Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2020 | |
Document Information [Line Items] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | NOVARTIS AG |
Entity Central Index Key | 0001114448 |
Current Fiscal Year End Date | --12-31 |
Consolidated income statements
Consolidated income statements - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Statement [line items] | |||||
Net sales to third parties from continuing operations | $ 11,347 | $ 11,764 | $ 23,630 | $ 22,870 | |
Sales to discontinued operations | 53 | ||||
Net sales from continuing operations | 11,347 | 11,764 | 23,630 | 22,923 | |
Other revenues | 275 | 260 | 700 | 556 | |
Cost of goods sold | (3,429) | (3,406) | (7,151) | (6,657) | |
Gross profit from continuing operations | 8,193 | 8,618 | 17,179 | 16,822 | |
Selling, general and administration | (3,368) | (3,585) | (6,854) | (6,915) | |
Research and Development | (2,441) | (2,051) | (4,501) | (4,350) | |
Other income | 432 | 989 | 693 | 1,192 | |
Other expense | (464) | (1,308) | (1,421) | (1,844) | |
Operating income from continuing operations | 2,352 | 2,663 | 5,096 | 4,905 | |
Income from associated companies | 183 | 176 | 306 | 256 | |
Interest expense | (220) | (205) | (459) | (431) | |
Other financial income and expense | (27) | 0 | (34) | 44 | |
Income before taxes from continuing operations | 2,288 | 2,634 | 4,909 | 4,774 | |
Taxes | (421) | (525) | (869) | (797) | |
Net income from continuing operations | 1,867 | 2,109 | 4,040 | 3,977 | |
Net income/loss from discontinued operations before gain on distribution | (101) | ||||
Gain on distribution | 4,691 | 4,691 | |||
Net income/loss from discontinued operations | 4,691 | 4,590 | |||
Net income | 1,867 | 6,800 | 4,040 | 8,567 | |
Attributable to | |||||
Shareholders of Novartis AG | 1,867 | 6,799 | 4,043 | 8,565 | |
Non-controlling interests | $ 0 | $ 1 | $ (3) | $ 2 | |
Basic earnings per share [abstract] | |||||
Weighted average number of shares outstanding used in the basic earnings per share | 2,289 | 2,310 | 2,281 | 2,312 | |
Basic earnings per share, Continuing operations | [1] | $ 0.82 | $ 0.91 | $ 1.77 | $ 1.72 |
Basic earnings per share, Discontinued operations | [1] | 2.03 | 1.98 | ||
Basic earnings per share | [1] | $ 0.82 | $ 2.94 | $ 1.77 | $ 3.70 |
Diluted earnings per share [abstract] | |||||
Weighted average number of shares in diluted earnings per share | 2,304 | 2,333 | 2,299 | 2,336 | |
Diluted earnings per share, Continuing operations | [1] | $ 0.81 | $ 0.90 | $ 1.76 | $ 1.70 |
Diluted earnings per share, Discontinued operations | [1] | 2.01 | 1.96 | ||
Diluted earnings per share | [1] | $ 0.81 | $ 2.91 | $ 1.76 | $ 3.66 |
[1] | Earnings per share (EPS) is calculated on the amount of net income attributable to shareholders of Novartis AG. |
Consolidated statements of comp
Consolidated statements of comprehensive income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |||
Statement [line items] | ||||||
Net income | $ 1,867 | $ 6,800 | $ 4,040 | $ 8,567 | ||
Other comprehensive income to be eventually recycled into the consolidated income statement | ||||||
Fair value adjustments on debt securities, net of taxes | 1 | 1 | ||||
Fair value adjustments on deferred cash flow hedges, net of taxes | 1 | |||||
Total fair value adjustments on financial instruments, net of taxes | 1 | 0 | 2 | |||
Associated companies' movements in comprehensive income | (12) | (54) | ||||
Net investment hedge | (38) | (27) | (1) | 12 | ||
Currency translation effects | 380 | 525 | [1] | 382 | 189 | [1] |
Total of items to eventually recycle | 343 | 498 | 369 | 149 | ||
Other comprehensive income never to be recycled into the consolidated income statement | ||||||
Actuarial gains/losses from defined benefit plans, net of taxes | 319 | (387) | (293) | (890) | [2] | |
Fair value adjustments on equity securities, net of taxes | 173 | (21) | 99 | 74 | ||
Total of items never to be recycled | 492 | (408) | (194) | (816) | ||
Total comprehensive income | 2,702 | 6,890 | 4,215 | 7,900 | ||
Attributable to | ||||||
Shareholders of Novartis AG | 2,703 | 6,888 | 4,219 | 7,898 | ||
Comprehensive income, attributable to non-controlling interests | (1) | 2 | (4) | 2 | ||
Impact of new tax law income tax relating to deferred tax assets on Swiss post retirement previously recognized through OCI | (358) | |||||
Continuing operations | ||||||
Attributable to | ||||||
Shareholders of Novartis AG | $ 2,703 | 2,298 | $ 4,219 | 3,321 | ||
Discontinued operations | ||||||
Attributable to | ||||||
Shareholders of Novartis AG | $ 4,590 | $ 4,577 | ||||
[1] | In H1 2019, cumulative currency translation gains of USD 123 million were recycled into the consolidated income statement as a result of the Alcon spin-off (see Notes 2, 3 and 10). | |||||
[2] | Included in H1 2019 is a USD -358 million impact related to the revaluation of deferred tax assets on Swiss pension plans that were previously recognized through other comprehensive income. This revaluation resulted from the Swiss canton Basel-Stadt tax reform, enacted in February 2019. |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Non-current assets [abstract] | ||
Property, plant and equipment | $ 11,955 | $ 12,069 |
Right-of-use assets | 1,640 | 1,677 |
Goodwill | 29,100 | 26,524 |
Intangible assets other than goodwill | 36,669 | 28,787 |
Investments in associated companies | 8,575 | 8,644 |
Deferred tax assets | 8,601 | 7,909 |
Financial assets | 2,475 | 2,518 |
Other non-current assets | 866 | 738 |
Total non-current assets | 99,881 | 88,866 |
Current assets [abstract] | ||
Inventories | 6,904 | 5,982 |
Current trade receivables | 7,644 | 8,301 |
Income tax receivable | 308 | 254 |
Marketable securities, commodities, time deposits and derivative financial instruments | 376 | 334 |
Cash and cash equivalents | 5,917 | 11,112 |
Other current assets | 2,733 | 2,680 |
Total current assets without disposal group | 23,882 | 28,663 |
Assets of disposal group held for sale | 841 | |
Total current assets | 23,882 | 29,504 |
Total assets | 123,763 | 118,370 |
Equity [abstract] | ||
Share capital | 913 | 936 |
Treasury shares | (37) | (80) |
Reserves | 52,936 | 54,618 |
Issued share capital and reserves attributable to Novartis AG shareholders | 53,812 | 55,474 |
Non-controlling interests | 73 | 77 |
Total equity | 53,885 | 55,551 |
Non-current liabilities [abstract] | ||
Financial debts | 23,955 | 20,353 |
Lease liabilities | 1,698 | 1,703 |
Deferred tax liabilities | 7,499 | 5,867 |
Provisions and other non-current liabilities | 7,344 | 6,632 |
Total non-current liabilities | 40,496 | 34,555 |
Current liabilities [abstract] | ||
Trade payables | 4,820 | 5,424 |
Financial debts and derivative financial instruments | 8,875 | 7,031 |
Lease liabilities | 258 | 246 |
Current income tax liabilities | 2,571 | 2,194 |
Provisions and other current liabilities | 12,858 | 13,338 |
Total current liabilities without disposal group | 29,382 | 28,233 |
Liabilities of disposal group held for sale | 31 | |
Total current liabilities | 29,382 | 28,264 |
Total liabilities | 69,878 | 62,819 |
Total equity and liabilities | $ 123,763 | $ 118,370 |
Consolidated statements of chan
Consolidated statements of changes in equity - USD ($) $ in Millions | Total | Equity attributable to owners of parent [member] | Share capital | Treasury shares | Retained earnings | Total value adjustments | Non-controlling interests [member] | |
Equity | Previously stated [member] | $ 78,692 | $ 78,614 | $ 944 | $ (69) | $ 82,191 | $ (4,452) | $ 78 | |
Equity | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | 3 | 3 | 3 | |||||
Equity | Restated Value Adjustments [member] | 78,695 | 78,617 | 944 | (69) | 82,194 | (4,452) | 78 | |
Equity | Previously stated [member] | 78,692 | 78,614 | 944 | (69) | 82,191 | (4,452) | 78 | |
Equity | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | 3 | 3 | 3 | |||||
Equity | Restated Value Adjustments [member] | 78,695 | 78,617 | 944 | (69) | 82,194 | (4,452) | 78 | |
Equity | 51,504 | 51,426 | 936 | (67) | 55,645 | (5,088) | 78 | |
Equity at beginning of period (Previously stated [member]) at Dec. 31, 2018 | 78,692 | 78,614 | 944 | (69) | 82,191 | (4,452) | 78 | |
Equity at beginning of period (Increase (decrease) due to changes in accounting policy required by IFRSs [member]) at Dec. 31, 2018 | 3 | 3 | 3 | |||||
Equity at beginning of period (Restated Value Adjustments [member]) at Dec. 31, 2018 | 78,695 | 78,617 | 944 | (69) | 82,194 | (4,452) | 78 | |
Net income | 8,567 | 8,565 | 8,565 | 2 | ||||
Other comprehensive income | (667) | (667) | (54) | (613) | ||||
Total comprehensive income | 7,900 | 7,898 | 8,511 | (613) | 2 | |||
Dividends | (6,645) | (6,645) | (6,645) | |||||
Dividend in kind | (23,434) | (23,434) | (23,434) | |||||
Purchase of treasury shares | (2,972) | (2,972) | (17) | (2,955) | ||||
Reduction of share capital | (8) | 12 | (4) | |||||
Exercise of options and employee transactions, equity impact | 200 | 200 | 3 | 197 | ||||
Equity-based compensation | 447 | 447 | 4 | 443 | ||||
Shares delivered to divested business employees, equity impact | 32 | 32 | 32 | |||||
Taxes on treasury shares | (185) | (185) | (185) | |||||
Increase of treasury share repurchase obligation under a share buyback trading plan | (2,289) | (2,289) | (2,289) | |||||
Transaction costs recorded in equity | (253) | (253) | (253) | |||||
Fair value adjustments on financial assets sold | 19 | (19) | ||||||
Fair value adjustments related to divestments | 4 | (4) | ||||||
Impact of change in ownership of consolidated entities | (5) | (3) | (3) | (2) | ||||
Other movements | 13 | 13 | 13 | |||||
Total of other equity movements | (35,091) | (35,089) | (8) | 2 | (35,060) | (23) | (2) | |
Equity at end of period at Jun. 30, 2019 | 51,504 | 51,426 | 936 | (67) | 55,645 | (5,088) | 78 | |
Tax reform impact on deferred tax on treasury shares | 69 | |||||||
Equity | 47,307 | 47,229 | 944 | (63) | 51,518 | (5,170) | 78 | |
Equity | 51,504 | 51,426 | 936 | (67) | 55,645 | (5,088) | 78 | |
Equity at beginning of period at Mar. 31, 2019 | 47,307 | 47,229 | 944 | (63) | 51,518 | (5,170) | 78 | |
Net income | 6,800 | 6,799 | 6,799 | 1 | ||||
Other comprehensive income | 90 | 89 | 89 | 1 | ||||
Total comprehensive income | 6,890 | 6,888 | 6,799 | 89 | 2 | |||
Dividend in kind | 2,927 | 2,927 | 2,927 | |||||
Purchase of treasury shares | (2,770) | (2,770) | (16) | (2,754) | ||||
Reduction of share capital | (8) | 12 | (4) | |||||
Equity-based compensation | 175 | 175 | 175 | |||||
Shares delivered to divested business employees, equity impact | 32 | 32 | 32 | |||||
Taxes on treasury shares | [1] | (185) | (185) | (185) | ||||
Increase of treasury share repurchase obligation under a share buyback trading plan | (2,573) | (2,573) | (2,573) | |||||
Transaction costs recorded in equity | [2] | (301) | (301) | (301) | ||||
Fair value adjustments on financial assets sold | 3 | (3) | ||||||
Fair value adjustments related to divestments | 4 | (4) | ||||||
Impact of change in ownership of consolidated entities | (5) | (3) | (3) | (2) | ||||
Other movements | 7 | 7 | 7 | |||||
Total of other equity movements | (2,693) | (2,691) | (8) | (4) | (2,672) | (7) | (2) | |
Equity at end of period at Jun. 30, 2019 | 51,504 | 51,426 | 936 | (67) | 55,645 | (5,088) | 78 | |
Tax reform impact on deferred tax on treasury shares | 69 | |||||||
Equity | 51,504 | 51,426 | 936 | (67) | 55,645 | (5,088) | 78 | |
Equity | 55,551 | 55,474 | 936 | (80) | 59,275 | (4,657) | 77 | |
Equity | 53,885 | 55,474 | 936 | (80) | 59,275 | (4,657) | 77 | |
Equity at beginning of period at Dec. 31, 2019 | 55,551 | 55,474 | 936 | (80) | 59,275 | (4,657) | 77 | |
Net income | 4,040 | 4,043 | 4,043 | (3) | ||||
Other comprehensive income | 175 | 176 | (12) | 188 | (1) | |||
Total comprehensive income | 4,215 | 4,219 | 4,031 | 188 | (4) | |||
Dividends | (6,987) | (6,987) | (6,987) | |||||
Purchase of treasury shares | (150) | (150) | (1) | (149) | ||||
Reduction of share capital | (23) | 31 | (8) | |||||
Exercise of options and employee transactions, equity impact | 823 | 823 | 8 | 815 | ||||
Equity-based compensation | 365 | 365 | 5 | 360 | ||||
Shares delivered to divested business employees, equity impact | 29 | 29 | 0 | 29 | ||||
Taxes on treasury shares | 30 | 30 | 30 | |||||
Fair value adjustments on financial assets sold | 90 | (90) | ||||||
Other movements | 9 | 9 | 9 | |||||
Total of other equity movements | (5,881) | (5,881) | (23) | 43 | (5,811) | (90) | ||
Equity at end of period at Jun. 30, 2020 | 53,885 | 53,812 | 913 | (37) | 57,495 | (4,559) | 73 | |
Equity | 50,977 | 50,903 | 936 | (68) | 55,356 | (5,321) | 74 | |
Equity | 53,885 | 53,812 | 913 | (37) | 57,495 | (4,559) | 73 | |
Equity at beginning of period at Mar. 31, 2020 | 50,977 | 50,903 | 936 | (68) | 55,356 | (5,321) | 74 | |
Net income | 1,867 | 1,867 | 1,867 | 0 | ||||
Other comprehensive income | 835 | 836 | 836 | (1) | ||||
Total comprehensive income | 2,702 | 2,703 | 1,867 | 836 | (1) | |||
Purchase of treasury shares | (9) | (9) | 0 | (9) | ||||
Reduction of share capital | (23) | 31 | (8) | |||||
Equity-based compensation | 203 | 203 | 0 | 203 | ||||
Shares delivered to divested business employees, equity impact | 8 | 8 | 0 | 8 | ||||
Fair value adjustments on financial assets sold | 74 | (74) | ||||||
Other movements | 4 | 4 | 4 | |||||
Total of other equity movements | 206 | 206 | (23) | 31 | 272 | (74) | ||
Equity at end of period at Jun. 30, 2020 | 53,885 | 53,812 | 913 | (37) | 57,495 | (4,559) | 73 | |
Equity | $ 53,885 | $ 53,812 | $ 913 | $ (37) | $ 57,495 | $ (4,559) | $ 73 | |
[1] | Included in Q2 2019 is a USD 69 million impact related to the revaluation of deferred tax liability on treasury shares that are recognized through retained earnings. This revaluation resulted from the Swiss Federal tax reform enacted in May 2019, effective January 1, 2020. | |||||||
[2] | Transaction costs directly attributable to the distribution (spin-off) of the Alcon business to Novartis AG shareholders. |
Consolidated cash flow statemen
Consolidated cash flow statements - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement [line items] | ||||
Net income from continuing operations | $ 1,867 | $ 2,109 | $ 4,040 | $ 3,977 |
Reversal of non-cash items and other adjustments | 2,345 | 2,085 | 5,202 | 4,101 |
Dividends received from associated companies and others | 2 | 3 | 489 | 463 |
Interest received | 5 | 55 | 37 | 140 |
Interest paid | (227) | (239) | (321) | (406) |
Other financial receipts | 52 | 10 | 261 | 10 |
Other financial payments | (10) | 28 | (19) | (16) |
Taxes paid | (303) | (560) | (899) | (960) |
Net cash flows from operating activities from continuing operations before working capital and provision changes | 3,731 | 3,491 | 8,790 | 7,309 |
Payments out of provisions and other net cash movements in non-current liabilities | (420) | (323) | (824) | (516) |
Change in net current assets and other operating cash flow items | 650 | (57) | (1,477) | (1,348) |
Net cash flows from operating activities from continuing operations | 3,961 | 3,111 | 6,489 | 5,445 |
Net cash flows from operating activities from discontinued operations | 78 | |||
Total net cash flows from operating activities | 3,961 | 3,111 | 6,489 | 5,523 |
Purchases of property, plant and equipment | (238) | (279) | (475) | (561) |
Proceeds from sale of property, plant and equipment | 1 | 648 | 4 | 812 |
Purchases of intangible assets | (214) | (161) | (460) | (498) |
Proceeds from sale of intangible assets | 49 | 210 | 105 | 281 |
Purchases of financial assets | (38) | (45) | (90) | (154) |
Proceeds from sale of financial assets | 117 | 142 | 359 | 177 |
Purchases of other non-current assets | (7) | (14) | (48) | (24) |
Proceeds from sale of other non-current assets | 0 | 3 | ||
Acquisitions and divestments of interests in associated companies, net | (2) | (1) | (4) | (3) |
Acquisitions and divestments of businesses, net | 0 | (286) | (9,901) | (382) |
Purchases of marketable securities and commodities | (74) | (75) | (345) | (120) |
Proceeds from sale of marketable securities and commodities | 72 | 69 | 394 | 2,428 |
Net cash flows used in/from investing activities from continuing operations | (334) | 208 | (10,461) | 1,959 |
Net cash flows used in investing activities from discontinued operations | (91) | (682) | (105) | (1,105) |
Total net cash flows used in/from investing activities | (425) | (474) | (10,566) | 854 |
Dividends paid to shareholders of Novartis AG | (6,987) | (6,645) | ||
Acquisitions of treasury shares | (9) | (2,368) | (150) | (2,590) |
Proceeds from exercised options and other treasury share transactions | 30 | 846 | 200 | |
Increase in non-current financial debts | 4,945 | |||
Repayment of non-current financial debts | (1,002) | (7) | (2,002) | (3,008) |
Change in current financial debts | (1,169) | (793) | 2,486 | (942) |
Payment of lease liabilities, net | (74) | (69) | (142) | (91) |
Impact of change in ownership of consolidated entities | (5) | (5) | ||
Other financing cash flows, net | 52 | 532 | (142) | 71 |
Net cash flows used in financing activities from continuing operations | (2,172) | (2,710) | (1,146) | (13,010) |
Net cash flows used in/from financing activities from discontinued operations | (13) | 2,682 | (26) | 3,299 |
Total net cash flows used in financing activities | (2,185) | (28) | (1,172) | (9,711) |
Net change in cash and cash equivalents before effect of exchange rate changes | 1,351 | 2,609 | (5,249) | (3,334) |
Cash and cash equivalents of discontinued operations at end of prior period | 499 | |||
Effect of exchange rate changes on cash and cash equivalents | 38 | 76 | 54 | 54 |
Total net change in cash and cash equivalents | 1,389 | 3,184 | (5,195) | (3,280) |
Cash and cash equivalents at beginning of period | 4,528 | 6,807 | 11,112 | 13,271 |
Cash and cash equivalents at end of period | $ 5,917 | $ 9,991 | $ 5,917 | $ 9,991 |
Basis of preparation
Basis of preparation | 6 Months Ended |
Jun. 30, 2020 | |
Basis of preparation [abstract] | |
Disclosure of basis of preparation of financial statements [text block] | 1. Basis of preparation These Condensed Interim Consolidated Financial Statements for the three-month and six-month period ended June 30, 2020, were prepared in accordance with International Accounting Standard 34 Interim Financial Reporting |
Selected critical accounting po
Selected critical accounting policies | 6 Months Ended |
Jun. 30, 2020 | |
Selected critical accounting policies [abstract] | |
