Segmentation of key figures (Tables)
 6 Months Ended
Jun. 30, 2020
Statement [line items]  
Segmentation - Consolidated income statements
Second quarter
Innovative Medicines
Sandoz
Corporate (including eliminations)
Group
(USD millions)
Q2 2020
Q2 2019
Q2 2020
Q2 2019
Q2 2020
Q2 2019
Q2 2020
Q2 2019
Net sales to third parties from continuing operations
9 188
9 326
2 159
2 438
11 347
11 764
Sales to continuing segments
219
177
43
37
– 262
– 214
Net sales from continuing operations
9 407
9 503
2 202
2 475
– 262
– 214
11 347
11 764
Other revenues
251
250
22
6
2
4
275
260
Cost of goods sold
– 2 554
– 2 327
– 1 158
– 1 315
283
236
– 3 429
– 3 406
Gross profit from continuing operations
7 104
7 426
1 066
1 166
23
26
8 193
8 618
Selling, general and administration
– 2 764
– 2 911
– 496
– 550
– 108
– 124
– 3 368
– 3 585
Research and development
– 2 240
– 1 853
– 201
– 198
– 2 441
– 2 051
Other income
154
847
17
45
261
97
432
989
Other expense
– 221
– 945
– 65
– 181
– 178
– 182
– 464
– 1 308
Operating income from continuing operations
2 033
2 564
321
282
– 2
– 183
2 352
2 663
as % of net sales
22.1%
27.5%
14.9%
11.6%
20.7%
22.6%
Income from associated companies
1
1
1
1
181
174
183
176
Interest expense
– 220
– 205
Other financial income and expense, net
– 27
0
Income before taxes from continuing operations
2 288
2 634
Taxes
– 421
– 525
Net income from continuing operations
1 867
2 109
Gain on distribution of Alcon Inc. to Novartis AG shareholders
4 691
Net income from discontinued operations
4 691
Net income
1 867
6 800
First half
Innovative Medicines
Sandoz
Corporate (including eliminations)
Group
(USD millions)
H1 2020
H1 2019
H1 2020
H1 2019
H1 2020
H1 2019
H1 2020
H1 2019
Net sales to third parties from continuing operations
18 943
18 106
4 687
4 764
23 630
22 870
Sales to continuing and discontinued segments
409
426
92
76
– 501
– 449
53
Net sales from continuing operations
19 352
18 532
4 779
4 840
– 501
– 449
23 630
22 923
Other revenues
507
511
35
34
158
11
700
556
Cost of goods sold
– 5 080
– 4 551
– 2 614
– 2 591
543
485
– 7 151
– 6 657
Gross profit from continuing operations
14 779
14 492
2 200
2 283
200
47
17 179
16 822
Selling, general and administration
– 5 621
– 5 564
– 1 016
– 1 112
– 217
– 239
– 6 854
– 6 915
Research and development
– 4 106
– 3 958
– 395
– 392
– 4 501
– 4 350
Other income
326
922
49
82
318
188
693
1 192
Other expense
– 590
– 1 219
– 562
– 306
– 269
– 319
– 1 421
– 1 844
Operating income from continuing operations
4 788
4 673
276
555
32
– 323
5 096
4 905
as % of net sales
25.3%
25.8%
5.9%
11.6%
21.6%
21.4%
Income from associated companies
1
1
1
1
304
254
306
256
Interest expense
– 459
– 431
Other financial income and expense, net
– 34
44
Income before taxes from continuing operations
4 909
4 774
Taxes
– 869
– 797
Net income from continuing operations
4 040
3 977
Net loss from discontinued operations before gain

on distribution of Alcon Inc. to Novartis AG shareholders
















– 101
Gain on distribution of Alcon Inc. to Novartis AG shareholders
4 691
Net income from discontinued operations
4 590
Net income
4 040
8 567
Segmentation - Consolidated balance sheets and income statement
Innovative Medicines
Sandoz
Corporate (including eliminations)
Group


