Where can I learn more about Novartis financial results?

Our Financial data section provides links to:

Upcoming releases and more events are listed in our Event calendar.

How do you calculate your earning per share?

Basic earnings per share (EPS) is calculated by dividing net income attributable to shareholders of Novartis AG by the weighted average number of shares outstanding in a reporting period. This calculation excludes the average number of issued shares purchased by the Company and held as treasury shares.

For diluted EPS, the weighted average number of shares outstanding is adjusted to assume the vesting of all restricted shares, restricted share units, and in 2022 and 2021 the conversion of all potentially dilutive shares arising from options on Novartis shares that have been issued. At December 31, 2023, there were no options on Novartis shares issued or outstanding.

No options were excluded from the calculation of diluted EPS in 2022 or 2021, as all options were dilutive in both years.

 202320222021
Net income attributable to shareholders of Novartis AG (USD millions)   
- Continuing operations8 5686 04922 908
- Discontinued operations6 2829061 113
Net income attributable to shareholders of Novartis AG (USD millions)14 8506 95524 021

Number of shares (in millions)
   
Weighted average number of shares outstanding used in basic earnings per share2 0772 1812 243
Adjustment for vesting of restricted shares, restricted share units and dilutive shares from options15 1617
Weighted average number of shares in diluted earnings per share2 0922 1972 260

Basic earnings per share (USD)
   
- Continuing operations4.132.7710.22
- Discontinued operations3.020.420.49
Total basic earnings per share (USD)7.153.1910.71

Diluted earnings per share (USD)
   
- Continuing operations4.102.7610.14
- Discontinued operations3.000.410.49
Total diluted earnings per share (USD)7.103.1710.63


Are there any limitations on voting rights for registered shareholders?

Novartis AG Articles of Incorporation state that no person or entity shall be registered with the right to vote for more than 2% of the share capital, as set forth in the commercial register. In particular cases, the Board of Directors may allow exemptions from the limitation for registration in the Novartis Share Register.

According to the Novartis Share Register, shareholders who owned 2% or more of the Company’s capital at December 31, 2023, and were entitled to voting rights on all of their shares, excluding treasury shares held by Novartis AG or its fully owned subsidiaries (including Swiss foundations controlled by Novartis AG), were as follows:

Shareholders registered for their own account:% holding of share capital
Dec 31, 2023
% holding of share capital
Dec 31, 2022
Emasan AG, Basel13.93.7
UBS Fund Management (Switzerland) AG, Basel2.72.3
Credit Suisse Funds AG, Zurich2.22.1
  1. According to a disclosure notification filed with Novartis AG, the beneficial owner of the shares registered for Emasan AG is Sandoz – Fondation de Famille, Liechtenstein.


What is the exposure to exchange rate risk for Novartis?

We transact our business in many currencies other than the US dollar, our reporting currency.

The following table provides an overview of net sales from continuing operations and operating expenses based on IFRS values for 2023, 2022 and 2021, for currencies most important to the Company:

Currency 2023
%
2022
%
2021
%
US dollar (USD)Net sales from continuing operations434138
 Operating expenses from continuing operations1383838
Euro (EUR)Net sales from continuing operations242427
 Operating expenses from continuing operations1192122
Swiss franc (CHF)Net sales from continuing operations111
 Operating expenses from continuing operations1222220
Chinese yuan (CNY)Net sales from continuing operations777
 Operating expenses from continuing operations1444
Japanese yen (JPY)Net sales from continuing operations455
 Operating expenses from continuing operations1223
Canadian dollar (CAD)Net sales from continuing operations222
 Operating expenses from continuing operations1111
British pound (GBP)Net sales from continuing operations223
 Operating expenses from continuing operations1522
Russian ruble (RUB)Net sales from continuing operations121
 Operating expenses from continuing operations1011
Brazilian real (BRL)Net sales from continuing operations221
 Operating expenses from continuing operations1111
Australian dollar (AUD)Net sales from continuing operations111
 Operating expenses from continuing operations1011
Other currenciesNet sales from continuing operations131314
 Operating expenses from continuing operations1877

1. Operating expenses include cost of goods sold; selling, general and administration; research and development; other income and other expense.

