Press Release: Novartis delivers solid sales and -3-

(iptacopan) demonstrated statistically significant, clinically

meaningful superiority compared to placebo in slowing

IgAN progression measured by annualized total slope

of estimated glomerular filtration rate (eGFR) decline

over two years. Full data will be presented at future

medical meetings and included in regulatory submissions

in 2026.

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Leqvio In the Phase IV V-DIFFERENCE study, 85% of patients

(Inclisiran) with hypercholesterolemia who had not reached guideline-recommended

LDL-C targets despite optimized lipid-lowering therapy

(LLT) achieved their goals with Leqvio plus LLT, versus

31% with placebo plus LLT, with benefits evident in

as early as 30 days. Leqvio also reduced LDL-C by

59% over 360 days, outperforming placebo plus LLT

by 35%. Data presented at ESC.

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Entresto Data from the Phase IV PARACHUTE-HF study in patients

(sacubitril/ valsartan) with heart failure with reduced ejection fraction

due to chronic Chagas disease showed that Entresto

outperformed enalapril on a composite endpoint of

cardiovascular death, heart failure hospitalization

or NT-proBNP change. Entresto was well tolerated,

with no new safety signals identified. Data presented

at ESC.

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Kesimpta In the ARTIOS Phase IIIb study, patients with RMS

(ofatumumab) who switched to Kesimpta after breakthrough disease

on fingolimod or fumarate-based therapies showed a

substantial reduction in disease activity. This was

reflected in a low annualized relapse rate (ARR of

0.06 over 96 weeks), near-complete suppression of

MRI activity, and over 90% of participants achieving

no evidence of disease activity (NEDA-3). No new safety

concerns were identified, regardless of prior disease-modifying

treatment.

In the separate ALITHIOS open-label extension study,

more than 90% of naïve patients receiving Kesimpta

showed no evidence of disease activity (NEDA-3) at

7 years, with no new safety concerns, reinforcing

the benefit of introducing Kesimpta early. Data from

both studies presented at ECTRIMS.

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Selected transactions Novartis entered into an agreement to acquire Tourmaline

Bio, a clinical-stage biopharmaceutical company developing

pacibekitug, a Phase III-ready anti-IL-6 monoclonal

antibody for atherosclerotic cardiovascular disease

(ASCVD). In Phase II, pacibekitug reduced median high-sensitivity

C-reactive protein (hsCRP) levels by up to 86% compared

to placebo, with similar incidence rates of adverse

events and serious adverse events. The transaction

is expected to close on October 28, 2025.

Novartis entered a second collaboration with Monte

Rosa Therapeutics, in addition to the existing license

agreement for VAV1 degraders, announced in October

2024. Under the new agreement, Novartis receives an

exclusive license to an undisclosed discovery target

and options to license two programs from Monte Rosa's

preclinical immunology portfolio.

Novartis continued its collaboration with Argo Biopharma,

adding two new agreements: an exclusive license to

an siRNA candidate currently in IND-enabling studies

and expected to enter Phase I in 2026, and an option

to exclusively license two second-generation siRNA

molecules currently in development, with a right of

first negotiation to the Phase II ANGPTL3 program.

Novartis entered into a global licensing and collaboration

agreement with Arrowhead Pharmaceuticals for ARO-SNCA,

a preclinical-stage siRNA therapy targeting alpha-synuclein

for the treatment of synucleinopathies such as Parkinson's

disease. The agreement also includes additional collaboration

targets leveraging Arrowhead's proprietary Targeted

RNAi Molecule (TRiM(TM)) platform.

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Capital structure and net debt

Retaining a good balance between investment in the business, a strong capital structure, and attractive shareholder returns remains a priority.

During the first nine months of 2025, Novartis repurchased a total of 66.4 million shares for USD 7.5 billion on the SIX Swiss Exchange second trading line. These repurchases included 49.1 million shares (USD 5.4 billion) under the USD 15 billion share buyback (announced in July 2023 and completed in July 2025) and 6.6 million shares (USD 0.8 billion) under the new up-to USD 10 billion share buyback announced in July 2025. In addition, 10.7 million shares (USD 1.3 billion) were repurchased to mitigate anticipated full-year dilution related to the equity-based compensation plans of associates. Further, 1.6 million shares (equity value of USD 0.2 billion) were repurchased from associates. In the same period, 11.7 million shares (equity value of USD 0.9 billion) were delivered to associates related to equity-based compensation plans. Consequently, the total number of shares outstanding decreased by 56.3 million versus December 31, 2024. These treasury share transactions resulted in an equity decrease of USD 6.8 billion and a net cash outflow of USD 7.7 billion.

Net debt increased to USD 20.4 billion at September 30, 2025, compared to USD 16.1 billion at December 31, 2024. The increase was mainly due to the free cash flow of USD 15.9 billion being more than offset by the USD 7.8 billion annual dividend payment, cash outflows for treasury share transactions of USD 7.7 billion and net cash outflow for M&A, intangible assets transactions and other acquisitions of USD 3.7 billion.

As of Q3 2025, the long-term credit rating for the company is Aa3 with Moody's Ratings and AA- with S&P Global Ratings.

2025 outlook

Barring unforeseen events; growth vs. prior year in

cc

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Net sales Expected to grow high single-digit

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Core operating income Expected to grow low-teens

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Foreign exchange impact

If late-October exchange rates prevail for the remainder of 2025, the foreign exchange impact for the year would be neutral to positive 1 percentage point on net sales and negative 2 percentage points on core operating income. The estimated impact of exchange rates on our results is provided monthly on our website.

Key figures(1)

Q3 Q3

2025 2024 % change 9M 2025 9M 2024 % change

USD m USD m USD cc USD m USD m USD cc

------ ------ ---- ---- ------- ------- ---- ----

Net sales 13 909 12 823 8 7 41 196 37 164 11 11

---------------------- ------ ------ ---- ---- ------- ------- ---- ----

Operating income 4 501 3 627 24 27 14 028 11 014 27 31

---------------------- ------ ------ ---- ---- ------- ------- ---- ----

As a % of sales 32.4 28.3 34.1 29.6

---------------------- ------ ------ ---- ---- ------- ------- ---- ----

Net income 3 930 3 185 23 25 11 563 9 119 27 29

---------------------- ------ ------ ---- ---- ------- ------- ---- ----

EPS (USD) 2.04 1.58 29 31 5.94 4.50 32 35

---------------------- ------ ------ ---- ---- ------- ------- ---- ----

Net cash flows from

operating activities 6 571 6 286 5 16 880 13 426 26

---------------------- ------ ------ ---- ---- ------- ------- ---- ----

Non-IFRS measures

---------------------- ------ ------ ---- ---- ------- ------- ---- ----

Free cash flow 6 217 5 965 4 15 941 12 618 26

---------------------- ------ ------ ---- ---- ------- ------- ---- ----

Core operating income 5 460 5 145 6 7 16 960 14 635 16 18

---------------------- ------ ------ ---- ---- ------- ------- ---- ----

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October 28, 2025 02:00 ET (06:00 GMT)