NVS - Earnings call transcript Q3 2021

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Operator

Good morning and good afternoon, and welcome to the Novartis Q3, 2021 results release, conference call, and live webcast. Please note that during the presentation, all participants will be in a listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions by [Operator Instructions] at anytime during the conference. A recording of the conference call, including the Q&A session will be available on our website shortly after the call ends. Should anyone need assistance joining the conference call, they may signal the Operator by [Operator Instruction]. like over would Mr. I that to to hand With of Samir Head Relations. Shah, Global Investor sir. ahead, go Please

Samir Shah

Thank And factors. such achievements materially involve any different that to very presented you QX other future and you much. conference statements. today for expressed to actual would Novartis cause results, taking risks, thank contains unknown like forward-looking the The time call. participate statements may known the or hello, in information or from by everybody. implied results and performance uncertainties, These to I be

factors, For as a that, I'll description Exchange please on were of refer call quarterly to the recent hand and the some Form XX-F and Vas. of the Form with And that Securities respectively these filed Commission. Company's with results to X-K, to most furnished U.S.

Vas Narasimhan

Thank today's and Harry, me if up John, joining Karen, X On of for conference the and Marie-France, Richard, everyone could Slide you've call. with have you, for room, thank who I have in from. slide the room, Samir, heard the colleagues. I me Samir, just Susanne, you our in course With with

So Slide wanted start and X. taking and X to continues. back turning how really a We step this on Slide by reflecting quarter to then

I the the think years to for past what back X trend has for over been of each a X Company at the very strong months years, looking XXXX.

our annual consistently sales innovative You XX% X%, margins. our ability consistent core grow at and medicines see, we've a operating of expansion demonstrated to the on CAGR income

us first foremost, about talk call period technology which enable the are investment differentiate X% our which have drivers, have of innovations our growth. to at and think we our sales coming mid-stage a key on belief drive the continued more Now to that us and looking flow growth by we over platforms and will we to steady grow strong behind of ahead, a driven CAGR over continue we over course pipeline stand we'll can time the this of

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each drivers. had our margin four I productivity, and go strong you call about of in we then value and the through our it of sales performance was main IM Marie-France We're For details. innovation colleagues talk give the good innovation the QX, negatives, longer-term will our lead Day across we but more more in also later growth I operating reaching the where now and throughout busy to core Harry the moving continue on on on, think -- in XX.X% will we milestones quarter but more to detail a our front, but across some laid recent And only balance, lastly, for in Slide out ESG ESG, had on to we we X. the innovation have biopharmaceutical with overall ambition strategy, companies. our industry, us efforts. positives journey our but ESG some And on and continue large not our We'll

that that from that overcome versus I course very time. innovations that and of generate have coming consistent of power performance. But XX% And drivers in we think growth in to over up has with through some the brands. continue the brands We'll that a the a launches year. that's growth can key our prior momentum of go key we're the pleased We're now these demonstrates growth that QX. in Our Company expiries sales And the quarter drive XX% over good had call. notably, replacement

and XX% trajectory that go growth on bit of XX%, strong X, Slide accelerating brands, a through its will continues and up and to Cosentyx detail. launch XX% we some on our particularly growing solid more including Zolgensma key up Kisqali and in Entresto had Moving was XX%, Marie-France Kesimpta

sales peak we'd X, slide our Cosentyx and for guidance are morning raising to Moving both announced Entresto. this we

So to life brand bit be guidance penetration well is story a to And peak strong believe billion. driven later. to and Novartis a through on from of opportunities. to funds this geographic And raised driven sales continue This have we We've Cosentyx cycle moving through to first and management expansion. expect our detail as geographic by element this to continue decade. known, we'll go X strong as expansion, more we we'll believe back in on we entire growth by Entresto, this market have a market growth, guidelines

Our LOE consistent guidance of XXXX. our with stated is sales an currently assumption peak in

medicine. wanted this were the on growth And also continue in next defend However, word to continue say leading we our out that to to of our the the do additional XXXX have China market issued patents going I one and maximize out slide. XXXX. IP issued to group to strong trajectory, will in we aggressively recently patents China. and impact a where moving And the to of multinationals to

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the China track on confident So to we XXXX. our are from we by double XXXX based sales are

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take a did to billion wave And Sandoz wanted Novartis we of decade. to strategic bio-similars that When each in review over that over owned going we're morning $XXX shareholders you is of be of market really party. drivers well-placed antibiotics. next number attractive in within will next position slide, the with Sandoz to well that a determine GX those a the create Sandoz more turn, by attractive. autonomous as what had leader sales consistent also ago. the outlined commencing growth or ROE to to its think the And believe next launches. years coming have bio-similars, a like in X in announce give as leading stated Europe moving Novartis we capitalize the well a we in and us CAGR place. is market clear optionality to and another few put this on that We his decade, was by Sandoz of areas Now placed or Sandoz strategic of Sandoz position We is team is our the ultimately best in Richard a we where And X%, think and focus the we

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Moving to Slide XX.