We prepare our consolidated financial statements in US dollars. As a result, fluctuations in the exchange rates between the US dollar and other currencies can have a significant effect on both the Company’s results of operations as well as the reported value of our assets, liabilities and cash flows. This in turn may significantly affect reported earnings (both positively and negatively) and the comparability of period-to-period results of operations.

For purposes of our consolidated balance sheets, we translate assets and liabilities denominated in other currencies into US dollars at the prevailing market exchange rates as of the relevant balance sheet date. For purposes of the Company’s consolidated income and cash flow statements, revenue, expense and cash flow items in local currencies are translated into US dollars at average exchange rates prevailing during the relevant period. As a result, even if the amounts or values of these items remain unchanged in the respective local currency, changes in exchange rates have an impact on the amounts or values of these items in our consolidated financial statements.

Because our expenditure in Swiss francs is significantly higher than our revenue in Swiss francs, volatility in the value of the Swiss franc can have a significant impact on the reported value of our earnings, assets and liabilities, and the timing and extent of such volatility can be difficult to predict.

Top 10 impact and sustainability-related questions from shareholders and our responses

Last updated: October 2024

Governance

Are there any planned changes to the Board ahead of the 2025 Annual General Meeting (AGM)?

  • In accordance with the 12-year term limit, Dr. Joerg Reinhardt (Chairman), Dr. Charles Sawyers and William Winters will not stand for re-election.
  • Dr. Giovanni Caforio has been nominated for election as Board Member and Board Chair at the 2025 AGM. He has deep experience in our industry, having served as the CEO of Bristol Myers Squibb (BMS) from 2015 to 2023, and Executive Chairman from 2017 to March 2024. Under his leadership, BMS successfully transformed into a global medicines company with strong capabilities across R&D and commercialization. He is a physician by training and received his M.D. from the University of Rome. Dr. Caforio is fluent in Italian, French, Spanish, Portuguese and English.
  • Dr. Elizabeth McNally is nominated for election to the Board at the 2025 AGM. She is Director of the Center for Genetic Medicine at Northwestern University, Feinberg School of Medicine. As a practicing cardiologist and renowned research leader, she specializes in the genetics of cardiovascular and neuromuscular disorders. Her clinical and scientific expertise will add greatly to the Board.
  • Subject to shareholders approving all proposed Director (re-)elections at the 2025 AGM, we will achieve female representation of greater than 40%.


Social impact and health equity

What is the business rationale of your access to medicines initiatives and global health programs in lowand middle-income countries (LMICs)? Is the objective philanthropic?

  • Novartis is committed to working with health systems and partners to make our medicines accessible to as many patients as possible. We systematically integrate access considerations into how we research, develop and deliver treatments to reach patients with unmet medical needs. These efforts are largely implemented through our International and US commercial units.
  • We initially launched our Global Health activities as a donation-based philanthropic effort, but saw a need for financially sustainable models to deliver long-term impact. As a result, our programs have evolved into business-integrated solutions.
  • Our Global Health unit focuses on providing access to underserved populations while aiming for financial self-sustainability. Some of its programs include:
    • Our Sub-Saharan Africa business model, where we shifted from a profit-led to an impact-led model, which increased employee motivation and led to better sales and profitability.
    • Our Vietnam cardiovascular community health program (Cùng Sống Khoẻ), where we target underserved, rural populations, complementing commercial efforts and expanding market reach.

What is the time lag between introduction of drugs in a developed market and LMICs? How do you plan to reduce that going forward?

