Performance indicators 2021

Financial performance

Key figures1
(in USD millions, unless indicated otherwise)

(in USD millions, unless indicated otherwise)

 

 

% Change

 

2021

2020

USD

Constant currencies

Net sales to third parties

51 626

48 659

6

4

Operating income

11 689

10 152

15

13

% of net sales to third parties

22.6

20.9

 

 

Net income

24 018

8 071

198

195

Basic earnings per share2 (USD)

10.71

3.55

202

200

Core operating income

16 588

15 416

8

6

% of net sales to third parties

32.1

31.7

 

 

Core net income

14 094

13 158

7

5

Core earnings per share2 (USD)

6.29

5.78

9

7

Free cash flow

13 282

11 691

14

 

1

This Novartis in Society Integrated Report 2021 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 2021.

2

2021 weighted average number of shares outstanding: 2 243 million (2020: 2 277 million)

Share information

 

2021

2020

% Change

 

Share price at year-end (CHF)

80.28

83.65

-4

 

ADR price at year-end (USD)

87.47

94.43

-7

 

Dividend1 (CHF)

3.10

3.00

3

 

1

Dividend 2021: proposal to shareholders for approval at the Annual General Meeting on March 4, 2022

Deliver transformative innovation

Deliver transformative innovation – key figures1

 

2021

2020

2019

Projects entering development pipeline2

7

6

8

Ongoing Phase III programs3

54

44

38

US FDA breakthrough therapy designations4

3

2

3

Major submissions (US, EU, JP, China)5

34

13

33

Major approvals (US, EU, JP, China)5

21

26

24

New molecular entity (NME) approvals6

2

4

5

1

Includes Innovative Medicines and Sandoz biosimilars only

2

Includes projects entering confirmatory development from internal R&D activities. First patient, first visit (FPFV) has occurred in post-proof-of-concept stage after NIBR

3

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

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

Embrace operational excellence

Patient health and safety performance indicators

 

2021

2020

2019

GxP audits

 

 

 

Total audits executed

1 419

903

1 607

Internal1

125

111

162

External2

1 294

792

1 445

Regulatory authorities

 

 

 

Total inspections

126

126

187

Inspections found to be acceptable (%)

99.2

99.2

96.8

US FDA

 

 

 

FDA inspections

10

6

19

FDA warning letters

0

0

0

FDA Form 483

5

1

11

US FDA sponsor inspections

 

 

 

Inspections related to clinical trial management and pharmacovigilance

3

1

2

Number of FDA VAI (voluntary action indicated) classifications

0

0

1

Number of FDA OAI (official action indicated) classifications

0

0

0

Recalls

 

 

 

Total recalls

27

27

29

Class I recalls

3

1

3

Class II recalls

20

21

21

US FDA

 

 

 

FDA recalls

1

0

2

1

Total number of audits that are performed on facilities owned by Novartis

2

Total number of audits that are performed on GxP suppliers to Novartis

Supply chain performance indicators

 

2021

2020

2019

Suppliers risk-assessed by Third-Party Risk Management (TPRM)1, 2, 3

 

 

 

Number of suppliers risk-assessed by TPRM

12 064

8 448

2 839

Suppliers assessed by risk area4

 

 

 

Anti-bribery

2 303

2 014

479

Animal welfare

9

10

3

Health, safety and environment

477

315

226

Information security and data privacy

5 668

3 174

1 142

Labor rights

6 755

4 635

1 423

Quality GmP

848

561

162

Actions taken

 

 

 

Suppliers audited2, 5

85

35

135

Suppliers with remediation action agreed

912

521

122

Supplier engagements stopped due to risk assessment outcomes

37

120

15

1

Assessment is done on new suppliers and new products, services or sites from existing suppliers. Not all suppliers trigger risk assessments.

2

Figures do not include GxP audits (see “Ensuring patient health and safety” for more details).

3

Data from 2019 reflect April-December 2019, managed under the TPRM umbrella, based on the TPRM program geographical rollout.

4

Reflects risk assessments conducted on the suppliers. One supplier can trigger more than one assessment depending on the risk areas involved.

