NVS - Earnings call transcript Q4 2021

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Operator

Good morning and good afternoon. And welcome to the Novartis Q4 and Full Year 2021 Results Release Conference Call and Live Webcast. [Operator Instructions]. With that, I would like to hand over to Mr. Samir Shah, Global Head of Investor Relations. sir. ahead, go Please

Samir Shah

unknown information much. thank morning today you known statements. and be results. These expressed QX to uncertainties and different very forward-looking or everybody. or achievements from on good A 'XX The 'XX year big any for full implied statements may and today other And actual you contains and good afternoon, such cause our that risks, involve presented performance by Thank results joining materially factors. future us results,

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

Vasant Narasimhan

thank call. Thank joining everyone, you, you, for Samir, today's and conference

Moving Marie-France, X. you've Harry, today, Susanne, of I heard John from to have course With and Samir. already Karen Slide me Richard,

sector; quarter, plus And technology our Now to direction turning to company, about peak clear attractive I'll CAGR and a believe X. leadership, XX more overall a and speak which medicine; platforms Slide will sales and the medicines focused high work margin, a as we're balanced powered in the technology sales growth in potential; way profile, continue slides. strong our with a be an just we company, late-stage attractive believe to in to an beyond mid- and over our platform strategy which X% assets into guided our to, before aspiration IM investors, platforms towards; across present to approach the profile. I'd overarching above goal about confident allocation, and we profile an to make define We multiple by which the like peer in few and we've with capital with median on statements continue the a the defining portfolio towards of to a future we that which for of the the well and significant sector be future few we're where XXXX, moving XXs

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We to strategy. our sharpen evolve continued and

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we continue in we think this delivering plan X. So ourselves, Slide the against moving to to that and do are set the I years to we to come. that demonstrates goals Then

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XX%. to on we reaching with productivity, So Slide in QX, X. across XX%, core now operating performance In continued delivered turning IM of Growth up X% the core our was income sales group quarter, QX value drivers. operating with and IM strong plus up X%

on have human improved including think progress come progress company. on important rights. innovation, we we multiple and terms the and MSCI, I'll we environment And of the but milestones within in that I on the had had scores demonstrating quarter. productivity back innovation metrics, continued ESG, power our to in ESG our

focusing So to turning XX. and Slide on in growth

the Our our a drivers bit And were XX% quarter detail. growth right-hand represents of increase of than in more now through Marie-France constituting on power the company. We with the sales can grew brands, our within had performance as we on growth core drivers, more and the and have in the the we've growth sales. sales, that of go and see Susanne our half of key these more demonstrating replacement side will of slide, you that steady the the pleased more IM base and

course XX%. beyond first XX%, expect year. Slide time on, brands consistently to the period. detail, point Kisqali a growth, share 'XX and Zolgensma its to Across but saw at over year. will hyper-focused key a on and And is that towards go through in And a strong to growing double-digit full we're XX%, in the more gain. strong Cosentyx that momentum an Entresto launch we very moving XX. a inflection Marie-France year start Kesimpta build year Leqvio this is very bit we at in we XX% off of Now a saw build X this the

a which assets. build the with foundation as As you protected, or can in forming strong into our we Day, the XXXXs and brands pipeline R&D XXXXs, are company Entresto, outside our highlighted late on these can see for of the into we

and are goal of over high of recent get an China billion will dynamics our we'll in In confident by companies, Slide China consistent-growing driven patterns, become already to medicines, most we've listings to a the we over the and due to more in Kesimpta the X. you continue we over in in more China, when take market a teens by some Europe, consistent in U.S., we top the the U.S., NRDL the other X growth, one And QX we the that that different to recovery of of quarter we in through show speak the XX. the the and brands aspiration been continue business, to considerations a launching from innovative now seen But about moving some But in little had And that we we'll player call. and in that have pharmaceuticals the geographic time. have. view on in each conference $X of go Europe buying saw bit to the are we remain in forward in the U.S. China And dynamic. of we case. growth company, across largest sales some Now growth in years. slowdown have a In consistent again, we looking And Leqvio to and XXXX.

The in U.S. turning in the U.S., importantly, and to approval innovation. an moving of standpoint. multiple We Leqvio and approvals to milestones XX quarter. in had Now Scemblix the from the Slide

indication. submissions, well unmet Europe, to alpelisib need, in PROS, as us small high in Additional opportunity very including though take Lu-PSMA-XXX a as for an on

in in the readouts Xolair. Multiple IV out administration for in quarter, well as readouts. Our as hidradenitis read Cosentyx positive versus well, non-inferior arthritis. positive psoriatic Ligelizumab suppurativa as placebo, with data versus

and speak as CAR-T which in We for of well, evaluate to and path in about our platform. continue And food the YTB and with our more for ligelizumab began We remibrutinib, III both CSU, as cold-induced ligelizumab. novel as multiple allergy forward in well urticaria. Phase terms studies PHE, sclerosis I'll

to moving XX. slide Slide next Now the on

readouts. syndrome few receptor Phase in our We'll about. a very excited year. into on This moving study. this very a later Had strong antibody. some data IIb the Phase we're is Just active, data III Ianalumab Sjögren's in Sjögren's is words anti-BAFF monoclonal be of

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a profile. a asset severe, the it mentioned strong I "pipeline" this HS. range This good the single to the asset. area. has potential high a A we a to together, need advancing suppurativa look we already be efficacy in profile, Hidradenitis is indications. is of forward broad safety think And unmet in debilitating data across condition. Cosentyx Taken a

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in approved believe medicine this allergy is IzE and -- CIndU, we in anti-IgE given the food there's no However, potential for therapy there indication. do therapy

to moving Now XX. Slide

asset. and now we're data should out plan the ability patient's Just production is presented provide T a our we for is hopefully out X. first durable patients, improved December. in stemness, of XX% what's the patients, themselves which preserve cells to the shortened about, XX small its to more what's next-generation Phase time enables in to DLBCL in And which therapy, be data of cancer its this scalability. the terms to months. potential word III lead forward recently to we And of this in for it frame occurrence rate cell but And regenerate in the of a as termed given hopefully as trial body. and data, Also, occur. response over a early X-month our technology summer platform, reading And to XXX% about BCMA-directed to ability platform, for T in as month coming T-Charge a PHE access looking the CR of if multiple attractive at cells responses economics excited to study say DLBCL, this about we're well a and to Again, long a ORR. On the the YTB, demonstrated to myeloma, indicated X CAR-T rates durability longer unique CAR-T. start platform rapid

XX. about. Phase time, results X the address a and currently early very and care need cancer, to now well, onetime In in with BeiGene the in particularly forward, and with gene targets TIGIT this tumors, excited geographic But lung taking that onetime forward solid studies. be those deals to remarkable strengthen We we over T-Charge EFCC additional days, results patient the things onetime Slide many in global the Gyroscope, BeiGene inhibitor, studies pipeline. to onto agreement has run saw II moving how cervical large transform an the We for Early hold which platform. at large Phase hopefully, Then by acquired to We'll additional therapy, of we Phase data Phase atrophy. market cancer. as see being very therapy. for option that to the to have signed In the look this least II a in a BD&L III ociperlimab, larger unmet a signed III administration. potential quarter So to up we a X in patients, but rather bringing subretinal, have potential

coronavirus spike -- with in Molecular domains, the fully a protein production. opportunity Partners opt-in the full to are if this therapeutic signed with then outpatient BeiGene X determine would agreement warranted. target We for over course bacterial binding to forward setting. patients potential of to has the separate for looking X ensovibep, working data for program We year; be the the has be as which to is our It continues opt-in broad-spectrum in and build materialize, out a

higher much So much and production, more higher also scales. yields a efficient

emergency an be are We FDA And ultimately if provide to authorization it approval. by then in would track would our review with filing. the matter an complete on discussions the FDA determined a use

small as well the We address molecule target. well other regarding early the lastly, opportunity an the UCB an to Parkinson's to with subcutaneous Phase governments formulation. Early as but inhibitor, also the need. with potential government disease in now certainly, the with discussions world I for And against, exciting we co-development alpha-synuclein as a agent and a therapeutic major small advancing be co-commercialization then signed trial very to molecule days, of and around continue an this unmet data, agreement a U.S. as tackle III think,