  • The pharmaceutical industry typically takes 3-8 years to launch an innovative medicine in an LMIC after launching in a developed market. On average, Novartis has reduced that time lag to 4-8 months.
  • For example, ribociclib (Kisqali®) was launched in India five months after its first EU launch, and Kesimpta® was launched in Brazil four months after its first EU launch.
  • We continuously work to reduce time to market by tackling systematic barriers through health system strengthening, tailoring our approach in priority LMIC markets, launching emerging market brands (EMBs) where possible, and exploring innovative financing solutions.

With regards to health systems strengthening, what kind of training does Novartis impart to health educators and healthcare providers?

  • With the support of our partners, we follow a systematic, enterprise-wide approach to address health system barriers, including those facing health workers.
  • Health system strengthening (HSS) has been integrated throughout our core business planning processes, and all Novartis launches now have a global HSS strategy for local adaptation. The Novartis HSS framework guides our teams through a process of systematically identifying and prioritizing local systems barriers across the patient journey. For example, in partnership with the Clinton Health Access Initiative, Cambodia government and Vision Catalyst Fund, we have developed a program to increase access to diabetes, hypertension and ophthalmology treatments in Cambodia by addressing key systems barriers across the patient journey. The program has helped educate patients and upskill healthcare workers in Cambodia.
  • Complementing these disease area-specific efforts and in collaboration with the University of Basel, we established the Next Generation Scientist (NGS) fellowships/internships program for scientists and clinicians in LMICs more than a decade ago and trained 247 fellows from 34 countries.

Nature and environment

Have you identified treatments in your pipeline that could help treat climatesensitive diseases?

  • Climate change impacts are expected to contribute to the exacerbation of both infectious and non-communicable diseases, with an effect that may be particularly pronounced in LMICs, given less resiliency in public infrastructures and health systems. Our efforts to address this include a multi-pronged approach to tackling climate risk mitigation and adaptation.
  • Climate risk mitigation: We strive to mitigate our carbon footprint and have committed to achieve net zero greenhouse gas emissions across our value chain by 2040. In 2023, we reduced our scope 1 and 2 emissions by 63% vs. 2016.
  • Climate risk adaption: We are developing new treatments for diseases likely to spread in changing climates:
    • Novartis has one of the most extensive pipelines for vector-borne diseases with eight new chemical entities currently in human trials across six disease areas.
    • Kigali declaration: We have pledged to invest USD 250 million over 5 years (compared to 2022) in researching and developing treatments for malaria and neglected tropical diseases.
    • Since 2000, we have delivered >1bn treatment courses of our antimalarial Coartem®, including >470m courses of our child-friendly formulation in >70 countries, contributing to a significant reduction in malaria deaths. The Novartis malaria program is one of the largest access-to-medicine programs in the healthcare industry.

Your newly approved SBTi target implies a 90% reduction in absolute Scope 1, 2, and 3 emissions by 2040. Please provide an update on your progress towards this target.

  • Novartis received approval by SBTi for near- and long-term targets in July 2024. Below is a summary of our climate targets:
    • By 2025: Carbon neutrality for Scope 1 & 2
    • By 2030 (SBTi approved in July 2024): More than 90% reduction in Scope 1 and 2 emissions; 42% reduction in Scope 3 emissions (vs. 2022 baseline)1
    • By 2040 (SBTi approved in July 2024): More than 90% reduction in Scope 1, 2, and 3 (vs. 2022 baseline).
  • We have already made significant progress in reducing our Scope 1 and 2 emissions. In 2023, our scope 1 & 2 emissions reduced by 63% vs. 2016 and by 19% vs. 2022 (baseline year for SBTi is 2022)2. This is driven by energy efficiency (through process innovation and new technologies) and increased use of renewables across our operations.
  • Scope 3 emissions, which represent 90% of our overall carbon footprint, reduced by ~9% in 2023 vs. 20223. We are actively partnering with our suppliers and participate in alliances to drive system-level change and set clear expectations with suppliers to create a scalable impact.
  • We will continue to report on progress against our targets annually.

What are your capacity-building initiatives with suppliers on environmental topics?