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carbon million it therapy environmental reached Lastly, to other hand to addressing inequities companies, over will of before at ESG patients these that, Marie-France. commitment now to achieve we've the be in to COP XX next-generation they I over handing X our by disparities And With using entering efforts, with studies, science-based U.S.. XX. a we've XX-year health targets our health a accelerator net on many phase of Marie-France, X large commitment of support committed all top Consistent malarial and will other XXXX. announcing it really

Marie France

Vas. you Thank

Sales It's by to the drivers, this focus of -- geographies. supported share Slide to by quarter, drivers, launch for division execution my growth onto clear across afternoon grew and XX our morning, solid Pharmaceuticals So all. our results of X% the QX. driven good a moving Good pleasure the

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momentum can Looking at us and track to we're our a year-to-date, have on to you strong year. finish accelerating see the

evidenced Europe reinforcing our In Slide To China, strengthened remain China market. groups volume base beyond, position XX, we're and marketing spon market. needs listing. pediatric Cosentyx third the leadership multiple our skin in the in our who execution the And from rheumatology. competitiveness with growing Moving is teams, from of contribution the and flawless the in of PSO solid NRDL XX% biggest of can maintain and with joints. activation with in onto leveraging our safety grew now X our axial We've also we're on and with Cosentyx. We're proven and QX of dermatology Further key efficacy both and the our holding all-in-one indications. that the our PSA patients both patients, momentum we focused those strong comorbidity in release. efficacy benefit U.S. field,

move on Slide XX. So to I'll

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XX. our onto we're Leqvio, certainly broad implement reaching approval Slide nice agreement we saw received Moving commercial you working and must On England. with to NHS that currently

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me let Susanne. hand it to Now, over

Susanne Schaffert

Marie-France. you, Thank

billion. versus quarter Moving a delivered oncology business with the year to growing Slide solid X.X X% of prior XX, sales

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last progressing Our on and campaign Phenotypic among Medicine physicians the Precision awareness is doubling over the target with months. XX awareness PSMA well

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with moving cancer. Phase confidence and taxane X therapy Lu-PSMA of we're lines this X metastatic - initiated pre have in So prostate and cancer hormone-sensitive earlier studies prostate metastatic in into

that, very to overall, bringing looking these assets over X So forward market much hand I and to to Harry. with

Harry Kirsch

in third now the months walk going Good some Susanne. X to through constant for comments quarter And I'm noted. referred the everyone. to afternoon, otherwise currencies, unless growth of morning rates financials my of and the good always, first Thank the and you, year. as you

months, X summary X the very solid innovative received medicines performance performance XX, the quarter Slide a quarter, on our of So strong of division. with third first for our operational

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On margin delivered And the growth, XX%. strong a I almost our division. with break please. Slide X% line quarter bottom Company to slide, and medicines, XX, down solid driven the want Next performance a growth, as mentioned, of by of top line XX% was performance by innovative which

Looking equals topline the the to remind showed of Medicines a for and X% bottom like with just line XX%. months X% the on X year, Innovative margins. of of seasonality the first margins head you on to of I

double-digit sales of Marie-France, know, to usually XX% TKI. for strong billion was the you growing As XX%. medicines X.X performance Innovative sales Cosentyx, phasing. growing the X.X with billion and with higher lowest has fourth quarter margin and continued mentioned Vas, year-to-date Susanne grow, growth spending Entresto by due driven

billion in GenPower already So launch sales, the was accelerating. X reached

do Onco control the very to thrivers well. Additionally, continue

reflects months other the a of than performance parts Moving impact the X heavier to in Sandoz, business. from COVID

Sandoz driven impacted to the sales prior and a wider US biopharmaceuticals erosion, market. However, retail were U.S. generics. year. both continues challenging Ex-U.S. be well some have seen recovery, partnership where by terminations, off-contract as business quarter in X, by The price environment particularly as X% generics for double-digit to the sales grew higher states

I also improve want highlight impressive as the the deliver. and midterm the to of U.S. However, our we impact situation COVID-XX expect to begin the in launches biosimilar XX. to just in the growth. lessons On Slide

free first X payment capital. is favorable cash have lower been legal operating prior billion to up months, higher for matters this last the flow, XX.X to year had main drivers of year. The and compared we now seen from what XX% compared We which have income, working the

to Now, XX. full-year confirmed on the turning for our current Overall Group, Slide guidance. we guidance

mid-single-digit expect for bottom mid-single-digit For and continue sales, the sales. growth expect we ahead low to growth we to line, of

guidance, line our the we fine-tuning line confirming Innovative are For Sandoz, top we're and but guidance. Medicines bottom

grow We continue the to sales income which Medicines mid-single high to the guidance, operating expect single-digit. revise we performance of we digits. grow to upwards now Reflecting core division, Innovative have to expect strong division

And teens. no the but return healthcare decline we assumption to of that we key generics the in U.S. for expect to in prescription the range, continue core assume global market mid-single-digit the systems The is continue to sales we of Sandoz, income now normal decline XXXX. year. enter continuation the we and that expect For to to see high operating addition, to guidance dynamics in remainder low to mid to

short, for Next growth the sales growth topline quarter to top to bottom-line growth mid guidance of our singl operating slide, please. thought had mid full-year and digit We with for helpful high our and range you we both our digits. Taking expectations for single year-to-date and brings the X% - the X X income growth growing mid-single in for core low account bottom expect into digit to single line, it us this line. grow be in the might we quarter similar it in digit to fourth a In outline quarter. as

on Finally, to exchange want Slide changing, constantly the bring to the results current attention estimated our as are XX, I rates. currencies currencies, using impact what your to happened

if positive October be rates So core the late XXXX, impact prevail of on income. full-year would remainder of for operating and currencies the both points sales X a

website update a impacts of I'll it on on a And with income. For operating X hand be that, quarter monthly it as X, Vas. And and basis. back -X% always we reminder, and core these currencies would sales on to on our -X% over the point between point

Vas Narasimhan

Harry. you, Thank

events Based December Slide Xnd event year. our feedback to XX. space, our Innovative to are want later of from focused as the into capital some we on an and next holding our convert event to be We Moving decided Medicines. R&D investors, you did year on we'll on update give markets we've this

platforms Novartis our and as technology key we Here XXrd to on and R&D a discuss we'll our as on plan May other hand our portfolio management our each management hope go newer for within in efforts life-cycle XXth, areas, mid-stage NIBR. programs, therapeutic in-person. to we'll meet scientists of which XXXX, asset, And over event, hold well our

