Novartis AG · SIX:NOVN
Novartis — Sarasin Swiss Equities Conference 2006
26 slides from Novartis's conference presentation, May 17, 2006
Slide 1: Growth Platforms for a Changing Health Care Environment
Growth Platforms for a Changing Health Care Environment Djordje Filipovic Global Head of Project Management, Novartis Oncology Silke Zentner Manager Investor Relations Sarasin Swiss Equities Conference Lucerne, May 17, 2006 The following information contains certain forward-looking statements relati
Slide 2: Agenda; Strong Start to 2006 with Excellent Sales and Earnings Growth
Agenda • Q1 2006 performance • A clear strategy • Oncology – building on success • Outlook 3 Sarasin / Lucerne / May 17, 2006 Strong Start to 2006 with Excellent Sales and Earnings Growth Performance • Q1 Group net sales up +13% in USD, +17% in LC • Pharmaceuticals: Market share gains with net sales
Slide 3: Volume Expansion and Acquisitions Key to Net Sales Growth; Operating Margin
Volume Expansion and Acquisitions Are Key Source of Net Sales Growth % Growth in 3 M 2006 20.0 +8% +1% +8% +17% -4% +13% 15.0 10.0 5.0 0.0 Volume Price Acq. / Div. LC Currency USD 5 Sarasin / Lucerne / May 17, 2006 Group Operating Margin Reaches 26.5% in Q1 2006 Operating margins in % 6 M 2006 6 M 2
Slide 4: Strong Pharma Net Sales Expansion; Growing Ahead of Market
Strong Pharma Net Sales Expansion 3M 2006 Growth in % vs. 2005 USD m USD LC Net sales 5 052 5 9 Operating income 1 626 19 Return on sales 32.2% Employees2 at period end 49 696 2 Global market share up from 3.80 to 3.89%1 1 IMS 29 Countries Feb YTD 2006 2 In full-time equivalents 7 Sarasin / Lucerne
Slide 5: Four Fundamental Trends Drive Growth in Health Care and Medicines
Agenda • Q1 2006 performance • A clear strategy • Oncology – building on success • Outlook 9 Sarasin / Lucerne / May 17, 2006 Four Fundamental Trends Drive Growth in Health Care and Medicines • Aging population with increasing health care needs • Advancing science and technology enabling new drug di
Slide 6: Strong Portfolio in Attractive Categories
Strong Portfolio in Attractive Categories Respira- Neuro- Infectious CVM1 Oncology tory science Diseases Key in- Diovan® Glivec® Xolair® Trileptal® Famvir® market Co-Diovan® Zometa® Foradil® Exelon® brands Lotrel® Femara® Comtan® Lescol® SAS LAR Stalevo® Exjade® Late- Exforge®2 AMN107 QAB149 FTY720
Slide 7: Hypertension Treatment Gaps; Rasilez Shows Promise
Most Hypertensive Patients Are Not Yet Receiving Adequate Combination Treatments to Get to Goal Average number of AHY1 drugs per patient ? 5 4 3 2 1 0 2 3 Average - Average - EU Average - US Needed for Needed for Japan 135/85 120/80 1 Anti-hypertensives 2 Average of top 5 EU countries 3 Based on IDN
Slide 8: Exforge – The Two Most Prescribed Antihypertensives in One Tablet
Exforge® – The Two Most Prescribed Antihypertensives in One Tablet Data confirm – • Strong rationale for complementary benefits • Powerful BP control • Reductions of up to 43 mmHg in severe populations • Excellent tolerability • Lower incidence of edema than amlodipine alone • Improved convenience &
Slide 9: Oncology - a Key Franchise with Leading Brands
Oncology - a Key Franchise … Net sales 3M 2006 in USD m1 Growth in LC vs. PY Cardiovascular2 1 453 +17% Oncology 1 328 +15% Neuroscience2 585 +11% Resp. / Derm.2 357 -20% IDTI3 280 +15% Ophthalmics 189 -10% A/B/G/U2,4 135 +48% Mature Products 725 -6% Pharma Total 5 052 +9% 1 Franchise growth adjuste
Slide 10: Novartis Oncology Is Now the World's Third-Largest Oncology Business
Novartis Oncology Is now the World’s Third-Largest Oncology Business Global oncology market segment share 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Roche / Novartis AstraZeneca GSK BMS Genentech Amgen Sanofi-Aventis J&J Pfizer Lilly Source: IMS MIDAS Data adjusted to include 0% of Epogen (Amgen), 70% of Pr
Slide 11: … and Continue to Fuel our Growth
… and Continue to Fuel our Growth • Global sales growth +18% • Submissions in Ph+ ALL1 / other rare diseases • Patent extension to 2012 granted in the US • 12 month Zo-FAST results presented at EBCC2 • Global sales growth +33% • March US segment share of 17.9% (+1ppt vs. Dec05)3 • Adjuvant indicatio
Slide 12: The Glivec Era – Increased Survival in CML
The Glivec® 1 Era – Increased Survival in CML2 and Fewer Bone Marrow Transplants Annual deaths from CML3 and number of bone marrow transplants4 Deaths from CML (US) Number of bone marrow transplants (WW) 3 000 Glivec first launched 2 500 2 000 1 500 1 000 500 0 1998 1999 2000 2001 2002 2003 2004 1 G
Slide 13: Key Factors Driving Future Growth
Key Factors Driving Future Growth New indications Dose optimization Extended survival • Glioblastoma • Leveraging recent • Sustained efficacy multiforme label updates and tolerability • Adjuvant GIST • Trial ongoing to • 90% overall • Ph+ ALL, assess Glivec survival2 at 4 ½ Rare Diseases1 800mg/day
