Novartis publishes updated 2015 segment financials reflecting new division structure

Updated segment financials reflect transfer of Ophthalmic Pharmaceuticals franchise from Alcon to Pharmaceuticals, and 19 mature products from Pharmaceuticals to Sandoz, as outlined in Q4 and FY 2015 earnings release. No change in audited 2015 Consolidated Financial Statements for the total Group - Novartis announced today that it has published updated 2015 quarterly and full year segment financials reflecting the new division structure, as announced in the January 27, 2016 earnings release, as if the transfers had taken place from January 1, 2015. The updated segment financials are provided in accordance with the requirements of IFRS, and to aid comparability of 2016 quarterly and full year results, which will be reported on the new division structure. The updated segment financials reflect the transfer of the Ophthalmic Pharmaceuticals franchise from the Alcon Division to the Pharmaceuticals Division (USD 3.8 billion of net sales in 2015), and the transfer of a portfolio of 19 mature products from the Pharmaceuticals Division to the Sandoz Division (USD 0.9 billion of net sales in 2015). The updated operating income for each segment reflects all costs attributable to operation of the transferred businesses. The updated segment financials do not include any cost synergies. Future operating costs are expected to be optimized over time as the transferred businesses are fully integrated.