We the our we've growth guidance, in of the Innovative operating And Medicines, business we've mid-term, a is performance brands and is closing strategic but Slide the Company. and moment owner to Sandoz, in attractive who best for sales really leading confidence confident longer-term. Moving our XX launch to our quarter, an generics, in also long the for science-based growth review peak term. the market for demonstrating in that right our not only pipeline, raised announced the innovation in business solid evaluate remain with long-term this of strong the the from the fuel and to really the

for So to I the thank and accommodate everyone's our could the you you queue, we very X questions. questioners, to would back each best lineup much limit for we'll open say do to into if yourself question of then and listening our could questions. move

line. the open with So Operator, please

Operator

Instructions]. reminded, Be to [Operator question a ask

from ask question Parry the of Graham your of first line Your comes Bank America, please question. from

Graham Parry

Great. Thanks question. taking the for

for feedback that is asking as comments acceptable it disease separating. X contrary NATALEE and detriment slide more invasive survival are no occurs where That how it's you the endpoint, overall primary XX:XX:XX] your that provided seems re-reviewed to a and survival. treated were the it's RAC to FDA on if So on they [inaudible

And population when why that differently you. cash the just XX given previous you also think Tasigna. could was feedback do well was FDA could are FDA as or So by-market -- treat from clarify (ph). by Bosinio you -- your in Kisqali you and and score Thank for given interested stratifying

Vas Narasimhan

Graham. John? Thanks,

John Tsai

quarter endpoints discussions us gave they and endpoint. based was have would trial did population. These And we on sample DFS say for size I our that end the trials. the included We where increased third that the these design the would knowing our clear recent, invasive it the feedback NATALEE FDA that we've we discussions the the NATALEE the overall on Graham. actually of for very supportive and with for question, the study criteria discussions Thanks the have be were within

overall with Given based earlier the that of upon shared evidence totality obviously the disclosed would as you. the be available, and results that's

population at overall. on the criteria. on select also That patient the We the population intermediate includes have the and patients AJCC patient population. We've high-risk at which overall looked study, high-risk based to is test the looked overall and gene-expression in focused biomarkers

population. So the in also what are rates on population, as the risk is we IDFS this the know based high-risk similar in intermediate intermediate risk population

based we're on the the here, of in totality background So overall very confident approach. our

Vas Narasimhan

but Maybe Ki-XX specifically. course that data will we Thanks right analysis statistical And requested. collect do I We not just and in wanted of now study, the share Graham. this data with think our part that's the plan. of when FDA

question. Next

Operator

Thank you.

the of line comes your question next please Your ask Peter question. Welford from Jefferies, from

Peter Welford

Thanks for taking my question.

Sandoz I review, the year tops turning businesses now appropriate also not at still or that you of potentially a a looking that that global the margins it's whether business, the and be this decline on that strategic business back you. guess, VA both, for there are what us in into I to business separated. positive also the trajectory and business Just if now you put internally wonder into there's you'll Novartis. next is metrics the but of solid Thank is terminal believe say or you essentially before growth, or not if perhaps, can is on course during still and assessing give insight some to U.S. part

Vas Narasimhan

Peter. you, Than

as we as holding business between course, of these business, number the of as outbound think the dis-synergies well always and Sandoz consider I One, well, we is synergies our as So factors. both learned between of the as review through business. a and Innovative our Medicines

anything and capital we're factors, be at relevant shareholders shareholder the the you our are consider which We, and taking understanding would adapting then the think, measures we're best saw that I relevant think the to Company allocation generics consider, want mean, leading I for optimately enable strokes, to would to making add? ensure all with in-broad and able Harry, you also factors. and businesses to to returns. actions. hopefully the that spend Company best of those allocating best decision course, to the the capital I Alcon And that. us these We what in and the enable want maximize generics build allocation to world capital aspiration

Harry Kirsch

part this consider. this to the think the owner I think, of different those it fundamentally, always would down I good be the business. we But of different tax generic our Peter, best of implications, very course, all is review. would retaining details, business, course, all comes of I if that strategic will of of think all And other right? the you not question of would, be The expect who options,

Vas Narasimhan

Maybe Richard? profile, Richard on the growth

Richard Saynor

we're number into launches we the of the the years, I Yes. of small X noting comment international deals over -- both in the worth marketplace of the oral our also more the is change next also well. U.S. a about that number long-term terms the much X, washing accelerate XX is over the the but should months as more of we last U.S. to very clearly Peter, as launches, you Thank you, as of few that's business, growth year, back European molecule now Vas. solids business had out which a direction importantly, business. bring the It's and business The we that the mean, currently partnership medium number U.S. biosimilars attractive in and we've both materially

starting it's post-COVID. broadly, to normalize So

Vas Narasimhan

Thanks, Peter, for Richard. question. Thanks, the

Next question, Operator.