5

Anti-bribery audits included from 2021 onward

Unleash the power of our people

People performance indicators

 

2021

2020

2019

Headcount1

108 514

110 738

108 776

Full-time equivalent positions1

104 323

105 794

103 914

Annual training hours per employee (full population/internal only)2

44.6/52.1

45.7/53.2

35.8/n/a

Representation of nationalities: overall/management3

143/115

142/113

149/110

Employees represented by an employee representative body or covered by a collective bargaining agreement (%)4

47

46

45

Percentage turnover: voluntary/overall

7.5/13.2

5.2/10.1

7.0/14.0

Percentage of hires: internal/external

62/38

58/42

55/45

Health and safety5

 

 

 

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

0.13

0.13

0.18

Total recordable case rate (per 200 000 hours worked)6

0.25

0.23

0.36

Fatalities

0

1

1

Gender indicators7

 

 

 

Median tenure in years: female/male

4.8/5.5

4.7/5.5

5.5/6.5

Gender representation (% female/% male)

 

 

 

Overall headcount

51/49

50/49

50/50

Hires8

52/47

52/48

53/47

Promotions

55/45

52/48

51/49

Overall turnover

50/50

49/51

48/52

Entry-level positions (job levels 6, 7, 8)

52/48

52/48

52/48

Revenue-producing roles9

51/49

50/50

49/51

IT roles (IT job family)

23/77

22/78

22/78

Engineering roles (R&D + TechOps job families)10

48/52

47/53

46/54

Overall management3

46/54

45/55

44/56

Novartis Top Leaders11

38/62

33/67

31/69

Senior management

39/61

39/61

38/62

Middle management

47/53

46/54

45/55

Board of Directors

31/69

29/71

25/75

Gender representation by contract type (female/male)

 

 

 

Full time

48 618/51 904

48 472/53 507

46 907/53 164

Part-time

6 755/1 133

7 204/1 219

7 338/1 246

Permanent

53 509/51 497

53 729/53 096

51 906/52 691

Temporary

1 854/1 539

1 935/1 629

2 327/1 718

Number of employees by region, by contract type (permanent/temporary)

 

 

 

Asia-Pacific

28 229/420

27 711/300

26 559/666

Europe/Middle East/Africa

55 362/2 752

56 852/3 016

56 855/3 063

Latin America

5 101/127

5 092/157

5 311/194

North America

16 314/94

17 170/91

15 872/122

1

Headcount reflects the total number of employees in our payroll systems. Full-time equivalent adjusts headcount for employees working less than 100%.

2

From 2021, Novartis has begun reporting training hours for internal employees only, in addition to data for the full population.

3

Management defined by Global Job Level Architecture and Novartis Top Leaders

4

Non-management employees

5

Data include Novartis employees and third-party personnel managed by Novartis employees.

6

Data include all work-related injury and illness, whether leading to lost time or not.

7

Fewer than 0.5% of employees have unknown classification, apart from hires, which have a 1.2% unknown classification.

8

1.2% of hires have unknown classification

9

Revenue-producing roles are defined as the sum of BD&L and strategy plan, commercial and general, market access, and marketing and sales job families.

10

Engineering roles are defined as the sum of research and development and Technical Operations job families.

11

Novartis Top Leaders comprise the approximately 300 most senior managers at Novartis, including the Executive Committee of Novartis.

Build trust with society

Access to healthcare performance indicators

 

2021

2020

2019

Overall patients reached (millions)

 

 

 

Patients reached with medicines – total

766

769

799

Patients reached through access approaches1

56.2

66.4

15.6

Sustainability-linked bond (September 23, 2020 – September 23, 2028)

 

 

 

Patients reached with strategic innovative therapies

947 699

695 669

547 664

Patients reached through flagship programs

32 695 224

43 912 152

15 069 483

Novartis Global Health2, 3

 

 

 

Countries with medicines on the ground

122

115

33

FTEs4, 5

1 330

1 334

786

Patients reached with medicines through Novartis Global Health (millions)6

55.5

65.8

15.1

Health educators trained

2 827

671

1 536

Healthcare providers trained

10 719

12 648

1 516

Policymakers trained

176

90

145

Points of service provision7

4 365

5 902

13 635

People reached at points of service provision

360 356

486 642

986 701

Awareness events held

412 872

424 878

250 432

People reached at awareness events

9 678 360

8 048 360

10 211 704

1

Includes patients reached with medicines through Novartis Global Health, as well as patients reached with support programs, emerging market brands and donations

2

Data reflect the full scope of access approaches managed by the Global Health organization, including the activities formerly managed by Novartis Social Business, as well as the newly formed sub-Saharan Africa (SSA) organization and the Integrated Access Programs & Markets unit.