II our At XX immunology pharmaceuticals. on In Now of kind all track, agents remibrutinib made and track. on intrathecal pelacarsen Then mentioned a disease. neuroscience, year, turning also track. across I following ongoing Phase we've in an the to Later QBW well the In see iptacopan And of on and and to UNR. some continue Leqvio of Slide Slide on Phase turning study can other And Phase studies. snapshot initiated of III this IIb and and to bottom, programs. Phase for give slide a we've portfolio programs In And XX. III projects well. now. the in Slide has that number you overview, would box disease. as cardio-renal, you the portfolio, we study in progress agent of also and wild already we Zolgensma, the in Branaplam our you with things we also initiated changes also largely card end of a see again, XX. slips readouts the and now status its we'll the progress on our study, for are it's prostate as on PSMAfore have the Parkinson's outcome hematology. in Lu-PSMA, oncology, are Huntington's have the one to action remain track, FDA by into in of and its this the Kisqali progressing quarter. an we course track If also forward approval. We half Importantly, for event on it expect coming of months. study, by to solid progressed it combination, we event-driven hope, additional an 'XX, but is readout the to rate on In date And this in CANOPY-A hopeful also end that And review Lu-PSMA of look the tumors asciminib XXXX. the but we're the markets on we NATALEE readout readout the data the readout, study is hematology, earlier The the first-line is additional The let on later track in with cancer event-driven continue second JDQ TNO. a lines of readout XXXX. track of for over the the XX presenting given know. our and year. -- additional

already Third-line Sabatolimab, track about and here. this speak moving year. PFS various come of well. first readout year approval already And achieved, of the mentioned half the coming we've agents PFS and Susanne for will over towards some other more anti-TIM-X, as on that. other And the will studies our a then OS I've in the

lot a on. So going

readouts, submissions, you readouts. XXXX. additional in regulatory large the We for expected can XX, of look to this readouts, particularly expect that to When back These additional see the important XX-plus and submission-enabling we've events, us full pivotal at decisions, Slide of study list see in heading growth of talking half into year you the been you and a drive assets beyond. continue studies about will can starts. be will that also advance XXXX And number

moving to So XX. Slide

to stabilizing Just in Sandoz. on quarter also Sandoz say saw a word X. We

we guidance. unfavorable the perform, to think to strong year market we also which back very we that quarter the out little XXXX, sales to in currencies. about fully due a in here growth broadly cold And in continued bottom towards Harry the pre-COVID to the of biopharma headwinds expect to and have dynamic year. be face forecast move talk next in erosion X% that a margin growth more particularly on to this particularly assuming cough plus Europe, growing biosimilars price the we But mix, in gross line. bit about saw and start When constant You and half where position. We're the for reverts outlook as will continues we well in U.S., specifics X% as levels, in the a sales

we're growth expecting are drive sales, billion however beyond. to large Our be of the originator XXXX, and biosimilars half material into $XX And There launches a these track. on continue opportunity. XXXX launches back in to of

We in assets have XX-plus somewhere development.

move growth So a to into be critical looking that strong absolutely ahead. Sandoz will dynamic

We Slide ranking really rather A them, and elements balanced capital as organic to strategy. a disciplined business. and strategy. to Moving not our is in XX. them allocation showing trying our really X We're this the a remain word shift. on shareholder-focused of We invest our approach. but balance And

R&D, $X see over can billion investments. You billion in capital in $X

where buybacks we're $XX $X.X appropriate. value-creating which this to cancellations, program of bolt-ons. in in with also expect, to us complete. billion year, the And second to given look half and announced the XXXX. shareholders billion of value And dollars. X, nature share the year the through where on of announced dividend, done returned $XX francs X% return We capital end respect trading of were -- Swiss We've take shareholders line at and also to XXXX, U.S. since X% in XXXX our fully we track to by second we to increase executed we around annual in also Swiss as back billion buyback the we that we to continue line our last acquisitions propose until quarter the of Share continue

rights XX. disability in continue Africa with ESG human important So commitments, of From make to we Sub-Saharan in moving standpoint, to respect Slide to terms our an progress inclusion.

track on towards of Our Scope XXXX reductions, fully track offset XXXX. with Scopes XXXX, neutral and half be environmental and carbon on targets excluding X by waste X by across our X X reduce also and to net through disposal, all being X track on XX% by are at goal

aspiration. is as has improved all this -- as our And scores possible MSCI. sooner soon from an led to And

Index We S&P also year. in that are ESG ranked in having the the red Access the we've an favorably no longer course flag, other the Medicine Global amongst of #X to ranked ratings MSCI controversy had and over Ratings,

on XX. closing Slide in So

with high on the leadership return great a as well data towards invested strong the those end capital assets this company, ESG course to over potential drives asset, for the returns very on growth drive attractive has of base highlight in to review, momentum as of multibillion-dollar again, the science and launches of third-line believe growth opportunity portfolio and BD the by manufacturing will that the a an coming M&A that the move especially the remain the into the believe Just a in we Maintain an be where, approved move the XXXX; significant build which updated Lu-PSMA, attractive growth the lines Sandoz and hopefully our shareholders; on we with opportunity of being assets, ensure that the the over years; we foundations our initiatives, wanted business be significant continue priorities level as returns and productivity of company, XXs Scemblix, also margins a our assets but the plan potential we reinforce performance, on leader. to through The with have the drive Kesimpta, build company's our to a of the XX-plus pipeline in X the company therapy. optimize that for and our disciplined across progressing thoughtful our the to profile year. profile; earlier and business services, and value to are to Leqvio, successful have of approval culture and of by XXXX; sales deliver

over with it Marie-France. very you And to thank So I'll hand much. that,

Marie-France Tschudin

XX, you. quarter Pharma good I'm all. results to the to pleased of morning, Good the X with share division Slide afternoon On

X% Our this sales quarter. grew

on growth As drivers the you rejuvenation launches fully focused know, our and we're our of and portfolio.

continue You to to can and XXXX in this expect shift us drive beyond.

delivered So across due to strong We the revenues XX. demand China seen budget and Cosentyx caps. moving did see grew $X.X in We've geographies. XX% the on some Cosentyx impact for in to quarter. Slide year-end in billion

already we've However, rebound in QX. strong seen a

we geographies, and deliver, position growth in we focus to hidradenitis in the driver life the readout program is starting look cycle with is on for U.S., to will China. a start the and our positive to market. growth be stable IV In access all with to our plan volume especially grow and If XXXX. XXXX, Our suppurativa is

price saw is As us not year, growth for favorability last we we will the benefit from key. volume

deliver the Entresto to fully to billion followed on continued If quarter-over-quarter QX, billion $X the in year expect XX. on finishing in guidance. I move Slide by can grew on year, the quarter, You see for double-digit in to $X.X full XX% typical at the growth decline plus our sales. track

is know, we failure. U.S. We patients X the U.S., the the our continue and are we in continue includes through the with is to of pull because and China, again, for renewed which, our thrilled column Europe. the that label The now have for sales out new traction good in NRDL back to heart and failure, with see given we China, compensation the good recommendations news. as in And stock But is In U.S. first-line this listing for expanded listed. ex of wholesaler you price. the of X very that you hypertension heart dip on that is

population. about patients patients have XX% China the potential. the start have fact -- in much the that we in listing, think versus, access or And broader the also to a hypertensive for you you to well see China that XX% example, are if can of in Now controlled we only U.S.,

access, can move Asia. but absolutely and are opportunities in third now in we If Europe, very we're in broader Entresto's momentum XXXX, For also I in adoption, year on Slide about the excited confident driving XX. we to maintain We're and U.S., our earlier then X,XXX our markets new we we've quarters to incident gain an the to and as you bolus in Zolgensma, will is volatility the babies. continue on with a Because therapy, population. see treated this add in onetime move the marketplace as

to want really population. our know focusing SMA to screening. therefore, on And We as want a We position in clear. infant maintain Our double treat We as into in plan the accelerate the markets. important bring patients plan laying possible. the to with continue the to rate parallel, IT it's we focus Zolgensma the to geographic for U.S., progressing is want to early Europe. is newborn three, to newborn SMA And formulation. spectrum. our emerging foundation expansion of screening we're full on In our across leading We're

