Novartis AG · SIX:NOVN
Novartis — Bear Stearns Conference 2006
18 slides from Novartis's conference presentation, Sep 12, 2006
Slide 1: Pharmaceuticals: Continued Strong Performance
Pharmaceuticals Continued Strong Performance Thomas Ebeling CEO, Novartis Pharma AG The following information contains certain forward-looking statements relating to the Company business, which can be identified by the use of forward-looking terminology such as “will,” or “expect” or similar express
Slide 2: Strong Sales and Operating Income Growth in 1H 2006
Agenda • Performance Q2-1H 2006 • Strategy and outlook 2006 3 Bear Stearns Conference / Thomas Ebeling/ September 12, 2006 Strong Sales and Operating Income Growth in 1H 2006 Growth in % USD m USD LC Group Sales 17 483 15 17 Pharmaceuticals 10 751 8 10 Group operating income 4 262 211 Pharmaceutical
Slide 3: Pharma Key Messages 6M 2006
Pharma Key Messages 6M 2006 • Double-digit sales growth ahead of market1 • Strong performance of Oncology, CV2 , and NS3 • Very dynamic US performance • Improved operating income margin • Rich pipeline further strengthened through BD&L4 • Exciting newsflow on upcoming CVM launches 1 Including Chiron
Slide 4: Dynamic Performance Driven by Strong US Growth
Dynamic Performance Driven by Strong US Growth Net sales 6M 2006 % Growth (LC) in USD bn vs PY N America +17% RoW North US +18% 0.9 America Japan 1.0 L America +17% 4.8 Europe +3% 3.5 Japan +1% 0.6 Europe Latin Rest of World +17% America Total +10% 7 Bear Stearns Conference / Thomas Ebeling/ Septemb
Slide 5: Strong Performance of Top Brands
Strong Performance of Top 3 Brands Top 10 product net sales 6M 2006 in USD m1 Growth in LC vs. PY Diovan® 1 983 +16% Glivec®2 1 199 +19% Lotrel® 643 +26% Zometa® 627 +4% Lamisil® 483 -13% Neoral® 449 -1% Sandostatin® 439 -2% Lescol® 356 -3% Trileptal® 352 +20% Voltaren® 337 0% 1 Adjusted for US sale
Slide 6: Diovan Leading US Market Segment Share Growth in 2006
Diovan Leading US Market Segment Share Growth in 2006 Diovan Group ARB Market Segment Share June 2006 vs. December 2005 In percent Strongest growth MS among all ARBs • Stronger efficacy messages June 06 • Regained SOV in 2006 NRx +1.0 38.2 • Strong formulary positions • Innovative marketing activiti
Slide 7: Glivec Sets a New Treatment Standard for CML
Glivec® Sets a New Treatment Standard for Chronic Myeloid Leukemia • 200 000 patient years of treatment • 5 years of data showing highly durable response • 89% patients survive at 5 year point1 • Less than 4% of patients stop treatment because of intolerance at 5 year point • First cancer therapy to
Slide 8: Femara Early Adjuvant Approval Driving Growth
Femara® Early Adjuvant Approval Driving Growth Femara YTD Sales, Worldwide In USD m +30% LC vs. PY 326 254 +2%-pt US NRx AI1 segment share gain since early adjuvant approval2 2005 H1 2006 H1 1 Aromatase inhibitors 2 Based on IMS data for United States. Early adjuvant approval received Dec 28, 2005 1
Slide 9: Industry-Leading Field Force and Key Account Management
Novartis With Industry-Leading Field Force and Key Account Management Field Force #1 in 9 of top 10 markets1 For 8th Managed Care #1 in US2 consecutive term Medicare #1 in US2 1 Overall Rep quality in key market for cardiovascular prescribers Internal survey performed by TNS Healthcare Survey, Sept-
Slide 10: Latest Transactions Strengthening Respiratory and Infectious Diseases
Latest Transactions Strengthening Respiratory and Infectious Diseases Franchises Collaboration with Acquisition of UK- Schering-Plough to based NeuTec develop/market a Pharma plc to novel once-daily expand late-stage combination therapy Infectious Diseases for asthma and COPD portfolio • Combination
Slide 11: Late-Stage Development and Strong Newsflow in 2006
… and in Late-Stage Development (2/2) Phase Status Aclasta®3 (osteoporosis) III FDA approvable letter in Paget’s in February 06 FTY720 (multiple sclerosis) III EU & US PhIII program started Agomelatine2 (depression) III US filing planned in 2008 QAB149 (asthma, COPD4) II/III Start PhIII trials Q4 06
Slide 12: Key Strategies
Agenda • Performance Q2-1H 2006 • Strategy and outlook 2006 23 Bear Stearns Conference / Thomas Ebeling/ September 12, 2006 Key Strategies 1 2 Creating a best- Getting the in-class pipeline launches right and portfolio 7 3 Fostering a high Exceeding Re-engineer the performing expectations of all key
Slide 13: Large Unmet Medical Needs in Hypertension
Large Unmet Medical Needs in Hypertension Top 7 countries In % 70% of treated patients are not … and over 65% use …leading to poor at goal1 … more than 1 drug… compliance ratios2 30 30 30 Treated, 33 1 drug 3+ drugs Compliant at goal 70 70 Treated, Not not at 37 compliant goal 2 drugs 1 Current Guid
Slide 14: Rasilez – A Breakthrough in Hypertensive Therapy
Rasilez® – A Breakthrough in Hypertensive Therapy Remarkable Durability Rasilez 1st Direct Renin Inhibitor of BP Control At The Point of Activation No BP Rebound Effects – Excellent Double Digit Missed Dose Protection Drops in Monotherapy Added BP & Renin Most Complete Feedback Loop Control In Combi
Slide 15: Galvus – Outstanding Efficacy, Body Weight Profile
KOLs1 Support the DPP-4 Class “…fewer of the negatives seen in other diabetes treatments” 2 Dr. John Buse “…combining some of the VP of the ADA effects of three to four classes of drugs used today…” 2 Dr. John Buse VP of the ADA “… an interesting additional benefit was that the weight “… very useful
Slide 16: Galvus – Proven Once Daily; Several Key Launches
Galvus® – Proven Once Daily with Potential for Disease Modification and Comorbidity Benefits • Ease of use – proven once-daily oral administration: − No drug-drug interactions − No dose adjustment in special populations • Potential for disease modification and comorbidity benefits: − Enhances islet
Slide 17: Planned Filings 2006 to 2009 and 2006 Pharma Outlook
NME Planned Filings 2006 to ≥ 2009 NME roll out LCM8 2006 2007 2008 ≥ 2009 Galvus® LIC477 (US) QAB149 AAE581 AEE788 Diabetes Bipolar disorder Asthma, COPD Osteoporosis Solid tumors LucentisTM(EU) PTK7873 EPO906 LDC300 XBD173 AMD1 Colorectal cancer Solid tumors Hepatitis B Anxiety Rasilez® Prexige® (
Slide 18: Group Outlook for 2006 – Stronger Competitive Position
Group Outlook for 2006 – Stronger Competitive Position Barring unforeseen events • Double-digit sales growth (in LC) • Continued market share gains • Sustained positive pipeline news flow • Record operating and net income 35 Bear Stearns Conference / Thomas Ebeling/ September 12, 2006 18