 501      -59  -61       10 828     14 028     -23    -24    \n Net income             1 196      3 930      -70  -71       7 609      11 563     -34    -35    \n EPS (USD)              0.63       2.04       -69  -70       4.01       5.94       -32    -33    \n Free cash flow         5 111      6 217      -18            14 002     15 941     -12           \n Core operating income  6 036      5 460      11   10        16 873     16 960     -1     -2     \n Core net income        4 655      4 330      8    6         13 027     13 522     -4     -5     \n Core EPS (USD)         2.46       2.25       9    8         6.85       6.94       -1     -3     \n\n1. Constant currencies (cc), core results and free cash flow are non-IFRS\nmeasures. An explanation of non-IFRS measures can be found on page 45 of the\nCondensed Interim Financial Report. Unless otherwise noted, all growth rates\nin this Release refer to same period in prior year.    2. Please see\ndetailed guidance assumptions on page 7.    3. USD millions unless\nindicated otherwise.\n\nStrategy\n\nOur focus\n\nNovartis is a “pure-play” innovative medicines company. We have a clear\nfocus on four core therapeutic areas (cardiovascular-renal-metabolic,\nimmunology, neuroscience and oncology), with multiple significant in-market\nand pipeline assets in each of these areas, that address high disease burden\nand have substantial growth potential. In addition to two established\ntechnology platforms (chemistry and biotherapeutics), three emerging platforms\n(gene & cell therapy, radioligand therapy and xRNA) are being prioritized for\ncontinued investment into new R&D capabilities and manufacturing scale.\nGeographically, we are focused on growing in our priority geographies – the\nUS, China, Germany and Japan.\n\nOur priorities\n1. Accelerate growth: Renewed attention to deliver high-value medicines (NMEs)\nand focus on launch excellence, with a rich pipeline across our core\ntherapeutic areas.\n2. Deliver returns: Continuing to embed operational excellence and deliver\nimproved financials. Novartis remains disciplined and shareholder-focused in\nour approach to capital allocation, with substantial cash generation and a\nstrong capital structure supporting continued flexibility. \n3. Strengthen foundations: Unleashing the power of our people, scaling data\nscience and technology, and continuing to build trust with society.\nFinancials\n\nThird quarter\n\nNet sales were USD 14.5 billion (+4%, +4% cc), with volume growth contributing\n14 percentage points, partly offset by 9 percentage points from generic\ncompetition. Pricing had a negative impact of 1 percentage point, and currency\nhad no impact.\n\nOperating income was USD 1.8 billion (-59%, -61% cc), declining mainly due to\nhigher R&D expenses, including a USD 1.9 billion partial impairment charge of\nthe del-desiran IPR&D asset, and higher other expense, partly offset by higher\nnet sales.\n\nNet income was USD 1.2 billion (-70%, -71% cc), declining mainly due to lower\noperating income and higher interest expense. EPS was USD 0.63 (-69%, -70%\ncc).\n\nCore operating income was USD 6.0 billion (+11%, +10% cc), mainly driven by\nhigher net sales. Core operating income margin was 41.6% of net sales,\nincreasing 2.3 percentage points (2.0 percentage points in cc).\n\nCore net income was USD 4.7 billion (+8%, +6% cc), driven by higher core\noperating income, partly offset by higher interest expense. Core EPS was USD\n2.46 (+9%, +8% cc), benefiting from the lower weighted average number of\nshares outstanding.\n\nFree cash flow amounted to USD 5.1 billion (-18%), declining due to lower net\ncash flows from operating activities.\n\nNine months\n\nNet sales were USD 42.0 billion (+2%, 0% cc), with volume growth contributing\n14 percentage points, partly offset by 12 percentage points from generic\ncompetition. Pricing had a negative impact of 2 percentage points, and\ncurrency had a positive impact of 2 percentage points.\n\nOperating income was USD 10.8 billion (-23%, -24% cc), declining mainly due to\nhigher R&D expenses, including a USD 1.9 billion partial impairment charge of\nthe del-desiran IPR&D asset, and higher other expense.\n\nNet income was USD 7.6 billion (-34%, -35% cc), mainly due to lower operating\nincome, higher interest expense and higher income taxes. EPS was USD 4.01\n(-32%, -33% cc).\n\nCore operating income was USD 16.9 billion (-1%, -2% cc), declining mainly due\nto higher R&D expenses and higher other expense, partly offset by lower SG&A\nexpenses. Core operating income margin was 40.1% of net sales, decreasing 1.1\npercentage points (0.8 percentage points in cc).\n\nCore net income was USD 13.0 billion (-4%, -5% cc), mainly due to lower core\noperating income and higher interest expense. Core EPS was USD 6.85 (-1%, -3%\ncc), benefiting from the lower weighted average number of shares outstanding.\n\nFree cash flow amounted to USD 14.0 billion (-12%), declining due to lower net\ncash flows from operating activities.\n\nQ3 priority brands\n\nUnderpinning our financial results in the quarter is a continued focus on key\ngrowth drivers (ranked in order of contribution to Q3 growth) including:\n\n Kisqali          (USD 1 821 million, +37% cc) continued to grow strongly across all regions, with market share growth in early breast cancer and leadership in metastatic breast cancer.                                                                           \n Kesimpta         (USD 1 484 million, +22% cc) sales showed continued strong momentum globally, driven by increased demand and broad access.                                                                                                                        \n Scemblix         (USD 593 million, +67% cc) sales grew across all regions, with continued strong momentum in the early-line setting in the US, Japan and Germany.                                                                                                  \n L eqvio          (USD 506 million, +63% cc) sales grew across all regions, with continued uptake in China following NRDL inclusion.                                                                                                                                \n Cosentyx         (USD 1 857 million, +9% cc) sales grew in most markets, driven by the HS and SpA indications. US growth benefited from prior-year revenue deduction adjustments.                                                                                  \n P luvicto        (USD 674 million, +20% cc) sales showed continued strong demand driven by the mAPMR¹ setting, with US and China approvals in mAPMN/S² in Q3, and ongoing access expansion ex-US.                                                                  \n Zolgensma Group  (USD 404 million, +35% cc) sales grew strongly, reflecting continued launch momentum from Itvisma in the US, Japan and other ex-US countries.                                                                                                     \n R hapsido        (USD 101 million) continued to show strong launch uptake in the US, supported by sustained prescription growth and a free drug program facilitating patient access. Ex-US, sales were mainly driven by early launch uptake in Germany and China.  \n F abhalta        (USD 237 million, +60% cc) sales grew, with expansion in PNH and renal indications.                                                                                                                                                               \n\n(1) Metastatic androgen pathway modulation-resistant prostate cancer (mAPMR),\nalso known as metastatic castration resistant prostate cancer (mCRPC).\n(² ) Metastatic androgen pathway modulation-naïve or sensitive prostate\ncancer (mAPMN/S), also known as metastatic hormone-sensitive prostate cancer\n(mHSPC).\n\nNet sales of the top 20 brands in the third quarter and nine months\n\n                      Q3 2026  % change      9M 2026  % change      \n                      USD m    USD    cc     USD m    USD    cc     \n Cosentyx             1 857    9      9      5 247    8      6      \n Kisqali              1 821    37     37     5 032    45     44     \n Kesimpta             1 484    21     22     4 072    27     26     \n Entresto             1 165    -38    -38    3 651    -44    -45    \n Pluvicto             674      20     20     1 967    42     41     \n Jakavi               564      5      5      1 697    9      6      \n Tafinlar + Mekinist  570      4      4      1 644    -2     -4     \n Ilaris               591      25     26     1 616    18     17     \n Scemblix             593      66     67     1 588    78     78     \n Leqvio               506      64     63     1 438    67     63     \n Zolgensma Group      404      34     35     1 071    16     13     \n Xolair               331      -25    -25    1 061    -21    -23    \n Sandostatin Group    311      3      3      900      -2     -4     \n Lutathera            219      3      3      655      7      6      \n Fabhalta             237      59     60     631      80     79     \n Exforge Group        183      4      1      577      6      2      \n Promacta/Revolade    142      -61    -61    505      -64    -65    \n Diovan Group         137      -4     -6     447      0      -3     \n Tasigna              141      -36    -37    438      -53    -54    \n Piqray/Vijoice       122      36     37     326      8      8      \n Top 20 brands total  12 052   7      7      34 563   3      1      \n\nR&D update – key developments from the third quarter\n\nNew approvals\n\n Rhapsido (remibrutinib)                          In October, FDA approved Rhapsido as the first treatment for adults with symptomatic dermographism (SD) inadequately controlled by H1 antihistamines, expanding its use beyond chronic spontaneous urticaria (CSU) into chronic inducible urticaria (CIndU). Novartis plans to submit the full RemIND dataset to health authorities globally.  \n Pluvicto (lutetium Lu177 vipivotide tetraxetan)  FDA and China’s NMPA approved Pluvicto in combination with an androgen receptor pathway inhibitor (ARPI) for patients with PSMA+ metastatic androgen pathway modulation-naive/sensitive (mAPMN/S) prostate cancer¹. Pluvicto is now approved across all stages of PSMA+ metastatic prostate cancer.                                            \n Fabhalta (iptacopan)                             Japan’s MHLW approved Fabhalta for the treatment of IgA nephropathy (IgAN), making it the first approved treatment for this indication in Japan.  Additionally, FDA granted traditional approval of Fabhalta in IgAN.                                                                                                                          \n\n¹  Also known as metastatic hormone-sensitive prostate cancer (mHSPC).\n\nRegulatory updates\n\n Cosentyx (secukinumab)         CHMP adopted a positive opinion recommending approval for Cosentyx in polymyalgia rheumatica (PMR), based on positive Phase III REPLENISH data. If approved, Cosentyx will be the first IL-17A inhibitor approved in Europe for PMR.                                                                                                                                           \n DAK539 (pelabresib)            Regulatory submission for pelabresib in myelofibrosis was completed in the EU, based on the positive Phase III MANIFEST-2 study, which showed deep and durable disease control, with a safety profile comparable to ruxolitinib alone, including numerically fewer deaths and disease progressions in the pelabresib arm.                                                      \n KPE179 (del-zota)              Del-zota was granted priority review by FDA for people living with Duchenne muscular dystrophy who have a genetic variant that may be amenable to exon 44 skipping (DMD44). Del-zota previously received FDA Breakthrough Therapy designation.                                                                                                                                 \n Leqvio (inclisiran)            FDA updated the Leqvio label to include language recognizing that lowering LDL-C reduces the risk of major adverse cardiovascular events (MACE) in adults at increased cardiovascular risk. This update reflects established evidence from statins and monoclonal antibody PCSK9 inhibitors, supporting LDL-C reduction as a key component of cardiovascular risk management.  \n Vanrafia (atrasentan)          Regulatory submissions for Vanrafia in IgAN were completed in Japan and China.                                                                                                                                                                                                                                                                                                 \n KLU156                         Regulatory submission for KLU156 in uncomplicated malaria was completed in the US and received priority review.                                                                                                                                                                                                                                                                \n (ganaplacide + lumefantrine)                                                                                                                                                                                                                                                                                                                                                                                  \n\nResults from ongoing trials and other highlights\n\n LOU064                 Positive results from the Phase III REMODEL-1 and -2 trials showed oral remibrutinib met its primary endpoint in relapsing multiple sclerosis (RMS), significantly reducing annualized relapse rate (ARR) versus teriflunomide. Remibrutinib also showed        \n (remibrutinib)         superiority on all key secondary endpoints, including MRI lesion reduction, and a clinically meaningful delay in disability progression. The safety profile was favorable and consistent with remibrutinib in CSU, with no liver safety signal. Data were       \n                        presented at MSToronto2026 in October.                                                                                                                                                                                                                          \n EWF980 (del-desiran)   In the Phase III HARBOR study, del-desiran did not meet its primary endpoint of video hand opening time (vHOT) versus placebo in myotonic dystrophy type 1 (DM1). Evidence of clinical activity was observed in secondary endpoints and exploratory analyses.   \n                        Novartis is evaluating the full HARBOR dataset and will engage with health authorities to determine the most appropriate development path. Data will be presented at an upcoming medical congress.                                                              \n TQJ230 (pelacarsen)    In the Phase III HORIZON trial, pelacarsen did not meet its primary endpoint of reducing the risk of cardiovascular events versus placebo in patients with elevated Lp(a) and established cardiovascular disease (CVD), despite reducing Lp(a) levels in this   \n                        study population. The findings provide important new evidence on the relationship between Lp(a) lowering and cardiovascular outcomes and may help inform future approaches to cardiovascular risk management. Data will be presented at an upcoming medical     \n                        congress.                                                                                                                                                                                                                                                       \n Kisqali (ribociclib)   The six-year follow-up analysis of the Phase III NATALEE trial showed a clinically meaningful overall survival (OS) benefit with Kisqali plus endocrine therapy (ET) versus ET alone in the broadest HR+/HER2- early breast cancer (eBC) population at high risk \n                        of recurrence, reducing the risk of death by nearly 20%. Patients had been off Kisqali treatment for a median of 38 months, with clinical benefit continuing to deepen after treatment completion. The safety profile remained consistent with previous         \n                        analyses. Data were presented at ESMO 2026.                                                                                                                                                                                                                     \n LOU064 (remibrutinib)  Novartis has discontinued the Phase III study of remibrutinib in generalized myasthenia gravis (gMG) following a futility analysis, which indicated the treatment was unlikely to meet its efficacy objectives. No safety concerns were identified, and there is \n                        no impact on remibrutinib studies in other indications.                                                                                                                                                                                                         \n Selected transactions  Novartis completed the acquisition of Myricx Bio, strengthening the oncology pipeline with a new class of antibody-drug conjugates (ADCs), including two lead assets targeting B7-H3 and HER2, as well as a broader payload platform with potential impact      \n                        across multiple solid tumor settings.  Novartis exercised its exclusive option to acquire full global rights to Sironax's proprietary Brain Delivery Module (BDM) platform, a next-generation blood-brain barrier crossing technology with the potential to     \n                        transform the treatment of central nervous system diseases.  Novartis entered into an exclusive global licensing agreement with BoomRay Pharmaceuticals for an undisclosed preclinical radioligand therapy asset, further strengthening its radioligand therapy \n                        portfolio.  In October, Novartis entered into a strategic licensing and option agreement with Abogen Biosciences to advance RNA-encoded therapeutics, including an exclusive worldwide license to ABO2203, a novel mRNA-encoded CD19xCD3 T-cell engager with the \n                        potential to transform the treatment landscape for autoimmune diseases. The transaction is subject to the completion of customary closing conditions.                                                                                                           \n\nCapital structure and net debt\n\nRetaining a good balance between investment in the business, a strong capital\nstructure, and attractive shareholder returns remains a priority.\n\nDuring the first nine months of 2026, Novartis repurchased 30.9 million shares\nfor USD 4.7 billion on the SIX Swiss Exchange second trading line. These\nrepurchases included 18.8 million shares (USD 2.8 billion) under the up-to USD\n10 billion share buyback announced in July 2025 (with up to USD 4.9 billion\nstill to be executed). In addition, 12.1 million shares (USD 1.8 billion) were\nrepurchased to mitigate the anticipated full-year dilution related to\nparticipation plans of employees. Further, 2.0 million shares (USD 0.3\nbillion) were repurchased from employees. During the same period, USD 0.9\nbillion of equity-based compensation plan expenses were recognized to equity\nand 13.3 million shares were delivered to employees related to equity-based\ncompensation plans from prior years. As a result, the total number of shares\noutstanding decreased by 19.6 million compared with December 31, 2025. These\ntreasury share transactions resulted in an equity decrease of USD 4.1 billion\nand a cash outflow of USD 4.8 billion.\n\nNet debt increased to USD 37.4 billion at September 30, 2026, compared with\nUSD 21.9 billion at December 31, 2025. The increase was mainly due to the free\ncash flow of USD 14.0 billion being more than offset by the net cash outflow\nfor M&A, intangible assets transactions and other acquisitions of USD 16.7\nbillion, the USD 9.1 billion annual dividend payment and cash outflows for\ntreasury share transactions of USD 4.8 billion.\n\nAs of Q3 2026, the long-term credit rating for the company is Aa3 with\nMoody’s Ratings and AA- with S&P Global Ratings.\n\n2026 outlook\n\n Barring unforeseen events; growth vs. prior year in cc                                                   \n Net sales              Expected to grow low single-digit                                                 \n Core operating income  Expected to be in line to grow low single-digit  (from decline low single-digit)  \n\nForeign exchange impact\n\nIf late-October exchange rates prevail for the remainder of 2026, the foreign\nexchange impact for the year would be positive 1 percentage point on net sales\nand positive 1 percentage point on core operating income. The estimated impact\nof exchange rates on our results is provided monthly on our website.