Disclosure of significant accounting policies [text block] | 2. Selected critical accounting policies The Group’s principal accounting policies are set out in Note 1 to the Consolidated Financial Statements in the 2019 Annual Report and conform with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The preparation of financial statements requires management to make certain estimates and assumptions, either at the balance sheet date or during the year, which affect the reported amounts of assets and liabilities, including any contingent amounts, the distribution liability recognized in connection with the distribution of Alcon Inc. to Novartis AG shareholders, as well as of revenues and expenses. Actual outcomes and results could differ from those estimates and assumptions. As disclosed in the 2019 Annual Report, goodwill, and acquired In-Process Research & Development projects are reviewed for impairment at least annually and these, as well as all other investments in intangible assets, are reviewed for impairment whenever an event or decision occurs that raises concern about their balance sheet carrying value. The amount of goodwill and other intangible assets on the Group’s consolidated balance sheet has risen significantly in recent years, primarily from acquisitions. Impairment testing may lead to potentially significant impairment charges in the future that could have a materially adverse impact on the Group’s results of operations and financial condition. Non-current assets held for sale or held for distribution to owners Non-current assets are classified as assets held for sale or related to discontinued operations when their carrying amount is to be recovered principally through a sale transaction or distribution to owners and a sale or distribution to owners is considered highly probable. They are stated at the lower of carrying amount and fair value less costs to sell with any resulting impairment recognized. Assets related to discontinued operations and assets of disposal group held for sale are not depreciated or amortized. The prior year consolidated balance sheet is not restated. If in a subsequent period, the criteria for classification as held for sale are no longer met, the recoverable amount of assets and liabilities are reclassified out of assets held for sale into the respective balance sheet lines, prior year consolidated balance sheet is not restated. The cumulative amount of depreciation and amortization not recorded since the date of their classification to assets held for sale, and any required adjustments to the recoverable amounts of assets are recognized in the consolidated income statement. Distribution of Alcon Inc. to Novartis AG shareholders During the first quarter of 2019, at the Annual General Meeting (AGM) of Novartis AG shareholders, held on February 28, 2019, the Novartis AG shareholders approved a special distribution by way of a dividend in kind to effect the spin-off of Alcon Inc. The February 28, 2019, shareholder approval for the spin-off required the Alcon Division and selected portions of corporate activities attributable to Alcon’s business (the “Alcon business”) to be reported as discontinued operations. The shareholder approval to spin off the Alcon business also required the recognition of a distribution liability at the fair value of the Alcon business. The Group elected to measure the distribution liability at the fair value of the Alcon business net assets taken as a whole. The distribution liability was recognized through a reduction in retained earnings. It was required to be adjusted at each balance sheet date for changes in its estimated fair value, up to the date of the distribution to shareholders through retained earnings. Any resulting impairment of the business assets to be distributed would have been recognized in the consolidated income statements in “Other expense” of discontinued operations, at the date of initial recognition of the distribution liability or at subsequent dates resulting from changes of the distribution liability valuation. At the April 8, 2019 distribution settlement date, the resulting gain, which was measured as the excess amount of the distribution liability over the then-carrying value of the net assets of the business distributed, was recognized on the line “Gain on distribution of Alcon Inc. to Novartis AG shareholders” in the income statement of discontinued operations. The recognition of the distribution liability required the use of valuation techniques for purposes of impairment testing of the Alcon business’ assets to be distributed and for the measurement of the fair value of the distribution liability. These valuations required the use of management assumptions and estimates related to the Alcon business’ future cash flows, market multiples to estimate day one market value, and control premiums to apply in estimating the Alcon business fair value. These fair value measurements were classified as “Level 3” in the fair value hierarchy. The section “—Impairment of goodwill and intangible assets” in Note 1 to the Consolidated Financial Statements of the 2019 Annual Report provides additional information on key assumptions that are highly sensitive in the estimation of fair values using valuation techniques. Transaction costs that were directly attributable to the distribution (spin-off) of Alcon to the Novartis shareholders, and that would otherwise have been avoided, were recorded as a deduction from equity. For additional disclosures, refer to Notes 3 and 10. New IFRS standard effective as of January 1, 2020 IFRS 3 Business Combination amendments The IASB issued amendments to IFRS 3 Business Combinations that revised the definition of a business, which assist entities with the evaluation of when an asset or group of assets acquired or disposed of should be considered a business. This amended standard has been applied to transactions entered into on or after January 1, 2020. The amended standard allows an entity to apply an optional concentration test, on a transaction-by-transaction basis, to evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If this optional concentration test is met, the entity may choose to consider the transaction an acquisition of an asset or set of assets. The adoption of this amended standard on January 1, 2020 did not have a significant impact on our consolidated financial statements and is not expected to have a significant impact in future periods. However, this will depend on the facts and circumstances of future transactions and if the Group decides to apply the optional concentration test in the assessment of whether an acquired set of activities and assets is or is not a business. There are no other IFRS standards or interpretations not yet effective that would be expected to have a material impact on the Group. |
Significant transactions
Significant transactions | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of significant transactions [abstract] | |
Significant transactions | 3. Significant transactions Significant transactions in 2020 Innovative Medicines – acquisition of The Medicines Company On November 23, 2019, Novartis entered into an agreement and plan of merger (the Merger Agreement) with The Medicines Company, a US-based pharmaceutical company headquartered in Parsippany, New Jersey USA. Pursuant to the Merger Agreement, on December 5, 2019, Novartis, through a subsidiary, commenced a tender offer to acquire all outstanding shares of The Medicines Company for USD 85 per share, or a total consideration of approximately USD 9.6 billion in cash on a fully diluted basis, including the equivalent share value related to The Medicines Company’s convertible notes, in accordance with their terms. The tender offer expired on January 3, 2020, and on January 6, 2020, the acquiring subsidiary merged with and into The Medicines Company, resulting in The Medicines Company becoming an indirect wholly owned subsidiary of Novartis. Novartis financed the transaction through available cash, and short- and long-term borrowings. The Medicines Company is focused on the development of inclisiran, a potentially first-in-class, twice yearly therapy that allows administration during patients’ routine visits to their healthcare professionals and will potentially contribute to improved patient adherence and sustained lower LDL-C levels. The fair value of the total purchase consideration was USD 9.6 billion. The preliminary purchase price allocation resulted in net identifiable assets of approximately USD 7.1 billion, consisting of USD 8.5 billion intangible assets, USD 1.4 billion net deferred tax liabilities and goodwill of approximately USD 2.5 billion. Results of operations since the date of acquisition were not material. Sandoz – acquisition of the Japanese business of Aspen Global Incorporated On November 11, 2019, Sandoz entered into an agreement for the acquisition of the Japanese business of Aspen Global Incorporated (AGI), a wholly owned subsidiary of Aspen Pharmacare Holdings Limited. Under the agreement, Sandoz acquired the shares in Aspen Japan K.K. and associated assets held by AGI. The transaction closed on January 31, 2020. Aspen’s portfolio in Japan consists of off-patent medicines with a focus on anesthetics and specialty brands. The acquisition will enable Sandoz to expand its presence in the third-largest worldwide generics marketplace. The purchase price consist of EUR 300 million (USD 331 million) upfront payment, less customary purchase price adjustment of EUR 27 million (USD 30 million), plus potential milestone payments of up to EUR 120 million (USD 132 million), which AGI is eligible to receive upon the achievement of specified milestones. The fair value of the total purchase consideration was EUR 345 million (USD 381 million). The amount consisted of an initial cash payment of EUR 273 million (USD 301 million) and the fair value of contingent consideration of EUR 72 million (USD 80 million), which AGI is eligible to receive upon the achievement of specified milestones. The purchase price allocation resulted in net identifiable assets of approximately USD 309 million, consisting of USD 269 million intangible assets, USD 26 million other net assets, USD 14 million net deferred tax assets and goodwill of approximately USD 72 million. Results of operations since the date of acquisition were not material. Sandoz – retention of US dermatology business and generic US oral solids portfolio, previously planned to be divested On September 6, 2018, Novartis announced that it entered into a stock and asset purchase agreement (SAPA) with Aurobindo Pharma USA Inc. (Aurobindo) for the sale of selected portions of its Sandoz US portfolio, specifically the Sandoz US dermatology business and generic US oral solids portfolio, for USD 0.8 billion in cash and potential earnouts. The closing was conditional on obtaining regulatory approval. In March 2020, Novartis took the decision to retain the Sandoz US generic oral solids and dermatology businesses and entered into a mutual agreement with Aurobindo to terminate the transaction. The decision was taken as regulatory approval from the US Federal Trade Commission was not obtained within the SAPA agreed timelines. The cumulative amount of the depreciation on property, plant and equipment and amortization on intangible assets, not recorded in the consolidated income statement since the date of classification as held for sale, amounting to USD 38 million and USD 102 million, respectively, was recognized in the consolidated income statement in the first quarter of 2020. In addition, an impairment of currently marketed products of USD 42 million was recognized in the first quarter of 2020 consolidated income statement. As at March 31, 2020, the assets and liabilities of the Sandoz US generic oral solids and dermatology businesses were reclassified out of assets and liabilities of disposal group held for sale. The prior year balance sheet is not required to be restated. In the Group’s consolidated balance sheet at December 31, 2019, the assets and liabilities classified as disposal group assets and liabilities held for sale consisted of the following: Dec 31, Assets of disposal group classified as held for sale Property, plant and equipment 169 Intangible assets other than goodwill 475 Deferred tax assets 11 Other non-current assets 2 Inventories 181 Other current assets 3 Total 841 Liabilities of disposal group classified as held for sale Deferred tax liabilities 2 Provisions and other non-current liabilities 4 Provisions and other current liabilities 25 Total 31 There are no cumulative income or expenses included in other comprehensive income relating to the disposal group. Significant transactions in 2019 Completion of the spin-off of the Alcon business through a dividend in kind distribution to Novartis AG shareholders On June 29, 2018, Novartis announced its intention to seek shareholder approval for the spin-off of the Alcon business into a separately traded standalone company, following the complete structural separation of the Alcon business into a standalone company (the Alcon business or Alcon Inc.). The Novartis AG shareholders approved the spin-off of the Alcon business at the 2019 Annual General Meeting held on February 28, 2019, subject to completion of certain conditions precedent to the distribution. Upon shareholder approval, the Alcon business was reported as discontinued operations, and the fair value of the Alcon business exceeded the carrying value of its net assets. The conditions precedent to the spin-off were met and on April 8, 2019 the spin-off of the Alcon business was effected by way of a distribution of a dividend in kind of Alcon Inc. shares to Novartis AG shareholders and ADR (American Depositary Receipt) holders (the Distribution), which amounted to USD 23.4 billion and is recognized as a reduction to retained earnings. Through the Distribution, each Novartis AG shareholder received one Alcon Inc. share for every five Novartis AG shares/ADRs they held on April 8, 2019, close of business. As of April 9, 2019, the shares of Alcon Inc. are listed on the SIX Swiss Exchange (SIX) and on the New York Stock Exchange (NYSE) under the symbol “ALC.” The dividend in kind distribution liability to effect the spin-off of the Alcon business (the distribution liability) amounted to USD 26.4 billion at March 31, 2019, unchanged from its initial recognition on February 28, 2019, and was in excess of the carrying value of the Alcon business net assets as of February 28, 2019, and as of March 31, 2019. The net assets of the Alcon business amounted to USD 23.1 billion as at March 31, 2019. On March 6, 2019, Alcon entered into financing arrangements with a syndicate of banks under which it borrowed on April 2, 2019, a total amount of USD 3.2 billion. These borrowings consisted of approximately USD 2.8 billion and the equivalent of USD 0.4 billion in EUR in bridge and other term loans under such Alcon facilities agreement. In addition, approximately USD 0.3 billion of borrowings under a number of local bilateral facilities in different countries, with the largest share of borrowings in Japan, were raised. This resulted in a total gross debt of USD 3.5 billion. These outstanding borrowings of the Alcon legal entities were recorded in the balance sheet and financing cash flow from discontinued operations. Prior to the spin-off, through a series of intercompany transactions, Alcon legal entities paid approximately USD 3.1 billion in cash to Novartis and its affiliates. At the April 8, 2019 Distribution, the fair value of the distribution liability of the Alcon business amounted to USD 23.4 billion, a decrease of USD 3.0 billion from March 31, 2019. As mentioned above, prior to the spin-off, through a series of intercompany transactions, Alcon legal entities incurred additional net financial debt and paid approximately USD 3.1 billion in cash to Novartis and its affiliates. This additional net debt and transactions resulted in a decrease in Alcon’s net assets to USD 20.0 billion at the date of the Distribution of the dividend in kind to Novartis AG shareholders on April 8, 2019. The distribution liability at April 8, 2019, remained in excess of the then-carrying value of the Alcon business net assets. Certain consolidated foundations own Novartis AG dividend-bearing shares restricting their availability for use by the Group. These Novartis AG shares are accounted for as treasury shares. Through the Distribution, these foundations received Alcon Inc. shares representing an approximate 4.7% equity interest in Alcon Inc. Upon the loss of control of Alcon Inc. through the Distribution, the financial investment in Alcon Inc. was recognized at its fair value based on the opening traded share price of Alcon Inc. on April 9, 2019 (a Level 1 hierarchy valuation). At initial recognition, its fair value of USD 1.3 billion was reported on the Group’s consolidated balance sheet as a financial asset. Management has designated this investment at fair value through other comprehensive income. The total non-taxable, non-cash gain recognized at the distribution date of the spin-off of the Alcon business amounted to USD 4.7 billion consisting of: April 8, Net assets derecognized 1 – 20 025 Derecognition of distribution liability 23 434 Difference between net assets and distribution liability 3 409 Recognition of Alcon Inc. shares obtained Currency translation gains recycled into the Transaction costs recognized in the consolidated income statement – 114 Gain on distribution of Alcon Inc. to Novartis AG shareholders 4 691 1 For additional disclosure on discontinued operations, refer to Note 10. Innovative Medicines – acquisition of IFM Tre, Inc. On May 7, 2019, Novartis acquired IFM Tre, Inc., a privately held, US-based biopharmaceutical company focused on developing anti-inflammatory medicines targeting the NLRP3 inflammasome. The acquisition gives Novartis full rights to IFM Tre, Inc.’s portfolio of NLRP3 antagonists. The NLRP3 antagonists portfolio consists of one clinical program and two preclinical programs: IFM-2427, a first-in-class, clinical-stage systemic antagonist for an array of chronic inflammatory disorders, including atherosclerosis and nonalcoholic steatohepatitis (NASH); a preclinical-stage gutdirected molecule for the treatment of inflammatory bowel disease; and a preclinical-stage central nervous system (CNS)-penetrant molecule. The previously held interest of 9% was adjusted to its fair value of USD 33 million through the consolidated income statement at acquisition date. This remeasurement resulted in a gain of USD 14 million. The fair value of the total purchase consideration for acquiring the 91% stake Novartis did not already own amounted to USD 361 million. The amount consisted of an initial cash payment of USD 285 million, and the fair value of the contingent consideration of USD 76 million due to the IFM Tre, Inc. shareholders, which they are eligible to receive upon the achievement of specified development and commercialization milestones. The purchase price allocation resulted in net identifiable assets of USD 355 million, mainly intangibles, and goodwill of USD 39 million. The 2019 results of operations since the date of acquisition were not material. Innovative Medicines – acquisition of Xiidra On May 8, 2019, Novartis entered into an agreement with Takeda Pharmaceutical Company Limited (Takeda) to acquire the assets associated with Xiidra Xiidra The fair value of the total purchase consideration was USD 3.7 billion. The amount consists of an initial cash payment of USD 3.5 billion, and the fair value of the contingent consideration of USD 0.2 billion, which Takeda is eligible to receive upon the achievement of specified commercialization milestones. The purchase price allocation resulted in net identifiable assets of approximately USD 3.6 billion, consisting mainly of intangible assets of USD 3.6 billion, and goodwill amounted to approximately USD 0.1 billion. In 2019, from the date of acquisition, the business generated net sales of USD 0.2 billion. Management estimated that net sales for the entire year of 2019 would have amounted to USD 0.3 billion, had the business been acquired at the beginning of the 2019 reporting period. The 2019 results of operations since the date of acquisition were not material. |
Summary of equity attributable
Summary of equity attributable to Novartis AG shareholders | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of equity [abstract] | |
