• Novartis generates strong sales growth of 14% in constant currencies in first quarter,
operating income impacted by 2010 sales from A(H1N1) pandemic flu vaccines
o Net sales up 16% (+14% in constant currencies, or cc) to USD 14.0 billion
o Core operating income up 4% (+6% cc) to USD 4.0 billion despite impact of A(H1N1)
in year-ago base; core EPS decreased by 3% (0% cc) to USD 1.41
o Free cash flow of USD 1.6 billion
• Excluding A(H1N1) pandemic flu vaccine sales and Alcon, net sales up 10% (+8% cc),
core operating income up 13% (+16% cc) and core margin improves 2.0 percentage
points (cc)
• Novartis strengthens its healthcare portfolio
o Alcon merger completed on April 8, 2011 to provide new, world-class growth platform
addressing unmet needs in the rapidly growing eye care sector; new divisional
structure to be implemented from second quarter 2011
o Dilution from Alcon-related share issue to be mitigated further by share repurchases;
USD 2.4 billion of Alcon shares and USD 0.6 billion of Novartis shares repurchased in
first quarter of 2011
• Novartis maintains its industry-leading position in innovation with new approvals and
recommendations, expanding potential for sustained growth
o The breakthrough multiple sclerosis treatment Gilenya gains approval in the EU, as
does Lucentis for the treatment of vision loss related to diabetic macular edema, a
leading cause of blindness
o Novartis pipeline highlights include a Phase III study of JAK inhibitor INC424 that
shows promise for patients with myelofibrosis and CHMP’s recommendation for
Lucentis in the treatment of retinal vein occlusion
Key figures
Q1 2011 Q1 2010 % change
USD m USD m USD cc
Net sales 14 027 12 131 16 14
Operating income 3 408 3 511 -3 0
Net income 2 821 2 948 -4 -1
EPS (USD) 1.21 1.29 -6 -3
Free cash flow
(before dividends) 1 622 2 903 -44
Core1
Operating income 4 012 3 865 4 6
Net income 3 376 3 309 2 4
EPS (USD) 1.41 1.45 -3 0

1 See page 38 for further information and definition of core results
All product names appearing in italics are trademarks owned by or licensed to Novartis Group Companies.

Basel, April 19, 2011 — Commenting on the results, Joseph Jimenez, CEO of Novartis, said:
“Contributions from all businesses led to a good start in 2011, as we achieved 14% growth in the first quarter. We maintained our innovation momentum with new approvals for our multiple sclerosis treatment Gilenya and our eye care treatment Lucentis in the EU. Additionally, promising results of numerous clinical trials, including a Phase III study involving JAK inhibitor INC424, again showed the success of our novel approach to R&D. In April, we completed our merger with Alcon, the leading eye care business in the world, creating the second-largest business in the Novartis
portfolio.”

zie voor meer op
http://www.novartis.com/downloads/investors/financial-results/quarterly-results/q1-2011-media-release-en.pdf