Operator

you. Thank

Please from your from ask comes question question. Baum next Citi. Andrew of Your line the

Andrew Baum

the curves, to treatment that With mechanism, mind, in viable attributed should is that relates terms metastatic I if we Canakinumab in John patients. was we these assuming early the Thank remember with a a you. to the supression effect of It for if Question disease John. Canakinumab. it any therefore saw meaning expect in the of perhaps indication, geocentric you whether read given for this very separately, to this an role comment And should in analysis productivity out its increasingly adjuvant see of then there's positively? degree. could drug with well-served the interim even we on doesn't, success is low. And is it

and indication, way. more Thank drugs So you. -- more the on

Vas Narasimhan

it take study I was I'll here Andrew, for up CANTOS development. because the

X an inclusion of milligrams was criteria cancer DL it's that that result, HSCRP. I first important in in the of study kind to X product in range the of that had population. note The foremost, of median study So to and X overall think

that the were to Our This, of of hypothesis, these study detected imaging and due were at undetected fulminant the having of tumor in Canakinumab becoming the IL-X through IL-X believe, the the the reduce IL-X setting beta, important Cancers or physical mortality and were synergistic and an they beta -- not time, in potential we cells was that tumor the in micro-environment that potentially the course plays enter therefore, effect a in either the these role a was beta able diagnosis to screening incidence was the cancers. patients. in these enabling as stages setting. in development, and that's of medistatic adjuvant the enabling role initial And role. in IL-X blocking Beta cancer immune to cancers

that So on meaningful. an I interim read be don't going think is this to

that is medicine, the of much study have has first-line any the end. the to children very well very was we experience go find have to this setting. very in positioning see I medicine, our think believe this it to didn't We favorable We going safety in Canakinumab treating this given long tolerated. the profile a differences with view, who

attractive. be could and potential, any for adjuvant clear risk setting that the I having does not all-comers so be say would And high require it's of screening, therapy PD-X the an to

CRP time the consistent study. and CANTOS whether the will adjuvant study studies all-comers the we the well of is as lowest choose inhibitor the an Andrew. of most a in be Beta or have enrolled note all to patients, on study median PD-X therapy figured canopy important from knew levels at out, of the IL-X that CRP the to Thank what CANTOS an physicians the it's is but and based you, study, Now terms group

Next question, operator.

Operator

Thank you.

ask next comes Sutcliffe question Your from from UBS, of please Laura the your line question.

Laura Sutcliffe

Entresto your much. you new date $X that the we've Thank Thank been number of about very guidance, Hello. capture you. XXXX does of LOE billion that possibility on PK an talking so earlier anchor far. And the just than

Vas Narasimhan

Marie-France?

Marie France

Yes.

assumptions, forecasting that's internal our forecasted. we're at and how XXXX for we've looking So

our like say the market X So a mark, detail far, X and feel but that we it's the recent significant comfortable that to more with potential, on based Entresto, assuming on why little launches of guidance, billion bit Asia. the XXXX really for in implementation leads the obviously you'd on plus billion plus and guidelines further internal is us if LOE.

Vas Narasimhan

Marie-France. Thanks,

question, Next Operator.

Operator

question. from from comes next of Redburn, please line ask Baker Your question Simon the your

Simon Baker

but Thanks so had over wondering the diagnostic feedback Tc-PSMA are was there because the excitement a use at more Lu-PSMA, about, much. centered is is wonder huge here, because Question we've PSMA kits, for there you if UK each large harder gallium imaging concern pursuing Susanne some beyond utility on that to that's that seen Lu-PSMA. that from on of I make the I side it elsewhere. for in the screening feedback radiology just is need portly. you've if will

not using If much. of impressive so Tc Thanks more the number you're kit order easy support - use centers on the much looking so that it. PSMA at if administer, in can to to practically quite

Susanne Schaffert

you thank the So question. Samir for

sure and have make really - on wanted ready PSMA, focused is diagnostic have for We a this launch, to to available. that, Gallium we there

for is focus a push other quite diagnostic. the also You a I then, PSMA fluoride, and think on gallium see options there

this the the still, would diagnostics. As across most I It's say is used TX mark.

the that I mean earlier really one. think have UK, an that have certainly I lines in available that's you about the that hear to we very and so see SBR targeting is quite of easily therapy. didn't fluoride tagnisium(Ph) available ex-UK, focused diagnostic is much and I

is So on, in probably?tech? U.S. are sorry, that's and the we U.K. -- quite what focused the focusing in

Vas Narasimhan

we for not And collecting factor. a a a comment in question; XX% would plan, but to statistical It's of back, made step wanted I about I clarify XX% NATALEE, Susanne. patients. take It's pre-specified Graham's total analysis part Ki-XX. the are to stratification enrolled I of just the Thanks to

So with that, to next question. we'll move the

Operator

Your Please Keyur question. Goldman line ask your next the from Parekh question of Sachs. from comes

Keyur Parekh

phase, them Thank XXXX, for around you the into remains you with preparedness clear, unclear. clarity partnered question. the the X, in going Marie-France, of can kind the England what the in kind you Leqvio launch very of Leqvio and about Hi. of spoke still confidence for a on that NHS

same if for million give or Leqvio than reflects bit Thank the Do year. we rollout on think appropriately what then the you can revenue about something So UK. that details consensus this of you be next a million the in at And way, higher see next lower should you for think how more molecule drug Or year. about looking us XXX $XXX dynamics is the this in I just about just in we as thinking you. think for launch should this? wondering

Vas Narasimhan

Marie-France?

Marie France

All right.

Leqvio. thanks the about So for question the opportunity talk to and

So ASCVD on from happy fund to of with very approval, the commitment nice we're the first and positive, patients. NHS all, the and XXX,XXX UK, the treat

lowering. proof outcomes on of, the and data we the solid think I solid provides LDL that's based can prior obviously, broad evidence back access the that get C to around

and next to been ramp the And said, significant also expect build we the also from care. we're XXX we then slow great to -- of you doing the to and year turn the educational next incentives funding, patients we're in is around care very and what days, lipids positive, the we're focusing having again GPS expect we're in for be right and central we're here, now doing IDs, feedback So but but work of in up for It's on specialists identified the progress the early pathways this reach UK, so buy-and-bill. really see GPs, and systems is XXXX the programs, U.S. the on patient we're focus UK. -- can a really ramp to if seeing QX, I some the the GP as to going QX months couple networks. digital of looking is for

through going making and buy-and-bill infrastructure, is going year. number year. number focused of building the the year up next the And you that and quoted, will we sure the see reviews, be T comfortable our then of half second and half for towards first that that we're The ready extremely J-code the feel to P with uptake you on the

Vas Narasimhan

Marie-France. Thanks,

operator. question, Next

Operator

Seamus please ask question next comes Guggenheim from Your line Fernandez question. from Security, of the your

Seamus Fernandez

so Thanks great. Oh, much.

that question. GXXC into moved noticed X. is a to planning agent into or Phase Just move your I quick

can with the to inhibitor? think GXXC other in understand therapies differentiation asset data combination planned differentiate prompted that, KRAS do to advancement (ph) the that And X ship is as us just near-term meaningfully help Just that own from the of then development you keyed inhibitor. follow-on a on or your the really its Thanks.

