Novartis AG · SIX:NOVN
Novartis — UBS Conference in Gstaad 2006
22 slides from Novartis's conference presentation, Jan 20, 2006
Slide 1: Growth Platforms for a Changing Health Care Environment
Growth Platforms for a Changing Health Care Environment Joerg Reinhardt CEO designate of Novartis Vaccines & Diagnostics Gstaad, January 20, 2006 The following information contains certain forward-looking statements relating to the Company’s business, which can be identified by the use of forward-lo
Slide 2: Agenda; 2005 – Another Record Year
Agenda • 2005 performance • A clear strategy • Pharmaceutical performance and pipeline • Outlook 3 UBS Conference in Gstaad /Joerg Reinhardt / January 20, 2006 2005 – Another Record Year in USD m FY 2005 FY 2004 in % USD in % LC Net sales 32 212 28 247 14 13 Operating income 6 905 6 2891 10 as % of
Slide 3: Solid Growth in All Divisions; Positive Margin Development in Pharma
Solid Growth in All Divisions 2005 revenues by division Sandoz in USD +54% in LC +54% 15% Consumer Health 23% in USD +8% 62% Pharmaceuticals in LC +8% in USD +10% in LC +9% 5 UBS Conference in Gstaad /Joerg Reinhardt / January 20, 2006 Positive Margin Development in Pharma in % 2005 2004 29.7 29.0 2
Slide 4: Pharmaceuticals – Continued Market Share Gains; Rejuvenation of Portfolio
Pharmaceuticals – Continued Market Share Gains Novartis Pharma market share of total health care market 4.0% 3.9% 3.8% 3.8% 3.7% 3.6% 3.4% 3.4% 3.3% 3.2% 3.0% 1 2001 2002 2003 2004 2005 1 YTD Nov Source: IMS 29 countries 7 UBS Conference in Gstaad /Joerg Reinhardt / January 20, 2006 Pharmaceuticals
Slide 5: Key Late-Stage Pipeline Successes in 2005; Integration of Hexal and Eon Labs
Key Late-Stage Pipeline Successes in 2005 Highlights Status Indication • Galvus®1 Ph III Diabetes • Rasilez®1 Ph III Hypertension • FTY720 Ph II/III Multiple sclerosis • QAB149 Ph II/III Asthma, COPD2 • PTK787 Ph III Colorectal cancer • Exjade® Approved Chronic iron overload • Femara® Approved Early
Slide 6: Industry Faces Challenges
Agenda • 2005 performance • A clear strategy • Pharmaceutical performance and pipeline • Outlook 11 UBS Conference in Gstaad /Joerg Reinhardt / January 20, 2006 Industry Faces Challenges • Governments and payors aggressive in managing costs − Price cuts, discounts, co-pays, formularies and other cos
Slide 7: Four Fundamental Trends Drive Growth in Health Care and Medicines
Four Fundamental Trends Drive Growth in Health Care and Medicines • Aging population with increasing health care needs • Advancing science and technology enabling new drug discovery • Economic growth of emerging countries with better health care access • Lifestyles leading to higher prevalence of ch
Slide 8: Strategy Focused on Customer Needs; Strategic Transactions Strengthen Growth Platforms
Strategy Focused on Customer Needs • Leadership in better medicines − R&D powerhouse − Preferred partner for in-licensing • Building and strengthening new growth platforms − Biopharmaceuticals − Generics − Vaccines • Reliable and trusted partner to patients, customers and authorities 15 UBS Conferen
Slide 9: Priorities for Investments and Acquisitions with a Stringent and Simple Logic
Priorities for Investments and Acquisitions with a Stringent and Simple Logic Investment rules 1 Organic growth as foundation • Focus on health care 1 Own pipeline • Reach leadership position or Priority operate with clear success 2 In-licensing & partnering • No conflicting businesses 3 Smaller • G
Slide 10: Key Messages 2005; Strong Pharma Net Sales Expansion
Key Messages 2005 • Dynamic sales growth ahead of market • Top ranked sales force in all key markets1 • Improved operating income margin • Positive newsflow on key compounds • Top rated pipeline 1 Overall Reps quality in key markets for Cardiovascular prescribers in 2005; Japan ranked #3 Internal su
Slide 11: Key Growth Drivers; 8 of Top 10 Products Growing
Key Growth Drivers Cardiovascular and Oncology Both Exceed USD 5 bn Net sales full year 2005 in USD m1 Growth in LC vs. PY Cardiovascular 5 646 +15% Oncology 5 096 +20% Neuroscience 2 233 +9% Resp. / Derm. 1 793 -5% Transplantation 1 092 -1% Ophthalmics 834 +7% A/B/G/H2 473 +57% Infect. Diseases 278
