Novartis Ag · SIX:NOVN
Novartis — Bear Stearns Conference 2004
25 slides from Novartis's conference presentation, Sep 13, 2004
Slide 1: Bear Stearns Conference 2004
Bear Stearns Conference 2004 Deborah Dunsire, MD Senior Vice President and North American Region Head, Novartis Oncology The following information contains certain "Forward-looking Statements" relating to the Company's business, which can be identified by the use of forward-looking terminology such
Slide 2: Operating Income Outpaces Sales Growth
Agenda • Performance • Strategy • Products • Pipeline • Outlook 3 Bear Stearns 2004 / D. Dunsire / Sep. 13, 2004 Operating Income Outpaces Sales Growth on the Back of Strong Business Performance in USD m 6M 2004 6M 2003 in % USD in % LC Sales 13 612 11 924 +14 +9 Operating income 3 288 2 814 +17 as
Slide 3: Strong Business Expansion Continues
Strong Business Expansion Continues Growth 6 months in % Sales Operating income LC 11 Pharmaceuticals USD 17 USD 24 LC 4 Consumer Health USD 9 USD 8 LC 9 Group USD 14 USD 17 5 Bear Stearns 2004 / D. Dunsire / Sep. 13, 2004 Group Operating Margin Improves Operating margins in % 6M 2004 6M 2003 29.4 2
Slide 4: Beating the Market for 10 Quarters
Beating the Market for 10 Quarters Market Global quarterly value growth rates, in % Novartis 18 16 16 16 13 13 12 12 11 11 11 11 10 8 8 7 7 7 8 7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2002 2003 2004 Source: IMS 16 Countries 7 Bear Stearns 2004 / D. Dunsire / Sep. 13, 2004 Strong Double Digit Growth in Key C
Slide 5: Dynamic Performance of Key Brands
... Driven by Dynamic Performance of Key Brands Top 10 product sales YTD June 2004 in USD m Change in % (LC) YTD June 2004 Diovan 1 489 24 Glivec 757 37 Zometa 526 23 Lamisil 517 19 Neoral 502 -6 Lotrel 449 14 Sandostatin 395 12 Lescol 357 0 Voltaren 299 -2 Trileptal 239 32 9 Bear Stearns 2004 / D.
Slide 6: Novartis Pharma Key Strategies
Novartis Pharma Key Strategies • Innovative Blockbusters in SP and GP markets • Leading positions in attractive categories • Create industry-leading pipeline • Best-in-class execution capabilities • Become best partner for patients, physicians and payors • Be cost efficient • Create an entrepreneuri
Slide 7: Building Best-in-class M&S
Building Best-in-class M&S, Resulting in Major Sales Force Improvement 2003 1997 Change in rank Cardiologists 6 18 + 12 Internal medicine 4 17 + 13 General practitioners 6 28 + 22 Oncologists 4 15 + 11 Dermatologists 2 81 + 6 Gastroenterologists 7 29 + 22 1 1998 ranking; no ranking in 1997 Source: S
Slide 8: Significant Increase in Number of Blockbusters
Agenda • Performance • Strategy • Products • Pipeline • Outlook 15 Bear Stearns 2004 / D. Dunsire / Sep. 13, 2004 Significant Increase in Number of Blockbusters % of total pharma sales 50% Diovan® Lotrel® • Effective positioning and messaging Glivec®/Gleevec® • Strong field force Zometa® 20% executi
Slide 9: Continuing to Outpace Competition After Becoming Category Leader
Continuing to Outpace Competition After Becoming the Category Leader Total prescriptions in non-HCT ARB category since launch Thousands of total prescriptions 1 400 Diovan® (Feb 97) 1 200 1 000 800 Cozaar (May 95) 600 Benicar (Apr 02) Avapro (Oct 97) 400 Atacand (Oct 98) 200 Micardis (Dec 98) 0 1 6
Slide 10: Continued Strong Rx Lift Post MA-17 Publication
Continued Strong Rx Lift Post MA-17 Publication Monthly Femara® TRx in ’000s 60 MA-17 published 50 TRx 40 + 113% 30 20 10 Jan 03 Mar 03 May 03 Jul 03 Sep 03 Nov 03 Jan 04 Mar 04 May 04 Source: IMS NPA 20 Bear Stearns 2004 / D. Dunsire / Sep. 13, 2004 10
Slide 11: Early Adjuvant Trial with Over 8000 Patients
Early Adjuvant Trial with Over 8000 Patients Awaiting Results Breast International Group 1-98 Study (BIG 1-98) Randomization End 2004 (following tumor resection) Data Unblinded Femara® n=2 442 tamoxifen n=2 443 tamoxifen Femara® n=1 525 Femara® tamoxifen n=1 525 0 2 5 years 1998 Trial initiated 21 B
Slide 12: Advantages of Higher Dose in CML
Data Continues to Highlight Advantages of Higher Dose in CML Comparison of IRIS vs. MDACC 400 mg (historical) vs. MDACC 800 mg Percentage of Patients CCyR 12 mos MMR 12 mos. 100% 95% Undetectable PCR 90% 80% 75% 68% 65% 70% 60% 50% 39% 40% 25% 28% 30% 20% 4% 7% 10% 0% IRIS 400 MDACC 400 MDACC 800 So
Slide 13: Update on CML Dosing
