- Full pipeline of late stage assets with blockbuster potential
- Positioned to deliver sales growth and margin expansion through 2022
- Pipeline depth in key therapeutic areas and building new, distinctive platform capabilities
- Alcon returning to a position of strength as the world’s leading eye care devices company
Basel, May 16, 2018 - Today Novartis holds its annual Meet Novartis Management event at its global headquarters in Basel, Switzerland, giving investors and analysts the opportunity to meet with key executives across the company in six separate breakout sessions. The meeting provides a deeper view into the company’s strategy for sustainable value creation, and addresses investors’ questions via an open Q&A format.
"We would like to thank all our investors for their commitment to our company. We are excited and confident that our portfolio of novel medicines, together with our strategy to become a more focused medicines company, will result in sustainable top and bottom line growth. We also have made mistakes recently and the world rightly expects more from a leading healthcare company. Our new executive team and I have a deep commitment to ensure we always operate with the highest integrity and sound judgment and will work hard to rebuild lasting trust with society," said Novartis CEO, Vas Narasimhan M.D.
For the Innovative Medicines Pharmaceuticals business unit, management highlights Cosentyx and Entresto, as well as 10 potential blockbuster launches in the next three years including Aimovig, BAF312 and RTH258. Cosentyx has taken NBRx leadership in Rheumatology (PsA and AS) where IL-17A has shown strong lasting efficacy and a favorable safety profile. Head-to-head superiority trials of Cosentyx vs. adalimumab in PsA and AS are ongoing. Entresto sales have continued to build with a growing body of evidence showing Entresto helps patients live longer and have a better quality of life.
The Innovative Medicines Oncology business unit returned to growth with sales +6% (cc) in Q1 2018, driven by Tafinlar + Mekinist, Promacta and Jakavi. Three new potential blockbuster launches, Kisqali, Kymriah and Lutathera, are expected to further drive growth in the mid-term. Oncology is expected to have 15 major filings and 13 approvals in 2018 and sizable filing opportunities in 2019, including SEG101 and PDR001 + Tafinlar + Mekinist.
In Sandoz, management highlights continued leadership in biosimilars and plans for major launches in the US and Europe. Despite continuing US pricing pressure, globally, the Sandoz gross margin is improving, driven by an increased focus on higher-margin portfolio segments and geographies, as well as productivity. In the US, Sandoz is optimizing the portfolio through targeted pruning and learning from recent setbacks. Outside the US, growth continues across regions and Sandoz is the market leader in Europe.
In Alcon, management highlights the actions that have returned the business to growth and improved margins. Alcon is the global market leader in eye care devices, with leading global sales positions in the growing Surgical and Vision Care markets. With continued innovation, investment and improved operations, Alcon expects to return to long-term, sustainable growth with margins in line with industry peers. The strategic review is on track with action not expected before the first half of 2019.
Novartis has a strong track record of R&D excellence, including being #1 in US/EU approvals over the last 10 years. The Global Drug Development (GDD) team provides insight into the full pipeline of late stage assets with blockbuster potential. These late stage assets are followed up with a strong and diverse set of emerging phase II assets from the Novartis Institutes for Biomedical Research (NIBR). Novartis is building new platform capabilities in advanced therapies and leveraging internal and external innovation to build and accelerate our pipeline.
In closing, Group management reiterates the overall strategy. We have taken steps to focus the company and our capital in areas where we have the key ingredients to lead. We announced the sale of our stake in the Consumer Healthcare JV to GSK and invested more in gene therapy and oncology. We are positioned to deliver sales growth and margin expansion through 2022, driven by our key in-market products, our full late-stage pipeline and ongoing productivity efforts. We are working to capture the potential of digital technologies in every function. We have pipeline depth in our key therapeutic areas, and are building new, distinctive platform capabilities for the future. Novartis management is focused on driving our strategy and sustainable growth.
For background slides and webcast (audio only) please refer to the following link: www.novartis.com/investors/event-calendar/index.shtml
The background slide decks will be available on Wednesday May 16, 2018 at 7:15 am CET.