\n\n2027 Annual General Meeting\n\nNomination for election to the Board of Directors\n\nThe Novartis Board of Directors announced today that it is nominating Rajesh\nJha for election to the Board. During a 36-year career at Microsoft, Mr. Jha\nheld a series of senior leadership roles across software engineering,\nproductivity platforms and enterprise technologies, and served on the\ncompany's Senior Leadership Team from 2016 until his retirement. Most\nrecently, he served as Executive Vice President, Experiences + Devices, where\nhe led the product teams for Microsoft 365, Office, Teams, Windows + Devices,\nand Dynamics, and played a key role in the integration of artificial\nintelligence across Microsoft's product portfolio. His extensive experience in\ntechnology, AI and large-scale digital platforms would add significantly to\nthe Novartis Board of Directors.\n\nKey figures¹ \n\n                        Q3 2026  Q3 2025  % change       9M 2026  9M 2025  % change      \n                        USD m²   USD m²   USD  cc        USD m²   USD m²   USD    cc     \n Net sales              14 522   13 909   4    4         42 043   41 196   2      0      \n Operating income       1 843    4 501    -59  -61       10 828   14 028   -23    -24    \n As a % of sales        12.7     32.4                    25.8     34.1                   \n Net income             1 196    3 930    -70  -71       7 609    11 563   -34    -35    \n EPS (USD)              0.63     2.04     -69  -70       4.01     5.94     -32    -33    \n Net cash flows from    5 503    6 571    -16            15 061   16 880   -11           \n operating activities                                                                    \n Non-IFRS measures                                                                       \n Free cash flow         5 111    6 217    -18            14 002   15 941   -12           \n Core operating income  6 036    5 460    11   10        16 873   16 960   -1     -2     \n As a % of sales        41.6     39.3                    40.1     41.2                   \n Core net income        4 655    4 330    8    6         13 027   13 522   -4     -5     \n Core EPS (USD)         2.46     2.25     9    8         6.85     6.94     -1     -3     \n\n1. Constant currencies (cc), core results and free cash flow are non-IFRS\nmeasures. An explanation of non-IFRS measures can be found on page 45 of the\nCondensed Interim Financial Report. Unless otherwise noted, all growth rates\nin this Release refer to same period in prior year.     2. USD millions\nunless indicated otherwise.\n\nDetailed financial results accompanying this press release are included in the\nCondensed Interim Financial Report at the link below:\nhttps://www.novartis.com/sites/novartis_com/files/q3-2026-interim-financial-report-en.pdf\n\nDisclaimer\nThis communication contains forward-looking statements within the meaning of\nthe United States Private Securities Litigation Reform Act of 1995, that can\ngenerally be identified by words such as “expected,” “anticipated,”\n“can,” “will,” “continue,” “ongoing,” “growth,”\n“launch,” “expanding,” “deliver,” “accelerate,”\n“guidance,” “outlook,” “priority,” “potential,”\n“momentum,” “on track,” “pipeline,” “evidence,”\n“progress,” “emerging,” or similar expressions, or by express or\nimplied discussions regarding: potential new products, potential new\nindications for existing products, potential product launches or potential\nfuture revenues from any such products; or results of ongoing clinical trials;\npotential future, pending or announced transactions; potential future sales or\nearnings; strategy, plans, expectations or intentions, including discussions\nregarding our continued investment into new R&D capabilities and\nmanufacturing; our capital structure. You should not place undue reliance on\nthese statements. Such forward-looking statements are based on the current\nbeliefs and expectations of management regarding future events and are subject\nto significant known and unknown risks and uncertainties. Should one or more\nof these risks or uncertainties materialize, or should underlying assumptions\nprove incorrect, actual results may vary materially from those set forth in\nthe forward-looking statements. There can be no guarantee that the\ninvestigational or approved products described in this communication will be\nsubmitted or approved for sale or for any additional indications or labeling\nin any market, or at any particular time. Nor can there be any guarantee that\nsuch products will be commercially successful in the future. Neither can there\nbe any guarantee that the expected benefits or synergies from the transactions\ndescribed in this communication will be achieved in the expected timeframe, or\nat all. In particular, our expectations could be affected by, among other\nthings, uncertainties concerning: global healthcare cost containment,\nincluding