Equity | 4. Summary of equity attributable to Novartis AG shareholders Number of outstanding shares (in millions) Issued share capital and reserves attributable to Novartis AG shareholders (in USD millions) 2020 2019 H1 2020 H1 2019 Balance at beginning of year 2 265.0 2 311.2 55 474 78 614 Impact of change in accounting policy 1 3 Restated equity at January 1 55 474 78 617 Shares acquired to be cancelled – 32.8 – 2 819 Other share purchases – 1.6 – 1.6 – 150 – 153 Exercise of options and employee transactions 14.7 5.5 823 200 Equity-based compensation 10.6 9.5 365 447 Shares delivered to Alcon employees as a result of the Alcon spin-off 0.3 29 32 Taxes on treasury share transactions 2 30 – 185 Increase of treasury share repurchase obligation under a share buyback trading plan – 2 289 Dividends to shareholders of Novartis AG – 6 987 – 6 645 Dividend in kind to effect the spin-off of Alcon Inc. 3 – 23 434 Net income of the period attributable to shareholders of Novartis AG 4 043 8 565 Other comprehensive income attributable to shareholders of Novartis AG 176 – 667 Transaction costs, net of taxes 4 – 253 Impact of change in ownership of consolidated entities – 3 Other movements 5 9 13 Balance at June 30 2 289.0 2 291.8 53 812 51 426 1 2 3 4 5 |
Financial instruments
Financial instruments | 6 Months Ended |
Jun. 30, 2020 | |
Financial Instruments - additional disclosure [abstract] | |
Disclosure of detailed information about financial instruments [text block] | 5. Financial instruments Fair value by hierarchy The following table illustrates the three hierarchical levels for valuing financial instruments at fair value as of June 30, 2020 and December 31, 2019. For additional information on the hierarchies and other matters, please refer to the Consolidated Financial Statements in the 2019 Annual Report, published on January 29, 2020. Level 1 Level 2 Level 3 Total Jun 30, Dec 31, Jun 30, Dec 31, Jun 30, Dec 31, Jun 30, Dec 31, Marketable securities Debt securities 24 24 24 24 Fund investments 33 37 33 37 Total marketable securities 33 37 24 24 57 61 Derivative financial instruments 136 102 136 102 Total marketable securities and derivative financial instruments 33 37 160 126 193 163 Long-term financial investments Debt and equity securities 904 976 539 581 1 443 1 557 Fund investments 235 233 235 233 Contingent consideration receivables 444 399 444 399 Total long-term financial investments 904 976 1 218 1 213 2 122 2 189 Associated companies at fair value through profit or loss 175 186 175 186 Contingent consideration payables – 1 039 – 1 036 – 1 039 – 1 036 Other financial liabilities – 20 – 29 – 20 – 29 Derivative financial instruments – 126 – 185 – 126 – 185 Total financial liabilities at fair value – 126 – 185 – 1 059 – 1 065 – 1 185 – 1 250 During the first half of 2020, there were no significant transfers from one level to the other and no significant transactions associated with level 3 financial instruments. During the second quarter of 2020, there were two non-significant transfers of equity securities from level 3 to level 1 for USD 26 million due to Initial Public Offerings. The fair value of straight bonds amounted to USD 27.7 billion at June 30, 2020 (USD 23.7 billion at December 31, 2019) compared to the balance sheet value of USD 25.2 billion at June 30, 2020 (USD 22.2 billion at December 31, 2019). For all other financial assets and liabilities, the carrying amount is a reasonable approximation of the fair value. The carrying amount of financial assets included in the line total long-term financial investments of USD 2.1 billion at June 30, 2020 (USD 2.2 billion at December 31, 2019) is included in line “Financial and other non-current assets” of the consolidated balance sheets. In accordance with the consolidated foundations Alcon Inc. share divestment plans, Alcon Inc. shares with a fair value of USD 287 million were sold, or otherwise disposed of, in the first half of 2020 and the USD 16 million gain on disposal was transferred from other comprehensive income to retained earnings (second quarter : nil). The Group’s exposure to financial risks has not changed significantly during the period and there have been no major changes to the risk management department or in any risk management policies. Non-current financial debt – issuance of bonds On February 11, 2020, Novartis issued the following straight bonds: Carrying value 1.75% USD 1 000 2025 Novartis Capital Corporation, New York, United States 99.852% 996 2.00% USD 1 250 2027 Novartis Capital Corporation, New York, United States 99.909% 1 245 2.20% USD 1 500 2030 Novartis Capital Corporation, New York, United States 99.869% 1 492 2.75% USD 1 250 2050 Novartis Capital Corporation, New York, United States 97.712% 1 213 |
Details to the consolidated sta
Details to the consolidated statements of cash flows | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of details to the consolidated statements of cash flows [abstract] | |
Details to the consolidated statements of cash flows | 6. Details to the consolidated statements of cash flows 6.1. Reversal of non-cash items and other adjustments from continuing operations (USD millions) Q2 2020 Q2 2019 Depreciation, amortization and impairments on: Property, plant and equipment 319 371 Right-of-use assets 78 74 Intangible assets 1 306 601 Financial assets 1 – 166 – 32 Change in provisions and other non-current liabilities 118 958 Losses/gains on disposal and other adjustments on property, plant and equipment; intangible assets; Equity-settled compensation expense 199 174 Income from associated companies – 183 – 176 Taxes 421 525 Net financial expense 247 205 Total 2 345 2 085 1 (USD millions) H1 2020 H1 2019 Depreciation, amortization and impairments on: Property, plant and equipment 700 719 Right-of-use assets 154 149 Intangible assets 2 259 1 619 Financial assets 1 – 127 – 20 Change in provisions and other non-current liabilities 838 1 018 Gains on disposal and other adjustments on property, plant and equipment; intangible assets; Equity-settled compensation expense 377 372 Income from associated companies – 306 – 256 Taxes 869 797 Net financial expense 493 387 Total 5 202 4 101 1 6.2. Total amount of taxes paid During the first half of 2020, the total amount of taxes paid was USD 987 million (Q2 2020: USD 391 million), of which USD 899 million (Q2 2020: USD 303 million) was included within “Net cash flows from operating activities from continuing operations”, and USD 88 million (Q2 2020: USD 88 million) was included within “Net cash flows used in investing activities from discontinued operations.” During the first half of 2019, the total amount of taxes paid was USD 998 million (Q2 2019: USD 560 million), of which USD 960 million (Q2 2019: USD 560 million) was included within “Net cash flows from operating activities from continuing operations” and USD 38 million (Q2 2019: nil) was included within “Net cash flows from operating activities from discontinued operations.” 6.3. Cash flows arising from acquisitions and divestments of businesses, net (USD millions) Q2 2020 Q2 2019 H1 2020 H1 2019 Net assets recognized as a result of business combinations – 32 – 407 – 10 030 – 486 Fair value of previously held equity interests 34 34 Receivables and payables contingent consideration, net 17 88 77 88 Payments, deferred consideration and other adjustments, net 13 – 3 65 – 3 Cash flows used for acquisitions of businesses – 2 – 288 – 9 888 – 367 Cash flows from/used for divestments of businesses, net 1 2 2 – 13 – 15 Cash flows used for acquisitions and divestments of businesses, net 0 – 286 – 9 901 – 382 1 Notes 3 and 7 provide further information regarding acquisitions and divestments of businesses. All acquisitions were for cash. 6.4. Cash and cash equivalents of discontinued operations at March 31, 2019 Cash and cash equivalents of discontinued operations at March 31, 2019,represents the amount of the Alcon business cash and cash equivalents included in the March 31, 2019, consolidated balance sheets in the line “Assets related to discontinued operations.” For net cash flows used in investing activities from discontinued operations, see Note 10. |
Acquisition of businesses
Acquisition of businesses | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of acquisition of businesses [abstract] | |
Acquisition of businesses | 7. Acquisition of businesses Fair value of assets and liabilities arising from acquisitions: (USD millions) H1 2020 H1 2019 Property, plant and equipment 26 44 Right-of-use assets 32 Currently marketed products 269 Acquired research and development 8 602 449 Deferred tax assets 470 20 Financial and other assets 49 Inventories 84 6 Trade receivables, marketable securities Cash and cash equivalents 76 Deferred tax liabilities – 1 928 – 101 Current and non-current financial debts – 32 – 2 Current and non-current lease liabilities – 44 Trade payables and other liabilities – 144 – 9 Net identifiable assets acquired 7 569 411 Acquired cash and cash equivalents – 76 Goodwill 2 537 75 Net assets recognized as a result of business combinations 10 030 486 Note 3 details significant acquisitions of businesses, specifically, The Medicines Company and the Japanese business of AGI in 2020, and IFM Tre, Inc. in 2019. The goodwill arising out of these acquisitions is attributable to the buyer specific synergies, the assembled workforce, and the accounting for deferred tax liabilities on the acquired assets. Goodwill of USD 59 million in 2020 (2019: nil) is tax deductible. |
Legal proceedings update
Legal proceedings update | 6 Months Ended |
Jun. 30, 2020 | |
Legal proceedings update [abstract] | |
Legal proceedings update [text block] | 8. Legal proceedings update A number of Novartis companies are, and will likely continue to be, subject to various legal proceedings, including litigations, arbitrations and governmental investigations, that arise from time to time. Legal proceedings are inherently unpredictable. As a result, the Group may become subject to substantial liabilities that may not be covered by insurance and may in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations or cash flow. Note 20 to the Consolidated Financial Statements in our 2019 Annual Report and 2019 Form 20-F contains a summary as of the date of these reports of significant legal proceedings to which Novartis or its subsidiaries were a party. The following is a summary as of July 20, 2020 of significant developments in those proceedings, as well as any new significant proceedings commenced since the date of the 2019 Annual Report and 2019 Form 20-F. Investigations and related litigations Government generic pricing antitrust investigations, antitrust class actions Since 2016, Sandoz Inc. received grand jury subpoenas and a civil investigative demand and interrogatories from the Antitrust and Civil Divisions of the US Department of Justice (DOJ) in connection with alleged price fixing and market allocation of generic drugs in the US market as well as alleged False Claims Act violations. Sandoz Inc. reached a resolution with the DOJ Antitrust Division, pursuant to which Sandoz Inc. agreed to pay USD 195 million and entered into a deferred prosecution agreement. The Sandoz resolution related to instances of misconduct at the company between 2013 and 2015 with regard to certain generic drugs sold in the United States. Under the terms of that agreement, Sandoz Inc. will continue to take steps to enhance its compliance program, employee training and monitoring, and will continue to cooperate with the US government’s ongoing investigation into the generic pharmaceutical industry. Sandoz Inc. is also in negotiations with the DOJ Civil Division to resolve potential related claims and has recorded a provision of USD 186 million. Southern District of New York (S.D.N.Y.) marketing practices investigation and litigation In 2013, the US government filed a civil complaint in intervention to an individual qui tam Lotrel Starlix Valturna U.S. Government Foreign Corrupt Practices Act (FCPA) investigations In June 2020, Novartis reached settlements with the DOJ and the US Securities and Exchange Commission (SEC) resolving all Foreign Corrupt Practices Act (FCPA) investigations into historical conduct by Novartis and its subsidiaries. These investigations were previously disclosed in Note 20 to the Consolidated Financial Statements in our 2019 Annual Report and 2019 Form 20-F under the headings “Greece investigation,” “South Korea investigation” and “Asia/Russia investigation.” As part of the coordinated resolution of these investigations, Novartis and certain of its current and former subsidiaries agreed to pay USD 0.3 billion. As of June 30, 2020, a provision in the amount of USD 0.1 billion remained accrued. As of July 20, 2020, USD 0.1 billion have been paid out of this provisions. To resolve the DOJ investigation, Novartis Hellas S.A.C.I. entered into a deferred prosecution agreement (“Novartis Hellas DPA”) pertaining to inappropriate economic benefits provided to Greek healthcare professionals from 2012 to 2015 in connection with the ophthalmology product Lucentis Lucentis Lucentis In addition to the matters described above, there have been other developments in the other legal matters described in Note 20 to the Consolidated Financial Statements contained in our 2019 Annual Report and 2019 Form 20-F. Novartis believes that its total provisions for investigations, product liability, arbitration and other legal matters are adequate based upon currently available information. However, given the inherent difficulties in estimating liabilities, there can be no assurance that additional liabilities and costs will not be incurred beyond the amounts provided. |
Segmentation of key figures
Segmentation of key figures | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of operating segments [abstract] | |
Segmentation of key figures | 9. Segmentation of key figures The businesses of Novartis are divided operationally on a worldwide basis into two identified reporting segments, Innovative Medicines and Sandoz. In addition, we separately report Corporate activities. Reporting segments are presented in a manner consistent with the internal reporting to the chief operating decision maker which is the Executive Committee of Novartis. The reporting segments are managed separately because they each research, develop, manufacture, distribute and sell distinct products that require differing marketing strategies. The Executive Committee of Novartis is responsible for allocating resources and assessing the performance of the reporting segments. The reporting segments are as follows: Innovative Medicines researches, develops, manufactures, distributes and sells patented prescription medicines. The Innovative Medicines Division is organized into two global business units: Novartis Oncology and Novartis Pharmaceuticals. Novartis Oncology consists of the global business franchise Oncology, and Novartis Pharmaceuticals consists of the global business franchises Ophthalmology; Immunology, Hepatology and Dermatology; Neuroscience; Respiratory; Cardiovascular, Renal and Metabolism; and Established Medicines. Sandoz develops, manufactures and markets finished dosage form medicines as well as intermediary products including active pharmaceutical ingredients. Sandoz is organized globally into three franchises: Retail Generics, Anti-Infectives and Biopharmaceuticals. In Retail Generics, Sandoz develops, manufactures and markets active ingredients and finished dosage forms of small molecule pharmaceuticals to third parties across a broad range of therapeutic areas, as well as finished dosage form of anti-infectives sold to third parties. In Anti-Infectives, Sandoz manufactures and supplies active pharmaceutical ingredients and intermediates, mainly antibiotics, for internal use by Retail Generics and for sale to third-party customers. In Biopharmaceuticals, Sandoz develops, manufactures and markets protein- or other biotechnology-based products, including biosimilars, and provides biotechnology manufacturing services to other companies. The divisions are supported by Novartis Institutes for BioMedical Research, Global Drug Development, Novartis Technical Operations and Novartis Business Services. Corporate includes the costs of the Group headquarters and those of corporate coordination functions in major countries, and items that are not specific to one segment. Further details are provided in Note 3 to the Consolidated Financial Statements of the 2019 Annual Report. Following the February 28, 2019, shareholders’ approval of the spin-off of the Alcon business, the Group reported its financial results as “continuing operations” and “discontinued operations” (refer to Notes 2, 3 and 10 for further details). Continuing operations comprise the activities of Innovative Medicines and Sandoz Divisions and the continuing Corporate activities. Discontinued operations included in 2019 the operational results from the Alcon eye care devices business and certain Corporate activities attributable to the Alcon business prior to the spin-off, the gain on distribution of Alcon Inc. to Novartis AG shareholders, and certain other expenses related to the Distribution (see Notes 2, 3 and 10). Segmentation – Consolidated income statement Second quarter Innovative Medicines Sandoz Corporate (including eliminations) Group (USD millions) Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Net sales to third parties from continuing operations 9 188 9 326 2 159 2 438 11 347 11 764 Sales to continuing segments 219 177 43 37 – 262 – 214 Net sales from continuing operations 9 407 9 503 2 202 2 475 – 262 – 214 11 347 11 764 Other revenues 251 250 22 6 2 4 275 260 Cost of goods sold – 2 554 – 2 327 – 1 158 – 1 315 283 236 – 3 429 – 3 406 Gross profit from continuing operations 7 104 7 426 1 066 1 166 23 26 8 193 8 618 Selling, general and administration – 2 764 – 2 911 – 496 – 550 – 108 – 124 – 3 368 – 3 585 Research and development – 2 240 – 1 853 – 201 – 198 – 2 441 – 2 051 Other income 154 847 17 45 261 97 432 989 Other expense – 221 – 945 – 65 – 181 – 178 – 182 – 464 – 1 308 Operating income from continuing operations 2 033 2 564 321 282 – 2 – 183 2 352 2 663 as % of net sales 22.1% 27.5% 14.9% 11.6% 20.7% 22.6% Income from associated companies 1 1 1 1 181 174 183 176 Interest expense – 220 – 205 Other financial income and expense, net – 27 0 Income before taxes from continuing operations 2 288 2 634 Taxes – 421 – 525 Net income from continuing operations 1 867 2 109 Gain on distribution of Alcon Inc. to Novartis AG shareholders 4 691 Net income from discontinued operations 4 691 Net income 1 867 6 800 First half Innovative Medicines Sandoz Corporate (including eliminations) Group (USD millions) H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 Net sales to third parties from continuing operations 18 943 18 106 4 687 4 764 23 630 22 870 Sales to continuing and discontinued segments 409 426 92 76 – 501 – 449 53 Net sales from continuing operations 19 352 18 532 4 779 4 840 – 501 – 449 23 630 22 923 Other revenues 507 511 35 34 158 11 700 556 Cost of goods sold – 5 080 – 4 551 – 2 614 – 2 591 543 485 – 7 151 – 6 657 Gross profit from continuing operations 14 779 14 492 2 200 2 283 200 47 17 179 16 822 Selling, general and administration – 5 621 – 5 564 – 1 016 – 1 112 – 217 – 239 – 6 854 – 6 915 Research and development – 4 106 – 3 958 – 395 – 392 – 4 501 – 4 350 Other income 326 922 49 82 318 188 693 1 192 Other expense – 590 – 1 219 – 562 – 306 – 269 – 319 – 1 421 – 1 844 Operating income from continuing operations 4 788 4 673 276 555 32 – 323 5 096 4 905 as % of net sales 25.3% 25.8% 5.9% 11.6% 21.6% 21.4% Income from associated companies 1 1 1 1 304 254 306 256 Interest expense – 459 – 431 Other financial income and expense, net – 34 44 Income before taxes from continuing operations 4 909 4 774 Taxes – 869 – 797 Net income from continuing operations 4 040 3 977 Net loss from discontinued operations before gain Gain on distribution of Alcon Inc. to Novartis AG shareholders 4 691 Net income from discontinued operations 4 590 Net income 4 040 8 567 Segmentation – Additional consolidated balance sheet and income statement disclosure Innovative Medicines Sandoz Corporate (including eliminations) Group Jun 30, Dec 31, Jun 30, Dec 31, Jun 30, Dec 31, Jun 30, Dec 31, Total assets 81 373 71 225 16 229 