Our STEER first has pretreated just on conducting recruited With Kesimpta, And strong we study Zolgensma's Slide critical mass just benefit onetime move If opened of and a patient. $XXX in who treatment. patients finished with study a its I to the from may maintain multiple also year specialists. XX. now million high a reach with sales We we're sclerosis in We share QX. voice.

in continue line, patients, be of continue and question the standard patients no those new in majority the that now efficacy. switch. There gold B-cell to is is We to first therapy onboard first

questions also this We customers. on us, relevant to COVID. to answers in our safety have know there a provide context been priority that And of has been for

clinical in confidence that data additional have, are profile marketplace. in and differentiation further reassuring we important we Kesimpta's the the vaccination providing building With

we you As better. drive us continue everything make additional this U.S. on launches world, the and in the execute to Kesimpta continue to can to expect story to even across do our uptake

to on XX. Slide Moving

approval in received weeks. and FDA field you in As the December we've know, for Leqvio, for we've X been

implementing On our the system side, are strategy. we

broaden network. we our for reviews P&T We permanent started also to alternative filed or We've referral as continue is now to and planned. injection processes. acquisition of onboarding implementation the right J-Code centers, and the support focus a we Our

breadth on professional Leqvio's clinical profile, educating the health side, and care the we're label. twice-yearly of the On the dosing

enthusiasm the are discuss We about we're willingness clinical also of physicians that excited getting support really to market the from seeing aspects, nonclinical on the the the options. but high

will to moratorium separate all buy drive and bill, the on the On implementation we've lift permanent the the begin ready the foundation be also some our in of should before, systems NHS larger be the the said laying on awaiting first are the agreement. the J-Code and was and with half when of non-COVID-related rollout when be should plan of to year communication note, As uptake a and progress made significant year for of course, half second the about of beyond, the and issued. initiatives the of

XX. around on a year XXXX to metrics and execution. for I strong deliver So obsession was thinking diligence customer in bold summary, focus, teams the the to exquisite thank want Slide for the and the market Pharma.

right to You in build engagement in will and not continue only see new with on but investments, products, strong digital our also that partnerships, foundation in the us XXXX, tools. customer

So very thank now to you And pass it much. me let Susanne. on

Susanne Schaffert

you, Oncology on And Slide moving Marie-France. Thank to XX.

X% year. And was You see increasing growing Oncology drivers in our prior also solid versus the business XXXX, with $XX.X reaching billion, a growth XX% QX that quarter, grew X%.

see, you Kisqali, As like Promacta/Revolade, the double-digit brands growth Mekinist driven Jakavi. of growth continued by + was Tafinlar and

strong now pleased portfolio are very with growth We a continued of these see rejuvenation, to drivers representing XX% the portfolio. total

reaching all We region a now demand saw Moving growth of sales. saw the in $XXX across very reflection segment. of a QX, further in as million XX: We XX% post-menopausal in first-line performance, Kisqali. to Slide strong penetration increased

XX% leadership penetration increased U.S., of in premenopausal XX%, And setting. in impressive to also with NBRx the where driven in continue Europe, reaching share markets, had growth gain by in sustained but we the international in in the We November the setting an 'XX. mostly largest we postmenopausal setting, metastatic

across OS first With guidelines the Kisqali only OS NCCN far line. demonstrate MONALEESA-X eligible in benefit inhibitor is data highlighted all have advanced presented CDKX/X at in the we And survival so populations. U.S. demonstrated Kisqali and patient in the is why breast to the this data cancer, median also overall ESMO, now longest

forward advanced breast III HARMONIA cancer. So to in we in with moving the the SOLTI And are trial evaluate Kisqali. confidence we Kisqali in collaboration initiated versus Phase with study have group, palbociclib

reimbursement our continue we China. In submission addition, and geographical regulatory of in expansion achievement with in Kisqali, Brazil

this Vas as As our And mentioned, towards setting is And recruited. for is in Kisqali the is high- of key intermediate-risk trial you end program adjuvant the expected NATALEE both study patients. studying readout know, and development fully XXXX. the

These So Promacta + overall, brands continue Europe. first from therapy leadership in growth, growing Slide Tafinlar and contribution therapy X strong of regions. in the and as you across achieve Mekinist demand blockbusters: to to double-digit XX%, expect melanoma continued most Kisqali the in + Mekinist the And Jakavi. our momentum. And is On with see Mekinist, ourselves, X-year the or remind survival pleased continues performance by both we + just overall and deliver was driven Tafinlar XX, setting. this to with Tafinlar only targeted to strong worldwide sustain well metastatic very targeted as used as adjuvant. metastatic Revolade

come from increased forward, as expect as adjuvant this gains sustained oral uptake growth polycythemia and reached we efficacy expect growth our supported driven Also, and And the we ITP disease with XX%. administration Promacta/Revolade all well. And finally, on and regions cancer the in and primarily Moving usage further geographical expansion across Jakavi, indication launches, there convenience. growth we reaching we growth by in very This with SAA. earlier uptake will we melanoma share was well And XX% by expect vera. and saw lung growth. myelofibrosis strong China. graft-versus-host growth in with cell as continue a continued non-small And

adverse profile response reduction standard with the a care. see and molecular due improvement twofold line a STAMP to inhibitor in Last And could quarter, as the potentially unique mentioned, So in has this that U.S. CML have change clinical And profile moving with to event. discontinuation strong Xx we Vas superior very clinical Slide in Scemblix is you late major of XX. a and a launched that Scemblix

with registrational So the looking or as have within well And a in started filing views Scemblix, the of TXXXI. to this approximately And with the previously expected patient XXXX. trial with as intolerance know, of half be approved eligible label. the XX% first-line or treated X may patients CML Scemblix experienced TKIs first resistance XX% more includes patients you as for at that patients we that potential

So over leveraging with in nearly share Scemblix decades months. the footprint to within solid in complemented and XX,XXX with robust voice a already patient XX,XXX is And U.S., CML, visits. start leading of this of the by digital experience off first a website is users

the Scemblix NCNN and XX guidelines. already in also have program our assistant have managed above included in We XXX patients enrolled access over program. patient our included is patients in

and Japan on XXXX. also track for we global So in remain pursuing are the approvals Europe commercialization, and

launch PFS lutetium-PSMA-XXX, unmet Moving III to XX. need improved the address in cancer. metastatic radioligand results high With survival. radiographic and Lutetium-PSMA prostate VISION advanced trial castration-resistant potential overall And therapy, upcoming. Phase to another Slide we has demonstrated have the our of the exciting

commercial the side, launch we with moving forward are preparations. On

XXX We and Europe. treatment are targeting sites across U.S.

have don't We is prostate where foresee cancer. leveraging start to In field fully Europe, footprint with the trained. significantly are the Xx. constraints eligible And to And in hospital development the this recruited our potential dedicated the ongoing Lutathera Phase expand with that setting, for an force. by the the any studies side, VISION to we X force in field we is incremental the up population. hormone-sensitive field capacity the currently true same in pre-taxane U.S., force We building that and on launch for combined population III