(USD millions)
Jun 30,

2020
Dec 31,

2019
Jun 30,

2020
Dec 31,

2019
Jun 30,

2020
Dec 31,

2019
Jun 30,

2020
Dec 31,

2019
Total assets
81 373
71 225
16 229
16 468
26 161
30 677
123 763
118 370
Total liabilities
– 14 690
– 15 332
– 3 681
– 3 804
– 51 507
– 43 683
– 69 878
– 62 819
Total equity
53 885
55 551
Net debt
26 537
15 938
26 537
15 938
Net operating assets
66 683
55 893
12 548
12 664
1 191
2 932
80 422
71 489
Included in net operating assets are:
Property, plant and equipment
9 485
9 632
1 943
1 888
527
549
11 955
12 069
Goodwill
21 257
18 750
7 835
7 767
8
7
29 100
26 524
Intangible assets other than goodwill
34 877
27 586
1 674
1 125
118
76
36 669
28 787
The following table shows the intangible asset impairment charges for continuing operations:
(USD millions)
Q2 2020
Q2 2019
H1 2020
H1 2019
Innovative Medicines  1
– 500
– 20
– 509
– 466
Sandoz
0
– 2
– 42
– 12
Total
– 500
– 22
– 551
– 478
 1  Q2 2020 and H1 2020 include an impairment of USD 485 million related to the write-down of IPR&D related to cessation of clinical development program ZPL389 for atopic dermatitis.

H1 2019 includes an impairment of USD 416 million related to the write-down of IPR&D acquired through the 2015 Spinifex Pharmaceuticals Inc. acquisition.
 
Net sales by region
Segmentation – Net sales by region 1
Second quarter
Q2 2020

USD m
Q2 2019

USD m
% change

USD
% change

cc 2
Q2 2020

% of total
Q2 2019

% of total
Innovative Medicines
Europe
2 964
3 218
– 8
– 5
32
35
US
3 515
3 336
5
5
38
36
Asia/Africa/Australasia
2 123
2 106
1
2
23
23
Canada and Latin America
586
666
– 12
5
7
6
Total
9 188
9 326
– 1
1
100
100
Of which in Established Markets
6 909
7 071
– 2
– 2
75
76
Of which in Emerging Growth Markets
2 279
2 255
1
9
25
24
Sandoz
Europe
1 130
1 269
– 11
– 8
52
52
US
508
642
– 21
– 21
24
26
Asia/Africa/Australasia
341
333
2
4
16
14
Canada and Latin America
180
194
– 7
5
8
8
Total
2 159
2 438
– 11
– 9
100
100
Of which in Established Markets
1 621
1 796
– 10
– 9
75
74
Of which in Emerging Growth Markets
538
642
– 16
– 9
25
26
Continuing operations
Europe
4 094
4 487
– 9
– 6
36
38
US
4 023
3 978
1
1
35
34
Asia/Africa/Australasia
2 464
2 439
1
2
22
21
Canada and Latin America
766
860
– 11
5
7
7
Total
11 347
11 764
– 4
– 1
100
100
Of which in Established Markets
8 530
8 867
– 4
– 3
75
75
Of which in Emerging Growth Markets
2 817
2 897
– 3
5
25
25
 1  Net sales from operations by location of third-party customer. Emerging Growth Markets comprise all markets other than the Established Markets of the US, Canada, Western Europe, Japan, Australia and New Zealand.
 2  Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 54.
Segmentation – Net sales by region 1
First half
H1 2020