16 468 26 161 30 677 123 763 118 370 Total liabilities – 14 690 – 15 332 – 3 681 – 3 804 – 51 507 – 43 683 – 69 878 – 62 819 Total equity 53 885 55 551 Net debt 26 537 15 938 26 537 15 938 Net operating assets 66 683 55 893 12 548 12 664 1 191 2 932 80 422 71 489 Included in net operating assets are: Property, plant and equipment 9 485 9 632 1 943 1 888 527 549 11 955 12 069 Goodwill 21 257 18 750 7 835 7 767 8 7 29 100 26 524 Intangible assets other than goodwill 34 877 27 586 1 674 1 125 118 76 36 669 28 787 The following table shows the intangible asset impairment charges for continuing operations: (USD millions) Q2 2020 Q2 2019 H1 2020 H1 2019 Innovative Medicines 1 – 500 – 20 – 509 – 466 Sandoz 0 – 2 – 42 – 12 Total – 500 – 22 – 551 – 478 1 Segmentation – Net sales by region 1 Second quarter Q2 2020 Q2 2019 % change % change 2 Q2 2020 Q2 2019 Innovative Medicines Europe 2 964 3 218 – 8 – 5 32 35 US 3 515 3 336 5 5 38 36 Asia/Africa/Australasia 2 123 2 106 1 2 23 23 Canada and Latin America 586 666 – 12 5 7 6 Total 9 188 9 326 – 1 1 100 100 Of which in Established Markets 6 909 7 071 – 2 – 2 75 76 Of which in Emerging Growth Markets 2 279 2 255 1 9 25 24 Sandoz Europe 1 130 1 269 – 11 – 8 52 52 US 508 642 – 21 – 21 24 26 Asia/Africa/Australasia 341 333 2 4 16 14 Canada and Latin America 180 194 – 7 5 8 8 Total 2 159 2 438 – 11 – 9 100 100 Of which in Established Markets 1 621 1 796 – 10 – 9 75 74 Of which in Emerging Growth Markets 538 642 – 16 – 9 25 26 Continuing operations Europe 4 094 4 487 – 9 – 6 36 38 US 4 023 3 978 1 1 35 34 Asia/Africa/Australasia 2 464 2 439 1 2 22 21 Canada and Latin America 766 860 – 11 5 7 7 Total 11 347 11 764 – 4 – 1 100 100 Of which in Established Markets 8 530 8 867 – 4 – 3 75 75 Of which in Emerging Growth Markets 2 817 2 897 – 3 5 25 25 1 2 Segmentation – Net sales by region 1 First half H1 2020 H1 2019 % change % change 2 H1 2020 H1 2019 Innovative Medicines Europe 6 366 6 352 0 3 34 35 US 7 057 6 329 12 12 37 35 Asia/Africa/Australasia 4 301 4 123 4 6 23 23 Canada and Latin America 1 219 1 302 – 6 8 6 7 Total 18 943 18 106 5 7 100 100 Of which in Established Markets 14 266 13 638 5 6 75 75 Of which in Emerging Growth Markets 4 677 4 468 5 11 25 25 Sandoz Europe 2 558 2 510 2 5 55 53 US 1 078 1 232 – 12 – 12 23 26 Asia/Africa/Australasia 675 651 4 5 14 14 Canada and Latin America 376 371 1 12 8 7 Total 4 687 4 764 – 2 1 100 100 Of which in Established Markets 3 466 3 491 – 1 1 74 73 Of which in Emerging Growth Markets 1 221 1 273 – 4 2 26 27 Continuing operations Europe 8 924 8 862 1 4 38 39 US 8 135 7 561 8 8 34 33 Asia/Africa/Australasia 4 976 4 774 4 6 21 21 Canada and Latin America 1 595 1 673 – 5 9 7 7 Total 23 630 22 870 3 6 100 100 Of which in Established Markets 17 732 17 129 4 5 75 75 Of which in Emerging Growth Markets 5 898 5 741 3 9 25 25 1 2 Segmentation – Net sales by business franchise Innovative Medicines Division net sales by business franchise Second quarter Q2 2020 Q2 2019 % change % change USD m USD m USD cc 1 Oncology Tasigna 480 468 3 5 Promacta/Revolade 422 349 21 23 Tafinlar Mekinist 371 340 9 12 Sandostatin 341 403 – 15 – 13 Jakavi 310 284 9 14 Gleevec/Glivec 288 323 – 11 – 8 Afinitor/Votubia 266 401 – 34 – 33 Exjade/Jadenu 163 253 – 36 – 35 Votrient 162 193 – 16 – 14 Kisqali 159 111 43 49 Lutathera 105 109 – 4 – 3 Kymriah 118 58 103 103 Piqray 79 6 nm nm Adakveo 21 nm nm Other 263 308 – 15 – 13 Total Novartis Oncology business unit 3 548 3 606 – 2 1 Immunology, Hepatology and Dermatology Cosentyx 944 858 10 12 Ilaris 200 165 21 23 Total Immunology, Hepatology and Dermatology 1 144 1 023 12 13 Ophthalmology Lucentis 401 536 – 25 – 24 Xiidra 79 nm nm Beovu 34 nm nm Other 423 638 – 34 – 32 Total Ophthalmology 937 1 174 – 20 – 18 Neuroscience Gilenya 738 825 – 11 – 9 Zolgensma 205 15 nm nm Aimovig 33 24 38 45 Mayzent 34 5 nm nm Other 15 17 – 12 – 26 Total Neuroscience 1 025 886 16 17 Cardiovascular, Renal and Metabolism Entresto 580 421 38 40 Other 6 nm nm Total Cardiovascular, Renal and Metabolism 580 427 36 38 Respiratory Xolair 289 290 0 4 Ultibro 149 166 – 10 – 7 Other 6 5 20 – 10 Total Respiratory 444 461 – 4 0 Established Medicines Galvus 279 320 – 13 – 8 Diovan 268 283 – 5 0 Exforge 238 264 – 10 – 5 Zortress/Certican 106 124 – 15 – 12 Neoral/Sandimmun(e) 96 110 – 13 – 11 Voltaren/Cataflam 82 95 – 14 – 11 Other 441 553 – 20 – 16 Total Established Medicines 1 510 1 749 – 14 – 9 Total Novartis Pharmaceuticals business unit 5 640 5 720 – 1 1 Total division net sales 9 188 9 326 – 1 1 1 nm = not meaningful Innovative Medicines Division net sales by business franchise First half H1 2020 H1 2019 % change % change USD m USD m USD cc 1 Oncology Tasigna 967 902 7 9 Promacta/Revolade 825 656 26 28 Tafinlar Mekinist 737 637 16 19 Sandostatin 715 795 – 10 – 8 Jakavi 628 542 16 20 Gleevec/Glivec 617 630 – 2 0 Afinitor/Votubia 562 774 – 27 – 26 Exjade/Jadenu 335 491 – 32 – 31 Votrient 328 380 – 14 – 12 Kisqali 320 202 58 64 Lutathera 217 215 1 1 Kymriah 211 103 105 106 Piqray 153 6 nm nm Adakveo 36 nm nm Other 545 594 – 8 – 6 Total Novartis Oncology business unit 7 196 6 927 4 6 Immunology, Hepatology and Dermatology Cosentyx 1 874 1 649 14 15 Ilaris 413 316 31 33 Total Immunology, Hepatology and Dermatology 2 287 1 965 16 18 Ophthalmology Lucentis 888 1 069 – 17 – 15 Xiidra 169 nm nm Beovu 102 nm nm Other 974 1 266 – 23 – 21 Total Ophthalmology 2 133 2 335 – 9 – 7 Neuroscience Gilenya 1 510 1 591 – 5 – 4 Zolgensma 375 15 nm nm Aimovig 69 42 64 72 Mayzent 64 5 nm nm Other 27 30 – 10 – 15 Total Neuroscience 2 045 1 683 22 23 Cardiovascular, Renal and Metabolism Entresto 1 149 778 48 50 Other 1 12 – 92 – 98 Total Cardiovascular, Renal and Metabolism 1 150 790 46 48 Respiratory Xolair 596 571 4 8 Ultibro 309 323 – 4 – 1 Other 10 12 – 17 – 18 Total Respiratory 915 906 1 5 Established Medicines Galvus 617 635 – 3 1 Diovan 542 544 0 4 Exforge 496 531 – 7 – 3 Zortress/Certican 233 240 – 3 0 Neoral/Sandimmun(e) 197 213 – 8 – 5 Voltaren/Cataflam 174 208 – 16 – 15 Other 958 1 129 – 15 – 12 Total Established Medicines 3 217 3 500 – 8 – 5 Total Novartis Pharmaceuticals business unit 11 747 11 179 5 8 Total division net sales 18 943 18 106 5 7 1 nm = not meaningful Net sales of the top 20 Innovative Medicines Division products in 2020 Second quarter US Rest of world Total % 1 % % 1 % % 1 Psoriasis, ankylosing Gilenya Neuroscience Relapsing multiple sclerosis 416 – 6 322 – 16 – 13 738 – 11 – 9 Cardiovascular, Tasigna Oncology Chronic myeloid leukemia 221 8 259 – 2 2 480 3 5 Age-related Immune Tafinlar Mekinist BRAF V600+ metastatic Carcinoid tumors Myelofibrosis (MF), Chronic myeloid Galvus Established Medicines Diabetes 279 – 13 – 8 279 – 13 – 8 Severe Allergic Asthma (SAA) Afinitor/Votubia Oncology Breast cancer/TSC 163 – 37 103 – 27 – 24 266 – 34 – 33 Diovan Established Medicines Hypertension 34 21 234 – 8 – 2 268 – 5 0 Exforge Established Medicines Hypertension 2 – 50 236 – 9 – 5 238 – 10 – 5 Immunology, Auto-inflammatory (CAPS, Spinal muscular atrophy Exjade/Jadenu Oncology Chronic iron overload 34 – 71 129 – 4 – 3 163 – 36 – 35 Votrient Oncology Renal cell carcinoma 72 – 17 90 – 15 – 12 162 – 16 – 14 Kisqali Oncology HR+/HER2- metastatic breast cancer 79 36 80 51 63 159 43 49 Top 20 products total 2 772 5 4 332 – 3 1 7 104 0 2 Rest of portfolio 743 8 1 341 – 13 – 9 2 084 – 6 – 4 Total division sales 3 515 5 5 673 – 5 – 1 9 188 – 1 1 1 nm = not meaningful Net sales of the top 20 Innovative Medicines Division products in 2020 First half US Rest of world Total % 1 % % 1 % % 1 Psoriasis, ankylosing Gilenya Neuroscience Relapsing multiple sclerosis 804 – 3 706 – 7 – 4 1 510 – 5 – 4 Cardiovascular, Tasigna Oncology Chronic myeloid leukemia 424 10 543 5 9 967 7 9 Age-related Immune Tafinlar Mekinist BRAF V600+ metastatic Carcinoid tumors Myelofibrosis (MF), Chronic myeloid Galvus Established Medicines Diabetes 617 – 3 1 617 – 3 1 Severe Allergic Asthma (SAA) Afinitor/Votubia Oncology Breast cancer/TSC 332 – 33 230 – 18 – 15 562 – 27 – 26 Diovan Established Medicines Hypertension 60 33 482 – 3 2 542 0 4 Exforge Established Medicines Hypertension 6 – 14 490 – 6 – 3 496 – 7 – 3 Immunology, Auto-inflammatory (CAPS, 2 Spinal muscular atrophy Exjade/Jadenu Oncology Chronic iron overload 78 – 66 257 – 1 1 335 – 32 – 31 Votrient Oncology Renal cell carcinoma 136 – 21 192 – 8 – 5 328 – 14 – 12 Kisqali Oncology HR+/HER2- metastatic breast cancer 153 37 167 86 97 320 58 64 Top 20 products total 5 463 9 9 031 4 8 14 494 6 8 Rest of portfolio 1 594 21 2 855 – 7 – 4 4 449 1 4 Total division sales 7 057 12 11 886 1 5 18 943 5 7 1 2 Zolgensma nm = not meaningful Sandoz Division net sales by business franchise Second quarter Q2 2020 Q2 2019 % change % change USD m USD m USD cc 2 Retail Generics 1 1 576 1 903 – 17 – 14 Biopharmaceuticals 466 401 16 19 Anti-Infectives 117 134 – 13 – 12 Total division net sales 2 159 2 438 – 11 – 9 1 2 First half H1 2020 H1 2019 % change % change USD m USD m USD cc 2 Retail Generics 1 3 545 3 753 – 6 – 3 Biopharmaceuticals 916 752 22 25 Anti-Infectives 226 259 – 13 – 11 Total division net sales 4 687 4 764 – 2 1 1 2 The product portfolio of Sandoz is widely spread in 2020 and 2019. Segmentation – Other revenue Second quarter Innovative Medicines Sandoz Corporate Group (USD millions) Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Profit sharing income 209 181 1 209 182 Royalty income 24 15 5 4 2 6 31 25 Milestone income 5 47 11 16 47 Other 1 13 7 6 1 – 2 19 6 Total other revenues 251 250 22 6 2 4 275 260 1 First half Innovative Medicines Sandoz Corporate Group (USD millions) H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 Profit sharing income 407 350 1 407 351 Royalty income 54 49 13 7 158 13 225 69 Milestone income 25 98 11 23 36 121 Other 1 21 14 11 3 – 2 32 15 Total other revenues 507 511 35 34 158 11 700 556 1 |
Discontinued operations
Discontinued operations | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of discontinued operations [abstract] | |
Disclosure of discontinued operations [text block] | 10. Discontinued operations Discontinued operations included in 2019 the operational results from the Alcon eye care devices business and certain Corporate activities attributable to the Alcon business prior to the spin-off, the gain on distribution of Alcon Inc. to Novartis AG shareholders, and certain other expenses related to the Distribution (refer to Note 3 for further details). The Alcon eye care devices business researched, discovered, developed, manufactured, distributed and sold a broad range of eye care products. Alcon was organized into two global business franchises, Surgical and Vision Care. Alcon also provided services, training, education and technical support for both the Surgical and Vision Care businesses. Consolidated income statement (USD millions) Q2 2019 1 H1 2019 Net sales to third parties from discontinued Sales to continuing segments 32 Net sales from discontinued operations 1 809 Cost of goods sold – 860 Gross profit from discontinued operations 949 Selling, general and administration – 638 Research and development – 142 Other income 15 Other expense – 113 Operating income from discontinued operations 71 as % of net sales 4.0% Interest expense – 10 Other financial income and expense – 3 Income before taxes from discontinued operations 58 Taxes – 159 Net loss from discontinued operations before gain on distribution of Alcon Inc. to Novartis AG shareholders – 101 Gain on distribution of Alcon Inc. to Novartis AG shareholders 2 4 691 4 691 Net income from discontinued operations 2 4 691 4 590 1 2 Supplemental disclosures related to the Alcon business distributed to Novartis AG shareholders Cash flows used in investing activities from discontinued operations Cash flows used in investing activities from discontinued operations include the investing activities of the Alcon business in all periods. (USD millions) Q2 2020 Q2 2019 H1 2020 H1 2019 Payments attributable to the spin-off of the Alcon business – 3 – 14 – 17 – 14 Divested cash and cash equivalents – 628 – 628 Cash flows attributable to the spin-off of the Alcon business – 3 – 642 – 17 – 642 Other cash flows used in investing activities, net – 88 – 40 – 88 – 463 Net cash flows used in investing activities from discontinued operations – 91 – 682 – 105 – 1 105 Cash flows from financing activities from discontinued operations During the first half of 2020, the net cash outflows from financing activities from discontinued operations of USD 26 million (Q2 2020: USD 13 million) was for transaction cost payments directly attributable to the distribution (spin-off) of the Alcon business to Novartis shareholders. During the first half of 2019, the net cash inflows from financing activities from discontinued operations of USD 3.3 billion (Q2 2019: USD 2.7 billion) included mainly USD 3.5 billion (Q2 2019: USD 3.2 billion) from Alcon borrowings, partly offset by USD 0.2 billion (Q2 2019: USD 0.1 billion) transaction cost payments directly attributable to the distribution (spin-off) of the Alcon business to Novartis shareholders (see Note 3). Significant transaction closed in 2019 In March 2019, Alcon acquired PowerVision, Inc. (PowerVision), a privately-held, US-based medical device development company focused on developing accommodative, implantable intraocular lenses. The fair value of the total purchase consideration was USD 424 million. The amount consisted of an initial cash payment of USD 289 million and the net present value of the contingent consideration of USD 135 million, due to PowerVision shareholders, which they are eligible to receive upon the achievement of specified regulatory and commercialization milestones. The purchase price allocation resulted in net identifiable assets of USD 418 million, consisting of intangible assets, of USD 505 million, net deferred tax liabilities of USD 93 million, other net assets of USD 6 million, and goodwill of USD 6 million. The 2019 results of operations since the date of the acquisition were not material. For additional information related to the distribution (spin-off) of the Alcon business to Novartis AG shareholders, effected through a dividend in kind distribution that was completed on April 8, 2019, refer to Note 3. |
Subsequent events
Subsequent events | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Disclosure of events after reporting period [text block] | 11. Events subsequent to the June 30, 2020, consolidated balance sheet date In July 2020, Novartis paid USD 0.7 billion out of certain legal provisions. For additional information see Note 8. |
Selected critical accounting _2
Selected critical accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Significant Accounting Policies [abstract] | |
Description of other accounting policies relevant to understanding of financial statements [text block] | The Group’s principal accounting policies are set out in Note 1 to the Consolidated Financial Statements in the 2019 Annual Report and conform with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The preparation of financial statements requires management to make certain estimates and assumptions, either at the balance sheet date or during the year, which affect the reported amounts of assets and liabilities, including any contingent amounts, the distribution liability recognized in connection with the distribution of Alcon Inc. to Novartis AG shareholders, as well as of revenues and expenses. Actual outcomes and results could differ from those estimates and assumptions. As disclosed in the 2019 Annual Report, goodwill, and acquired In-Process Research & Development projects are reviewed for impairment at least annually and these, as well as all other investments in intangible assets, are reviewed for impairment whenever an event or decision occurs that raises concern about their balance sheet carrying value. The amount of goodwill and other intangible assets on the Group’s consolidated balance sheet has risen significantly in recent years, primarily from acquisitions. Impairment testing may lead to potentially significant impairment charges in the future that could have a materially adverse impact on the Group’s results of operations and financial condition. |
Non-current assets held for sale or held for distribution to owners | Non-current assets held for sale or held for distribution to owners Non-current assets are classified as assets held for sale or related to discontinued operations when their carrying amount is to be recovered principally through a sale transaction or distribution to owners and a sale or distribution to owners is considered highly probable. They are stated at the lower of carrying amount and fair value less costs to sell with any resulting impairment recognized. Assets related to discontinued operations and assets of disposal group held for sale are not depreciated or amortized. The prior year consolidated balance sheet is not restated. If in a subsequent period, the criteria for classification as held for sale are no longer met, the recoverable amount of assets and liabilities are reclassified out of assets held for sale into the respective balance sheet lines, prior year consolidated balance sheet is not restated. The cumulative amount of depreciation and amortization not recorded since the date of their classification to assets held for sale, and any required adjustments to the recoverable amounts of assets are recognized in the consolidated income statement. |
Distribution by way of dividend in kind to shareholders | Distribution of Alcon Inc. to Novartis AG shareholders During the first quarter of 2019, at the Annual General Meeting (AGM) of Novartis AG shareholders, held on February 28, 2019, the Novartis AG shareholders approved a special distribution by way of a dividend in kind to effect the spin-off of Alcon Inc. The February 28, 2019, shareholder approval for the spin-off required the Alcon Division and selected portions of corporate activities attributable to Alcon’s business (the “Alcon business”) to be reported as discontinued operations. The shareholder approval to spin off the Alcon business also required the recognition of a distribution liability at the fair value of the Alcon business. The Group elected to measure the distribution liability at the fair value of the Alcon business net assets taken as a whole. The distribution liability was recognized through a reduction in retained earnings. It was required to be adjusted at each balance sheet date for changes in its estimated fair value, up to the date of the distribution to shareholders through retained earnings. Any resulting impairment of the business assets to be distributed would have been recognized in the consolidated income statements in “Other expense” of discontinued operations, at the date of initial recognition of the distribution liability or at subsequent dates resulting from changes of the distribution liability valuation. At the April 8, 2019 distribution settlement date, the resulting gain, which was measured as the excess amount of the distribution liability over the then-carrying value of the net assets of the business distributed, was recognized on the line “Gain on distribution of Alcon Inc. to Novartis AG shareholders” in the income statement of discontinued operations. The recognition of the distribution liability required the use of valuation techniques for purposes of impairment testing of the Alcon business’ assets to be distributed and for the measurement of the fair value of the distribution liability. These valuations required the use of management assumptions and estimates related to the Alcon business’ future cash flows, market multiples to estimate day one market value, and control premiums to apply in estimating the Alcon business fair value. These fair value measurements were classified as “Level 3” in the fair value hierarchy. The section “—Impairment of goodwill and intangible assets” in Note 1 to the Consolidated Financial Statements of the 2019 Annual Report provides additional information on key assumptions that are highly sensitive in the estimation of fair values using valuation techniques. Transaction costs that were directly attributable to the distribution (spin-off) of Alcon to the Novartis shareholders, and that would otherwise have been avoided, were recorded as a deduction from equity. For additional disclosures, refer to Notes 3 and 10. |