Vas Narasimhan

John? to Thanks, Seamus, I'm handing that John.

John Tsai

Hey, Seamus thanks for the question.

Our KRAS GXXC, program. which is JDQXXX in our

this We by first year. forward really is and seen plan X tolerability and Phase to PK-PD good next and Phase have of half patients. good we've What data the advanced molecule X have

differentiation be is so you our combinations in the your think the a potential strategy of hearing getting that be mutations the specific versus the we've next As you'll KRAS about the GXXC we as will pipeline. What for And shipped the what forward really could combinations. -- these probably in like, and our those GXXC And on with and seen the now. move are combination to approach about and that a approach. be factors marketplace including, as would that forward we durability year. We number is moving mutations. more On PNO far in this marketplace is long not question other this KRAS congresses potential we're seeing

combination hearing also. be next our pipeline about from year You'll that

Vas Narasimhan

Thanks, John.

Operator. question, Next

Operator

Morgan of Your question ask (ph) Capilla Please question. your from the line Stanley. Sureta from next comes

Sureta Capilla (Ph)

Thanks for taking question. my

How already CSQ, OSA. fall fix maker you positioning being lithe rationale us the within thinking breakneck in can taking the other, it? one to for trialed inhibitor math is help to are you of about BTK and and If you. Thank two especially your relative also in when understand assessing assets,

Vas Narasimhan

you question. John. the Thank for

John Tsai

Yes.

and you We as good program is do probably extensive efficacy remibrutinib, strong. we and and selective uptake did highly an saw which So potent released, our the is recently X was Phase was oral really have what and covalent BTK CSU, inhibitor. seen, extremely

seeing at seen at what point. that, the one both efficacy in is XX time week to saw early the at we've we Now addition we're and X and barrier weeks weeks efficacy

see think our we And LFTs, data, safety efficacy saddled turn program. did back which on So strong as really cytopenias. in profile, sometimes also, with not BTK the overall are that inhibitors about we

CSU program. approach, our given Phase our in very III we're advancing comfortable So

QX opportunity at with then Phase be note strong. [indiscernible]. thing -- treatment an the patients one opportunity taking massive given and subcu and We've which population be we're equally And our seen Ligelizumab and need Now, also Ligelizumab. all as II is patient here injection unmet with approach were would oral should large, over we given that giving results CSU a Remibrutinib the would is

Vas Narasimhan

to add is few a Marie-France? Marie-France think I going points, more

Marie France

maybe the size going market unmet the of So to back and just the needs.

So patients the million we adequately top XX CSU are know X.X controlled in markets. are there who about in

and or these forgotten really are unwanted antihistamines In almost patients on steroids and fact, patients. considered

to difference in the want really we space. a So make

an strongly which to biologic potentially have opportunity increase we the course, differentiated Of and asset penetration. Ligelizumab

perhaps only strong We footprint. in but we bringing that the post And have make and as U.S. with with also for of in oral complete dermatologist, the CSU work antihistamine then a market and the sort we have attractive don't Not XOLAIR well. with it relationships to first so strong a really allergist picture would forget option patients.

We already space. built very legacy these think excited real make we've can on build we're and a that patients. about we So this a difference for

Vas Narasimhan

Marie-France. Thanks

Next question, operator.

Operator

question your next Please the question. from Walton of Suisse. Credit ask Jo from Your comes line

Jo Walton

to targets. Novartis look Sandoz. be a really bit give us successful this think could billion little program. at do Thank wonder you to just particularly will you Perhaps we're by to going to see think on value we detail its sales go And little be just about own. trying going you're your biosimilar if help could us and you. how back we're to billion some X than give tell about X bit Thank going to as us on to more I you. when I where detail If just a have more this, you your perhaps could we if

Vas Narasimhan

Thanks, Jo. over I'll to hand it Richard. Richard?

Richard Saynor

Jo. you, Thank

we the XX and accelerating years few both or the partnership don't the which of specific in to disclose have our intend U.S. we will expanding start normally rapidly bio-similars and Europe will in-house is six And you deals through to over details years. I development number in business. we launch say our of coming What currently next intend programs. that over projects, launch we As know, both

it's appropriate, through terms is the we in sensitive in clarity process, terms disclosure. recent whatever So But clearly of of that. at give go we'll greater the of makeup obviously as relatively time

Vas Narasimhan

point standpoint And major for tremendous think opportunity fully business. participate, wave another to only interest to increasing think the an I I biologics. a to there really it's U.S. this beyond Thanks, I of think is 'XX is LOE think in and I best the I Sandoz in Jo. kind enable would and with of add cover LOEs Sandoz the does its biosimilars the

Next question, Operator.