USD m
H1 2019

USD m
% change

USD
% change

cc 2
H1 2020

% of total
H1 2019

% of total
Innovative Medicines
Europe
6 366
6 352
0
3
34
35
US
7 057
6 329
12
12
37
35
Asia/Africa/Australasia
4 301
4 123
4
6
23
23
Canada and Latin America
1 219
1 302
– 6
8
6
7
Total
18 943
18 106
5
7
100
100
Of which in Established Markets
14 266
13 638
5
6
75
75
Of which in Emerging Growth Markets
4 677
4 468
5
11
25
25
Sandoz
Europe
2 558
2 510
2
5
55
53
US
1 078
1 232
– 12
– 12
23
26
Asia/Africa/Australasia
675
651
4
5
14
14
Canada and Latin America
376
371
1
12
8
7
Total
4 687
4 764
– 2
1
100
100
Of which in Established Markets
3 466
3 491
– 1
1
74
73
Of which in Emerging Growth Markets
1 221
1 273
– 4
2
26
27
Continuing operations
Europe
8 924
8 862
1
4
38
39
US
8 135
7 561
8
8
34
33
Asia/Africa/Australasia
4 976
4 774
4
6
21
21
Canada and Latin America
1 595
1 673
– 5
9
7
7
Total
23 630
22 870
3
6
100
100
Of which in Established Markets
17 732
17 129
4
5
75
75
Of which in Emerging Growth Markets
5 898
5 741
3
9
25
25
 1  Net sales from operations by location of third-party customer. Emerging Growth Markets comprise all markets other than the Established Markets of the US, Canada, Western Europe, Japan, Australia and New Zealand.
 2  Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 54.
Other revenue
Second quarter
Innovative Medicines
Sandoz
Corporate
Group
(USD millions)
Q2 2020
Q2 2019
Q2 2020
Q2 2019
Q2 2020
Q2 2019
Q2 2020
Q2 2019
Profit sharing income
209
181
1
209
182
Royalty income
24
15
5
4
2
6
31
25
Milestone income
5
47
11
16
47
Other  1
13
7
6
1
– 2
19
6
Total other revenues
251
250
22
6
2
4
275
260
 1  Other includes revenue from activities such as manufacturing or other services rendered, to the extent such revenue is not recorded under net sales.
First half
Innovative Medicines
Sandoz
Corporate
Group
(USD millions)
H1 2020
H1 2019
H1 2020
H1 2019
H1 2020
H1 2019
H1 2020
H1 2019
Profit sharing income
407
350
1
407
351
Royalty income
54
49
13
7
158
13
225
69
Milestone income
25
98
11
23
36
121
Other  1
21
14
11
3
– 2
32
15
Total other revenues
507
511
35
34
158
11
700
556
 1  Other includes revenue from activities such as manufacturing or other services rendered, to the extent such revenue is not recorded under net sales.
Innovative Medicines  
Statement [line items]  
Net sales by business franchise
Innovative Medicines Division net sales by business franchise
Second quarter
Q2 2020
Q2 2019
% change
% change
USD m
USD m
USD
cc 1
Oncology
Tasigna
480
468
3
5
Promacta/Revolade
422
349
21
23
Tafinlar + Mekinist
371
340
9
12
Sandostatin
341
403
– 15
– 13
Jakavi
310
284
9
14
Gleevec/Glivec
288
323
– 11
– 8
Afinitor/Votubia
266
401
– 34
– 33
Exjade/Jadenu
163
253
– 36
– 35
Votrient
162
193
– 16
– 14
Kisqali
159
111
43
49
Lutathera
105
109
– 4
– 3
Kymriah
118
58
103
103
Piqray
79
6
nm
nm
Adakveo
21
nm
nm
Other
263
308
– 15
– 13
Total Novartis Oncology business unit
3 548
3 606
– 2
1
Immunology, Hepatology and Dermatology
Cosentyx
944
858
10