XX. conclusion, with moving I conclude Slide messages. would to like to in So important X

execution versus from CDKX/X we sales advancing and brands of strong I'm OS First, our have solid forward in over in next rejuvenation, XX% class our with of data setting. metastatic launch the And with to key focus the our brands, in gain are continued on on looking assets. we adjuvant. to one we lutetium-PSMA handing portfolio preparation and to in and we prior Harry. continued see With and keep And And execution year. Kisqali, with readout Scemblix XXXX, our we wave to drivers share that, growth increasing growth NATALEE

Harry Kirsch

everybody. good very Yes. much, Good and afternoon, Susanne. Thank you morning

some walk year through and guidance. as quarter well XXXX provide now the our going as the the with for you So of full you I'm to fourth financials

it comments to As in would currencies rates refer otherwise. unless note my growth constant I always,

to XX. Slide Turning

our briefly XXXX guidance. with compare results latest we our Here,

with can X%, year As results by bottom line, our see, and with were XX%. line guidance, in particularly full you Innovative Innovative Medicines a Medicines double-digit by line grew even the top overall, strong performance. the

despite year, We business a deliver are pleased to challenging able during environment were the that our we expectations. on

little $XX even Net X. and Roche X% details impacted of and see more quarter free productivity of cash effect, sales the in divestment a slightly income core in top the grew higher and growing by the please. below you quarter, was EPS operating was and I finished XX%, growth the Core full reaching divestment We about gain on and income gains. net that bit $XX.X grew and you if resulted flow XX%, course, go income billion. bottom exclude benefited, $XX.X lower from line. growth, slide, from stake X%, due line operating of from Free cash that core income later. onetime to up XX%, billion net mainly Roche the But X% flow Next income, sales a a X% with strong in billion. year and year a respectively. performance of mainly This in will into healthy a strong And

from quarter driven Slide for quarter brands Medicines the our Cosentyx, and Before highlight points. small we and from contract year. Marie-France includes of a wanted full shows the positive effect so line, an X-year the sales manufacturing This sales which performance margins percent XX.X% you move other slide And revenues bottom that over Medicine year, impact from XX%. reaching XX, by X increase growth and Susanne a Clearly, sales. X%, of Innovative by just reclassification innovative key period laid XXX had to point division X to points, the please. strong oncology XXXX, in basis a also key Zolgensma grew XX% drivers, out. Entresto, up growth The on,

Medicines For operating and XX%. core sales grew quarter, X% the Innovative income

from especially pricing is U.S., Sandoz pressures, the impacts. mainly challenges, some and mentioned, demand COVID-related facing Vas still As in

of signs Although showed quarter X stabilization.

XXXX. billion. offset, XX% in matters see, of to of let's There from the legal by flow was mainly year payments the This operating payment to XX. income to what was $XX.X Slide in and Now by in-licensing were also was for lower can you turn as cash the we higher XXXX upfront up compared from had Free driven BeiGene. tislelizumab

CHF increase reaching X% On franc will francs. X%. U.S. year. in in Swiss increases per our of fully we in pleased propose increase of slide, XXth an dollars, very policy is consecutive dividend and the This every our aligned to CHF with last announce share year dividend X X.X% Swiss I'm next from And dividend dividend X.XX to that with our

guidance to top on Slide our sum XX, line. we bottom Now turning and up where

mid-single sales. of we margin core Medicines high sales The expected With the operating growing productivity be expect core momentum to continuation the single will digits another by and mid- Innovative increase income digits expected to Medicine our of of divisions, grow and ahead driven year programs. Innovative line good top

dynamics. the we some on gross financial core to that On on it's due performance. Also we generics to expect line perspective mid-single digit, in core fact pressures normal like you bottom With our mix. and box due in Slide to the we in XXXX. can pricing both expect key also mainly this driven systems, the see the in would are and return to that here, the key and U.S. top Sandoz prescription grow And expect to product mid-single to top add net to not For LAR margin that for no year elements to continuing the enter expected line, many care health the other guidance, to global I to be prior income as decline XXXX. digit. the line top line income Sandostatin bottom would respect The for entire assumption group, is we including of operating launches Sandoz, XX, do with low by broadly in

of XXXX broadly XXXX. the core the expected financial range range experienced in see, tax to And be you XX% than -- core over tax As results to in is to line XX% versus can tax the higher XX.X%. we couple of rate This expect the range last rate we years. be is core net

divestment. be percent you changes, increase see, due which slight the geographical X to monitor mix throughout we can is due increase of will the mathematical the also Roche And point a as this However, impact of approximately profit to year. there may

Finally on XX. Slide

For impact, modeling it helpful currency the you thought dollar. recent we very go the of to to appreciation purposes, the details into some given regarding be would U.S. especially

had in on income. point you and on a X, As negative saw impact X% a core sales currency operating negative impact of quarter X net percent

prevail also the for currencies late sales year of January rates the to dollar U.S. further on be on points. quarter bit more bottom a this the sales X line, the U.S. would we be X the points. bottom and on impacted effect, in and and top percent growth As drivers remainder percent In negative If of of our quarter line, impact is pronounced, X. impact of X, negative X, a line strengthened, points, X negative negative course, would key full XXXX, ex expect currency

hand our to volatile, this, are know, all As it on will And update with every impact this currency Vas. back quite as rates estimate we month we I over website.

Vasant Narasimhan

Terrific. Thank you, Harry.

strong our 'XX, X our and mid-single-digit And our cash plus So milestones XXXX. flow. -- moving across to we shareholders. performing returning important deliver Instructions]. [Operator goal of we'll we CAGR outlook balanced work across capital geographies, continuing in XX that, major X% remain in our in And our closing. free XX-plus top well operator, important In on Thank briefly with of We expansion brands in We've milestones the confidence line on to supporting to are our open continued Slide mid-single our drivers, the in growth, sales portfolio. capital you. guidance assets. allocation, of delivered margin in-market And remain to growth Operator? invest to the and confident questions. deliver innovation can to for over months we alongside coming to key XX XX our line innovation, that

Operator

[Operator Instructions].

today Your of Graham comes first question of line America. Parry, the from Bank

Graham Parry

scenario a So organic uses return M&A view acquirer of versus cash doing to already to to into might you're consider, be the at given sale, business, would just some it back versus of are being it the giving a sale spin an investment? that equity So you there what the Sandoz what again, being would secondly, what value the put are investors? Or to considering market about versus would speculation, interest. table consideration private And looking buyback? you're the Sandoz review. options all some you're and there, large regarding multiple intent capital still do much And recent keeping a the saying to Obviously, in how the on you business there when despite there think through at? you you're

Vasant Narasimhan

for Graham, Thanks, the question.

for we business, on and the being counterparties equity relevant provide options or the a out guided lastly, evaluate potential potential being is the them those for make year, me on really And then I with that, financials first the retention last the to part perimeter, this Let year information clear at formal potential and with of for a where are private start able we the spin companies. Sandoz, focused the Alongside carving whether are concrete end of business. of process. offers, the of the as on to other think

of right I now are different And us take middle those to that going work expect the the year. of to this options. evaluating through We

next steps then, and hopefully come in can the of decision Before take we half the to a the second year.

as always terms generics looking make with a of few with leading successful things. the consistent the Sandoz for as of aspiration course company One, at considerations. possible Sandoz We're -- to In the world. to in become how

we're about the long to the course with our way. in shareholders. ways these how be allocation think I point really to for time. those the I making business that of I consistent which stay would that we earlier, balanced in We, shareholders. really shareholders "sale," premature But sure we're at that determine in in value tax-efficient there a if and outlined point also is from and time. returning thinking in able value-creating And we think investing away we're speculate, most for a still approach shareholder-friendly And versus would is to cash. to the would us think spin that things use we it's that way to through with I were capital what through And a have Second, the think, beneficial proven thinking a able Alcon considerations