Operator

ask question. Your JP your next Morgan. line question from Please comes the Buffett Richard of from

Richard Buffett

for my question. taking thanks Hi,

which Cosentyx. -- very you win have how well. coming disruption. had we gone your again and idea to an formulary give that onto this normalization, Obviously, year said have or navigated volume that the you Thanks going you 'XX back through discussions rates last Just very us some see positioning? a for managed is Maybe can much. and

Vas Narasimhan

Marie-France? Richard. Thanks,

Marie France

Thank Richard. you,

year seen market. QX, to value due change. now And previous U.S., is absolutely this the versus in seen line right in volume So with in growth strong access you're we've that's growth, What we have the quarter-over-quarter

to for XXXX. U.S. the we growth expect growth the driver volume be So in do

that our on will most do key position formulary. us expect stable, And access also stay pairs believe we to have major We

the we PSO really strengths, focus patient. broad what XX% our significant our of the have year do to patients. in additional of talked X/X U.S. IV, patients manifestations. focus U.S. course that U.S. to on And our in patients ultimately PSA. in course, this SpA of in have in So we space, XXXX. opportunities evidence the PsA opportunity -- XXX,XXX XX% then really a benefit which for existing is And co-morbid next need medical significant markets. to I There the is Suppurativa, body could so of for prepare in patients are axial about which of be these on the preparing the are for And Hidradenitis a the

Vas Narasimhan

All Marie-France. Thanks, right.

Operator. question, Next

Operator

next Please Parkes You're from question from comes your Richard BNP Paribas. Exane ask line the question. of

Richard Parkes

this and thanks year. for just It's taking my developments quiet now on that, been you've business relatively Hi, question.

if on Thinking be some near-term you could and allocation, your just I'm about thoughts made there, that. and maybe valuations and wondering opportunities. on you. on were based M&A might talk buyback there if Thank appetite So capital about out for, decision opportunities what

Vas Narasimhan

Thanks, Harry. Richard.

Harry Kirsch

we and XX:XX:XX] in-licensing, way as Hey we Richard, to March, billion. of the happen they creating dividend as opportunistically allocation of parts year. of half from up Therefore look you in be our patient over program course of in biologically growing for always the with And we X.X buyback first know, your of of opportunities our capital formula, dilute course, [inaudible organic And of never that and course, board on that one end coming billion that's in-licensing on if XXX standpoint, on have did infrastructures, in remain investment finished year overall, a but we standpoint, year. And we X and we the, won't priorities program continue that last you M&A. obviously to both have shareholders. franchisers buyback we and announced to, from we we a we every you then existing employee Then, did million laid our as seen But Tesla that we to out, continuously for a this got business, market the continue path. M&A share fits as the will.

capital strategy. and?BD? lines on allocation in our those along and change our no working we So M&A

Vas Narasimhan

Harry. Thanks,

Operator. question, Next

Operator

question. Chouhan from ask Naresh Intron the Health. comes from question Next Please your line of

Naresh Chouhan

there. Thanks for question. Hi taking my

XX:XX:XX], any more quantify value from [inaudible Sandoz XX:XX:XX]. on value to isn't Sandoz into if one Thank Just size could kind separating you fully helpful Sandoz integrated to and Novartis you. XX:XX:XX]. out, allow of be of Could and us separation [inaudible the [inaudible the really and dis-synergies a creation

Vas Narasimhan

Harry?

Harry Kirsch

Yes.

no and I are of situation at as there I if inform some is made the course, why analyzed, say of us there would to that this. to Alcon compare decision all. thoughtfully. that's strategic, to that's And we what course components about, this take we and time will do you Also, X Now, very if -- are

there of and the as Alcon. as possible Sandoz easier within focused Novartis, manufacturing X so announced are over chain in the it's and we years. all making we Lang of autonomous last but case where team technical a our at bit include the of X probably So Steffen been Richard has also or and retaining, And when would completed. are I phase position say supply And the moment on ahead we were because and team the operations probably that separation,

hand, built it was fully the plus a business acquisitions. the other has And of probably as Alcon separate with over where course, On with bit shorter been XX system-wide, the integrated, years Company. more was

course takes will indicate why have if we we give a costs, a we tax potential good have such faster, a But of we time this is bit become doing couple And that that's and earlier, in that reviews as tailwinds. but go update in exactly year, out as and operation stand-up costs. well So complex. considerations, separation of figure head synergies, to dis-synergies, an things and

Vas Narasimhan

Harry. question. the Thanks, Naresh, for Thanks,

Next question, operator.

Operator

please of Cespedes question. from next Florent ask from question your comes Your the line SocGen,

Florent Cespedes

We're products existing so the because Thank the you first-line you clinical A question. for the this drugs. if good Thank everyone. you versus bit starting will you. in strategy quick taking my as a could your Asciminib. are one program, position afternoon, much wondering on elaborate Good you just pretty on just already

Vas Narasimhan

Susanne?

Susanne Schaffert

you, Thank Florent.

heard prepared for to have excited you in we're quite us, third this line. about As Asciminib get launch

early we we of know that And deep medical a have which treatment. know life-long Bosutinib on, is need a there it show, and you even CML if patients on this us are line. a and results effective. very period, you versus that saw As we is action what And really are is to molecular aiming still experts for. setting, tells lead experts fast -- could first really high mechanism that that's remarkable treatment-free this in patients and from in response

better allow the So to so that's we have there even have compare response. desire on is really that, to investigator. molecular is a first-line. of see, the Then focus broad certainly that TKI why The range Selected If that TKIs, really be that approach it has potential. in compare certainly prove significant we the take is their to products. we we to can different then we deep

So Asciminib and strategy that's X. we're the pursuing early for

Vas Narasimhan

Laura. Thanks, Susanne. Thanks,

Operator. question, Next

Operator

Thank you.

line -- ask please Your from Wolfe next your question Research, of the comes Anderson Tim from line question. that