12
Ilaris
200
165
21
23
Total Immunology, Hepatology and Dermatology
1 144
1 023
12
13
Ophthalmology
Lucentis
401
536
– 25
– 24
Xiidra
79
nm
nm
Beovu
34
nm
nm
Other
423
638
– 34
– 32
Total Ophthalmology
937
1 174
– 20
– 18
Neuroscience
Gilenya
738
825
– 11
– 9
Zolgensma
205
15
nm
nm
Aimovig
33
24
38
45
Mayzent
34
5
nm
nm
Other
15
17
– 12
– 26
Total Neuroscience
1 025
886
16
17
Cardiovascular, Renal and Metabolism
Entresto
580
421
38
40
Other
6
nm
nm
Total Cardiovascular, Renal and Metabolism
580
427
36
38
Respiratory
Xolair
289
290
0
4
Ultibro Group
149
166
– 10
– 7
Other
6
5
20
– 10
Total Respiratory
444
461
– 4
0
Established Medicines
Galvus Group
279
320
– 13
– 8
Diovan Group
268
283
– 5
0
Exforge Group
238
264
– 10
– 5
Zortress/Certican
106
124
– 15
– 12
Neoral/Sandimmun(e)
96
110
– 13
– 11
Voltaren/Cataflam
82
95
– 14
– 11
Other
441
553
– 20
– 16
Total Established Medicines
1 510
1 749
– 14
– 9
Total Novartis Pharmaceuticals business unit
5 640
5 720
– 1
1
Total division net sales
9 188
9 326
– 1
1
 1  Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 54.
nm = not meaningful
Innovative Medicines Division net sales by business franchise
First half
H1 2020
H1 2019
% change
% change
USD m
USD m
USD
cc 1
Oncology
Tasigna
967
902
7
9
Promacta/Revolade
825
656
26
28
Tafinlar + Mekinist
737
637
16
19
Sandostatin
715
795
– 10
– 8
Jakavi
628
542
16
20
Gleevec/Glivec
617
630
– 2
0
Afinitor/Votubia
562
774
– 27
– 26
Exjade/Jadenu
335
491
– 32
– 31
Votrient
328
380
– 14
– 12
Kisqali
320
202
58
64
Lutathera
217
215
1
1
Kymriah
211
103
105
106
Piqray
153
6
nm
nm
Adakveo
36
nm
nm
Other
545
594
– 8
– 6
Total Novartis Oncology business unit
7 196
6 927
4
6
Immunology, Hepatology and Dermatology
Cosentyx
1 874
1 649
14
15
Ilaris
413
316
31
33
Total Immunology, Hepatology and Dermatology
2 287
1 965
16
18
Ophthalmology
Lucentis
888
1 069
– 17
– 15
Xiidra
169
nm
nm
Beovu
102
nm
nm
Other
974
1 266
– 23
– 21
Total Ophthalmology
2 133
2 335
– 9
– 7
Neuroscience
Gilenya
1 510
1 591
– 5
– 4
Zolgensma
375
15
nm
nm
Aimovig
69
42
64
72
Mayzent
64
5
nm
nm
Other
27
30
– 10
– 15
Total Neuroscience
2 045
1 683
22
23
Cardiovascular, Renal and Metabolism
Entresto
1 149
778
48
50
Other
1
12
– 92
– 98
Total Cardiovascular, Renal and Metabolism
1 150
790
46
48
Respiratory
Xolair
596
571
4
8
Ultibro Group
309
323
– 4
– 1
Other
10
12
– 17
– 18
Total Respiratory
915
906
1
5
Established Medicines
Galvus Group
617
635
– 3
1
Diovan Group
542
544
0
4
Exforge Group
496
531
– 7
– 3
Zortress/Certican
233
240
– 3
0
Neoral/Sandimmun(e)
197
213
– 8
– 5
Voltaren/Cataflam
174
208
– 16
– 15
Other
958
1 129
– 15
– 12
Total Established Medicines
3 217
3 500
– 8
– 5
Total Novartis Pharmaceuticals business unit
11 747
11 179
5
8
Total division net sales
18 943
18 106
5
7
 1  Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 54.
nm = not meaningful
Net sales of Top 20 products
Net sales of the top 20 Innovative Medicines Division products in 2020
Second quarter
US
Rest of world
Total