Description of accounting policy for business combinations [text block] | New IFRS standard effective as of January 1, 2020 IFRS 3 Business Combination amendments The IASB issued amendments to IFRS 3 Business Combinations that revised the definition of a business, which assist entities with the evaluation of when an asset or group of assets acquired or disposed of should be considered a business. This amended standard has been applied to transactions entered into on or after January 1, 2020. The amended standard allows an entity to apply an optional concentration test, on a transaction-by-transaction basis, to evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If this optional concentration test is met, the entity may choose to consider the transaction an acquisition of an asset or set of assets. The adoption of this amended standard on January 1, 2020 did not have a significant impact on our consolidated financial statements and is not expected to have a significant impact in future periods. However, this will depend on the facts and circumstances of future transactions and if the Group decides to apply the optional concentration test in the assessment of whether an acquired set of activities and assets is or is not a business. |
Significant transactions (Table
Significant transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of significant transactions [abstract] | |
Assets and liabilities of disposal group classified as held for sale | Dec 31, Assets of disposal group classified as held for sale Property, plant and equipment 169 Intangible assets other than goodwill 475 Deferred tax assets 11 Other non-current assets 2 Inventories 181 Other current assets 3 Total 841 Liabilities of disposal group classified as held for sale Deferred tax liabilities 2 Provisions and other non-current liabilities 4 Provisions and other current liabilities 25 Total 31 |
Net gain at completion of spin-off | April 8, Net assets derecognized 1 – 20 025 Derecognition of distribution liability 23 434 Difference between net assets and distribution liability 3 409 Recognition of Alcon Inc. shares obtained Currency translation gains recycled into the Transaction costs recognized in the consolidated income statement – 114 Gain on distribution of Alcon Inc. to Novartis AG shareholders 4 691 1 |
Summary of equity attributabl_2
Summary of equity attributable to Novartis AG shareholders (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of equity [abstract] | |
Summary of treasury shares movements [table text block] | Number of outstanding shares (in millions) Issued share capital and reserves attributable to Novartis AG shareholders (in USD millions) 2020 2019 H1 2020 H1 2019 Balance at beginning of year 2 265.0 2 311.2 55 474 78 614 Impact of change in accounting policy 1 3 Restated equity at January 1 55 474 78 617 Shares acquired to be cancelled – 32.8 – 2 819 Other share purchases – 1.6 – 1.6 – 150 – 153 Exercise of options and employee transactions 14.7 5.5 823 200 Equity-based compensation 10.6 9.5 365 447 Shares delivered to Alcon employees as a result of the Alcon spin-off 0.3 29 32 Taxes on treasury share transactions 2 30 – 185 Increase of treasury share repurchase obligation under a share buyback trading plan – 2 289 Dividends to shareholders of Novartis AG – 6 987 – 6 645 Dividend in kind to effect the spin-off of Alcon Inc. 3 – 23 434 Net income of the period attributable to shareholders of Novartis AG 4 043 8 565 Other comprehensive income attributable to shareholders of Novartis AG 176 – 667 Transaction costs, net of taxes 4 – 253 Impact of change in ownership of consolidated entities – 3 Other movements 5 9 13 Balance at June 30 2 289.0 2 291.8 53 812 51 426 1 2 3 4 5 |
Financial instruments (Tables)
Financial instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Financial Instruments - additional disclosure [abstract] | |
Fair value by hierarchy | Level 1 Level 2 Level 3 Total Jun 30, Dec 31, Jun 30, Dec 31, Jun 30, Dec 31, Jun 30, Dec 31, Marketable securities Debt securities 24 24 24 24 Fund investments 33 37 33 37 Total marketable securities 33 37 24 24 57 61 Derivative financial instruments 136 102 136 102 Total marketable securities and derivative financial instruments 33 37 160 126 193 163 Long-term financial investments Debt and equity securities 904 976 539 581 1 443 1 557 Fund investments 235 233 235 233 Contingent consideration receivables 444 399 444 399 Total long-term financial investments 904 976 1 218 1 213 2 122 2 189 Associated companies at fair value through profit or loss 175 186 175 186 Contingent consideration payables – 1 039 – 1 036 – 1 039 – 1 036 Other financial liabilities – 20 – 29 – 20 – 29 Derivative financial instruments – 126 – 185 – 126 – 185 Total financial liabilities at fair value – 126 – 185 – 1 059 – 1 065 – 1 185 – 1 250 |
Disclosure of detailed information about borrowings | Carrying value 1.75% USD 1 000 2025 Novartis Capital Corporation, New York, United States 99.852% 996 2.00% USD 1 250 2027 Novartis Capital Corporation, New York, United States 99.909% 1 245 2.20% USD 1 500 2030 Novartis Capital Corporation, New York, United States 99.869% 1 492 2.75% USD 1 250 2050 Novartis Capital Corporation, New York, United States 97.712% 1 213 |
Details to the consolidated s_2
Details to the consolidated statements of cash flows (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of details to the consolidated statements of cash flows [abstract] | |
Adjustments for non-cash items from continuing operations | (USD millions) Q2 2020 Q2 2019 Depreciation, amortization and impairments on: Property, plant and equipment 319 371 Right-of-use assets 78 74 Intangible assets 1 306 601 Financial assets 1 – 166 – 32 Change in provisions and other non-current liabilities 118 958 Losses/gains on disposal and other adjustments on property, plant and equipment; intangible assets; Equity-settled compensation expense 199 174 Income from associated companies – 183 – 176 Taxes 421 525 Net financial expense 247 205 Total 2 345 2 085 1 (USD millions) H1 2020 H1 2019 Depreciation, amortization and impairments on: Property, plant and equipment 700 719 Right-of-use assets 154 149 Intangible assets 2 259 1 619 Financial assets 1 – 127 – 20 Change in provisions and other non-current liabilities 838 1 018 Gains on disposal and other adjustments on property, plant and equipment; intangible assets; Equity-settled compensation expense 377 372 Income from associated companies – 306 – 256 Taxes 869 797 Net financial expense 493 387 Total 5 202 4 101 1 |
Cash flows arising from acquisitions and divestments of businesses | (USD millions) Q2 2020 Q2 2019 H1 2020 H1 2019 Net assets recognized as a result of business combinations – 32 – 407 – 10 030 – 486 Fair value of previously held equity interests 34 34 Receivables and payables contingent consideration, net 17 88 77 88 Payments, deferred consideration and other adjustments, net 13 – 3 65 – 3 Cash flows used for acquisitions of businesses – 2 – 288 – 9 888 – 367 Cash flows from/used for divestments of businesses, net 1 2 2 – 13 – 15 Cash flows used for acquisitions and divestments of businesses, net 0 – 286 – 9 901 – 382 1 |
Acquisition of businesses (Tabl
Acquisition of businesses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of acquisition of businesses [abstract] | |
Fair value of assets and liabilities arising from acquisitions | (USD millions) H1 2020 H1 2019 Property, plant and equipment 26 44 Right-of-use assets 32 Currently marketed products 269 Acquired research and development 8 602 449 Deferred tax assets 470 20 Financial and other assets 49 Inventories 84 6 Trade receivables, marketable securities Cash and cash equivalents 76 Deferred tax liabilities – 1 928 – 101 Current and non-current financial debts – 32 – 2 Current and non-current lease liabilities – 44 Trade payables and other liabilities – 144 – 9 Net identifiable assets acquired 7 569 411 Acquired cash and cash equivalents – 76 Goodwill 2 537 75 Net assets recognized as a result of business combinations 10 030 486 |
Segmentation of key figures (Ta
Segmentation of key figures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Statement [line items] | |
Segmentation - Consolidated income statements | Second quarter Innovative Medicines Sandoz Corporate (including eliminations) Group (USD millions) Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Net sales to third parties from continuing operations 9 188 9 326 2 159 2 438 11 347 11 764 Sales to continuing segments 219 177 43 37 – 262 – 214 Net sales from continuing operations 9 407 9 503 2 202 2 475 – 262 – 214 11 347 11 764 Other revenues 251 250 22 6 2 4 275 260 Cost of goods sold – 2 554 – 2 327 – 1 158 – 1 315 283 236 – 3 429 – 3 406 Gross profit from continuing operations 7 104 7 426 1 066 1 166 23 26 8 193 8 618 Selling, general and administration – 2 764 – 2 911 – 496 – 550 – 108 – 124 – 3 368 – 3 585 Research and development – 2 240 – 1 853 – 201 – 198 – 2 441 – 2 051 Other income 154 847 17 45 261 97 432 989 Other expense – 221 – 945 – 65 – 181 – 178 – 182 – 464 – 1 308 Operating income from continuing operations 2 033 2 564 321 282 – 2 – 183 2 352 2 663 as % of net sales 22.1% 27.5% 14.9% 11.6% 20.7% 22.6% Income from associated companies 1 1 1 1 181 174 183 176 Interest expense – 220 – 205 Other financial income and expense, net – 27 0 Income before taxes from continuing operations 2 288 2 634 Taxes – 421 – 525 Net income from continuing operations 1 867 2 109 Gain on distribution of Alcon Inc. to Novartis AG shareholders 4 691 Net income from discontinued operations 4 691 Net income 1 867 6 800 First half Innovative Medicines Sandoz Corporate (including eliminations) Group (USD millions) H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 Net sales to third parties from continuing operations 18 943 18 106 4 687 4 764 23 630 22 870 Sales to continuing and discontinued segments 409 426 92 76 – 501 – 449 53 Net sales from continuing operations 19 352 18 532 4 779 4 840 – 501 – 449 23 630 22 923 Other revenues 507 511 35 34 158 11 700 556 Cost of goods sold – 5 080 – 4 551 – 2 614 – 2 591 543 485 – 7 151 – 6 657 Gross profit from continuing operations 14 779 14 492 2 200 2 283 200 47 17 179 16 822 Selling, general and administration – 5 621 – 5 564 – 1 016 – 1 112 – 217 – 239 – 6 854 – 6 915 Research and development – 4 106 – 3 958 – 395 – 392 – 4 501 – 4 350 Other income 326 922 49 82 318 188 693 1 192 Other expense – 590 – 1 219 – 562 – 306 – 269 – 319 – 1 421 – 1 844 Operating income from continuing operations 4 788 4 673 276 555 32 – 323 5 096 4 905 as % of net sales 25.3% 25.8% 5.9% 11.6% 21.6% 21.4% Income from associated companies 1 1 1 1 304 254 306 256 Interest expense – 459 – 431 Other financial income and expense, net – 34 44 Income before taxes from continuing operations 4 909 4 774 Taxes – 869 – 797 Net income from continuing operations 4 040 3 977 Net loss from discontinued operations before gain Gain on distribution of Alcon Inc. to Novartis AG shareholders 4 691 Net income from discontinued operations 4 590 Net income 4 040 8 567 |
Segmentation - Consolidated balance sheets and income statement | Innovative Medicines Sandoz Corporate (including eliminations) Group Jun 30, Dec 31, Jun 30, Dec 31, Jun 30, Dec 31, Jun 30, Dec 31, Total assets 81 373 71 225 16 229 16 468 26 161 30 677 123 763 118 370 Total liabilities – 14 690 – 15 332 – 3 681 – 3 804 – 51 507 – 43 683 – 69 878 – 62 819 Total equity 53 885 55 551 Net debt 26 537 15 938 26 537 15 938 Net operating assets 66 683 55 893 12 548 12 664 1 191 2 932 80 422 71 489 Included in net operating assets are: Property, plant and equipment 9 485 9 632 1 943 1 888 527 549 11 955 12 069 Goodwill 21 257 18 750 7 835 7 767 8 7 29 100 26 524 Intangible assets other than goodwill 34 877 27 586 1 674 1 125 118 76 36 669 28 787 The following table shows the intangible asset impairment charges for continuing operations: (USD millions) Q2 2020 Q2 2019 H1 2020 H1 2019 Innovative Medicines 1 – 500 – 20 – 509 – 466 Sandoz 0 – 2 – 42 – 12 Total – 500 – 22 – 551 – 478 1 |
Net sales by region | Segmentation – Net sales by region 1 Second quarter Q2 2020 Q2 2019 % change % change 2 Q2 2020 Q2 2019 Innovative Medicines Europe 2 964 3 218 – 8 – 5 32 35 US 3 515 3 336 5 5 38 36 Asia/Africa/Australasia 2 123 2 106 1 2 23 23 Canada and Latin America 586 666 – 12 5 7 6 Total 9 188 9 326 – 1 1 100 100 Of which in Established Markets 6 909 7 071 – 2 – 2 75 76 Of which in Emerging Growth Markets 2 279 2 255 1 9 25 24 Sandoz Europe 1 130 1 269 – 11 – 8 52 52 US 508 642 – 21 – 21 24 26 Asia/Africa/Australasia 341 333 2 4 16 14 Canada and Latin America 180 194 – 7 5 8 8 Total 2 159 2 438 – 11 – 9 100 100 Of which in Established Markets 1 621 1 796 – 10 – 9 75 74 Of which in Emerging Growth Markets 538 642 – 16 – 9 25 26 Continuing operations Europe 4 094 4 487 – 9 – 6 36 38 US 4 023 3 978 1 1 35 34 Asia/Africa/Australasia 2 464 2 439 1 2 22 21 Canada and Latin America 766 860 – 11 5 7 7 Total 11 347 11 764 – 4 – 1 100 100 Of which in Established Markets 8 530 8 867 – 4 – 3 75 75 Of which in Emerging Growth Markets 2 817 2 897 – 3 5 25 25 1 2 Segmentation – Net sales by region 1 First half H1 2020 H1 2019 % change % change 2 H1 2020 H1 2019 Innovative Medicines Europe 6 366 6 352 0 3 34 35 US 7 057 6 329 12 12 37 35 Asia/Africa/Australasia 4 301 4 123 4 6 23 23 Canada and Latin America 1 219 1 302 – 6 8 6 7 Total 18 943 18 106 5 7 100 100 Of which in Established Markets 14 266 13 638 5 6 75 75 Of which in Emerging Growth Markets 4 677 4 468 5 11 25 25 Sandoz Europe 2 558 2 510 2 5 55 53 US 1 078 1 232 – 12 – 12 23 26 Asia/Africa/Australasia 675 651 4 5 14 14 Canada and Latin America 376 371 1 12 8 7 Total 4 687 4 764 – 2 1 100 100 Of which in Established Markets 3 466 3 491 – 1 1 74 73 Of which in Emerging Growth Markets 1 221 1 273 – 4 2 26 27 Continuing operations Europe 8 924 8 862 1 4 38 39 US 8 135 7 561 8 8 34 33 Asia/Africa/Australasia 4 976 4 774 4 6 21 21 Canada and Latin America 1 595 1 673 – 5 9 7 7 Total 23 630 22 870 3 6 100 100 Of which in Established Markets 17 732 17 129 4 5 75 75 Of which in Emerging Growth Markets 5 898 5 741 3 9 25 25 1 2 |
Other revenue | Second quarter Innovative Medicines Sandoz Corporate Group (USD millions) Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Profit sharing income 209 181 1 209 182 Royalty income 24 15 5 4 2 6 31 25 Milestone income 5 47 11 16 47 Other 1 13 7 6 1 – 2 19 6 Total other revenues 251 250 22 6 2 4 275 260 1 First half Innovative Medicines Sandoz Corporate Group (USD millions) H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 Profit sharing income 407 350 1 407 351 Royalty income 54 49 13 7 158 13 225 69 Milestone income 25 98 11 23 36 121 Other 1 21 14 11 3 – 2 32 15 Total other revenues 507 511 35 34 158 11 700 556 1 |
Innovative Medicines | |
Statement [line items] | |
Net sales by business franchise | Innovative Medicines Division net sales by business franchise Second quarter Q2 2020 Q2 2019 % change % change USD m USD m USD cc 1 Oncology Tasigna 480 468 3 5 Promacta/Revolade 422 349 21 23 Tafinlar Mekinist 371 340 9 12 Sandostatin 341 403 – 15 – 13 Jakavi 310 284 9 14 Gleevec/Glivec 288 323 – 11 – 8 Afinitor/Votubia 266 401 – 34 – 33 Exjade/Jadenu 163 253 – 36 – 35 Votrient 162 193 – 16 – 14 Kisqali 159 111 43 49 Lutathera 105 109 – 4 – 3 Kymriah 118 58 103 103 Piqray 79 6 nm nm Adakveo 21 nm nm Other 263 308 – 15 – 13 Total Novartis Oncology business unit 3 548 3 606 – 2 1 Immunology, Hepatology and Dermatology Cosentyx 944 858 10 12 Ilaris 200 165 21 23 Total Immunology, Hepatology and Dermatology 1 144 1 023 12 13 Ophthalmology Lucentis 401 536 – 25 – 24 Xiidra 79 nm nm Beovu 34 nm nm Other 423 638 – 34 – 32 Total Ophthalmology 937 1 174 – 20 – 18 Neuroscience Gilenya 738 825 – 11 – 9 Zolgensma 205 15 nm nm Aimovig 33 24 38 45 Mayzent 34 5 nm nm Other 15 17 – 12 – 26 Total Neuroscience 1 025 886 16 17 Cardiovascular, Renal and Metabolism Entresto 580 421 38 40 Other 6 nm nm Total Cardiovascular, Renal and Metabolism 580 427 36 38 Respiratory Xolair 289 290 0 4 Ultibro 149 166 – 10 – 7 Other 6 5 20 – 10 Total Respiratory 444 461 – 4 0 Established Medicines Galvus 279 320 – 13 – 8 Diovan 268 283 – 5 0 Exforge 238 264 – 10 – 5 Zortress/Certican 106 124 – 15 – 12 Neoral/Sandimmun(e) 96 110 – 13 – 11 Voltaren/Cataflam 82 95 – 14 – 11 Other 441 553 – 20 – 16 Total Established Medicines 1 510 1 749 – 14 – 9 Total Novartis Pharmaceuticals business unit 5 640 5 720 – 1 1 Total division net sales 9 188 9 326 – 1 1 1 nm = not meaningful Innovative Medicines Division net sales by business franchise First half H1 2020 H1 2019 % change % change USD m USD m USD cc 1 Oncology Tasigna 967 902 7 9 Promacta/Revolade 825 656 26 28 Tafinlar Mekinist 737 637 16 19 Sandostatin 715 795 – 10 – 8 Jakavi 628 542 16 20 Gleevec/Glivec 617 630 – 2 0 Afinitor/Votubia 562 774 – 27 – 26 Exjade/Jadenu 335 491 – 32 – 31 Votrient 328 380 – 14 – 12 Kisqali 320 202 58 64 Lutathera 217 215 1 1 Kymriah 211 103 105 106 Piqray 153 6 nm nm Adakveo 36 nm nm Other 545 594 – 8 – 6 Total Novartis Oncology business unit 7 196 6 927 4 6 Immunology, Hepatology and Dermatology Cosentyx 1 874 1 649 14 15 Ilaris 413 316 31 33 Total Immunology, Hepatology and Dermatology 2 287 1 965 16 18 Ophthalmology Lucentis 888 1 069 – 17 – 15 Xiidra 169 nm nm Beovu 102 nm nm Other 974 1 266 – 23 – 21 Total Ophthalmology 2 133 2 335 – 9 – 7 Neuroscience Gilenya 1 510 1 591 – 5 – 4 Zolgensma 375 15 nm nm Aimovig 69 42 64 72 Mayzent 64 5 nm nm Other 27 30 – 10 – 15 Total Neuroscience 2 045 1 683 22 23 Cardiovascular, Renal and Metabolism Entresto 1 149 778 48 50 Other 1 12 – 92 – 98 Total Cardiovascular, Renal and Metabolism 1 150 790 46 48 Respiratory Xolair 596 571 4 8 Ultibro 309 323 – 4 – 1 Other 10 12 – 17 – 18 Total Respiratory 915 906 1 5 Established Medicines Galvus 617 635 – 3 1 Diovan 542 544 0 4 Exforge 496 531 – 7 – 3 Zortress/Certican 233 240 – 3 0 Neoral/Sandimmun(e) 197 213 – 8 – 5 Voltaren/Cataflam 174 208 – 16 – 15 Other 958 1 129 – 15 – 12 Total Established Medicines 3 217 3 500 – 8 – 5 Total Novartis Pharmaceuticals business unit 11 747 11 179 5 8 Total division net sales 18 943 18 106 5 7 1 nm = not meaningful |