Richard Wagner

the they with Upjohn questions. does direct please. Richard Mr. for Wagner Wolfe spend? a to Tim. a For Sandoz, lower How similar you business. on thank to Research multiple of situation And avoid Question Pfizer's on Novartis afternoon. Good behalf

much parts the value didn't figure the a was that spend because Company always analysts Pfizer multiples we ended that occur pharma sum end lower on multiples. as multiple business when than up this to suggested the base than with could was causing parent and analysis, the spend than the because generic pretty up thing Upjohn lower Company was put of are Now, kidney Sandoz same destroying

So you. mitigate how Novartis can those? Thank

Vas Narasimhan

Richard. Thanks,

to they sales look in you specialty generics foremost, So the think players strong global clear focused I with a more first versus players, also we're leading look multiples. range or are on the and a When generic building outlook, wide sector, can you strong players outlook, be you that margin business exposed at note growth, that Europe U.S. see to when player. more I'd generics a Asia exposed of

sales is the the the primarily as analogous well it's the global I driven think XUS and that's player number Company the best that options. and very lack all business. range we player what And our Number And situation, the we antibiotics of retaining the of maximize and understand Europe, by -- as business. Sandoz value Number given an rightly it look enable really possible. to in point as especially need is shareholders, to work We have X successful industry, including as a globally; out, to X bio-similars do be to can way different so in as for the Sandoz see don't generics X I

what low relatively exposure, the U.S. drives multiples some is the peers. which view So our in lower of of

and it lot, that's kind of the we our do course moment, the question. Thanks assessment. as a will of So for at we Richard, perspective update the

Operator. question, Next

Operator

Please of from question. question Kapadia comes next ask Wimal line Bernstein. from the your Your

Vas Narasimhan

Wimal?

Operator

has disconnected. the like looks line It Apologies.

Baker we'll question. go your next from from please the Simon line So on of your which Redburn, to ask comes question,

Vas Narasimhan

All Simon? right.

one, Operator. Next

Operator

like One line, Baker. ahead, opened I've moment. go Mr. It Baker's please Simon looks

Simon Baker

Hello, hear can me? you

Vas Narasimhan

hear you. we you can Yeah, Thank Simon.

Simon Baker

how Could I quick for just because QX noticed us the A remind Excellent. left question is what the mandate bought Excellent. following you buyback. Yes. haven't any about just years this your capacity you on when that X is buyback the of stock. for up back first subject we're

able So are a just you would left great. reminder you. buy on to Thank be what

Vas Narasimhan

Harry?

Harry Kirsch

Thank very Simon. you much,

years. the two year per last or years, much overall, to of And one. allocation So you with all terms And through. close capital our course, question But we of we share the over then, price, we are is, to X.X we X capital it But on then, but it. you have finished the roughly, also those have price AGM. not in course, authority get priorities. only look M&A from course, of pretty share just to have a first has from the what it's the of completely priorities usually when And where opportunities of like but formula every basically billion M&A. not a think Again, do of renewal again, do that so on a consistently billion done formula, do and X board our a allocation of worked standpoint,

standpoint that from have at this moment, announced additional we not ones. So

Vas Narasimhan

Okay.

Simon Baker

much. Thanks so

Vas Narasimhan

Next question, Operator?

Operator

Thank you.

of of You Graham please have a your Parry line further America, ask question. question from the Bank from

Graham Parry

and tissue taking then any, for this Again, it, Remibrutinib cells. on and microglial CNS of any if data, with any wondered Thanks any if brain question. the one's have on effects what you Remibrutinib, evidence just have you on penetration

a of that's Thanks you remibrutinib. which some obviously lot. So about with talks something

Vas Narasimhan

Graham. Thanks, John?

John Tsai

Thanks, Graham. Yes.

this have some We done pre-clinical in studies area.

CNS In stage, these clinical penetration. you seen in extent the we exactly areas. central have have know early is the central, in this We validation and activation what of clinical the don't when correlation what actually

and that, clean what confident overall asset. is profile it's that we're a Remibrutinib very of given So

I've earlier, forward in potency as, to the We -clinical data these terms overall some and selectivity. clinical look well as of profile As stated pre of for sharing remibrutinib.

Vas Narasimhan

Thanks, John.

operator. question, Next

Operator

comes question your ask question. from Papadakis Emmanuel Deutsche of next line from Your Please the Bank.

Emmanuel Papadakis

the the in?RET? My in It's back is numb us story safety element cup been, of I we question, think by that color announced today, to-date. we don't may. just on may question's or more clinical queue back slow pipeline the and somewhere if taking a bit Was and anticipating want, are ILS Thank that'd very steps I second deal, next in on that. efficacy could you but then be relate, you've have set anything neuroscience. to maybe give of free on for the since if now, you helpful question. somewhat, think And my take access drips

you Just the looks for shape of similar one to 'XX pretty 'XX and thereafter. similarly

mid-single-digit statement year could would next growth sales heads be low initial wrong. on Particular might tailwinds margin us some be with that why for you thinking Thank I'm improvement. So thoughts you. some Perhaps helpful. give and

Vas Narasimhan

you, Thank Emmanual.

polygenic into pipeline first, insert as profiling our assets, really work genetics as diseases. doesn't behind in optimize we Friedreich's other monogenic to targets course. will number gene get, I capsid maximize think, and optimal the that to the to Neuroscience to a well I decided number mean, nd we We've programs X, ataxia; well as number that's that First commitment, now, extensive programs the acquisition. therapy the done our program change neurological clinic. on progressing It With recent our are Tourette with of efficacy. now our advancing in of us a prudent enable ophthalmology some Opto of Phase with right we we've as now we have combination entering there -- ensure have of that intrathecal syndrome. think the a

to this optimize we're with into move we So case just quickly always again the take a making and these back then it's program field, pre-clinical clinic. we and us in better learning and Clearly, and pause hope therapies. something is more need as our the learned patients a where this work

pretty really, provide terms shape of the course, 'XX, but for perspective. mature of any of maybe it's In to us comment, Harry can