Brands




Business franchise




Key indication




USD m
%

change

USD/cc 1




USD m
%

change

USD
%

change

cc 1




USD m
%

change

USD
%

change

cc 1


Cosentyx




Immunology,

Hepatology and

Dermatology
Psoriasis, ankylosing

spondylitis and

psoriatic arthritis

and non-radiographic

axial spondyloarthritis








614








15








330








2








6








944








10








12
Gilenya
Neuroscience
Relapsing multiple sclerosis
416
– 6
322
– 16
– 13
738
– 11
– 9


Entresto
Cardiovascular,

Renal and

Metabolism




Chronic heart failure




308




39




272




36




41




580




38




40
Tasigna
Oncology
Chronic myeloid leukemia
221
8
259
– 2
2
480
3
5


Lucentis


Ophthalmology
Age-related

macular degeneration






401


– 25


– 24


401


– 25


– 24


Promacta/Revolade




Oncology
Immune

thrombocytopenia (ITP),

severe aplastic anemia (SAA)




212




25




210




17




22




422




21




23


Tafinlar + Mekinist






Oncology
BRAF V600+ metastatic

and adjuvant melanoma;

advanced non-small cell

lung cancer (NSCLC)






147






20






224






3






8






371






9






12


Sandostatin


Oncology
Carcinoid tumors

and acromegaly


200


– 8


141


– 24


– 19


341


– 15


– 13


Jakavi


Oncology
Myelofibrosis (MF),

polycytomia vera (PV)






310


9


14


310


9


14


Gleevec/Glivec


Oncology
Chronic myeloid

leukemia and GIST


70


– 27


218


– 4


0


288


– 11


– 8
Galvus Group
Established Medicines
Diabetes
279
– 13
– 8
279
– 13
– 8


Xolair




Respiratory
Severe Allergic Asthma (SAA)

and Chronic Spontaneous

Urticaria (CSU)












289




0




4




289




0




4
Afinitor/Votubia
Oncology
Breast cancer/TSC
163
– 37
103
– 27
– 24
266
– 34
– 33
Diovan Group
Established Medicines
Hypertension
34
21
234
– 8
– 2
268
– 5
0
Exforge Group
Established Medicines
Hypertension
2
– 50
236
– 9
– 5
238
– 10
– 5


Ilaris
Immunology,

Hepatology and

Dermatology
Auto-inflammatory (CAPS,

TRAPS, HIDS/MKD, FMF,

SJIA, AOSD and gout)




95




23




105




19




22




200




21




23


Zolgensma


Neuroscience
Spinal muscular atrophy

(SMA)


105


nm


100


nm


nm


205


nm


nm
Exjade/Jadenu
Oncology
Chronic iron overload
34
– 71
129
– 4
– 3
163
– 36
– 35
Votrient
Oncology
Renal cell carcinoma
72
– 17
90
– 15
– 12
162
– 16
– 14
Kisqali
Oncology
HR+/HER2- metastatic breast cancer
79
36
80
51
63
159
43
49
Top 20 products total
2 772
5
4 332
– 3
1
7 104
0
2
Rest of portfolio
743
8
1 341
– 13
– 9
2 084
– 6
– 4
Total division sales
3 515
5
5 673
– 5
– 1
9 188
– 1
1
 1  Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 54.
nm = not meaningful
Net sales of the top 20 Innovative Medicines Division products in 2020
First half
US
Rest of world
Total


Brands




Business franchise




Key indication




USD m
%

change

USD/cc 1




USD m
%

change

USD
%

change

cc 1




USD m
%

change

USD
%

change

cc 1


Cosentyx




Immunology,

Hepatology and

Dermatology
Psoriasis, ankylosing

spondylitis and

psoriatic arthritis

and non-radiographic

axial spondyloarthritis








1 190








18








684








7








11








1 874








14








15
Gilenya
Neuroscience
Relapsing multiple sclerosis
804
– 3
706
– 7
– 4
1 510
– 5
– 4


Entresto
Cardiovascular,

Renal and

Metabolism




Chronic heart failure




601




43




548




53




58




1 149




48




50
Tasigna
Oncology
Chronic myeloid leukemia
424
10
543
5
9
967
7
9


Lucentis


Ophthalmology
Age-related

macular degeneration






888


– 17


– 15


888


– 17


– 15


Promacta/Revolade




Oncology
Immune

thrombocytopenia (ITP),

severe aplastic anemia (SAA)