Net sales of Top 20 products | Net sales of the top 20 Innovative Medicines Division products in 2020 Second quarter US Rest of world Total % 1 % % 1 % % 1 Psoriasis, ankylosing Gilenya Neuroscience Relapsing multiple sclerosis 416 – 6 322 – 16 – 13 738 – 11 – 9 Cardiovascular, Tasigna Oncology Chronic myeloid leukemia 221 8 259 – 2 2 480 3 5 Age-related Immune Tafinlar Mekinist BRAF V600+ metastatic Carcinoid tumors Myelofibrosis (MF), Chronic myeloid Galvus Established Medicines Diabetes 279 – 13 – 8 279 – 13 – 8 Severe Allergic Asthma (SAA) Afinitor/Votubia Oncology Breast cancer/TSC 163 – 37 103 – 27 – 24 266 – 34 – 33 Diovan Established Medicines Hypertension 34 21 234 – 8 – 2 268 – 5 0 Exforge Established Medicines Hypertension 2 – 50 236 – 9 – 5 238 – 10 – 5 Immunology, Auto-inflammatory (CAPS, Spinal muscular atrophy Exjade/Jadenu Oncology Chronic iron overload 34 – 71 129 – 4 – 3 163 – 36 – 35 Votrient Oncology Renal cell carcinoma 72 – 17 90 – 15 – 12 162 – 16 – 14 Kisqali Oncology HR+/HER2- metastatic breast cancer 79 36 80 51 63 159 43 49 Top 20 products total 2 772 5 4 332 – 3 1 7 104 0 2 Rest of portfolio 743 8 1 341 – 13 – 9 2 084 – 6 – 4 Total division sales 3 515 5 5 673 – 5 – 1 9 188 – 1 1 1 nm = not meaningful Net sales of the top 20 Innovative Medicines Division products in 2020 First half US Rest of world Total % 1 % % 1 % % 1 Psoriasis, ankylosing Gilenya Neuroscience Relapsing multiple sclerosis 804 – 3 706 – 7 – 4 1 510 – 5 – 4 Cardiovascular, Tasigna Oncology Chronic myeloid leukemia 424 10 543 5 9 967 7 9 Age-related Immune Tafinlar Mekinist BRAF V600+ metastatic Carcinoid tumors Myelofibrosis (MF), Chronic myeloid Galvus Established Medicines Diabetes 617 – 3 1 617 – 3 1 Severe Allergic Asthma (SAA) Afinitor/Votubia Oncology Breast cancer/TSC 332 – 33 230 – 18 – 15 562 – 27 – 26 Diovan Established Medicines Hypertension 60 33 482 – 3 2 542 0 4 Exforge Established Medicines Hypertension 6 – 14 490 – 6 – 3 496 – 7 – 3 Immunology, Auto-inflammatory (CAPS, 2 Spinal muscular atrophy Exjade/Jadenu Oncology Chronic iron overload 78 – 66 257 – 1 1 335 – 32 – 31 Votrient Oncology Renal cell carcinoma 136 – 21 192 – 8 – 5 328 – 14 – 12 Kisqali Oncology HR+/HER2- metastatic breast cancer 153 37 167 86 97 320 58 64 Top 20 products total 5 463 9 9 031 4 8 14 494 6 8 Rest of portfolio 1 594 21 2 855 – 7 – 4 4 449 1 4 Total division sales 7 057 12 11 886 1 5 18 943 5 7 1 2 Zolgensma nm = not meaningful |
Sandoz [member] | |
Statement [line items] | |
Net sales by business franchise | Second quarter Q2 2020 Q2 2019 % change % change USD m USD m USD cc 2 Retail Generics 1 1 576 1 903 – 17 – 14 Biopharmaceuticals 466 401 16 19 Anti-Infectives 117 134 – 13 – 12 Total division net sales 2 159 2 438 – 11 – 9 1 2 First half H1 2020 H1 2019 % change % change USD m USD m USD cc 2 Retail Generics 1 3 545 3 753 – 6 – 3 Biopharmaceuticals 916 752 22 25 Anti-Infectives 226 259 – 13 – 11 Total division net sales 4 687 4 764 – 2 1 1 2 The product portfolio of Sandoz is widely spread in 2020 and 2019. |
Discontinued operations (Tables
Discontinued operations (Tables) - Discontinued operations | 6 Months Ended |
Jun. 30, 2020 | |
Statement [line items] | |
Consolidated income statement, discontinued operations | (USD millions) Q2 2019 1 H1 2019 Net sales to third parties from discontinued Sales to continuing segments 32 Net sales from discontinued operations 1 809 Cost of goods sold – 860 Gross profit from discontinued operations 949 Selling, general and administration – 638 Research and development – 142 Other income 15 Other expense – 113 Operating income from discontinued operations 71 as % of net sales 4.0% Interest expense – 10 Other financial income and expense – 3 Income before taxes from discontinued operations 58 Taxes – 159 Net loss from discontinued operations before gain on distribution of Alcon Inc. to Novartis AG shareholders – 101 Gain on distribution of Alcon Inc. to Novartis AG shareholders 2 4 691 4 691 Net income from discontinued operations 2 4 691 4 590 1 2 |
Cash flows used in investing activities | (USD millions) Q2 2020 Q2 2019 H1 2020 H1 2019 Payments attributable to the spin-off of the Alcon business – 3 – 14 – 17 – 14 Divested cash and cash equivalents – 628 – 628 Cash flows attributable to the spin-off of the Alcon business – 3 – 642 – 17 – 642 Other cash flows used in investing activities, net – 88 – 40 – 88 – 463 Net cash flows used in investing activities from discontinued operations – 91 – 682 – 105 – 1 105 |
Significant transactions (Detai
Significant transactions (Details) € in Millions | Jan. 31, 2020USD ($) | Jan. 31, 2020EUR (€) | Jan. 06, 2020USD ($) | May 08, 2019USD ($) | May 07, 2019USD ($) | Apr. 08, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jan. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Apr. 09, 2019USD ($) | Mar. 06, 2019USD ($) | Sep. 06, 2018USD ($) |
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Identifiable assets acquired (liabilities assumed) | $ 10,030,000,000 | $ 486,000,000 | $ 10,030,000,000 | $ 486,000,000 | |||||||||||||
Profit (loss) from discontinued operations | 4,691,000,000 | 4,590,000,000 | |||||||||||||||
Intangible assets other than goodwill | 36,669,000,000 | 36,669,000,000 | $ 28,787,000,000 | ||||||||||||||
Revenue from sale of goods | 11,347,000,000 | 11,764,000,000 | 23,630,000,000 | 22,923,000,000 | |||||||||||||
Difference between carrying amount of dividends payable and carrying amount of non-cash assets distributed, Net | 4,691,000,000 | 4,691,000,000 | |||||||||||||||
Innovative Medicines | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Intangible assets other than goodwill | 34,877,000,000 | 34,877,000,000 | 27,586,000,000 | ||||||||||||||
Revenue from sale of goods | 9,407,000,000 | 9,503,000,000 | 19,352,000,000 | 18,532,000,000 | |||||||||||||
Sandoz | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Intangible assets other than goodwill | 1,674,000,000 | 1,674,000,000 | 1,125,000,000 | ||||||||||||||
Revenue from sale of goods | 2,202,000,000 | 2,475,000,000 | 4,779,000,000 | 4,840,000,000 | |||||||||||||
Corporate | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Intangible assets other than goodwill | 118,000,000 | 118,000,000 | $ 76,000,000 | ||||||||||||||
Revenue from sale of goods | $ (262,000,000) | (214,000,000) | $ (501,000,000) | $ (449,000,000) | |||||||||||||
Sandoz | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Detailed information about significant transaction | On September 6, 2018, Novartis announced that it entered into a stock and asset purchase agreement (SAPA) with Aurobindo Pharma USA Inc. (Aurobindo) for the sale of selected portions of its Sandoz US portfolio, specifically the Sandoz US dermatology business and generic US oral solids portfolio, for USD 0.8 billion in cash and potential earnouts. The closing was conditional on obtaining regulatory approval. In March 2020, Novartis took the decision to retain the Sandoz US generic oral solids and dermatology businesses and entered into a mutual agreement with Aurobindo to terminate the transaction. The decision was taken as regulatory approval from the US Federal Trade Commission was not obtained within the SAPA agreed timelines. The cumulative amount of the depreciation on property, plant and equipment and amortization on intangible assets, not recorded in the consolidated income statement since the date of classification as held for sale, amounting to USD 38 million and USD 102 million, respectively, was recognized in the consolidated income statement in the first quarter of 2020. In addition, an impairment of currently marketed products of USD 42 million was recognized in the first quarter of 2020 consolidated income statement. As at March 31, 2020, the assets and liabilities of the Sandoz US generic oral solids and dermatology businesses were reclassified out of assets and liabilities of disposal group held for sale. The prior year balance sheet is not required to be restated. In the Group’s consolidated balance sheet at December 31, 2019, the assets and liabilities classified as disposal group assets and liabilities held for sale consisted of the following: There are no cumulative income or expenses included in other comprehensive income relating to the disposal group. | ||||||||||||||||
Sandoz | Sandoz | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Consideration transferred, divestment-date fair value | $ 800,000,000 | ||||||||||||||||
Depreciation, property, plant and equipment | $ 38,000,000 | ||||||||||||||||
Amortisation, intangible assets other than goodwill | 102,000,000 | ||||||||||||||||
Impairment loss recognised in profit or loss, intangible assets and goodwill | $ (42,000,000) | ||||||||||||||||
Aspen Global Incorporated | Sandoz | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Detailed information about significant transaction | On November 11, 2019, Sandoz entered into an agreement for the acquisition of the Japanese business of Aspen Global Incorporated (AGI), a wholly owned subsidiary of Aspen Pharmacare Holdings Limited. Under the agreement, Sandoz acquired the shares in Aspen Japan K.K. and associated assets held by AGI. The transaction closed on January 31, 2020. Aspen’s portfolio in Japan consists of off-patent medicines with a focus on anesthetics and specialty brands. The acquisition will enable Sandoz to expand its presence in the third-largest worldwide generics marketplace. The purchase price consist of EUR 300 million (USD 331 million) upfront payment, less customary purchase price adjustment of EUR 29 million (USD 32 million), plus potential milestone payments of up to EUR 120 million (USD 132 million), which AGI is eligible to receive upon the achievement of specified milestones. The fair value of the total purchase consideration was EUR 342 million (USD 377 million). The amount consisted of an initial cash payment of EUR 271 million (USD 299 million) and the fair value of contingent consideration of EUR 71 million (USD 78 million), which they are eligible to receive upon the achievement of specified milestones. The preliminary purchase price allocation resulted in net identifiable assets of approximately USD 308 million, consisting of USD 269 million intangible assets, USD 26 million other net assets, USD 13 million net deferred tax assets and goodwill of approximately USD 69 million. Results of operations since the date of acquisition were not material. | ||||||||||||||||
Consideration transferred, acquisition-date fair value | $ 381,000,000 | € 345 | |||||||||||||||
Portion of consideration paid (received) consisting of cash and cash equivalents | (301,000,000) | € (273) | |||||||||||||||
Portion of consideration paid consisting of cash and cash equivalents upfront payment | (331,000,000) | (300) | |||||||||||||||
Contingent liabilities recognised as of acquisition date | 80,000,000 | € 72 | |||||||||||||||
Identifiable assets acquired (liabilities assumed) | 309,000,000 | ||||||||||||||||
Additional recognition, goodwill | 72,000,000 | ||||||||||||||||
Other net assets | 26,000,000 | ||||||||||||||||
Deferred tax liability (asset) | 14,000,000 | ||||||||||||||||
Intangible assets other than goodwill | 269,000,000 | ||||||||||||||||
Potential milestone maximum payments | 132,000,000 | 120 | |||||||||||||||
Customary purchase price adjustment | $ 30,000,000 | € 27 | |||||||||||||||
The Medicines Company | Innovative Medicines | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Detailed information about significant transaction | On November 23, 2019, Novartis entered into an agreement and plan of merger (the Merger Agreement) with The Medicines Company, a US-based pharmaceutical company headquartered in Parsippany, New Jersey USA. Pursuant to the Merger Agreement, on December 5, 2019, Novartis, through a subsidiary, commenced a tender offer to acquire all outstanding shares of The Medicines Company for USD 85 per share, or a total consideration of approximately USD 9.6 billion in cash on a fully diluted basis, including the equivalent share value related to The Medicines Company’s convertible notes, in accordance with their terms. The tender offer expired on January 3, 2020, and on January 6, 2020, the acquiring subsidiary merged with and into The Medicines Company, resulting in The Medicines Company becoming an indirect wholly owned subsidiary of Novartis. Novartis financed the transaction through available cash, and short- and long-term borrowings. The Medicines Company is focused on the development of inclisiran, a potentially first-in-class, twice yearly therapy that allows administration during patients’ routine visits to their healthcare professionals and will potentially contribute to improved patient adherence and sustained lower LDL-C levels. The fair value of the total purchase consideration was USD 9.6 billion. The preliminary purchase price allocation resulted in net identifiable assets of approximately USD 7.1 billion, consisting of USD 8.5 billion intangible assets, USD 1.4 billion net deferred tax liabilities and goodwill of approximately USD 2.5 billion. Results of operations since the date of acquisition were not material. | ||||||||||||||||
Consideration transferred, acquisition-date fair value | $ 9,600,000,000 | ||||||||||||||||
Portion of consideration paid (received) consisting of cash and cash equivalents | (9,600,000,000) | ||||||||||||||||
Identifiable assets acquired (liabilities assumed) | 7,100,000,000 | ||||||||||||||||
Additional recognition, goodwill | 2,500,000,000 | ||||||||||||||||
Cash offer per ordinary share | 85 | ||||||||||||||||
Deferred tax liability (asset) | 1,400,000,000 | ||||||||||||||||
Intangible assets other than goodwill | $ 8,500,000,000 | ||||||||||||||||
Takeda Pharmaceutical Company Limited | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Detailed information about significant transaction | On May 8, 2019, Novartis entered into an agreement with Takeda Pharmaceutical Company Limited (Takeda) to acquire the assets associated with Xiidra (lifitegrast ophthalmic solution) 5% worldwide. Xiidra is the first and only prescription treatment approved to treat both signs and symptoms of dry eye by inhibiting inflammation caused by the disease. The transaction bolsters the Novartis front-of-the-eye portfolio and ophthalmic leadership. The transaction closed on July 1, 2019. The purchase price consists of a USD 3.4 billion upfront payment, customary purchase price adjustments of USD 0.1 billion, and the potential milestone payments of up to USD 1.9 billion, which Takeda is eligible to receive upon the achievement of specified commercialization milestones. The fair value of the total purchase consideration is USD 3.7 billion. The amount consists of an initial cash payment of USD 3.5 billion, and the fair value of the contingent consideration of USD 0.2 billion, which Takeda is eligible to receive upon the achievement of specified commercialization milestones. The purchase price allocation resulted in net identifiable assets of approximately USD 3.6 billion, consisting mainly of intangible assets of USD 3.6 billion, and goodwill amounted to approximately USD 0.1 billion. In 2019, from the date of acquisition, the business generated net sales of USD 0.2 billion. Management estimates that net sales for the entire year of 2019 would have amounted to USD 0.3 billion, had the business been acquired at the beginning of the 2019 reporting period. The 2019 results of operations since the date of acquisition were not material. | ||||||||||||||||
Takeda Pharmaceutical Company Limited | Innovative Medicines | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Consideration transferred, acquisition-date fair value | $ 3,700,000,000 | ||||||||||||||||
Portion of consideration paid (received) consisting of cash and cash equivalents | (3,500,000,000) | ||||||||||||||||
Portion of consideration paid consisting of cash and cash equivalents upfront payment | (3,400,000,000) | ||||||||||||||||
Contingent liabilities recognised as of acquisition date | 200,000,000 | ||||||||||||||||
Identifiable assets acquired (liabilities assumed) | 3,600,000,000 | ||||||||||||||||
Additional recognition, goodwill | 100,000,000 | ||||||||||||||||
Revenue of acquiree since acquisition date | 200,000,000 | ||||||||||||||||
Revenue of acquiree full year | 300,000,000 | ||||||||||||||||
Intangible assets other than goodwill | 3,600,000,000 | ||||||||||||||||
Potential milestone maximum payments | 1,900,000,000 | ||||||||||||||||
Customary purchase price adjustment | $ 100,000,000 | ||||||||||||||||
IFM Tre, Inc. | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Detailed information about significant transaction | On May 7, 2019, Novartis acquired IFM Tre, Inc., a privately held, US-based biopharmaceutical company focused on developing anti-inflammatory medicines targeting the NLRP3 inflammasome. The acquisition gives Novartis full rights to IFM Tre, Inc.’s portfolio of NLRP3 antagonists. The NLRP3 antagonists portfolio consists of one clinical program and two preclinical programs: IFM-2427, a first-in-class, clinical-stage systemic antagonist for an array of chronic inflammatory disorders, including atherosclerosis and nonalcoholic steatohepatitis (NASH); a preclinical-stage gutdirected molecule for the treatment of inflammatory bowel disease; and a preclinical-stage central nervous system (CNS)-penetrant molecule. The previously held interest of 9% was adjusted to its fair value of USD 33 million through the consolidated income statement at acquisition date. This remeasurement resulted in a gain of USD 14 million. The fair value of the total purchase consideration for acquiring the 91% stake Novartis did not already own amounted to USD 361 million. The amount consisted of an initial cash payment of USD 285 million, and the fair value of the contingent consideration of USD 76 million due to the IFM Tre, Inc. shareholders, which they are eligible to receive upon the achievement of specified development and commercialization milestones. The purchase price allocation resulted in net identifiable assets of USD 355 million, mainly intangibles, and goodwill of USD 39 million. The 2019 results of operations since the date of acquisition were not material. | ||||||||||||||||
IFM Tre, Inc. | Innovative Medicines | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Consideration transferred, acquisition-date fair value | $ 361,000,000 | ||||||||||||||||
Portion of consideration paid (received) consisting of cash and cash equivalents | (285,000,000) | ||||||||||||||||
Contingent liabilities recognised as of acquisition date | 76,000,000 | ||||||||||||||||
Identifiable assets acquired (liabilities assumed) | 355,000,000 | ||||||||||||||||
Additional recognition, goodwill | $ 39,000,000 | ||||||||||||||||
Divested interest in associate | 9.00% | ||||||||||||||||
Acquisition-date fair value of equity interest in acquiree held by acquirer immediately before acquisition date | $ 33,000,000 | ||||||||||||||||
Gain (loss) recognised as result of remeasuring to fair value equity interest in acquiree held by acquirer before business combination | $ 14,000,000 | ||||||||||||||||
Percentage of voting equity interests acquired | 91.00% | ||||||||||||||||
PowerVision, Inc. | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Detailed information about significant transaction | In March 2019, Alcon acquired PowerVision, Inc. (PowerVision), a privately-held, US-based medical device development company focused on developing accommodative, implantable intraocular lenses. The fair value of the total purchase consideration was USD 424 million. The amount consisted of an initial cash payment of USD 289 million and the net present value of the contingent consideration of USD 135 million, due to PowerVision shareholders, which they are eligible to receive upon the achievement of specified regulatory and commercialization milestones. The purchase price allocation resulted in net identifiable assets of USD 418 million, consisting of intangible assets, of USD 505 million, net deferred tax liabilities of USD 93 million, other net assets of USD 6 million, and goodwill of USD 6 million. The 2019 results of operations since the date of the acquisition are not material. For additional information related to the distribution (spin-off) of the Alcon business to Novartis AG shareholders, effected through a dividend in kind distribution that was completed on April 8, 2019, refer to Note 3. | ||||||||||||||||
Discontinued operations | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Profit (loss) from discontinued operations | 4,691,000,000 | $ 4,590,000,000 | |||||||||||||||
Revenue from sale of goods | 1,809,000,000 | ||||||||||||||||
Dividend in kind distribution liability | $ 23,434,000,000 | ||||||||||||||||