3

Novartis Global Health focuses on transforming health in low- and middle-income countries through various approaches, which include the flagship programs (targeting malaria, sickle cell disease, leprosy and Chagas disease) as well as a core portfolio of medicines for non communicable diseases.

4

Full-time equivalent positions and contractors

5

Significant number of headcounts integrated from different units as a result of the establishment of the new SSA organization

6

The patient number is calculated based on treatments delivered and the following elements: daily treatment doses, treatment duration, treatment adherence and potential treatment overlap (NCD patients often take several drugs). The treatment adherence and treatment overlap factors are based on assumptions from developed markets. Includes patients reached through flagship programs (malaria, sickle cell disease, leprosy, Chagas disease), patients reached with donations (leprosy and fasciolisis), and patients reached with other Sandoz medicines

7

Points of service provision include facilities and health camps where healthcare services are provided.

Patients reached with emerging market brands

(in thousands)

2021

2020

2019

Novartis Pharmaceuticals

464.6

355.1

302.6

Novartis Oncology

18.9

13.9

11.3

Donations

 

2021

2020

2019

Patients reached with donations (thousands)

 

 

 

Leprosy (WHO)1

75.3

245.4

168.6

Fascioliasis/Egaten2

159.0

132.8

154.7

CMLPath to Care™

29.3

30.3

14.4

Donations value (USD millions)3, 4

 

 

 

Emergency relief

1.4

2.5

2.8

1

In 2020, the leprosy program fully transitioned to the Global Health organization as one of the flagship programs. It is also included in data reported in the Novartis Global Health table.

2

Numbers of patients reached have been updated to reflect the new methodology used by the WHO and based on real-world evidence.

3

Monetary and product donations

4

Wholesale acquisition cost (WAC) plus logistics costs for some programs

Patients reached through support programs

(in thousands)

2021

2020

2019

Novartis Patient Assistance Foundation Inc. (US)1

127.4

107.2

87.2

Novartis Oncology Access

29.4

33.9

60.7

1

2020 figure corrected and restated

Ethical business practices performance indicators

 

2021

2020

2019

Code of Ethics

 

 

 

Percentage of employees trained and certified1

98

98

98

Grievance indicators: SpeakUp Office – central matters2, 3, 4, 5

 

 

 

Misconduct cases reported

174

157

209

Total allegations6

296

284

427

Total allegations per category (%): SpeakUp Office – central matters

 

 

 

Fraud/asset misappropriation

13

7

7

Expense fraud

4

2

5

Books and records, accounting irregularities

0

1

1

Improper professional practices

20

14

17

Bribery, kickbacks

2

1

2

Discrimination and sexual harassment

8

11

8

Retaliation

5

3

6

Other employee relations issues

14

18

18

Conflict of interest

12

13

11

IT security breach

4

4

4

Quality assurance/data integrity

3

8

6

Data privacy

3

2

3

Antitrust, fair competition

1

1

0

Company confidential/trade secret information

2

4

0

Other

9

11

12

Allegations substantiated7

137

118

252

Dismissals and resignations related to misconduct

62

101

186

1

Active Novartis employees with email addresses, trained via e-learning or via One Deck for Novartis Technical Operations. Training rolled out from July 2021 to January 2022, with a preliminary completion rate as of December 31, 2021.

2

The SpeakUp Office provides a safe place for employees to raise concerns (including anonymously) about potential misconduct while being protected against retaliation.

3

A central matter applies to a senior leader or manager, potentially disruptive reputational impact, sexual harassment, discrimination, retaliation and significant financial impact.

4

The number of misconduct cases, allegations reported and substantiated, and dismissals and resignations may change year-on-year as matters may be reassessed in the course of the case life cycle. As a result, we may restate the previous two years of reported data.

