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YYAYYAYAYYAYYAYAYYAYYAYAYYAYYAYAYYAYYAYAYYAYYAYAYYAYYAYAYYAYYAYAYYAYYAYAY YAYYAYYYYAYYAYYYYAYY ✓ NOVARTIS YAYYYYAYYAYYYYAYYAYYYYAYYAYYYYYYYYYYYYYYYY FINANCIAL RESULTS | RÉSULTATS FINANCIERS | FINANZERGEBNISSE Novartis International AG Novartis Global Communications CH - 4002 Basel Switzerland https://www.novartis.com Novartis key growth drivers and launches continue momentum in Q1 , maintaining confidence in growth . Group guidance for FY 2021 confirmed . • Q1 net sales declined -2 % ( cc¹ , + 1 % USD ) , due to prior year COVID - 19 related forward purchasing ( approximately USD 0.4 billion ) ○ ○ ○ Pharmaceuticals BU in line with prior year ( 0 % cc , + 4 % USD ) with continued strong growth from Entresto ( + 34 % cc ) , Zolgensma ( + 81 % cc ) , and Cosentyx ( + 11 % cc ) . Kesimpta sales reached USD 50 million Oncology BU grew + 1 % ( cc , + 4 % USD ) driven by Kymriah ( + 55 % cc ) , Promacta / Revolade ( + 13 % cc ) , Kisqali ( + 19 % cc ) and Jakavi ( + 8 % cc ) . Adakveo sales reached USD 37 million Sandoz sales declined -13 % ( cc , -9 % USD ) , with Retail -18 % ( cc ) and Biopharmaceuticals growing + 7 % ( cc ) COVID - 19 negatively impacted demand , particularly : dermatology , ophthalmology , the breast cancer portfolio , Sandoz Retail and Anti - Infectives Excluding prior year COVID - 19 related forward purchasing , we estimate Q1 net sales grew + 1 % ( cc , + 4 % USD ) , with Innovative Medicines growing + 3 % ( cc , + 7 % USD ) ² • Core operating income¹ declined -8 % ( cc , -5 % USD ) , mainly due to Sandoz ( -35 % cc ) . Excluding prior year COVID - 19 related forward purchasing , we estimate core operating income declined -1 % ( cc , + 2 % USD ) , with Innovative Medicines growing + 6 % ( cc , + 9 % USD ) ² • Operating income declined -14 % ( cc , -12 % USD ) , mainly due to lower gross profit impacted by pricing erosion at Sandoz and manufacturing restructuring • Net income declined -7 % ( cc , -5 % USD ) , mainly due to lower operating income • Free cash flow¹ of USD 1.6 billion declined , mainly due to the USD 650 million upfront payment to in - license tislelizumab from BeiGene • Key innovation milestones : ○ O Entresto granted an expanded indication by the FDA in chronic heart failure patients ( to include HFPEF ) 177 Lu - PSMA - 617 Ph3 VISION study met both primary endpoints in patients with prostate cancer Tislelizumab deal closed with BeiGene . Positive Ph3 results in esophageal and non - small cell lung cancer ○ Iptacopan in IgA nephropathy met its primary endpoint in Ph2b enabling Ph3 initiation • ESG momentum continues , maintaining top rankings with Access to Medicines Index and Sustainalytics • 2021 group guidance³ confirmed , noting Sandoz sales expected to decline low to mid single digit Basel , April 27 , 2021 - commenting on the quarter , Vas Narasimhan , CEO of Novartis , said : " Novartis growth drivers and launches continued their strong momentum with double - digit growth for Entresto , Cosentyx , Oncology growth drivers and Zolgensma . We expect Sandoz performance to stabilize , in the near - term , after a challenging quarter . Our broad pipeline of novel medicines continued to progress , with the US approval of Entresto across the full spectrum of chronic heart failure and the positive readout for our radioligand therapy in prostate cancer . Our progress on building trust with society has been recognized by top rankings on the Access to Medicines Index and Sustainalytics . We remain confident in progressing our leading pipeline and delivering our growth outlook . " Key figures¹ Net sales Operating income Net income EPS ( USD ) Free cash flow Core operating income Core net income Core EPS ( USD ) Q1 2021 USD m Q1 2020 USD m % change USD CC 12 411 12 283 1 -2 2415 2 744 -12 -14 2 059 2 173 -5 -7 0.91 0.96 -5 -6 1 597 2 021 -21 3 957 4 177 -5 -8 3413 3 549 -4 -6 1.52 1.56 -3 -5 1 Constant currencies ( cc ) , core results and free cash flow are non - IFRS measures . An explanation of non - IFRS measures can be found on page 36 of the Condensed Interim Financial Report . Unless otherwise noted , all growth rates in this Release refer to same period in prior year . 2 Growth excluding prior year COVID - 19 related forward purchasing is a non - IFRS measure , an explanation for this measure can be found on page 44 of the Condensed Interim Financial Report . 3 Please see detailed guidance assumptions on page 7 including the forecast assumption that we see a continuation of the return to normal global healthcare systems including prescription dynamics by mid 2021. In addition , we assume that no Gilenya and no Sandostatin LAR generics enter in 2021 in the US .