Graham. question, the for thanks So

Operator

Paribas. Your next BNP from Richard comes Parkes, question of line the

Richard Parkes

that and M&A. the a the buybacks got from stake of returning sort balance call, the M&A of if capital more engaging business wondered feedback. the bolt-ons or last based I question I'm capital on on I around have feedback. on that I've remember thoughts between the allocation. and you that based were with on of had sale up on investors sort moved mentioned Roche down evolved priority just And list, wondering development how just your meaningful you

Vasant Narasimhan

you, Richard. Thank Yes, thank you.

goals not cash say we I on to can much mean, that to we I the ability to that that when flow is So platform -- we continue feedback. say we our strong in the generate assets and Novartis, think know area can think our the bolt-on I acquisitions, we like have past, goals. I what the done at find that attractive therapeutic do we've given more with fit

shareholders accretive the significant over attractive, course of materialize. the M&A to As became we the do ability if point in we situation capital evaluated return buyback, through could this also to should that December, it while time, clear at the it maintaining

first of time. deals ensure the now, patient that our fit very only our confident where right with there So and significant is, various course, company also returns are course, the we're focus foremost, and of in can do out options for being we driving and that to we priorities. business generate But strategic over the evaluating then

add like we've think anything quite you move I to X, the that the on We're there's imminent. else continue look mid-stage happy to valuations to various we're as we how deals, in evaluate deal X opportunity going structures us financial quarter enabled done they X to watch would deals do that assets. to And for Harry, So and/or the at late-stage Did to attractive and then acquire want some say that? terms. options sector in continue arise. and nothing

Harry Kirsch

No.

quickly. element buyback are maybe buy system, with for line And very see, do and this to the some analysts investors has we Swiss the also U.S. feedback I half to then you on $XX second unto where the 'XX, familiar not so of unlike think, also, one cancellation. think where the been middle positive. these that billion the to second I can year, situations have And next takes on quite quite share

as do can go forward. we $XX So on buyback we then see as we monitor this market, can as the share -- as billion much we

of be allocation M&A of we a have priorities, the to laid opportunity to to allocation. So there's how continue here? ways about we're capital that's of And as there as see, allocate the to different opportunistic Vas a our little think bit we would mentioned, going time otherwise, course, great capital And out then, capital. continuously

Operator

Your Laura line UBS. from comes from next of Sutcliffe question the

Laura Sutcliffe

question A please. on Leqvio,

centers hard in a possibility going? to And talked you've lot any access in to hurdles trying you do work reimbursement start interest specific sales guideline protocolize U.S. sort of any way is in of removing driving your the and there think You use But get recommendations about inclusions of to need there? the the this or done in you

Vasant Narasimhan

Yes. Thanks, Laura. Marie-France?

Marie-France Tschudin

Yes.

guidelines, is thing is already we Class first already have LDL across and lowering that the widespread So Europe. I'd the XA say in

system. we've do But it how how on you Leqvio, better or the concretely XXX when around to systems us it's or -- by So will management lipid system? as the philosophically probably necessarily lowering concentrating So specific system exactly of that. that within just and your protocolize around around, question, you you the patients. AHA, use know, how for the is monitor depend lowering you launched do It's but going with is of asked cooperation control not a of is the which care the cholesterol looks intent like

should identify at identify can goal. patients in it that when not or care So support LDL making their the then can pathways is also and level the who it's that at in sure intent centers there, specifically be we they not the is come the about how

going medicines looking different, right. that's change to by So ASCVD, the being patients the deaths way intent. system, the it. are not goal, but absolutely because look in goal. worldwide very you And country though That's at even today, we'll you're ultimately, and Locally, landscape That's country, see system we're because not by it's XX marketplace, they're the at on million ASCVD. the are therefore, and of there treated

Operator

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

Andrew Baum

Could Xolair that great comment from could hear. if second, ORION-X on III marketing patient IIb about for is assuming Phase to subtleties. you data maybe better and you this a robust the you just something the to surprise, us missed arm given trial Leqvio? outline the VICTORION-XP I'm but how just for any experience, If the XX,XXX was. base Is ligelizumab have the be clinician large between than this it'd I've the expected? this perhaps apart pretty you a differences have populations maybe insights, of Phase the And sort different expand did

Vasant Narasimhan

Yes. Thanks, Andrew. John?

John Tsai

Yes, question, the sure. for Andrew. Thanks

the to only some Specifically And U.K., of the on geographies in ORION-X, in which at population-based the as looking with patients conducted a we're Leqvio, the U.S., in V-XP more know, secondary mostly being study is globally, U.K., prevention. broader world. you is throughout U.S. not approach major the is across going but population patient where that is in a the The

we So the patterns that differences are -- know and throughout world. practice there in

for intend understanding we that we is prevention we patients a have follow treatment to secondary what the these and for So ensure do clear make of sure Leqvio.

X and against X, PEARL superiority actually comparator, forward. we Phase reviewing the demonstrated that And as Vas did that per of they're earlier, patients advancing active and for primary not arm. and your studies we've PEARL data are endpoint but currently was we're moving study, we seen. ORION-X potential the versus did quarter, that the designed XXX saw study And those -- XX We're what and superiority were based back Phase were and And the R&D started stated planned. our the Day, demonstrate So for III the which endpoints studies that omalizumab. patients omalizumab. on food evaluating and -- as showed through study. had as we approaches taking versus at placebo, the shared difference, These allergy, we we've CIndU we're IIb of Phase that as Leqvio. And best we're in which primary those during or IIb achieve fourth versus on question ligelizumab We the continuing

Vasant Narasimhan

did additional we And omalizumab comments. study. Phase Andrew, the point, versus in Phase II see study to your just perform III better To one maybe, the point John's specific

difference Journal So New think saw Phase to in to III. But that that we work have. Phase between more the still is the and a do result we saw fully the ascertain IIb I leading the we in England why hypothesis

have of better continue drug meantime, In of ligelizumab, So it. understanding, an lack and those we as course we soon as it CIndU, the a develop indications. allergy given we'll for to the food in IgE share

Operator

line next Your the Simon from Baker question of comes from Redburn.

Simon Baker

COVID, specifically areas in the X on question a of for you. impact to It's --

within as also on the this Firstly, could U.K., quarter. And us you for study update an remibrutinib mentioned the III the started market Leqvio dynamic Kesimpta? give fourth affects Marie-France, that to be But MS Phase about over the you how And into NHS the released. also, care is potentially target you in I patients recruitment in number next rate of backlogs the will just could health block non-COVID at the significant U.K. impact years. system wondered the accrue which few the

Vasant Narasimhan

you, Thank Simon.

So Leqvio, first, and NHS. Marie-France, on MS the market

Marie-France Tschudin

Yes.

are So true of And launch it more that that seeing, learning in start clearly, Leqvio off levels. this it, areas if we all also in health industry, we're not that is that's used general, And dynamic maybe we're become look is more not to our disproportionately are sort sclerosis related. on care I the you market, getting COVID are I'll U.K. it the systems the think a multiple below at to impacted. moratorium just pre-COVID COVID. agile. delay also as given But said, but and in only there you saying still anything by And

the us for example, I slowed have physicians. be can don't ultimately, true. for say, of I already reverified. it our as patients all possible beginning We've already much out Kesimpta, in there that as think with we of So tried yes, year, it's down. the

voice share Our high. is of

in are down on pandemic doubled of this out sort not absolutely in era. have cold the patient left to services We whole patients that sure make

do do it's some way basically we and almost approach I market think So better. to of rethink us the that the allowed

clear a areas, not on reality and it's However, certain those. only

communication the us in U.K., would the ready we've out. said really anyway, things the that I guidelines, really do I have to we is implementation. sure it slowed hasn't NHS mean, So this the For working diligently down on background making had right? go morning, as been on that to

written. the at, Looking example, identification. for The guidelines NHS been already digital patient have