Difference between carrying amount of dividends payable and carrying amount of non-cash assets distributed | 3,409,000,000 | ||||||||||||||||
Difference between carrying amount of dividends payable and carrying amount of non-cash assets distributed, Net | 4,691,000,000 | $ 4,691,000,000 | $ 4,691,000,000 | ||||||||||||||
Discontinued operations | Alcon [member] | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Repayment of intercompany balances | 3,100,000,000 | ||||||||||||||||
Other borrowings | $ 3,200,000,000 | ||||||||||||||||
Dividend in kind distribution liability | $ 26,400,000,000 | ||||||||||||||||
Borrowings | 3,500,000,000 | ||||||||||||||||
Decrease of distribution liability | $ 3,000,000,000 | ||||||||||||||||
Net assets liabilities | 23,100,000,000 | ||||||||||||||||
Financial assets, at fair value | $ 1,300,000,000 | ||||||||||||||||
Additional borrowings | 300,000,000 | ||||||||||||||||
Percentage of equity interest shares received | 4.70% | ||||||||||||||||
Discontinued operations | Alcon [member] | Borrowings, USD [member] | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Other borrowings | 2,800,000,000 | ||||||||||||||||
Discontinued operations | Alcon [member] | Borrowings, EUR [member] | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Other borrowings | $ 400,000,000 | ||||||||||||||||
Discontinued operations | Alcon [member] | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Detailed information about significant transaction | On June 29, 2018, Novartis announced its intention to seek shareholder approval for the spin-off of the Alcon business into a separately traded standalone company, following the complete structural separation of the Alcon business into a standalone company (the Alcon business or Alcon Inc.). The Novartis AG shareholders approved the spin-off of the Alcon business at the 2019 Annual General Meeting held on February 28, 2019, subject to completion of certain conditions precedent to the distribution. Upon shareholder approval, the Alcon business was reported as discontinued operations, and the fair value of the Alcon business exceeded the carrying value of its net assets. The conditions precedent to the spin-off were met and on April 8, 2019 the spin-off of the Alcon business was effected by way of a distribution of a dividend in kind of Alcon Inc. shares to Novartis AG shareholders and ADR (American Depositary Receipt) holders (the Distribution), which amounted to USD 23.4 billion and is recognized as a reduction to retained earnings. Through the Distribution, each Novartis AG shareholder received one Alcon Inc. share for every five Novartis AG shares/ADRs they held on April 8, 2019, close of business. As of April 9, 2019, the shares of Alcon Inc. are listed on the SIX Swiss Exchange (SIX) and on the New York Stock Exchange (NYSE) under the symbol “ALC.” The dividend in kind distribution liability to effect the spin-off of the Alcon business (the distribution liability) amounted to USD 26.4 billion at March 31, 2019, unchanged from its initial recognition on February 28, 2019, and was in excess of the carrying value of the Alcon business net assets as of February 28, 2019, and as of March 31, 2019. The net assets of the Alcon business amounted to USD 23.1 billion as at March 31, 2019. On March 6, 2019, Alcon entered into financing arrangements with a syndicate of banks under which it borrowed on April 2, 2019, a total amount of USD 3.2 billion. These borrowings consisted of approximately USD 2.8 billion and the equivalent of USD 0.4 billion in EUR in bridge and other term loans under such Alcon facilities agreement. In addition, approximately USD 0.3 billion of borrowings under a number of local bilateral facilities in different countries, with the largest share of borrowings in Japan, were raised. This resulted in a total gross debt of USD 3.5 billion. These outstanding borrowings of the Alcon legal entities were recorded in the balance sheet and financing cash flow from discontinued operations. Prior to the spin-off, through a series of intercompany transactions, Alcon legal entities paid approximately USD 3.1 billion in cash to Novartis and its affiliates. At the April 8, 2019 Distribution, the fair value of the distribution liability of the Alcon business amounted to USD 23.4 billion, a decrease of USD 3.0 billion from March 31, 2019. As mentioned above, prior to the spin-off, through a series of intercompany transactions, Alcon legal entities incurred additional net financial debt and paid approximately USD 3.1 billion in cash to Novartis and its affiliates. This additional net debt and transactions resulted in a decrease in Alcon’s net assets to USD 20.0 billion at the date of the Distribution of the dividend in kind to Novartis AG shareholders on April 8, 2019. The distribution liability at April 8, 2019, remained in excess of the then-carrying value of the Alcon business net assets. Certain consolidated foundations own Novartis AG dividend-bearing shares restricting their availability for use by the Group. These Novartis AG shares are accounted for as treasury shares. Through the Distribution, these foundations received Alcon Inc. shares representing an approximate 4.7% equity interest in Alcon Inc. Upon the loss of control of Alcon Inc. through the Distribution, the financial investment in Alcon Inc. was recognized at its fair value based on the opening traded share price of Alcon Inc. on April 9, 2019 (a Level 1 hierarchy valuation). At initial recognition, its fair value of USD 1.3 billion was reported on the Group’s consolidated balance sheet as a financial asset. Management has designated this investment at fair value through other comprehensive income. The total non-taxable, non-cash gain recognized at the distribution date of the spin-off of the Alcon business amounted to USD 4.7 billion consisting of: For additional disclosure on discontinued operations, refer to Note 10. | ||||||||||||||||
Discontinued operations | PowerVision, Inc. | Alcon [member] | |||||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||||
Consideration transferred, acquisition-date fair value | 424,000,000 | ||||||||||||||||
Portion of consideration paid (received) consisting of cash and cash equivalents | (289,000,000) | ||||||||||||||||
Contingent liabilities recognised as of acquisition date | 135,000,000 | ||||||||||||||||
Identifiable assets acquired (liabilities assumed) | 418,000,000 | ||||||||||||||||
Additional recognition, goodwill | 6,000,000 | ||||||||||||||||
Other net assets | 6,000,000 | ||||||||||||||||
Deferred tax liability (asset) | 93,000,000 | ||||||||||||||||
Intangible assets other than goodwill | $ 505,000,000 |
Significant transactions (Det_2
Significant transactions (Details 2) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets of disposal group classified as held for sale [abstract] | ||
Property, plant and equipment | $ 11,955 | $ 12,069 |
Intangible assets other than goodwill | 36,669 | 28,787 |
Deferred tax assets | 8,601 | 7,909 |
Other non-current assets | 866 | 738 |
Inventories | 6,904 | 5,982 |
Other current assets | 2,733 | 2,680 |
Assets of disposal group held for sale | 841 | |
Liabilities of disposal group classified as held for sale [abstract] | ||
Deferred tax liabilities | 7,499 | 5,867 |
Provisions and other non-current liabilities | 7,344 | 6,632 |
Provisions and other current liabilities | $ 12,858 | 13,338 |
Liabilities of disposal group held for sale | 31 | |
Assets and liabilities classified as held for sale [member] | ||
Assets of disposal group classified as held for sale [abstract] | ||
Property, plant and equipment | 169 | |
Intangible assets other than goodwill | 475 | |
Deferred tax assets | 11 | |
Other non-current assets | 2 | |
Inventories | 181 | |
Other current assets | 3 | |
Assets of disposal group held for sale | 841 | |
Liabilities of disposal group classified as held for sale [abstract] | ||
Deferred tax liabilities | 2 | |
Provisions and other non-current liabilities | 4 | |
Provisions and other current liabilities | 25 | |
Liabilities of disposal group held for sale | $ 31 |
Significant transactions (Det_3
Significant transactions (Details 3) - USD ($) $ in Millions | Apr. 08, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 |
Disclosure of detailed information about business combination [line items] | ||||
Cumulative currency translation gains/losses recycled through income statement | $ 123 | $ 123 | ||
Gain on distribution | 4,691 | 4,691 | ||
Discontinued operations | ||||
Disclosure of detailed information about business combination [line items] | ||||
Net assets derecognized | $ (20,025) | |||
Derecognition of distribution liability | 23,434 | |||
Difference between net assets and distribution liability | 3,409 | |||
Distribution of dividend to dividend bearing shares | 1,273 | |||
Cumulative currency translation gains/losses recycled through income statement | 123 | |||
Transaction costs recognized in the consolidated income statement | (114) | |||
Gain on distribution | $ 4,691 | $ 4,691 | $ 4,691 | |
Alcon | Discontinued operations | ||||
Disclosure of detailed information about business combination [line items] | ||||
Derecognition of distribution liability | $ 26,400 |
Summary of equity attributabl_3
Summary of equity attributable to Novartis AG shareholders (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Disclosure of classes of share capital [line items] | |||||
Equity at beginning of period | $ 50,977 | $ 47,307 | $ 55,551 | ||
Exercise of options and employee transactions, equity impact | 823 | $ 200 | |||
Equity-based compensation, equity impact | 203 | 175 | 365 | 447 | |
Shares delivered to divested business employees, equity impact | 8 | 32 | 29 | 32 | |
Taxes on treasury shares | (185) | [1] | 30 | (185) | |
Increase of treasury share repurchase obligation under a share buyback trading plan | (2,573) | (2,289) | |||
Dividends | (6,987) | (6,645) | |||
Dividend in kind | 2,927 | (23,434) | |||
Net income | 1,867 | 6,800 | 4,040 | 8,567 | |
Other comprehensive income | 835 | 90 | 175 | (667) | |
Transaction costs recorded in equity | (301) | [2] | (253) | ||
Impact of change in ownership of consolidated entities | (5) | (5) | |||
Other movements | 4 | 7 | 9 | 13 | |
Equity at end of period | 53,885 | 51,504 | $ 53,885 | 51,504 | |
Previously stated [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Equity at beginning of period | 78,692 | ||||
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Equity at beginning of period | 3 | ||||
Restated Value Adjustments [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Equity at beginning of period | $ 78,695 | ||||
Equity attributable to owners of parent [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Number of shares outstanding at beginning of period | 2,265 | 2,311.2 | |||
Equity at beginning of period | 50,903 | 47,229 | $ 55,474 | ||
Shares acquired to be cancelled | (32.8) | ||||
Shares acquired for cancellation, equity impact | $ (2,819) | ||||
Other share purchases | (1.6) | (1.6) | |||
Other share purchases, equity impact | $ (150) | $ (153) | |||
Exercise of options and employee transactions shares | 14.7 | 5.5 | |||
Exercise of options and employee transactions, equity impact | $ 823 | $ 200 | |||
Equity based compensation shares | 10.6 | 9.5 | |||
Equity-based compensation, equity impact | 203 | 175 | $ 365 | $ 447 | |
Shares delivered to divested business employees | 0.3 | ||||
Shares delivered to divested business employees, equity impact | 8 | 32 | $ 29 | 32 | |
Taxes on treasury shares | (185) | [1] | 30 | (185) | |
Increase of treasury share repurchase obligation under a share buyback trading plan | (2,573) | (2,289) | |||
Dividends | (6,987) | (6,645) | |||
Dividend in kind | 2,927 | (23,434) | |||
Net income | 1,867 | 6,799 | 4,043 | 8,565 | |
Other comprehensive income | 836 | 89 | 176 | (667) | |
Transaction costs recorded in equity | (301) | [2] | (253) | ||
Impact of change in ownership of consolidated entities | (3) | (3) | |||
Other movements | $ 4 | $ 7 | $ 9 | $ 13 | |
Number of shares outstanding at end of period | 2,289 | 2,291.8 | 2,289 | 2,291.8 | |
Equity at end of period | $ 53,812 | $ 51,426 | $ 53,812 | $ 51,426 | |
Equity attributable to owners of parent [member] | Previously stated [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Equity at beginning of period | 78,614 | ||||
Equity attributable to owners of parent [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Equity at beginning of period | 3 | ||||
Equity attributable to owners of parent [member] | Restated Value Adjustments [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Equity at beginning of period | $ 78,617 | ||||
[1] | Included in Q2 2019 is a USD 69 million impact related to the revaluation of deferred tax liability on treasury shares that are recognized through retained earnings. This revaluation resulted from the Swiss Federal tax reform enacted in May 2019, effective January 1, 2020. | ||||
[2] | Transaction costs directly attributable to the distribution (spin-off) of the Alcon business to Novartis AG shareholders. |
Financial instruments (Details)
Financial instruments (Details) - Recurring fair value measurement [member] - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Marketable securities, time deposits and derivative financial instruments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | $ 193 | $ 163 |
Marketable securities, time deposits and derivative financial instruments [member] | Debt securities | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 24 | 24 |
Marketable securities, time deposits and derivative financial instruments [member] | Fund investments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 33 | 37 |
Marketable securities, time deposits and derivative financial instruments [member] | Total available-for-sale marketable securities [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 57 | 61 |
Marketable securities, time deposits and derivative financial instruments [member] | Derivative financial instruments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 136 | 102 |
Associated companies at fair value through profit and loss [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 175 | 186 |
Long term financial investments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 2,122 | 2,189 |
Long term financial investments [member] | Fund investments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 235 | 233 |
Long term financial investments [member] | Available-for-sale financial investments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 1,443 | 1,557 |
Long term financial investments [member] | Contingent consideration receivables [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 444 | 399 |
Level 1 of fair value hierarchy [member] | Marketable securities, time deposits and derivative financial instruments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 33 | 37 |
Level 1 of fair value hierarchy [member] | Marketable securities, time deposits and derivative financial instruments [member] | Fund investments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 33 | 37 |
Level 1 of fair value hierarchy [member] | Marketable securities, time deposits and derivative financial instruments [member] | Total available-for-sale marketable securities [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 33 | 37 |
Level 1 of fair value hierarchy [member] | Long term financial investments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 904 | 976 |
Level 1 of fair value hierarchy [member] | Long term financial investments [member] | Available-for-sale financial investments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 904 | 976 |
Level 2 of fair value hierarchy [member] | Marketable securities, time deposits and derivative financial instruments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 160 | 126 |
Level 2 of fair value hierarchy [member] | Marketable securities, time deposits and derivative financial instruments [member] | Debt securities | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 24 | 24 |
Level 2 of fair value hierarchy [member] | Marketable securities, time deposits and derivative financial instruments [member] | Total available-for-sale marketable securities [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 24 | 24 |
Level 2 of fair value hierarchy [member] | Marketable securities, time deposits and derivative financial instruments [member] | Derivative financial instruments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 136 | 102 |
Level 3 of fair value hierarchy [member] | Associated companies at fair value through profit and loss [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 175 | 186 |
Level 3 of fair value hierarchy [member] | Long term financial investments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 1,218 | 1,213 |
Level 3 of fair value hierarchy [member] | Long term financial investments [member] | Fund investments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 235 | 233 |
Level 3 of fair value hierarchy [member] | Long term financial investments [member] | Available-for-sale financial investments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | 539 | 581 |
Level 3 of fair value hierarchy [member] | Long term financial investments [member] | Contingent consideration receivables [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets, at fair value | $ 444 | $ 399 |
Financial instruments (Details
Financial instruments (Details 2) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | $ (27,700) | $ (23,700) |
Recurring fair value measurement [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | (1,185) | (1,250) |
Recurring fair value measurement [member] | Contingent consideration payables [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | (1,039) | (1,036) |
Recurring fair value measurement [member] | Other financial liabilities [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | (20) | (29) |
Recurring fair value measurement [member] | Derivative financial instruments [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | (126) | (185) |
Recurring fair value measurement [member] | Level 2 of fair value hierarchy [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | (126) | (185) |
Recurring fair value measurement [member] | Level 2 of fair value hierarchy [member] | Derivative financial instruments [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | (126) | (185) |
Recurring fair value measurement [member] | Level 3 of fair value hierarchy [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | (1,059) | (1,065) |
Recurring fair value measurement [member] | Level 3 of fair value hierarchy [member] | Contingent consideration payables [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | (1,039) | (1,036) |
Recurring fair value measurement [member] | Level 3 of fair value hierarchy [member] | Other financial liabilities [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | $ (20) | $ (29) |
Financial instruments (Detail_2
Financial instruments (Details 3) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | ||
Transfers out of Level 3 of fair value hierarchy, assets | $ 26 | |
Financial liabilities, at fair value | 27,700 | $ 23,700 |
Financial liabilities | 25,200 | $ 22,200 |
Alcon [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Gain (loss) on sale of other financial assets | 16 | |
Fair value of other financial assets sold | $ 287 |
Financial instruments (Detail_3
Financial instruments (Details 4) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Novartis Capital Corporation, New York, United States, 1.75%, 2025 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Borrowings, coupon | 1.75% |
Borrowings, original currency | USD |
Notional amount | $ 1,000 |
Borrowings, maturity year | 2025 |