ongoing government, payer and general public pricing and\nreimbursement pressures and requirements for increased pricing transparency;\nthe success of key products, commercial priorities and strategy; the research\nand development of new products, including clinical trial results and\nadditional analysis of existing clinical data; our ability to obtain or\nmaintain proprietary intellectual property protection, including the ultimate\nextent of the impact on Novartis of the loss of patent protection and\nexclusivity on key products; our ability to realize the strategic benefits,\noperational efficiencies or opportunities expected from our external business\nopportunities; the development or adoption of new technologies, including\nartificial intelligence, and new business models; the implementation of our\nnew IT projects and systems; potential significant breaches of information\nsecurity or disruptions of our information technology systems; actual or\npotential legal proceedings, including regulatory actions or delays or\ngovernment regulation related to the products and pipeline products described\nin this communication; safety, quality, data integrity, or manufacturing\nissues; our performance on and ability to comply with environmental, social\nand governance measures and requirements; major macroeconomic and geo- and\nsocio-political developments, including the impact of any potential tariffs on\nour products or the impact of war in certain parts of the world; future global\nexchange rates; future demand for our products; and other risks and factors\nreferred to in Novartis AG’s most recently filed Form 20-F and in subsequent\nreports filed with, or furnished to, the US Securities and Exchange\nCommission. Novartis is providing the information in this communication as of\nthis date and does not undertake any obligation to update any forward-looking\nstatements as a result of new information, future events or otherwise.\n\nAll product names appearing in italics are trademarks owned by or licensed to\nNovartis.\n\nAbout Novartis \nNovartis is an innovative medicines company. Every day, we work to reimagine\nmedicine to improve and extend people’s lives so that patients, healthcare\nprofessionals and societies are empowered in the face of serious disease. Our\nmedicines reach more than 300 million people worldwide.\n\nReimagine medicine with us: Visit us at https://www.novartis.com and connect\nwith us on LinkedIn (https://www.linkedin.com/company/novartis/), Facebook\n(https://www.facebook.com/novartis/), X/Twitter (https://twitter.com/Novartis)\nand Instagram\n(https://instagram.com/novartis?igshid=MzRlODBiNWFlZA==__;!!N3hqHg43uw!pjp8z253J5NjaOYrW65UbAAlHeHRdQ-w0m4ezZxEQEl0ptafXN2M99VRIk39pf49PAc8NbK93Pxp3uaSBQkAf8oEnzWXG8Sk$).\n\nNovartis will conduct a conference call with investors to discuss this news\nrelease today at 13:00 Central European time and 8:00 Eastern Time. A\nsimultaneous webcast of the call for investors and other interested parties\nmay be accessed by visiting the Novartis website. A replay will be available\nafter the live webcast by visiting\nhttps://www.novartis.com/investors/event-calendar.\n\nDetailed financial results accompanying this press release are included in the\nCondensed Interim Financial Report at the link below. Additional information\nis provided on our business and pipeline of selected compounds in late-stage\ndevelopment. A copy of today's earnings call presentation can be found at\nhttps://www.novartis.com/investors/event-calendar.\n\n Important dates                                                   \n November 18-19, 2026  Meet Novartis Management 2026 (London, UK)  \n February 3, 2027      Fourth quarter & full year 2026 results     \n March 5, 2027         Annual General Meeting                      \n\n# # #\n\n Novartis Media Relations E-mail: media.relations@novartis.com                                                                   \n                                                                                                                                 \n Novartis Investor Relations Central investor relations line: +41 61 324 7944 E-mail: investor.relations@novartis.com            \n\nPlease find full media release in English attached and on the following link: \nMedia release (PDF)\n(http://ml-eu.globenewswire.com/Resource/Download/5b219601-8446-4bd3-9e35-a930589dcbea)\n\nFurther language versions are available through the following links:\n\nGerman version is available through the following link:\nMedienmitteilung (PDF)\n(http://ml-eu.globenewswire.com/Resource/Download/a4ce199a-b08d-41a6-99dd-0a69c2f72b49)"},"type":"article","timestamp":"2026-10-27T06:00:00.364820889Z","server_sent_at_ms":1793080800364},"received_at":"2026-10-27T06:00:00.547Z","source_url":null},"analysis":{"id":"168281","press_release_id":"180435","analysis_json":{"industry":{"label":"Pharmaceuticals","sector":"Health Care"},"redFlags":["USD 1.9B impairment after del-desiran Phase III miss in DM1","pelacarsen Phase III HORIZON trial missed primary endpoint in elevated Lp(a)","Phase III remibrutinib gMG study discontinued for futility","Q3 free cash flow down 18%; 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