Ad hoc announcement according to art. 53 LR

• Medium-term sales guidance upgraded to +6% CAGR 2023-2028 and +5% 2024-2029
• Strong momentum in the industry with 8 brands in the market with $3B+ to $8B+ peak sales potential and 15+ near-term readings enabling submission
• 30+ high value drugs in pipeline expected to support continued mid-digit sales growth beyond 2029

Basel, 21 November 2024 – Today, Novartis announced an upgrade to its medium-term guidance, ahead of its Meet Novartis Management event for investors and analysts in London. Previous guidance of +5% sales CAGR 2023-2028 was upgraded to +6%, driven by strong momentum from growth factors in the market and upcoming launches, most of which have expected US exclusivity in the 2030s or beyond.

Rolling forward its mid-term guidance with strong 2024 performance as the base year, Novartis now expects to grow sales at +5% CAGR 2024-2029. The company is still on track to deliver core operating income¹ of 40%+ by 2027, benefiting from continued strong sales growth and productivity improvements.

“Novartis has completed its transformation into a pure innovative pharmaceutical company, with deep expertise and capabilities in our core therapeutic areas and technology platforms. Our focus has enabled us to sharpen our commercial execution and increase our top-line sales estimates for Cosentyx, Kisqali, Kesimpta, Pluvicto and Leqvio, and we have more than 15 deliverable readings in the coming years to further strengthen our growth profile, says Vas Narasimhan, CEO of Novartis. “Long-term, we have identified more than 30 assets in the pipeline with significant potential to rejuvenate our portfolio and support mid-digit growth beyond 2029. Overall, we remain. confident in our focused strategy and ability to deliver sustainable value creation for shareholders.”

While the majority of the company’s portfolio comes from its internal innovation engine, value-creating bolt-ons remain an important part of Novartis’ capital allocation policy. Novartis has completed more than 30 strategic deals in the past two years, primarily in the exploratory to preclinical stage. Recent examples include the acquisition of Kate Therapeutics, which complements the company’s ongoing efforts to innovate new gene therapies for neuromuscular diseases, and the worldwide license and collaboration agreement with Ratio Therapeutics for a next-generation SSTR2-targeted radiotherapeutic candidate, adding to the company’s deep radioligand therapy pipeline.

During the event today, investors and analysts will hear from CEO Vas Narasimhan and have the opportunity to engage with senior leaders from across the company in an open question and answer format. A live broadcast of the event will be available on our website at /investors/events-calendaralong with a copy of the CEO presentation. A replay will be available once the event has concluded.

¹ Core results are non-IFRS measures. An explanation of non-IFRS measures can be found on page 46 of the 3Q24 interim report.

Disclaimer
This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, which generally can be identified by words such as “potential,” “may,” “will,” “expected,” “pipeline,” “launch” , “guidance”, “drive”, “growth”, “expected”, “continues”, “continues”, “on track”, “deliver” or similar expressions, or through express or implied discussions of potential new products, potential new indications for existing products or regarding potential future revenues from such products; or regarding potential future, pending or announced transactions; or through discussions of strategy; , plans, expectations or intentions, including discussions regarding our continued investment in new R&D capacity and manufacturing; or regarding our capital structure; or regarding the implications of the spin-off of Sandoz and our transformation into a “pure-play” innovative pharmaceutical company. Such forward-looking statements are based on management’s current beliefs and expectations regarding future events and are subject to significant known and unknown risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results could differ materially from those set forth in forward-looking statements You should not rely on these statements. Nor can there be any assurance that such products will be commercially successful in the future. Also, there can be no guarantees as to expected benefits or synergies from the transactions described in this press release. at all. In particular, our expectations may be affected by, among other things: uncertainties about the success of key products, commercial priorities and strategy; uncertainties in research and development of new products, including results from clinical trials and further analysis of existing clinical data; uncertainty about the use of new and disruptive technologies, including artificial intelligence; global trends toward containment of health care costs, including ongoing pricing and reimbursement pressures from government, payers and the public and demands for increased price transparency; uncertainties regarding our ability to realize the strategic benefits, operational efficiencies or opportunities anticipated from our external business opportunities; our ability to realize the intended benefits of our separation of Sandoz into a new publicly traded stand-alone company; our ability to obtain or maintain patent protection, including the ultimate extent of the impact on Novartis of the loss of patent protection and exclusivity on key products; uncertainties in the development or adoption of potentially transformative digital technologies and business models; uncertainties surrounding the implementation of our new IT projects and systems; uncertainties regarding potential significant information security breaches or disruptions to our IT systems; uncertainties regarding actual or potential legal proceedings, including regulatory actions or delays or government regulation related to the products and pipeline products described in this press release; security, quality, data integrity or manufacturing issues; our performance and ability to comply with environmental, social and regulatory measures and requirements; major political, macroeconomic and business developments, including the impact of war in certain parts of the world; uncertainties about future global exchange rates; uncertainty about future demand for our products; and other risks and factors referred to in Novartis AG’s most recently filed Form 20-F and in subsequent reports filed with, or filed with, the US Securities and Exchange Commission. Novartis is providing the information in this press release as of the date hereof and undertakes no obligation to update any forward-looking statements as a result of new information, future events or otherwise.

All product names displayed are trademarks owned by or licensed to Novartis.

This press release includes non-IFRS financial measures, including core results. An explanation of non-IFRS measures can be found on page 46 of the 3Q24 interim report.

About Novartis
Novartis is an innovative pharmaceutical company. Every day, we work to transform medicine to improve and extend people’s lives so that patients, healthcare professionals and communities are empowered in the face of serious illness. Our medicines reach more than 250 million people worldwide.

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