  • Novartis participates in cross-industry initiatives such as the Sustainable Markets Initiative, PSCI and the World Business Council for Sustainable Development (WBCSD) – to share knowledge on decarbonization, carbon transparency, and GHG emissions reduction across the industry.
  • Novartis launched the Environmental Sustainability (ES) Supplier Playbook, distributed to over 1,000 prioritized suppliers (based on GHG emissions). This serves as a foundational guide for developing ES strategies, GHG emissions accounting, and setting action plans and targets, including best practices from Novartis. The Playbook is now being adapted by the Pharmaceutical Supply Chain Initiative (PSCI) as part of their learning modules.
  • In Q3 2024, we launched SiGREEN (a Siemens platform) with pilot suppliers to collect emissions data for the products and services we procure. This initiative helps suppliers better understand product-specific footprints, identify emission hotspots, and improve data quality.
  • Novartis holds one-on-one discussions with suppliers to develop tailored sustainability roadmaps. These discussions focus on addressing challenges in implementing Novartis’ ES criteria in supplier contracts and identifying decarbonization opportunities. The ES criteria have been added as an additional supplier evaluation criterion with a standard weighting. As of end of Q3 2024, we have completed 30 such discussions – which include the exchange of best practices and opportunities for joint action.

Responsible AI

Can you share your perspectives on AI and how you are mitigating the risks?

  • Novartis believes in the potential that technologies such as AI hold for the discovery, development and delivery of innovative medicines.
  • We are implementing AI use cases across Novartis and continually explore opportunities to create value with AI applications:
    • Leveraging our data across R&D: Through data42, our digital research and development platform, Novartis applies AI to harness its collection of patient data and data from >2k clinical studies to uncover correlations between drugs and diseases.
    • Enabling drug discovery: Through our strategic research collaboration with Isomorphic Labs, we have developed an AI model predicting protein folding to reshape drug design. It models multiprotein and multiligand complexes in 3D at atomic resolution.
    • Automating clinical trial report writing: With our strategic investment in Yseop, an AI technology developer, we automate clinical trial report writing.
  • At the same time, we recognize that the application and integration of AI into core business processes comes with risks, which need to be thoughtfully managed.
    • In 2020, we launched our Commitment to the ethical and responsible use of AI systems emphasizing our dedication to the responsible use of AI.
    • In response to new advancements in technology, we updated our Code of Ethics and will roll out a new Ethical Use of Data and Technology Policy and AI Handbook (and our commitment to the ethical and responsible use of AI will be updated accordingly). These will be principles-based, framed with the overall need for accountability in using and deploying AI. They highlight the need to 1) respect human rights and apply human oversight, 2) apply transparency and explainability, 3) drive an ethical AI approach, and 4) design safe & secure technology and keep data protected.
  • We are upskilling our workforce to ensure Novartis employees are equipped with the skills to use AI to drive innovation. Novartis is running an enterprisewide AI upskilling campaign covering a broad spectrum of topics, including ethical AI. A significant component of this program is supporting the adoption of Microsoft Copilot. We also established a Data Science Academy that offers education sessions and accreditation for data scientists and executives.

Human capital

What has driven the increase of your total employee turnover from 13% in 2021 to 17% in 2023?

  • Total turnover is higher due to the new organizational structure we announced in 2022. This initiative was designed to simplify and increase the agility of the organization to support innovation, growth and productivity. However, it also resulted in a reduction in our workforce.
  • Novartis continues to see low voluntary turnover due to our continued investment in our people. In 2023, our voluntary turnover was 7%, compared with 9% in the previous year. We believe our single digit voluntary turnover rate is a testament to our culture; our focus on diversity, equity and inclusion; our investment in the continued training and development of our people, and in their overall wellbeing.

Are you planning to disclose more information specific to your R&D department, e.g. the average turnover rate for the department?