Update on CML Dosing Average Glivec® / Gleevec® dose by CML phase, US mg per patient per day, US Q3 02 Q2 04 712 614 613 544 432 394 Chronic Accelerated Blast Source: Cancer eSearch 25 Bear Stearns 2004 / D. Dunsire / Sep. 13, 2004 Gleevec® Heme-Onc Development Program Market size Indication Phase (
Slide 14: Gleevec Plus Taxotere Phase II in HR Prostate Cancer
Gleevec® Plus Taxotere Phase II in HR Prostate Cancer Under Way Docetaxel • Current experience 30mg/m2 + shows Gleevec is well R Imatinib tolerated in combination A 600mg daily with docetaxel N D N=144 • Expect to complete O accrual by Q3 05 M • Clinical Endpoints: I Time-to progression & Z Docetaxe
Slide 15: Significant Number of Filings Planned
Agenda • Performance • Strategy • Products • Pipeline • Outlook 29 Bear Stearns 2004 / D. Dunsire / Sep. 13, 2004 Significant Number of Filings Planned 2004 2005 2006 ≥ 2007 Zelnorm® (EU) ICL670 LAF237 QAB149 EPO906 IBS Iron overload Diabetes Asthma, COPD Cancer FTY720 SOM230 NKS104 LAQ824 Xolair® (
Slide 16: Prexige – Delivering on the COX-2 Promise
Prexige® – Delivering on the COX-2 promise TARGET A Landmark Study – confirms that the GI benefit of Prexige® is achieved without an impact on CV safety Up to 79% reduction in GI events vs NSAIDs Trend for reduction in GI events in pts taking Aspirin CV Safety – No Difference vs NSAIDs in overall or
Slide 17: Key Projects on Track
Key Projects on Track Zoledronic acid Paget’s disease data presented at World Congress on Osteoporosis 14-18 May Filing in EU 30 April 2004, filing in US Q3 2004 AAE581 Phase IIB trials started in Q1 2004 PTK787 Phase III ongoing, CONFIRM 1 enrollment completed, filing end 2005 FTY720 Phase III ongo
Slide 18: Angiogenesis is a Multi-faceted Process
Angiogenesis is a Multi-faceted Process • Several unique growth factors and receptors are involved in VEGF signaling – 5 VEGF Family members: VEGF-A, VEGF-B, VEGF-C, VEGF-D and VEGF-E – 3 VEGF Receptors: VEGFR-1, VEGFR-2, VEGFR-3 • Activation of VEGF signaling drives tumor angiogenesis fueling tumor
Slide 19: PTK787 On Track – First Data Available 1H 2005
PTK787 On Track – First Data Available 1H 2005 1st line, 1090 patients 2nd line, 830 patients • Progression-free • Overall survival (OS) Study Design Survival (PFS) • Overall survival (OS) Enrollment: Enrollment: • Completed in Apr 04 • Expect complete end Status Final Analyses: 3Q 04 • 2Q 05 for PF
Slide 20: PTK Demonstrates Activity in Other Solid Tumors
PTK Demonstrates Activity in Other Solid Tumors PFS in recurrent Glioblastoma Multiforme (PTK plus temozolomide) Reardon et al., Abstract 1513, ASCO 2004 100 90 Median = 16.1 weeks (95% CI = 9.1, 19.3 weeks) Median Median PFS PFS of Patients without progression, 80 of 70 16.1 16.1 weeks weeks for fo
Slide 21: ICL670 Offers Improved Tolerability and Ease of Use
ICL670 Offers Significantly Improved Tolerability and Ease of Use desferoxamine ICL670 • Oral, dispersable tablet • Slow • 1x daily infusion • Highly specific for iron • 8–12 hours • Multinational phase III 5–7 days/week trials in > 800 patients ongoing • Target filing date: Q1 2005 41 Bear Stearns
Slide 22: Gimatecan and Patupilone (EPO906)
Gimatecan: A Promising Oral Topoisomerase I Inhibitor • Excellent Preclinical Profile − 10 to 100 times more potent than topotecan/irinotecan in vitro − Active in topotecan and irinotecan resistant models − Lack of multidrug resistance pump transport • Orally active • Rapid absorption and long half-
Slide 23: Phase I/II Continues for Patupilone
Phase I/II Continues for Patupilone (EPO906) • Control of diarrhea has enabled a 50% increase (to date) in dose in ongoing dose escalation • Activity seen in Phase I dose escalation: − Ovarian cancer − NSCLC • New MTD has yet to be reached; Ph II set to open when new MTD is achieved • Plan to expand
Slide 24: RAD001C – Great Potential in Many Settings
RAD001C – Great Potential in MANY Settings Target Tumors Phase I/II Update • Breast • Well tolerated • Lung • Phase II program planned in • Prostate Breast Cancer and NSCLC • CML – RAD001 + Femara in Breast • Pancreatic Cancer • GBM – RAD001 + EGFR agent in • GIST NSCLC • Additional indications/ com
Slide 25: Outlook for 2004
Outlook for 2004 • Strong business expansion expected to continue • High single-digit sales growth in constant currencies − Pharmaceutical sales to grow in the high single-digit to low double-digit range • Operating business to be key driver for net income growth − Return on liquidity expected to be