Key performance indicators consolidated highlights

Financial

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Key figures1
(in USD millions, unless indicated otherwise)

 

 

 

% Change

 

2018

2017

USD

Constant
currencies

1 This Novartis Annual Review 2018 includes non-IFRS financial measures such as core results, constant currencies and free cash flow. Novartis believes that investor understanding of the Group’s performance is enhanced by disclosing these non-IFRS measures. A definition of non-IFRS measures used by Novartis, and further details, including reconciliation tables, can be found in “Item 5. Operating and Financial Review and Prospects” of the Novartis Annual Report 2018.

2 2018 weighted average number of shares outstanding: 2 319 million (2017: 2 346 million)

Net sales to third parties

51 900

49 109

6

5

Operating income

8 169

8 629

–5

–5

Return on net sales (%)

15.7

17.6

 

 

Net income

12 614

7 703

64

64

Basic earnings per share2 (USD)

5.44

3.28

66

66

Core operating income

13 823

12 850

8

8

Core return on net sales (%)

26.6

26.2

 

 

Core net income

11 938

11 391

5

5

Core earnings per share2 (USD)

5.15

4.86

6

6

Free cash flow

11 717

10 428

12

 

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Share information

 

2018

2017

% Change

 

3 Dividend 2018: proposal to shareholders for approval at the Annual General Meeting on February 28, 2019

Share price at year-end (CHF)

84.04

82.40

2

 

ADR price at year-end (USD)

85.81

83.96

2

 

Dividend3 (CHF)

2.85

2.80

2

 

Innovation

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Key figures1

 

2018

2017

1 Includes Innovative Medicines and Sandoz biosimilars only

2 Includes programs entering confirmatory development, based on internal R&D activities. First patient, first visit (FPFV) has occurred in post-proof-of-concept stage after NIBR or external entry

3 Includes projects with FPFV in a Phase III study but not yet filed in the US, EU or Japan

4 Number of breakthrough therapy designations granted by the US Food and Drug Administration for therapies under development by Novartis

5 Includes small molecules, biologics; new fixed-dose combinations of existing APIs; and new target indications, defined as new disease or new line of treatment (e.g., first line vs. second line)

6 Includes NMEs such as small molecules, biologics; in the EU, new fixed-dose combinations of existing APIs

Projects entering development pipeline2

8

9

Ongoing Phase III programs3

35

37

US FDA breakthrough therapy designations4

4

6

Major submissions (US, EU, JP)5

20

16

Major approvals (US, EU, JP)5

20

16

New molecular entity (NME) approvals6

3

3

Social

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Access

 

2018

2017

7 The 2017 patient number was restated to account for the Ophtha OTC brands that were carved out from Novartis Pharmaceuticals.

8 Programs run by Novartis Social Business and Novartis Foundation. Programs at scale report the catchment of a population in the area where a program has been implemented.

Total patients reached (millions)

817

8867

Patients reached through access programs (millions)

24

46

People reached through training, health education and service delivery (millions)8

17

15

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People

 

2018

2017

9 Headcount reflects the total number of associates in our payroll systems. Full-time equivalent adjusts headcount for associates working less than 100%. All data as of December 31

10 Management defined by Global Job Level Architecture and Novartis Top Leaders

11 Novartis Top Leaders comprise the approximately 350 most senior managers at Novartis, including the Executive Committee of Novartis.

12 The number of misconduct cases reported may change, as matters may be reassessed in the course of the case lifecycle. The number of substantiated allegations may change due to the fact that investigation reports with assessments are received on an ongoing basis, which potentially leads to a difference in numbers at a later stage.

Full-time equivalent positions / headcount9

125 161/129 924

121 597/126 457

Turnover: % voluntary / % overall

7.1/11.5

7.0/11.3

Women in management: % of management10 / % of Novartis Top Leaders11 / % of Board of Directors

42/28/25

41/27/23

Misconduct cases reported / allegations substantiated12

951/618

2 086/1 571

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Health, safety and environment13

 

2018

2017

13 The 2018 environmental sustainability data published in this report are actual data for the period from January through September, and best estimates for the period from October through December, which will be updated with actual data in the first quarter of 2019. Significant deviations will be reported on our website and restated in next year’s report.

14 Data include Novartis associates and third-party personnel managed by Novartis associates.

15 Scope 1: combustion and process, and vehicles; Scope 2: purchased energy

Lost-time injury and illness rate (per 200 000 hours worked)14

0.16

0.12

Greenhouse gas emissions, total Scope 1 and Scope 2 (1 000 t)15

1 123.24

1 250.39