399




25




426




26




30




825




26




28


Tafinlar + Mekinist






Oncology
BRAF V600+ metastatic

and adjuvant melanoma;

advanced non-small cell

lung cancer (NSCLC)






279






21






458






13






17






737






16






19


Sandostatin


Oncology
Carcinoid tumors

and acromegaly


413


– 5


302


– 17


– 12


715


– 10


– 8


Jakavi


Oncology
Myelofibrosis (MF),

polycytomia vera (PV)






628


16


20


628


16


20


Gleevec/Glivec


Oncology
Chronic myeloid

leukemia and GIST


174


– 1


443


– 3


1


617


– 2


0
Galvus Group
Established Medicines
Diabetes
617
– 3
1
617
– 3
1


Xolair




Respiratory
Severe Allergic Asthma (SAA)

and Chronic Spontaneous

Urticaria (CSU)












596




4




8




596




4




8
Afinitor/Votubia
Oncology
Breast cancer/TSC
332
– 33
230
– 18
– 15
562
– 27
– 26
Diovan Group
Established Medicines
Hypertension
60
33
482
– 3
2
542
0
4
Exforge Group
Established Medicines
Hypertension
6
– 14
490
– 6
– 3
496
– 7
– 3


Ilaris
Immunology,

Hepatology and

Dermatology
Auto-inflammatory (CAPS,

TRAPS, HIDS/MKD, FMF,

SJIA, AOSD and gout)




183




29




230




32




36




413




31




33


Zolgensma  2


Neuroscience
Spinal muscular atrophy

(SMA)


231


nm


144


nm


nm


375


nm


nm
Exjade/Jadenu
Oncology
Chronic iron overload
78
– 66
257
– 1
1
335
– 32
– 31
Votrient
Oncology
Renal cell carcinoma
136
– 21
192
– 8
– 5
328
– 14
– 12
Kisqali
Oncology
HR+/HER2- metastatic breast cancer
153
37
167
86
97
320
58
64
Top 20 products total
5 463
9
9 031
4
8
14 494
6
8
Rest of portfolio
1 594
21
2 855
– 7
– 4
4 449
1
4
Total division sales
7 057
12
11 886
1
5
18 943
5
7
 1  Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 54.
 2  Includes a reclassification of export sales from the US into rest of the world in the amount of USD 44 million that were in Q1 2020 classified within US net sales. This reclassification has no impact on the reported Q1 2020 total Zolgensma net sales.
 
nm = not meaningful
Sandoz [member]  
Statement [line items]  
Net sales by business franchise
Second quarter
Q2 2020
Q2 2019
% change
% change
USD m
USD m
USD
cc 2
Retail Generics  1
1 576
1 903
– 17
– 14
Biopharmaceuticals
466
401
16
19
Anti-Infectives
117
134
– 13
– 12
Total division net sales
2 159
2 438
– 11
– 9
 1  Of which USD 134 million (2019: USD 186 million) represents Anti-Infectives sold under Sandoz name
 2  Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 54.
First half
H1 2020
H1 2019
% change
% change
USD m
USD m
USD
cc 2
Retail Generics  1
3 545
3 753
– 6
– 3
Biopharmaceuticals
916
752
22
25
Anti-Infectives
226
259
– 13
– 11
Total division net sales
4 687
4 764
– 2
1
 1  Of which USD 356 million (2019: USD 390 million) represents Anti-Infectives sold under Sandoz name
 2  Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 54.
The product portfolio of Sandoz is widely spread in 2020 and 2019.