Slide 14: Glivec Seeking to Become First Targeted Treatment for Adults with Ph+ ALL
Glivec® Seeking to Become First Targeted Treatment for Adults with Ph+ ALL1 • Rare disease with up to 2 500 new cases each year in US and Europe Disease • Very high unmet medical need – 5-year survival rate of overview ALL is 30% in patients between 20–44 years and 5% in patients above 65 years • Si
Slide 15: Exjade Off to a Strong Start; Potential to Expand the Market
Off to a Strong Start – Encouraging Signs of Market Expansion Exjade patients by source • Exjade granted approval in % the US and Switzerland for the treatment of transfusional iron overload in patients 2 years of age New patients and older (market Conversions expansion): from Desferal: • Approved i
Slide 16: Femara – Adjuvant Indication Rolling Out Globally
TM 31 Sarasin / Lucerne / May 17, 2006 Femara – Adjuvant Indication Rolling Out Globally • Adjuvant indication now approved in United States, United Kingdom, Germany • Further European countries expected to follow soon (MRP process) • Received approval for treatment of breast cancer in Japan • Empha
Slide 17: Femara Offers Increased Protection for Women at Higher Risk of Recurrence
Femara® Offers Increased Protection, Especially for Women at Higher Risk of Breast Cancer Recurrence Femara significantly 0.81 DFS decreased overall risk of recurrence by 19% 0.86 OS (p=0.003) 0.83 SDFS DFS Femara significantly 0.79 (w/o 2nd malignancy) reduced risk of distant 0.73 Time to distant r
Slide 18: Multiple Outcome Studies Underway – Including FACE Trial
Multiple Outcome Studies Underway – Including FACE Trial Femara vs. Anastrozole Clinical Evaluation (FACE) Trial • Multicenter, randomized open-label Ph III trial Post- R Femara • Sample size = 4,000 menopausal A • Centers: 250 women N • Rigorous procedures: D Hormone- O N=4,000 • Database held exte
Slide 19: Zometa: >1.4 m Patients and Still Going Strong
37 Sarasin / Lucerne / May 17, 2006 Zometa: >1.4 m Patients and Still Going Strong • Every 13 seconds, somewhere in the world, a patient receives an infusion of Zometa for treatment of bone metastases • Zometa is the leading bisphosphonate worldwide and is prescribed for more than 6 patients out of
Slide 20: Three Major Life Cycle Initiatives for Zometa
Three Major Life Cycle Initiatives for Zometa • Various studies ongoing to examine effect of Zometa in Continuing to develop skeletal-related events and bone pain data on treatment of • Guidelines published in Jan. 2006 to optimize bone metastases management of patients receiving bisphosphonates, in
Slide 21: Novel Cytotoxic Agents; Promising Mechanistic Approaches
Novel Cytotoxic Agents Gimatecan (LBQ707): Novel Oral Topo-I inhibitor • Impressive preliminary activity in several tumor types • PK superior to other Topo I inhibitors • Tolerability: DLT is myelosuppression, not diarrhea Patupilone (EPO906): Unique Characteristics • 3–20 fold more potent than pacl
Slide 22: LBH589 Exerts Anti-Tumor Activity by Multiple Mechanisms of Action
Prevalence of deregulation of the mTOR Pathway feeds the rationale for muliple clinical developments PI3K, 4% PI3K, 18%/26% PTEN, 24% pAKT, 42% pAKT, 23%/50% BREAST PTEN, 15%/41% LUNG EGFR, 32%/60% HER2, 30%/36% HER2, 5% EGFR, 6% Ras, 30% PANCREAS TSC1/TSC2 IGF-1/IGF-1R PTEN, 31% VHL pAKT, 38% TSC1/
Slide 23: AMN107 Offers Potent Hope for Unmet Medical Need
AMN107 Offers Potent Hope for Unmet Medical Need • A relatively small number of CML patients show resistance AMN107 hematological response or intolerance to Glivec® rates1 (%) • AMN107 is a highly-selective oral tyrosine kinase inhibitor: inhibits 92 32 of 33 mutant proteins associated with resistan
Slide 24: Chiron Compounds; Novartis Oncology – The Promise Continues
Chiron Compounds – Exciting Addition to Early Clinical Pipeline TKI 258: Multi tyrosine-kinase inhibitor • Targets Key Receptor Tyrosine Kinases (RTKs) Associated with Tumor Progression: FGFR, VEGFR, PDGFR • In Phase I for hematological and solid tumors RAF265: Raf kinase inhibitor • In Phase I for
Slide 25: Agenda; Planned Filings 2006 to ≥ 2009
Agenda • Q1 2006 performance • A clear strategy • Oncology – building on success • Outlook 49 Sarasin / Lucerne / May 17, 2006 NME Planned Filings 2006 to ≥ 2009 NME roll out LCM9 2006 2007 2008 ≥ 2009 Galvus® LIC477 (US) QAB149 AAE581 AEE788 Diabetes Bipolar disorder Asthma, COPD Osteoporosis Solid
Slide 26: Strong Newsflow in 2006; Outlook for 2006
Strong Newsflow in 2006 H1 H2 • Exforge® PhIII • Sebivo®1 PhIII Data • Rasilez® PhIII • Aclasta®2 PMO-T PhIII • Galvus® PhIII at ADA • FTY720 MS PhII (24 months) • FTY720 MS Ph II (18 m) 9 • AMN107 PhII • NMC283 PhII 9 • SOM230 PhII at ASCO • Rasilez® (US) 9 • Rasilez® (EU) Filings • Galvus® (US) 9