  • Our R&D organization is vital to the future success of the company, and we will continue to monitor future developments with respect to talent disclosures.
  • The voluntary turnover rate in our Biomedical Research and Development groups has significantly declined over the last 12 months, signaling solid retention of key talent and low talent risk in critical positions.
  • We have a deep bench of talent with strong succession plans for key leadership roles. We implement specific development programs for our key talents, including job rotation, extensive learning and development opportunities (including in leading technologies), and differentiated rewards. In addition to low turnover rates, the engagement of our R&D workforce is in the top quartile of the company.

  1. Legacy target which has been discontinued to align with SBTi validated targets: by 2030, carbon neutrality across Scope 1, 2, 3.
  2. Reduction figures are on 9+3 basis from Novartis in Society report 2023. (Minor target boundary related differences expected for Scope 1 emissions based on SBTI validated targets in 2024, latest figures aligned with SBTI boundary to be reported in NIS 2024).
  3. Restated full year figure; We reported 3.4% Scope 3 emissions reduction in the 2023 Novartis in Society report which is 9+3 data.

 

What is the new cost basis of my Novartis and Sandoz shares following the spin-off of Sandoz from Novartis?

Information about allocation of tax basis for U.S. holders may be found in the Form 8937: Basis of Securities (PDF 0.1 MB). With regard to non-U.S. holders, please note that the allocation of tax basis for Novartis and Sandoz shares following the spin-off depend on the applicable local tax provisions and each shareholder’s individual circumstances. Accordingly, all shareholders and ADR holders are asked to consult their own tax advisor regarding the tax basis allocation calculations.

Where are Novartis shares traded?

Novartis shares are listed and traded on the SIX Swiss Exchange (Valor No. 001200526, ISIN CH0012005267, symbol: NOVN) as well as on the NYSE in the form of American Depositary Receipts (ADR) (Valor No. 567514, ISIN US66987V1098, symbol: NVS).

What are the ticker symbols for Novartis?

SharesSIX (Reuters / Bloomberg)NOVN.S / NOVN SW
ADRsNYSE (Reuters / Bloomberg)NVS / NVS US


What is an ADR/ADS?

ADR stands for American Depositary Receipt. ADS stands for American Depositary Share. An ADR is a receipt for a number of shares of a foreign-based corporation held by a US depositary bank, entitling the ADR holder to all dividends and capital gains.

What is the number of outstanding shares in Novartis?

Key Novartis share data

 202320222021
Issued shares2 277 477 7522 403 721 2522 434 420 920
Treasury shares1233 443 766284 112 195199 480 972
Outstanding shares at December 312 044 033 9862 119 609 0572 234 939 948
Weighted average number of shares outstanding2 076 794 1402 181 180 3412 242 601 173


1. Approximately 94 million treasury shares (2022: 99 million 2021: 102 million) are held in Novartis entities that restrict their availbility for use.

What is the number of outstanding ADRs in Novartis?

Key data on ADRs issued in the US

 202320222021
Year-end ADR price (USD)100.9790.7287.47
Number of ADRs outstanding1189 633 312225 435 680269 891 321


1. The depositary, JPMorgan Chase Bank, N.A., holds one Novartis AG share for every ADR issued.

When is your dividend going to be paid?

The dividend payment date has been set for March 11, 2024.

What is the dividend history for Novartis shares?

Shareholders approved the 27th consecutive dividend increase per share since the creation of Novartis in 1996, with an increase of 3.1% to CHF 3.30 per share for 2023.

Learn more about dividend information

What is the new cost basis of my Novartis and Alcon shares following the spin-off of Alcon from Novartis?

Information about allocation of tax basis for U.S. holders may be found in the Form 8937: Basis of Securities (PDF 0.1 MB). With regard to non-U.S. holders, please note that the allocation of tax basis for Novartis and Alcon shares following the spin-off depend on the applicable local tax provisions and each shareholder’s individual circumstances. Accordingly, all shareholders and ADR holders are asked to consult their own tax advisor regarding the tax basis allocation calculations.