-- this So I remember the lifted this all that in sector. and course, is think care yes, when is of primary moratorium

moratorium plan is. physician, for and our the So the NHS care the centered is entire where primary that's around

reassure on have the things waiting standstill. not that do be we're So sales we word I a the to We're we're laying ability the that We're approval lifted. that countries got double at our And want for groundwork do -- But to in doing a the reimbursement. maybe anyway in XX working to and for with audience the U.S. We've bullish We're would on around Kesimpta. the through to future. last world.

local, to so across say, or the And influence a we be let's that for we Kesimpta it's believe year globe. despite going see good the lockdowns pandemic

Vasant Narasimhan

And then, remibrutinib John, any yet? recruitment, on insights

John Tsai

remibrutinib, in late year the middle in the is inhibitor, recruit at BTK space. We're to of in regulatory continue advancing our we've in to The as is announced space recruiting know end space the to remibrutinib. advancing one we the discussions the the know MS for with fulfill selective Simon. the from that And And MS we can of Thanks XXXX started conducted already we the very well patients across we're terms had that the the studies We space. year. we MS Kesimpta. that that Gilenya, for the with criteria question, for the year year confident well. in that of And molecule well authorities. the excited recruitment our we Absolutely. were experience Mayzent in We which as in earlier the in

Operator

Research. of next from Tim Your comes question Anderson, the Wolfe line

Unidentified Analyst

say, $XX that Research, question meaning Wagner say be, definitively can M&A, you do M&A, would Richard whether something Yes. won't or on you Tim that [ph], It's Anderson. larger larger. My billion Wolfe for

Vasant Narasimhan

have specific the Yes. "larger threshold our up to given We don't M&A." plans dynamics sign for in market. do question, M&A. the focus to Thanks the Richard. larger is Hard for not But

Our we've billion, signed. for deals, value the to been done, deals sub-$X of our X total And than as most deal $X focus recent we deals of payouts continue energies We less bolt-on. earlier, as that focus including times, is have we the recently there. mentioned billion upfront in Bolt-on with continue M&A, larger I are time. Novartis. numbers at let's for call, beyond we assets. large Valuations to attractive to at profile an make value are the at this And remain look expectations not assess stretched, Harder But bolt-on those, to create high. for looking we work and shareholders the deals. no, then that, the larger

Operator

question Your next from comes from Kerry the Holford line Berenberg. of

Kerry Holford

please More for quick is looking Can line of disruption? I this Could more contract just see this specifically, to same? you're investment I drivers QX. the if that very you the reclassification manufacturing guidance event? mentioned of Sandoz. one-off there some speaking Question in this quarter disappointing. the stabilization the a revenue us of element stabilization the expect XXXX to In return walk what on pressure? on somewhat division the predominantly division QX. be assume last, can guess, your is of you But more in this get Sandoz sign follow-up. we difficult time given is Is year Harry, through And you then in this guidance operating price I'm required you a for growth? your profit to decline wonder since top mentioned year. in presentation, Or

Vasant Narasimhan

Kerry. Thanks,

maybe in Harry can maybe chime if on to want do you anything... then So Sandoz. And Richard, start? first

Richard Saynor

you, and back solid as saw of Thank the state things more we question, X. guess, normal Yes, a look, I And Kerry. affairs QX, quarter for performance Sure. I Yes. nice, Vas. to said, in thank a returning you

into the we're As we that's of in I good the growth And U.S. issues but challenge -- clearly the impact go rest XXXX, the the to mean, really, slowly we're And the drives of be from U.S., continues price stabilizing. the seeing world. slowly

year overall where And does year of rate decline does quiet it don't see terms in we XXXX, And Price of a but so really significant still U.S. is It's the launches. the stay LOE business. launches. XXXX is fairly a in mind, in I drag significant low, also see a the down bear still many impact.

start come bottom again starts we on 'XX then impact and that changing we the kick expect at of world. And rest in the its the biologics the price journey. the to Europe accelerated to slowly as as really growth mix. and we into And really, 'XX So line continue in mixture pipeline U.S. a out is of of stabilize and then see

Vasant Narasimhan

And Thanks, I Richard. Sandoz. on And know have you manufacturing? other any contract on comments if then don't Harry,

Harry Kirsch

No.

said Richard Sandoz. it think on I all

quarter of small manufacturing in have $XXX and contract basically under next within In increase. transparently business, sales we established terms, million over to business XX a decided show few little that, manufacturing revenues. the in Kerry, the the condensed maybe this change years, in actually, years you over we increase is that other we reported of 'XX representation, may relatively And that we contract contract COGS. bit the year that also the now manufacturing, split of up And the see as financial the report, year full medicines, X, kind on we may which Page next line, chose

divisions. the on So changes for the point doesn't one why changed basically the the number we quarter It It the that. year X company. in change that's full by company and

will so how as is we a will And it's from this forward, see -- go as we go developing. better thought And you we forward. we that representation that standpoint,

Operator

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

Keyur Parekh

may. I if Two

your else? looking where that might a profile your molecule. be what kind for your define confidence we should the around that thoughts Should as at for that. readout superiority? to should secondly, you looking that? Should something our our how some III we and look expectations aspiration you of we be commercial of kind iptacopan, be around for I Phase be define in able And expectations forward introductory be at Vas, then of of kind of be innovator. study Just the us of around you X Just terms do how that more kind approved? spoke value if in Is of, a -- comments, kind drugs around top First, top the your do was Is to wondering innovator. give number to X about you new of any that just details pipeline?

Vasant Narasimhan

Thanks, Yes. Keyur.

On I replacement ultimately of one, a measures power an our sales? valuable freshness few sector and of is replacement of our in and think minds. a consistent can power company. the replace power the sales and/or are the to on power replacement the engine within One innovation of to grow sales be the index then first our measures leader we

Second, that X per per put we're in very the able NME over sales per But leader our been sector of And all the or value have that number say per drive to the leading but market. high measures we company leads we're years, an value in are in We like course, growth NME the to NME, another have and can approved, where growth to to delivering way, would I focused are in innovation that the sales be. the on long-term value to on mind. our NMEs NME to sales the that peak last want engine of this the be we'd ability and consistently replacement ultimately, we deliver. power

In terms iptacopan, of the of Phase III John? profile

John Tsai

Yes. Thanks, Keyur.

profile, overall at we're As we're at the the way at needs overall iptacopan the unmet looking obviously, looking we of that and patient. the look the

As one, B targeting we at the we of may indication. We're actually for you different have that than terms couple in actually ARBs. in of indications, And think we're through Also, in about a the standard could care, ACE current that a the know, which know inhibitors hemolysis is it proteinuria. intravascular is looking as that need looking both and as something patients need significant at renal more reduction ways standpoint specific this unmet this it PNH be of what's extravascular from is a complement factor the alternative as, and these pathway. they of

forward. approach could be combination moving this a So

at for only of medical way is of of this, second also patients. the need, the in or not administration unmet of in convenience The the terms terms route looking

evaluating a which the many we look study. find profile XX out in minutes. the much easier having terms administration out we requiring more patients about As the administration, up subcu are in we would approach, about read the could day take an actually to our is And be forward. twice safety And as approach. think safety of we'll oral as thirdly And the moving profile

other So that overall as the indications. as way iptacopan the indications that's across renal well and at IgA CXG, PNH for we're looking

Operator

comes Kapadia Bernstein. question from Your next from Wimal

Wimal Kapadia

So just I want to PSMA. on touch

we potentially setting? potential how from these I should PSMAfore, then, readout, the assume tied late how from pre-taxane fair growth be clinics Is VISION saturation mean, the capability? of trajectory sustained to incremental a efficacy prostate a perspective just bit thinking from the in little the versus of should launch with interesting given about the it more be is XXXX. benchmarks? the a an Or thinking current trajectory that, a just have we then should setting initial larger Lutathera indication, with is benchmark? different, -- And about you ramp So to study. post-taxane the And with fair beyond particular, look

Vasant Narasimhan

Thanks, Yes. Wimal.

on first launch VISION and the on John the pre- Lu-PSMA there? Susanne, hand questions maybe, the Susanne? on So And and are story then you it study. Susanne, overall specific I'll with to of the post-taxane.