5

The remainder of the complaints were addressed or investigated locally, as they were of lower and local risk.

6

The number of allegations is higher than the actual number of cases as a case can have more than one allegation.

7

“Allegations substantiated” may include allegations from previous years while “misconduct cases reported,” “total allegations” and “total allegations per category” refer to allegations reported within each calendar year.

Environmental performance indicators1

 

2021

2020

2019

Energy use – on site and purchased (million GJ)

9.77

10.85

12.75

Emissions (1 000 tCO2e)

 

 

 

GHG emissions, Scope 1, combustion and process

248.1

286.9

356.6

GHG emissions, Scope 1, vehicles

88.5

91.3

128.4

GHG emissions, Scope 2, purchased energy (market based)

310.4

338.9

404.0

GHG emissions, Scope 3, business travel2

35.5

22.0

191.3

Total GHG emissions, Scope 1 and Scope 2 (excluding offsets)3

647.0

717.1

888.9

GHG emissions offsets4

-34.7

33.6

29.8

Emissions intensity (1 000 tCO2e)

 

 

 

GHG emissions (Scope 1 and Scope 2) per million USD sales

12.5

14.7

18.7

GHG emissions (Scope 1 and Scope 2) per FTE

6.2

6.8

8.6

VOCs (t)

 

 

 

Halogenated volatile organic compounds

4.5

11.6

26.6

Non-halogenated volatile organic compounds

310.0

443.0

406.8

Water (million m3)

 

 

 

Water withdrawal5

47.9

54.7

66.8

Water discharged directly to aquatic environment (cooling water)

39.5

46.1

55.5

Water consumption6

7.8

8.4

11.2

Waste (1 000 t)

 

 

 

Non-hazardous waste recycled

83.9

59.9

57.7

Hazardous waste recycled

15.9

28.7

58.8

Non-hazardous waste not recycled

10.1

8.8

12.9

Hazardous waste not recycled

19.2

33.2

41.2

1

Other than where indicated, environmental data for the current year are based on actuals for January-September and estimates for October-December (to be updated with actuals in H2 2022 in our annual Novartis Environmental Sustainability and Occupational Health and Safety Data Supplement). Any significant deviations are restated the following year in the Novartis in Society Integrated Report. Previous years’ data reflect only actuals.

2

2021 data includes indirect emissions from air travel, train travel, car rentals and hotel stays. The methodology changed in 2021, with previous years’ data covering emissions from air travel only. This is part of a calculation effort to expand the Scope 3 category 6 emission activities reported and part of a wider Scope 3 calculation review that aims to increase the coverage to more than 90% of the overall Scope 3. New to 2021, air travel emissions now also cover radiative forcing, which multiplies the indirect emissions by 1.9. The published metric represents actual data from January 1, 2021 through December 31, 2021, which was made available on January 5, 2022. This data may be updated after the reporting date as emissions are calculated based on bookings, which may be adjusted after the reporting period. For further Scope 3 disclosures, please see our latest HSE supplement.

3

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

4

GHG offsets are based on data provided by third parties. The Santo Domingo forest carbon offset project in Argentina is due to reach maturity; as projects near this phase, routine operations involve thinning and harvesting. These operations have generated the negative GHG emissions offset value for 2021. The Santo Domingo offsets are based on January-June actual data and July-December estimates, while offsets from our Hacienda El Manatial project in Colombia are based on January-September actual data and October-December estimates (to be revised with actuals in Q1 2022). The methodology we use to measure offsets will be reviewed in 2022.

5

Sum of contact water and non-contact (cooling) water use

6

Water discharged via treatment and water lost

Animal testing indicators

 

2021

2020

2019

Total

353 772

410 359

454 454

Rodents

265 111

312 332

355 451

% of total

74.94%

76.11%

78.21%

Zebrafish

88 229

97 596

97 551

% of total

24.94%

23.78%

21.47%

Other species

432

431

1 452

% of total

0.12%

0.11%

0.32%

1

Data refer to animals needed for internally conducted animal studies for Novartis. For animals needed for both internally and externally conducted animal studies, please see here.