What are the income tax implications to Canadian shareholders due to the Alcon spin-off?

The following documents include the Finance Canada and Canada Revenue Agency comfort letter, Canada income tax guidelines and tax election letters related to the Alcon Spin-off for Canadian resident shareholders:

Canada Income Tax Alcon Spin-off FAQ - English (PDF 0.1 MB)

Canada Income Tax Alcon Spin-off FAQ- French (PDF 0.1 MB)

Department of Finance Canada Comfort Letter (PDF 0.1 MB)

Download the Canada and Quebec Tax Election Example Letters (ZIP 0.1 MB)

 

What is the amount and timing of the next dividend payment?

The Novartis Board of Directors proposed a dividend of CHF 3.30 per share to the shareholders for approval at the Annual General Meeting held on March 05, 2024. This proposal was approved. The dividend will be paid as from March 11, 2024. The last trading day with entitlement to receive the dividend is March 06, 2024. As from March 07, 2024, the shares will be traded ex-dividend.

Is the dividend on the Novartis ordinary share and the Novartis ADR the same?

Yes, however, since ADR holders will receive their dividend in US dollars, the amount received will be impacted by currency exchange rates, as well as by a handling fee (historically, $0.01 per share) associated with the ADR dividend. An estimate of the amount of the US dollar dividend for the ADR will be calculated on the day of the dividend announcement based on that day’s exchange rates. The actual exchange rate will be determined once all funds are received and exchanged by J.P. Morgan, the depositary bank.

Will the rate recently announced for the ADRs change between now and the ADR payment date?

Yes, the preliminary announcement only provides an estimated rate based on a current FX rate. The actual rate will be determined when the Swiss francs are converted to US dollars once all the funds are received by J.P. Morgan.

Will the dividend on the Novartis ADR be paid out on the Swiss payment date of March 11, 2024?

No, the dividend on the Novartis ADR will be paid out only after a tax reclaim has been completed and once any such reclaimed funds have been received by J.P. Morgan from the Swiss Tax Authorities. Once the funds are received and converted into US dollars a payment will be made shortly thereafter to any ADR holders entitled thereto. The ADR Payment date is estimated to be on or around April 25, 2024.

Will the entire dividend amount be converted into US dollars after the Swiss tax reclaim has been completed?

No. On the Swiss payment date 65% of the dividend is received by JP Morgan. This amount will be converted into US dollars at or after such time.

Why can’t J.P. Morgan receive all of the funds on the Swiss payment date?

The Swiss Tax Authorities require that a tax reclaim be completed prior to each payment for any amounts due above and beyond the non-treaty amount. Investors must certify and elect their entitlement and provide necessary disclosure documentation as required by the treaty between the US and Switzerland based upon their tax status.

Why does it take so long to get the reclaim funds back from the Swiss Tax Authorities?

Holders of ADRs entitled to receive the dividend are not able to elect until after the ADR record date which is just one (1) day prior to the Swiss payment date. Eligible holders of ADRs are given 10 days to complete and submit their election. Once any reclaims are submitted to the Swiss Tax Authorities it takes approximately 15 days for such authorities to process the reclaim.

When will the final/definitive rate and ADR Payment Date be determined?  

The final/definitive rate and ADR Payment Date will be determined once all of the funds that comprise the dividend are received by J.P Morgan and converted into US dollars.  

Will another announcement be made once the tax reclaim funds are received?

Yes, once all the funds have been received and converted, and the final/definitive rate is determined, a new announcement will be made by J.P Morgan.

How does the tax reclaim process work?

There is a process for banks and brokers within Depositary Trust Company to elect their clients’ correct tax status electronically and to provide documentation on behalf of their clients. J.P. Morgan elects on behalf of registered holders based upon their tax status. Please contact J.P. Morgan / Goal Group Recoveries, Inc., New York at phone: +1 212 248 9120 or email: [email protected] for further questions.