Susanne Schaffert

on Sorry, mute. I was

you with So data OS. in cancer as significant metastatic population, PFS and lutetium-PSMA the castrated-resistant very know, prostate radiographic has demonstrated strong

lutetium-PSMA the care. there's superiority alternative basically has in standard versus know So we of population, demonstrated and this no

we programs already interest. there, we big started demand. see So managed we And have expect quite where quite access high

than, think course, tumors. neuroendocrine a And higher much But cancer the We line of you of uptake, patients. when incidence we probably the ask going expect uptake. different about be prostate fourth for steadily therefore, This me I will don't therefore, So cancer up. bolus. in it big example, see is prostate is dynamics

maybe course, But that course, the what really one John a than I current settings that of continued bigger would aim not in significantly is And setting And line comment the and therefore, of then for Of the setting. current It's therapy after very a pre-taxane we I have we it's GEP-NET. the than last taxane different just smaller androgen the line filed filed would cancer. in profile have part, it's stability. And expect go a on population like mean, and and we to over for prostate to is growth, bolus see we chemotherapy. lutetium-PSMA, of the indication a the hand earlier. we before that last certainly, with on indication.

a over maybe Maybe you. on to John, words that, few with So PSMAfore.

John Tsai

Maybe talk start Sure. PSMAfore. Happy to to about about just prostate to think off, cancer.

prostate we As know, express actually cancer XX% PSMA. is of

and of as in What had XX% improvement starting That as saw expressed, point as is know pathophysiology. of OS. we saw and survival third the in the that in in progression-free So they XX% Susanne terms starting overall the radiographic survival line, a chemotherapy. of radioligand than in is patients or events first-line number we that's We the we need a that taxanes toxicity chemotherapy. treatments, point. combination are the well in of what especially setting has additional pre-taxane there that that's is therapy setting, to in whether less the given are And the adverse of know compared

the study in started the of patients end also second of cancer. already have those we're also population. study, the then terms terms in year pre-taxane read studies is before looking metastases hormone-sensitive we've had for So terms of also treatment the looking recruitment line to -- treatment. not that in at we're in who we're And and of to And at hoping in we're addition out first-line And studies, prostate advancing.

we lutetium-PSMA. be going the to So I a program this as think for forward very broad move is

Vasant Narasimhan

you, Thank Wimal. you, Thank John.

the have [Operator a few people we Instructions]. So queue. quite still in

Next question, operator?

Operator

comes question Weston of Matt Credit from Suisse. from line the Your next

Matthew Weston

achieve regulatory use orders. integrated My able authorization, we a or vas, interested understand slides $X just guidance. to on to obviously, of that you've significant peak you've probability from you're emergency question I'd Harry your see is on given potential. could how And if it can ensovibep. be billion very into I sales see bolus And it

you've I'd set too. so into guidance know taken And to XXXX, when for love what you account

Vasant Narasimhan

Yes. Thank that. you, Matthew, can take and I

So we've the today. of that we've not ensovibep any -- guidance included guidance in our provided

had the FDA's through we around other emergency discussions of We've think they FDA make move as application of centered their potential then around as with say understand have But would with number well use emergency process, a the and the were parties I the medicine. views better, interested ultimately we and the application, other how ultimately, the going review the to EUA those the around world. would as orders. I authorization world the understand decision contracting view as we on most governments if have governments U.S.

once now or understand include to into it's hope, the of update So And we over it. dynamics better QX, the then we would right think then we we prudent not accordingly. QX, course

Operator

from the next JPMorgan. Richard question from line of comes Vosser Your

Richard Vosser

governments So crisis, see ex we price pressure governments, like COVID COVID pressure great mean, the they've from hit just pretty cetera. some there been Are increased U.S. to by expenses. et saw that? and on pricing pressure going generally? I Are After on murmurings prices. we from question on a financial drug something any

Vasant Narasimhan

as President have medicines President. an access. broad and support terms on say Commission have enabling thoughts as improved increased not medicines and But access or discussions or insights my in focus European with start that can health his you for gone Europe, the shift Macron Marie-France, have do a that's on and I Well, any priority a this? officials for Certainly, maybe in heard of various innovative far or

Marie-France Tschudin

experience, see Yes. European I to and prepared. we on therapy, think lot cetera. used I mean, limitations have et cetera, in of terms to just of we're general, case, be have always make that the have the landscape. of more I we Obviously, very we reimbursement or and do we et line mean, to a in more in

You happening see negotiations of China. tough in a lot

products patients think we're that value mind comes little ticket Novartis on the it that that of top So bit products I sure has diligent focused is is is would that recognized, of almost launch making and making which the sure more our been any value-based entry say it's is I a faster. pricing, to or to strategy access reach when something that sure can like making very about, on really product

Operator

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

Emmanuel Papadakis

on progress and Phase III. Maybe I'll guess, around take and into timing. the one to ianalumab decision I question design

in published data less look, advanced better say, with that You've would patients I disease.

III then decision was might proportion that reached of about At Phase which likely patient therefore, the you just XXXX to? of include apply large, And potential or that Is interim pretty is Phase timing, there have -- I R&D what what surrogate way design? Day, told in yet a biomarker an So of the example, any enrollment for of time III us long the population, that trial terms might line. in the that a terms population? data? timing the think, you, III that And pretty III imply likely is for accelerated, would to Phase breadth Sjögren’s Phase Since be could a at readout.

Vasant Narasimhan

Thank questions. you, on design Emmanuel. Sjögren’s? Very ianalumab for good Phase III John,

John Tsai

Yes.

number As Vas we Sjögren’s a indications syndrome, think about about ianalumab, and in lupus excited as we're SLE. said of and earlier, nephritis

high asked that our you syndrome, from know, population. on we've actually as advanced are based you And about moving population we're had patients who targeting, Phase we've scores. that as II seen that's Specifically, study. results Sjögren’s specific These forward STI have this the in

start to year. of half going recruiting are We this the second in patients

recruiting to conducted balance study there these by terms study the not we Phase of results patients will results is largest in and has but goes. I the using in results we In syndrome that study, get XXXX, best the the ensure conducted of as Phase diverse ensure inclusion find that's We've we we're consistency advancing, should forward. and for guided And that's patients. moving But that -- very how the we are recruitment is us. update been the Sjögren’s in III, because criteria Sjögren’s we a 'XX. expecting that population are patients here been is terms been actually, we largest of strict I III conducted largest the want to say, Currently, think

Vasant Narasimhan

how one it I the ensure in they is I've the measures and of well-trained that think important here STI to really mean, have I some other that is apply of a way. consistent learned centers dynamics the

John I provide line. ianalumab learn cautious the want of as more, of all in. it on we'll course, we on And as that take said, time to we So we be across then, appropriately indications forward think updates our

Operator

next comes Morgan line from Your Purcell from of Stanley. Mark the question

Mark Purcell

maintain help in momentum of in clarification. understand opportunity in? within kick pharmacy to setting size then basis of timing the terms you And hypertension? us when the on Vas, the that, the just can the in LOE China, retail pivot Entresto But the your of China? to opportunity And quickly, going is

LOE counterparties, next considerations And Sandoz biosimilar 'XX the are of what data? we key for terms of up beyond? terms launches in and what in expect should In the coming

Vasant Narasimhan

Mark. Absolutely, Yes.

the Marie-France? China, on first, Entresto So

Marie-France Tschudin

Yes.