Slide 12: Diovan Delivers Strongest ARB Category Growth; Glivec Latest Data
Diovan® Delivers Strongest ARB1 Category Growth Global ARB Segment, YTD Nov 2005 Share Segment growth Absolute USD growth, m share vs. PY Diovan® Group 509 30% Benicar Group 403 6% Atacand / Blopress 253 17% Micardis 226 7% Cozaar / Hyzaar 198 22% Aprovel Group 174 15% 1 Angiotensin II receptor bloc
Slide 13: New Launches in 2005 to Support Growth; Successful Year in Clinical Development
New Launches in 2005 to Support Growth • >USD 500 m worldwide peak sales potential • EU approval and launch in Germany, UK • Brazil launch achieves 29% market share1 • USD 46 m sales in first 6 months in US • Paget’s launch in Germany and other EU markets2 1 Market segment share of Cox-2; IMS Nov 20
Slide 14: Good Progress of Key Projects; Galvus First-In-Class Islet Enhancer
Good Progress of Key Projects Phase Progress New Data ICL670 (Exjade®; iron overload) Filed1 + + Telbivudine (hepatitis B) Filed (US) + + Galvus®2 (type 2 diabetes) III + + Rasilez®2 (hypertension) III + + Aclasta® (osteoporosis) III + PTK787 (colorectal cancer) III – – FTY720 (MS) II/III + + QAB149
Slide 15: Galvus Effective as Once-A-Day Treatment; Met Primary Endpoint
Galvus® (vildagliptin) is Effective as Once-A-Day Treatment Change in HbA1c (%) Mean HbA1c reduction from baseline at 24 weeks (7.5%–11%) 0.0 -0.1 -0.2 -0.3 -0.3 -0.4 -0.5 -0.6 -0.7 -0.8 -0.78 -0.79 -0.9 * * -0.88 Galvus® 50 mg qd (n=104) -1.0 † Galvus® 50 mg bid (n= 90) *P=0.006; † P=0.001 vs. plac
Slide 16: Galvus Add-on Treatment to Metformin and Glimepiride
Phase III Confirms that Galvus® (vildagliptin) Is a Powerful Add-on Treatment to metformin Mean HbA1c (%) met1 & Galvus® 50 mg qd (n=143) met & Galvus® 50 mg bid (n=143) met & placebo (n=130) 8.6 8.4 8.2 8.0 7.8 * * * 7.6 * * * 7.4 0 -4 0 4 8 12 16 20 24 Time (weeks of treatment) 1 metformin > 1 500
Slide 17: Galvus Filings and Expected Data; Rasilez Next Generation in Blood Pressure Control
Overview of Filings, Timing of Study Starts and Expected Data for Galvus® (vildagliptin) Durability Prevention Disease modification Prevention and outcome data available: 2009 and beyond T2DM Prevention of prevention CVM1 risk 2005 2006 2007 2008 2009 2010 2011 2012 Durability Combo prediabetes dura
Slide 18: Rasilez Superior Efficacy Compared to Ramipril
Rasilez® (aliskiren) Offers Superior Efficacy Compared to ramipril in Systolic Blood Pressure… Mean change in systolic blood pressure from baseline at endpoint (week 8) mmHg ramipril Rasilez® Rasilez® / ramipril 10 mg 300 mg 300/10 0 -10.0 -11.0 n = 459 -12.0 -12.0 -13.0 -14.0 n = 282 -15.0 -14.7 -1
Slide 19: Rasilez Added to Amlodipine; Filings and Expected Data
Rasilez® Provides Significant BP Reduction when Added to amlodipine with Reduced Incidence of Edema Mean change in blood pressure from baseline at week 6 mmHg amlodipine amlodipine Rasilez®1 150 mg 5 mg 10 mg + amlodipine 5 mg n=180 n=178 n=187 0 dia dia sys sys sys dia -4 -5 −4.8 −5.0 -6 -7 -8 −8.0
Slide 20: Exforge Combination Product; FTY720 Efficacy in Multiple Sclerosis
Exforge (valsartan / amlodipine) – A Dual Combination Product of the Most Prescribed Antihypertensives • Exforge development was successfully completed − Clinical program included over 5 000 patients • Systolic blood pressure reduction up to 36 mmHg1 • Diastolic blood pressure reduction up to 29 mmH
Slide 21: FTY720 Filings and Expected Data; Strong Newsflow Continues in 2006
Overview of Filings, Timing of Study Starts and Expected Data for FTY720 Start of 2-year double-blind pivotal trial in RRMS1 comparing FTY720 1.25 mg & US Filing 0.5 mg doses with placebo 2005 2006 2007 2008 2009 Start of 1-year active 18 Month Phase II to be comparator trial in RRMS presented at AA
Slide 22: Outlook for 2006 – Stronger Competitive Position
Agenda • 2005 performance • A clear strategy • Pharmaceutical performance and pipeline • Outlook 43 UBS Conference in Gstaad /Joerg Reinhardt / January 20, 2006 Outlook for 2006 – Stronger Competitive Position Excluding impact of Chiron transaction and barring unforeseen events • High single-digit s