NOVARTIS AG CHF0.50(REGD) Novartis Delivered -4 –

--------------------------  ------  ------              -------  ------- 
                                Q3      Q3 
  Sandoz                      2019    2018    % change  9M 2019  9M 2018    % change 
                             USD m   USD m   USD    cc    USD m    USD m   USD    cc 
                            ------  ------  ----  ----  -------  -------  ----  ---- 
Net sales                    2 484   2 420     3     5    7 248    7 400    -2     2 
Operating income               191     358   -47   -42      746    1 095   -32   -25 
    As a % of sales            7.7    14.8                 10.3     14.8 
Core operating income          615     541    14    18    1 577    1 520     4    10 
    As a % of sales           24.8    22.4                 21.8     20.5 
--------------------------  ------  ------              -------  ------- 
                                Q3      Q3 
  Corporate                   2019    2018    % change  9M 2019  9M 2018    % change 
                             USD m   USD m   USD    cc    USD m    USD m   USD    cc 
                            ------  ------  ----  ----  -------  -------  ----  ---- 
Operating loss                -237    -303    22    21     -560     -625    10     8 
Core operating loss           -167    -180     7     6     -455     -457     0    -2 
                            ------  ------  ----  ----  -------  -------  ----  ---- 
Discontinued operations         Q3      Q3 
 (2)                          2019    2018    % change  9M 2019  9M 2018    % change 
                             USD m   USD m   USD    cc    USD m    USD m   USD    cc 
                            ------  ------  ----  ----  -------  -------  ----  ---- 
Net sales                            1 763                1 777    5 361    nm    nm 
Operating income / 
 loss                                - 300                   71    - 171    nm    nm 
    As a % of sales                  -17.0                  4.0     -3.2 
Core operating income                  297                  350      991    nm    nm 
    As a % of sales                   16.8                 19.7     18.5 
Net income / loss                    - 258                4 590    - 160    nm    nm 
                                    ------              -------  -------  ----  ---- 
                                Q3      Q3 
  Total Group                 2019    2018    % change  9M 2019  9M 2018    % change 
                             USD m   USD m   USD    cc    USD m    USD m   USD    cc 
                            ------  ------  ----  ----  -------  -------  ----  ---- 
Net income                   2 041   1 624    26    30   10 608   11 420    -7    -3 
EPS (USD)                     0.90    0.70    29    32     4.62     4.92    -6    -2 
Core net income              3 212   3 064     5     7    9 397    9 057     4     9 
Core EPS (USD)                1.41    1.32     7     9     4.09     3.90     5    10 
Cash flows from operating 
 activities                  4 562   4 050    13         10 085   10 506    -4 
Free cash flow               3 968   3 301    20          9 387    8 778     7 
                            ------  ------  ----        -------  -------  ---- 
nm = not meaningful 
(1) Continuing operations include the businesses of Innovative 
 Medicines and Sandoz Division including the US generic oral solids 
 and dermatology portfolio and Corporate activities. See page 
 44 of the Condensed Interim Financial Report for full explanation 
(2) Discontinued operations include the business of Alcon. Net 
 income of discontinued operations for 9M 2019 includes a USD 
 4.7 billion gain on distribution of Alcon Inc. to Novartis AG 
 shareholders. See page 44 and Notes 2, 3 and 11 of the Condensed 
 Interim Financial Report for full explanation 
   Detailed financial results accompanying this press release are included 
in the Condensed Interim Financial Report at the link below: 
   This press release contains forward-looking statements within the 
meaning of the United States Private Securities Litigation Reform Act of 
1995, that can generally be identified by words such as "guidance," 
"launched," "launching," "strong start," "momentum," "growth investments, 
" "compelling," "submissions," "starting," "submitted," "submission," 
"planned," "focused," "expected," "to grow," "continued," "continuing," 
"continue," "potential," "growing," "launches," "continues," "expect," 
"to be completed," "pending," "closing conditions," "committed," "growth 
drivers," "launch," "to date," "ongoing," "filings," "Breakthrough 
Therapy Designation," "delivering," "will," "plans," "to submit," 
"suggests," "may," "would," "proposed," "commitment," "pipeline," 
"priority," "outlook," "unforeseen," "forecast," "enter," "to deliver," 
"priority review," "enrollment," "filed," "transformative," "Orphan Drug 
designation," "upcoming," "on track," "future," "strategy," "Fast Track 