And significant, certainly failure comments, population to in hypertensive from China my from to I as is volume So perspective, million the hypertension patients X So in moving opportunity, a patients right? we're the heart are controlled. patients. really million X well before XXX said not about

such we a Obviously, to there's is So of opportunity expand was worthwhile a a to population opportunity. is there price NRDL. big significant it broad, just do broad there But listed just proposition as a concession because an we think patients. that

have as We're broadened footprint So the necessary we our we are well. investments. -- making

sure want have tools place. the also we in We that digital make to right

As you heart their course, we of looking a monitoring. be that but patients more know, where failure sure with have Tencent in cooperation own control Entresto-independent, can looking, of making at we're

activities So space. of this there are lot a in

And is As cardiovascular China, the with you definitive to when major a know, in costs. give it China is situation is major -- comes answer. in a problem to a CVD massive China, disease patent hard

obviously are in China, I initiative. working secure RDP to that's and We industry-wide think an

for marks X/X up year. could here -- So was, on Entresto growth said, it couldn't let's this But upside And and us, give certainly This be to opportunity in is until there around say, for are a our, about about of some when. significant. thrilled as we potential that it. question guidance today. the you We're

Vasant Narasimhan

Marie-France. Thanks, Richard? And upcoming Sandoz then on launches, biosimilars

Richard Saynor

adalimumab Thanks, Vas. launches 'XX. Really, 'XX, coming I in, and the next really natalizumab late into guess, are

So for the clearly, as wave earlier, that really we'll accelerating and I we of top forward. clearly business. think the as the our expansion that's update those the should next start that, line products of file both move margin commented biosimilars and And I start

Vasant Narasimhan

Thanks, Mark. Richard. Thank Thanks, you, Mark.

keep next -- I how know for time have have queue. many take don't hour. operator, let's we mid in of think the question, till we'll I the the more going we But and the

Operator

of comes the line Societe Your question from next Generale. from Cespedes Florent

Florent Cespedes

Could you China, risk? the And the momentum Entresto, are on there see in follow-up and how elaborate potential beyond please please. quick A drivers China? which on, growth you

Vasant Narasimhan

on to China? take want that Pharma you do Marie-France,

Marie-France Tschudin

Yes.

the as also strong I we've affected So year in China: are the for Lucentis. main lowest and the us. QX. normally quarter they all we all in And mentioned Pharma were before, in growth. Cosentyx, mean, got X is for showing QX business But products growth Entresto drivers X

QX any about So the constraints the for to thing now fact But the the Entresto, giving other we say budget was We've seen lockdowns. the now COVID is going to talked the and that, as the listing about due about thinking about is are compensation. we Lucentis think country. I'll rebound in and that for one innovation, And open NRDL China stock country China so we forward Cosentyx.

portfolio received we're we in when So we look about portfolio Kesimpta, and in the for our of at are portfolio, thinking thinking or the our forward whether -- the just way Europe. about approval Leqvio, our same the launch as that's we China in U.S.

big can that's X forward, exception our focus where that's and China. is is continues growth what driver Lucentis, is, working. a drivers, we're So to that's expect, the us growth the going that's footprint And investing the which for where where maybe strong you be in

Vasant Narasimhan

Thanks, Marie-France.

So we'll -- first-time think I we have more X go to questions. next,

Next question, operator?

Operator

next comes Your from question from Peter Welford Jefferies.

Peter Welford

greater could Harry, the of sort the for if Medicines, for started delivered outlook above close but Obviously, this high for a Innovative Wondered really, growth. One bit about year, what your it that single-digit core the year, this I saw thinking similar, 'XX, talk is income, we benefit you're to versus to operating you XX%. in sales you investments, You outlook single we mid- the little digits slightly mid- in the to conservatism margin you just Or if guess, be the constrained making about high the result is which, on part? should perhaps like, growth. expansion

Vasant Narasimhan

Thanks, Peter. Harry?

Harry Kirsch

Peter. Thank Yes. you,

one can very of kind any we it's delicate one know, do. productivity So course, of in as right? get investing fine would have. margin and almost always driving, this companies, course, like But As core of to we between also pharma balance, balance a always

core significant improvement. And so strides overall, margin made have the we on

in if his basis point one was And investments, restricted point you XXX of XXX basis a earlier pandemic to point 'XX the of last part then As will, charts, and in basis some also Vas that situation. in the year. shared XXX 'XX, due

ensure supported. Marie-France, and that well have very we line, always R&D the we fantastic her appropriately we invest that to And teams And the launches So are getting in are -- we certainly. and driving. Susanne teams have ensure their launches that

the I expect to of would course, Innovative margin each some not X we in the years but level years. So of the have Medicines, next last good improvement, over X, seen

it's launches. the the Thank investments in are pipeline and balance clearly a you. So and the

Vasant Narasimhan

then Harry. operator? And Peter. thanks, Last we Thanks, question, have -- time

Operator

Guggenheim. from today Fernandez Your comes from last question of Seamus the line

Seamus Fernandez

pipeline wanted of very quickly. a questions just couple So

it a ligelizumab there, off particularly APO versus you'll ligelizumab of number points to separately, challenges failed the as for BAFF the And on similar for launch filing? from type of understand you just do differentiation, terms or your remibrutinib you can CSU, we've us And indications, in unique help in then how, in then just I Just expectations relates trade in what decision if a makes there. remibrutinib ianalumab setting? in similar think other lupus? seen that compounds have

Vasant Narasimhan

Yes.

are Do you think, the you ianalumab? still take want I John, to there?

John Tsai

And Absolutely. question, the Seamus. for thanks Sure.

look we ianalumab, this a As survival. of see BAFF-mediated It's is the as blockade ianalumab. And proliferation receptor signaling the maturation, is anti-BAFF action path, one interrupts modes with that our ADCC and we at and agent. for other by B really different direct lysis BAFF of X B-cell cells

action there is us counterbalance here this see And BAFF mechanisms of modes to blockers. has difference actually with are of is dual mechanisms what X seen the we've allows that of seen actually been moving as we're previous what indications. of -- receptor these question Phase So and our said studies, the various seen earlier, in in responses, -- good On that's we your in ahead, second terms why Go forward and we've Vas. go ahead. versus II

Vasant Narasimhan

was ligand, subtypes then -- to on I previous to historical -- not think on remibrutinib. so John, completely some of results. chime Go ahead, in BAFF competitor I of the and molecules just in the of ligand, the going think certain I only BAFF targeted comparable only

John Tsai

Yes.

looking remibrutinib So in terms of at ligelizumab. versus

As as in seen we've And oral you CSU good BTK-selective what remibrutinib, is in also the results we look both an for good for oral at know, with both. seen we've results inhibitor, compound. combinations,

approaches, the continue as we're we'll studies. we're as remibrutinib, in looking both ligelizumab. further we make from we'll moving as with results So recruitment forward and forward, these at then decisions And move analyze we

Vasant Narasimhan

ligelizumab, question, potential value approach? a idea I think, is not future in the there Seamus, and guess launches on allergy I is that the getting determination just we Or in of food strategic ahead medicine the CIndU? sensible to a come the the yet. And haven't market of

current Our it of placebo, we review potentially to with the -- view the superiority course, that is And it we'll FDA. is with fileable.

then carefully those Very is approach decide take right the make what to good. So to we're ahead. going and assessments

the everyone, excited forward about. XXXX. Thank date in hope term, strong excited both on a the through but wish the call. then thanks, speaking call. interactions, you about you it also up and perspective various to pipeline, We're to near And great forward year, and the for delivering joining we'll outlook look we're get we'll conference course We longer-term conference helpful company, a So to quarterly to of you was our keeping the and of you. next We today's to products things look soon. the a

Operator

does for Thank today's you. conclude That Thank call. participating. you conference

You may all disconnect.

Novartis (NVS) 2 Feb 222021 Q4 Earnings call transcript