Harry Kirsch

Yes.

that improvement over question, our on part of of As progression guiding would on always, incremental January. if market -- margin the end overall was the And results, we full-year have progression, tradition the next years. of with year I basically for the continued next expect

of expect So course, of this and that with roughly improvements. with margin h next out laid incremental year, a sales do growth, that X% we basically CAGR as must the

further basis margin to excellenct margin, now see the due this XXX But almost top to allocation, full also a resource the points on was programs, inability course, more advantage pandemic way opportunities. partly last have last cost way, with we have you'll a?normal? changing the we after improvement the consciousness, given And almost promote improved run year and efficient that, improved in So the another of of of taking we situation. productivity year. virtual and of Company year,

Vas Narasimhan

Thank you, Emmanuel.

Operator. question, Next

Emmanuel Papadakis

Thank you.

Operator

you. Thank

question Suisse. your line Jo Please question. next Walton from Your comes Credit the of ask from

Jo Walton

just I a could if you. wonder talk in bit more about CAR-T. you Thank little your enthusiasm

generation current well. done the hasn't so So,

of actually bringing perhaps one solved so successful you you're a sort Thank the more treatments? different? Now, blood be And be going manipulated What's and just people's more you. problem, new to in. whereby can effectively have faster older and have

Vas Narasimhan

our transformational have that teams cell done seen as Thanks, of when continue lot to Jo. CAR since when XXXX the -- space. But work patient therapy tremendous We have and successfully -- you've a we've therapies -- we've we delivered benefit learned lot believe currently a we've potential. the this entered licensed in populations have a are and T

durable invest we hopefully, new to us enables optimize our scale. goods But which most us make enables cost production, much flexibilize of a a which for stronger the that versus -- autologous and which believe So optimizes financial more these way importantly, responses can our we increased we production approach, continue importantly, in can as believe speed return, to of ORRs is to we as to generate do approaches And best approaches relevant. CRs that deep -- so patients or get are higher that. believe that allo our

think forward we data long-term I industry think ASH financial stay and a of present and be remembering, capability. our?neighbor? ability, try to scientists therapies, course the given I have we'll set will have firepower, the job at we there. at from And a outstanding have But then a least an to our global leader. in move global it's done footprint at cell and worth first the and really

Operator. question, Next

Operator

Your from Global. Stefan line of comes Please question. from your next ask Schneider question the

Stefan Schneider

cold of specify Thank you think can kind year, this Thank markets you. a you. in X your several Started context bit further? right. and what So maybe that full-year levels is cough season for guidance, What captured you pre-COVID markets, to turn in of? do Quarter several wit up in

Vas Narasimhan

Richard, cough cold. and a on

Richard Saynor

assumed, Thank with we've I in a Steffen. cough you, line In previous cold season. our season normal guidance, guess more and

a of infective we've OTC our So cold previous demand much assumed businesses. anti due exceptional cough and - mask-wearing. not other an it's distancing and Clear noting and did ve assumed business, with markets. season pickup to in in previous as years. social in it normalizing But that one, line worth seeing pretty that we' that the non-existent, but well our we're as Europe in Certainly with

Vas Narasimhan

you Richard believe operator. and one I thanks, have question, Great, last

Operator

final Bernstein, Your the your from of ask Wimal please line from question. question comes Kapadia

Wimal Kapadia

- the few the Great. the any use believe for the change ask and is the the next U.S. for that Kisqali, So expansion remibrutinib. base Where to for far? to taking they Thank Are you I your Can about OS you assumption how Just MONALEESA-X to think somebody in appetite just at seeing stay dynamics? increased capture drug microglia my so you with is share setting years? can metastatic you the asked Thank think relatively question. you. have do should now I on on the volume shared the other already what CDKXX in really that longer-term? just please? looking Will And post to benefit. modest we trends feedback

Vas Narasimhan

Wimal. Thanks, Susanne?

Susanne Schaffert

And questions. as differentiated certainly the something now you data. say, and is about hear are demonstrate feedback we mean, rightly experts we data OS also that could medical Kisqali. from these that where MONALEESA-X Thank quite segment the really I impressive data confirms you biggest for is there the

with said, I was message, now that focus demand kind we see initiation. is, we also was course, treatment to also we through. weeks, of And And on grow. opportunity There the really because what as story getting So that less last increased getting the patients U.S. quite with this in working getting and that more keep also this certainly, encouraged education more died hindering normalized, delivering COVID patients that less new of

So we Kisqali. remain confident in

will differentiated a OS or is best have to growth on We we the educating. And therefore, remain focus believe Kisqali and, Kisqali significant for I with driver. CDKX we strong believe confidence OS the

Vas Narasimhan

one correction. And then quick Susanne. Harry, Thanks just

Harry Kirsch

programs, I at roughly renewed so share it's just just rebating looked X.X recently, our we buyback billion.

we plans the at So moment. no have again room, but

Vas Narasimhan

from So fair billing moment. plans enough, to at the AGM, be but the authorization no

all up the and So on our joining will that with December stage early up and our wish that, We to we Look you we mid Hopefully, joining. again. can close In the day, meantime, giving Thank pipeline you, for leaders details. excitement you Thank you call. pipeline. our all the to very us R&D much your look forward walking forward through understanding very discussion. on hopefully Xnd, relevant you well have R&D getting

Operator

This concludes participating. today's conference call. Thank for you

disconnect. now may You

Novartis (NVS) 26 Oct 212021 Q3 Earnings call transcript