designation," "Orphan designation," "Orphan status," "resubmitted," 
"potentially," "anticipated," "as early as possible," "PRIME designation, 
" "Sakigake designation," "underway," "increasing," "in the coming 
months," or similar expressions, or by express or implied discussions 
regarding potential new products, potential new indications for existing 
products, potential product launches, or regarding potential future 
revenues from any such products; or regarding the potential outcome, or 
financial or other impact on Novartis, of the proposed divestiture of 
certain portions of our Sandoz Division business in the US; or regarding 
the potential impact of the completion of the up to USD 5 billion share 
buyback; or regarding potential future sales or earnings of the Group or 
any of its divisions or potential shareholder returns; or by discussions 
of strategy, plans, expectations or intentions. Such forward-looking 
statements are based on the current beliefs and expectations of 
management 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 may vary materially from those set forth in 
the forward-looking statements. You should not place undue reliance on 
these statements. In particular, our expectations could be affected by, 
among other things: global trends toward healthcare cost containment, 
including ongoing government, payor and general public pricing and 
reimbursement pressures and requirements for increased pricing 
transparency; regulatory actions or delays or government regulation 
generally, including potential regulatory actions or delays with respect 
to the proposed transactions or the development of the products 
described in this press release; the potential that the proposed 
divestiture of certain portions of our Sandoz Division business in the 
US may not be completed in the expected time frame, or at all; the 
potential that the strategic benefits, synergies or opportunities 
expected from the proposed divestiture of certain portions of our Sandoz 
Division business in the US, and other transactions described, may not 
be realized or may be more difficult or take longer to realize than 
expected; the inherent uncertainties involved in predicting shareholder 
returns; the uncertainties inherent in the research and development of 
new healthcare products, including clinical trial results and additional 
analysis of existing clinical data; our ability to obtain or maintain 
proprietary intellectual property protection, including the ultimate 
extent of the impact on Novartis of the loss of patent protection and 
exclusivity on key products that commenced in prior years and will 
continue this year; safety, quality or manufacturing issues; 
uncertainties involved in the development or adoption of potentially 
transformational technologies and business models; uncertainties 
regarding actual or potential legal proceedings, including, among others, 
product liability litigation, disputes and litigation with business 
partners or business collaborators, government investigations generally, 
litigation and investigations regarding sales and marketing practices, 
and intellectual property disputes; our performance on environmental, 
social and governance measures; general political, economic and trade 
conditions, including uncertainties regarding the effects of ongoing 
instability in various parts of the world; uncertainties regarding 
future global exchange rates; uncertainties regarding future demand for 
our products; uncertainties regarding potential significant breaches of 
data security or data privacy, or disruptions of our information 
technology systems; and other risks and factors referred to in Novartis 
AG's current Form 20-F on file with the US Securities and Exchange 
Commission. Novartis is providing the information in this press release 
as of this date and does not undertake any obligation to update any 
forward-looking statements as a result of new information, future events 
or otherwise. 
   All product names appearing in italics are trademarks owned by or 
licensed to Novartis Group companies. 
   About Novartis 
   Novartis is reimagining medicine to improve and extend people's lives. 
As a leading global medicines company, we use innovative science and 
digital technologies to create transformative treatments in areas of 
great medical need. In our quest to find new medicines, we consistently 
rank among the world's top companies investing in research and 
development. Novartis products reach more than 750 million people 
globally and we are finding innovative ways to expand access to our 
latest treatments. About 109,000 people of more than 140 nationalities 
work at Novartis around the world. Find out more at. 
   Novartis will conduct a conference call with investors to discuss this 
news release today at 14:00 Central European time and 8:00 Eastern Time. 

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