Borrowings, issuer | Novartis Capital Corporation, New York, United States |
Borrowings, issue price | 99.852% |
Straight bonds | $ 996 |
Novartis Capital Corporation, New York, United States, 2.00%, 2027 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Borrowings, coupon | 2.00% |
Borrowings, original currency | USD |
Notional amount | $ 1,250 |
Borrowings, maturity year | 2027 |
Borrowings, issuer | Novartis Capital Corporation, New York, United States |
Borrowings, issue price | 99.909% |
Straight bonds | $ 1,245 |
Novartis Capital Corporation, New York, United States, 2.20%, 2030 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Borrowings, coupon | 2.20% |
Borrowings, original currency | USD |
Notional amount | $ 1,500 |
Borrowings, maturity year | 2030 |
Borrowings, issuer | Novartis Capital Corporation, New York, United States |
Borrowings, issue price | 99.869% |
Straight bonds | $ 1,492 |
Novartis Capital Corporation, New York, United States, 2.75%, 2050 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Borrowings, coupon | 2.75% |
Borrowings, original currency | USD |
Notional amount | $ 1,250 |
Borrowings, maturity year | 2050 |
Borrowings, issuer | Novartis Capital Corporation, New York, United States |
Borrowings, issue price | 97.712% |
Straight bonds | $ 1,213 |
Details to the consolidated s_3
Details to the consolidated statements of cash flows (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Depreciation, amortisation and impairment loss (reversal of impairment loss) recognised in profit or loss [abstract] | ||||
Non-cash change in provisions and other non-current liabilities | $ 118 | $ 958 | $ 838 | $ 1,018 |
Gains on disposal and other adjustments on property, plant and equipment; intangible assets;financial assets; and other non-current assets, net | 6 | (615) | (55) | (684) |
Equity-settled compensation expense | 199 | 174 | 377 | 372 |
Income from associated companies | (183) | (176) | (306) | (256) |
Taxes | 421 | 525 | 869 | 797 |
Net financial expense | 247 | 205 | 493 | 387 |
Total | 2,345 | 2,085 | 5,202 | 4,101 |
Property, plant and equipment | ||||
Depreciation, amortisation and impairment loss (reversal of impairment loss) recognised in profit or loss [abstract] | ||||
Adjustments for depreciation and amortisation expense and impairment loss (reversal of impairment loss) recognised in profit or loss | 319 | 371 | 700 | 719 |
Right-of-use assets [member] | ||||
Depreciation, amortisation and impairment loss (reversal of impairment loss) recognised in profit or loss [abstract] | ||||
Adjustments for depreciation and amortisation expense and impairment loss (reversal of impairment loss) recognised in profit or loss | 78 | 74 | 154 | 149 |
Intangible assets | ||||
Depreciation, amortisation and impairment loss (reversal of impairment loss) recognised in profit or loss [abstract] | ||||
Adjustments for depreciation and amortisation expense and impairment loss (reversal of impairment loss) recognised in profit or loss | 1,306 | 601 | 2,259 | 1,619 |
Financial assets impaired [member] | ||||
Depreciation, amortisation and impairment loss (reversal of impairment loss) recognised in profit or loss [abstract] | ||||
Adjustments for depreciation and amortisation expense and impairment loss (reversal of impairment loss) recognised in profit or loss | $ (166) | $ (32) | $ (127) | $ (20) |
Details to the consolidated s_4
Details to the consolidated statements of cash flows (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement [line items] | ||||
Income taxes paid (refund) | $ 391 | $ 560 | $ 987 | $ 998 |
Income taxes paid (refund), classified as operating activities | 303 | 560 | 899 | 960 |
Continuing operations | ||||
Statement [line items] | ||||
Income taxes paid (refund), classified as operating activities | 303 | 560 | 899 | 960 |
Discontinued operations | ||||
Statement [line items] | ||||
Income taxes paid (refund), classified as investing activities | $ 88 | $ 88 | ||
Income taxes paid (refund), classified as operating activities | $ 0 | $ 38 |
Details to the consolidated s_5
Details to the consolidated statements of cash flows (Details 3) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement [line items] | ||||
Net cash flows | $ 0 | $ (286) | $ (9,901) | $ (382) |
Acquisitions | ||||
Statement [line items] | ||||
Net assets recognized as a result of business combinations | (32) | (407) | (10,030) | (486) |
Fair value of previously held equity interests | 34 | 34 | ||
Receivables and payables contingent consideration, net | 17 | 88 | 77 | 88 |
Payments, deferred consideration and other adjustments, net | 13 | (3) | 65 | (3) |
Net cash flows | (2) | (288) | (9,888) | (367) |
Divestments | ||||
Statement [line items] | ||||
Net cash flows | $ 2 | $ 2 | (13) | (15) |
Net cash outflows from divestments | 15 | $ 15 | ||
Prepaid sales price for a business divestment | $ 2 |
Acquisition of businesses (Deta
Acquisition of businesses (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [line items] | ||
Property, plant and equipment | $ 26 | $ 44 |
Right-of-use assets | 32 | |
Currently marketed products | 269 | |
Acquired research and development | 8,602 | 449 |
Deferred tax assets | 470 | 20 |
Financial and other assets | 49 | |
Inventories | 84 | 6 |
Trade receivables and other current assets | 109 | 4 |
Cash and cash equivalents | 76 | |
Deferred tax liabilities | (1,928) | (101) |
Current and non-current financial debts | (32) | (2) |
Current and non-current lease liabilities | (44) | |
Trade payables and other liabilities | (144) | (9) |
Net identifiable assets acquired | 7,569 | 411 |
Acquired cash and cash equivalents | (76) | |
Goodwill | 2,537 | 75 |
Net assets recognized as a result of business combinations | 10,030 | 486 |
Goodwill expected to be deductible for tax purposes | $ 59 | $ 0 |
Provisions and other non-curren
Provisions and other non-current liabilities (Details) - Legal proceedings provision [member] - USD ($) $ in Millions | Jul. 20, 2020 | Jun. 30, 2020 |
Disclosure of other provisions [line items] | ||
Amount of settlement in principle | $ 300 | |
Product liability, government investigations, other legal matters provisions | 100 | |
Product liability, government investigations, other legal matters provisions, payments | $ 100 | |
US | Sandoz [member] | ||
Disclosure of other provisions [line items] | ||
Product liability, government investigations, other legal matters provisions | 186 | |
Amount of settlement in principle | 195 | |
US | NPC and others [member] | ||
Disclosure of other provisions [line items] | ||
Amount of settlement in principle | 700 | |
Product liability, government investigations, other legal matters provisions | $ 700 | |
Product liability, government investigations, other legal matters provisions, payments | $ 600 |
Segmentation of key figures (De
Segmentation of key figures (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure of operating segments [line items] | |
Number of Reportable Segments | 2 |
Innovative Medicines | |
Disclosure of operating segments [line items] | |
Number of Business Units | 2 |
Sandoz | |
Disclosure of operating segments [line items] | |
Number of Franchises | 3 |
Segmentation of key figures (_2
Segmentation of key figures (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 11,347 | $ 11,764 | $ 23,630 | $ 22,870 |
Sales to continuing and discontinued segments | 53 | |||
Net sales from continuing operations | 11,347 | 11,764 | 23,630 | 22,923 |
Other revenues | 275 | 260 | 700 | 556 |
Cost of goods sold | (3,429) | (3,406) | (7,151) | (6,657) |
Gross profit from continuing operations | 8,193 | 8,618 | 17,179 | 16,822 |
Selling, general and administration | (3,368) | (3,585) | (6,854) | (6,915) |
Research and Development | (2,441) | (2,051) | (4,501) | (4,350) |
Other income | 432 | 989 | 693 | 1,192 |
Other expense | (464) | (1,308) | (1,421) | (1,844) |
Operating income from continuing operations | $ 2,352 | $ 2,663 | $ 5,096 | $ 4,905 |
Profit (loss) from operating activities, as a percentage from net sales | 20.70% | 22.60% | 21.60% | 21.40% |
Income from associated companies | $ 183 | $ 176 | $ 306 | $ 256 |
Interest expense | (220) | (205) | (459) | (431) |
Other financial income and expense | (27) | 0 | (34) | 44 |
Income before taxes from continuing operations | 2,288 | 2,634 | 4,909 | 4,774 |
Taxes | (421) | (525) | (869) | (797) |
Net income from continuing operations | 1,867 | 2,109 | 4,040 | 3,977 |
Net income/loss from discontinued operations before gain on distribution | (101) | |||
Gain on distribution | 4,691 | 4,691 | ||
Net income/loss from discontinued operations | 4,691 | 4,590 | ||
Net income | 1,867 | 6,800 | 4,040 | 8,567 |
Innovative Medicines | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | 9,188 | 9,326 | 18,943 | 18,106 |
Sales to continuing and discontinued segments | 219 | 177 | 409 | 426 |
Net sales from continuing operations | 9,407 | 9,503 | 19,352 | 18,532 |
Other revenues | 251 | 250 | 507 | 511 |
Cost of goods sold | (2,554) | (2,327) | (5,080) | (4,551) |
Gross profit from continuing operations | 7,104 | 7,426 | 14,779 | 14,492 |
Selling, general and administration | (2,764) | (2,911) | (5,621) | (5,564) |
Research and Development | (2,240) | (1,853) | (4,106) | (3,958) |
Other income | 154 | 847 | 326 | 922 |
Other expense | (221) | (945) | (590) | (1,219) |
Operating income from continuing operations | $ 2,033 | $ 2,564 | $ 4,788 | $ 4,673 |
Profit (loss) from operating activities, as a percentage from net sales | 22.10% | 27.50% | 25.30% | 25.80% |
Income from associated companies | $ 1 | $ 1 | $ 1 | $ 1 |
Sandoz | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | 2,159 | 2,438 | 4,687 | 4,764 |
Sales to continuing and discontinued segments | 43 | 37 | 92 | 76 |
Net sales from continuing operations | 2,202 | 2,475 | 4,779 | 4,840 |
Other revenues | 22 | 6 | 35 | 34 |
Cost of goods sold | (1,158) | (1,315) | (2,614) | (2,591) |
Gross profit from continuing operations | 1,066 | 1,166 | 2,200 | 2,283 |
Selling, general and administration | (496) | (550) | (1,016) | (1,112) |
Research and Development | (201) | (198) | (395) | (392) |
Other income | 17 | 45 | 49 | 82 |
Other expense | (65) | (181) | (562) | (306) |
Operating income from continuing operations | $ 321 | $ 282 | $ 276 | $ 555 |
Profit (loss) from operating activities, as a percentage from net sales | 14.90% | 11.60% | 5.90% | 11.60% |
Income from associated companies | $ 1 | $ 1 | $ 1 | $ 1 |
Corporate | ||||
Disclosure of operating segments [line items] | ||||
Sales to continuing and discontinued segments | (262) | (214) | (501) | (449) |
Net sales from continuing operations | (262) | (214) | (501) | (449) |
Other revenues | 2 | 4 | 158 | 11 |
Cost of goods sold | 283 | 236 | 543 | 485 |
Gross profit from continuing operations | 23 | 26 | 200 | 47 |
Selling, general and administration | (108) | (124) | (217) | (239) |
Other income | 261 | 97 | 318 | 188 |
Other expense | (178) | (182) | (269) | (319) |
Operating income from continuing operations | (2) | (183) | 32 | (323) |
Income from associated companies | $ 181 | $ 174 | $ 304 | $ 254 |
Segmentation of key figures (_3
Segmentation of key figures (Details 3) - USD ($) $ in Millions | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 |
Disclosure of operating segments [line items] | |||||
Total assets | $ 123,763 | $ 118,370 | |||
Total liabilities | (69,878) | (62,819) | |||
Total equity | 53,885 | $ 50,977 | 55,551 | $ 51,504 | $ 47,307 |
Net debt | 26,537 | 15,938 | |||
Net operating assets | 80,422 | 71,489 | |||
Property, plant and equipment | 11,955 | 12,069 | |||
Goodwill | 29,100 | 26,524 | |||
Intangible assets other than goodwill | 36,669 | 28,787 | |||
Innovative Medicines | |||||
Disclosure of operating segments [line items] | |||||
Total assets | 81,373 | 71,225 | |||
Total liabilities | (14,690) | (15,332) | |||
Net operating assets | 66,683 | 55,893 | |||
Property, plant and equipment | 9,485 | 9,632 | |||
Goodwill | 21,257 | 18,750 | |||
Intangible assets other than goodwill | 34,877 | 27,586 | |||
Sandoz | |||||
Disclosure of operating segments [line items] | |||||
Total assets | 16,229 | 16,468 | |||
Total liabilities | (3,681) | (3,804) | |||
Net operating assets | 12,548 | 12,664 | |||
Property, plant and equipment | 1,943 | 1,888 | |||
Goodwill | 7,835 | 7,767 | |||
Intangible assets other than goodwill | 1,674 | 1,125 | |||
Corporate | |||||
Disclosure of operating segments [line items] | |||||
Total assets | 26,161 | 30,677 | |||
Total liabilities | (51,507) | (43,683) | |||
Net debt | 26,537 | 15,938 | |||
Net operating assets | 1,191 | 2,932 | |||
Property, plant and equipment | 527 | 549 | |||
Goodwill | 8 | 7 | |||
Intangible assets other than goodwill | $ 118 | $ 76 |
Segmentation of key figures (_4
Segmentation of key figures (Details 4) - Accumulated depreciation, amortisation and impairment - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Intangible Assets other than Goodwill | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment charge | $ (500) | $ (22) | $ (551) | $ (478) |
Spinifex | Acquired research and development [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment charge | (416) | |||
ZPL389 [member] | Acquired research and development [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment charge | (485) | (485) | ||
Innovative Medicines | Intangible Assets other than Goodwill | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment charge | (500) | (20) | (509) | (466) |
Sandoz | Intangible Assets other than Goodwill | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Impairment charge | $ 0 | $ (2) | $ (42) | $ (12) |
Segmentation of key figures (_5
Segmentation of key figures (Details 5) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 11,347 | $ 11,764 | $ 23,630 | $ 22,870 |
Net sales (in % of total net sales) | 100.00% | 100.00% | 100.00% | 100.00% |
Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (4.00%) | 3.00% | ||
Net sales, change in %, cc | (1.00%) | 6.00% | ||
Europe [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 4,094 | $ 4,487 | $ 8,924 | $ 8,862 |
Net sales (in % of total net sales) | 36.00% | 38.00% | 38.00% | 39.00% |
Europe [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (9.00%) | 1.00% | ||
Net sales, change in %, cc | (6.00%) | 4.00% | ||
US | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 4,023 | $ 3,978 | $ 8,135 | $ 7,561 |
Net sales (in % of total net sales) | 35.00% | 34.00% | 34.00% | 33.00% |
US | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 1.00% | 8.00% | ||
Net sales, change in %, cc | 1.00% | 8.00% | ||
Asia/Africa/Australasia [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 2,464 | $ 2,439 | $ 4,976 | $ 4,774 |
Net sales (in % of total net sales) | 22.00% | 21.00% | 21.00% | 21.00% |
Asia/Africa/Australasia [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 1.00% | 4.00% | ||
Net sales, change in %, cc | 2.00% | 6.00% | ||
Canada and Latin America [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 766 | $ 860 | $ 1,595 | $ 1,673 |
Net sales (in % of total net sales) | 7.00% | 7.00% | 7.00% | 7.00% |
Canada and Latin America [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (11.00%) | (5.00%) | ||
Net sales, change in %, cc | 5.00% | 9.00% | ||
Established Markets [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 8,530 | $ 8,867 | $ 17,732 | $ 17,129 |
Net sales (in % of total net sales) | 75.00% | 75.00% | 75.00% | 75.00% |
Established Markets [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (4.00%) | 4.00% | ||
Net sales, change in %, cc | (3.00%) | 5.00% | ||
Emerging Growth Markets [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 2,817 | $ 2,897 | $ 5,898 | $ 5,741 |
Net sales (in % of total net sales) | 25.00% | 25.00% | 25.00% | 25.00% |
Emerging Growth Markets [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (3.00%) | 3.00% | ||
Net sales, change in %, cc | 5.00% | 9.00% | ||
Innovative Medicines | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 9,188 | $ 9,326 | $ 18,943 | $ 18,106 |
Net sales (in % of total net sales) | 100.00% | 100.00% | 100.00% | 100.00% |
Innovative Medicines | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (1.00%) | 5.00% | ||
Net sales, change in %, cc | 1.00% | 7.00% | ||
Innovative Medicines | Europe [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 2,964 | $ 3,218 | $ 6,366 | $ 6,352 |
Net sales (in % of total net sales) | 32.00% | 35.00% | 34.00% | 35.00% |
Innovative Medicines | Europe [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (8.00%) | 0.00% | ||
Net sales, change in %, cc | (5.00%) | 3.00% | ||
Innovative Medicines | US | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 3,515 | $ 3,336 | $ 7,057 | $ 6,329 |
Net sales (in % of total net sales) | 38.00% | 36.00% | 37.00% | 35.00% |
Innovative Medicines | US | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 5.00% | 12.00% | ||
Net sales, change in %, cc | 5.00% | 12.00% | ||
Innovative Medicines | Asia/Africa/Australasia [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 2,123 | $ 2,106 | $ 4,301 | $ 4,123 |
Net sales (in % of total net sales) | 23.00% | 23.00% | 23.00% | 23.00% |
Innovative Medicines | Asia/Africa/Australasia [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 1.00% | 4.00% | ||
Net sales, change in %, cc | 2.00% | 6.00% | ||
Innovative Medicines | Canada and Latin America [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 586 | $ 666 | $ 1,219 | $ 1,302 |
Net sales (in % of total net sales) | 7.00% | 6.00% | 6.00% | 7.00% |
Innovative Medicines | Canada and Latin America [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (12.00%) | (6.00%) | ||
Net sales, change in %, cc | 5.00% | 8.00% | ||
Innovative Medicines | Established Markets [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 6,909 | $ 7,071 | $ 14,266 | $ 13,638 |
Net sales (in % of total net sales) | 75.00% | 76.00% | 75.00% | 75.00% |
Innovative Medicines | Established Markets [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (2.00%) | 5.00% | ||
Net sales, change in %, cc | (2.00%) | 6.00% | ||
Innovative Medicines | Emerging Growth Markets [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 2,279 | $ 2,255 | $ 4,677 | $ 4,468 |
Net sales (in % of total net sales) | 25.00% | 24.00% | 25.00% | 25.00% |
Innovative Medicines | Emerging Growth Markets [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 1.00% | 5.00% | ||
Net sales, change in %, cc | 9.00% | 11.00% | ||
Sandoz | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 2,159 | $ 2,438 | $ 4,687 | $ 4,764 |
Net sales (in % of total net sales) | 100.00% | 100.00% | 100.00% | 100.00% |
Sandoz | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (11.00%) | (2.00%) | ||
Net sales, change in %, cc | (9.00%) | 1.00% | ||
Sandoz | Europe [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 1,130 | $ 1,269 | $ 2,558 | $ 2,510 |
Net sales (in % of total net sales) | 52.00% | 52.00% | 55.00% | 53.00% |
Sandoz | Europe [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (11.00%) | 2.00% | ||
Net sales, change in %, cc | (8.00%) | 5.00% | ||
Sandoz | US | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 508 | $ 642 | $ 1,078 | $ 1,232 |
Net sales (in % of total net sales) | 24.00% | 26.00% | 23.00% | 26.00% |
Sandoz | US | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (21.00%) | (12.00%) | ||
Net sales, change in %, cc | (21.00%) | (12.00%) | ||
Sandoz | Asia/Africa/Australasia [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 341 | $ 333 | $ 675 | $ 651 |
Net sales (in % of total net sales) | 16.00% | 14.00% | 14.00% | 14.00% |
Sandoz | Asia/Africa/Australasia [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 2.00% | 4.00% | ||
Net sales, change in %, cc | 4.00% | 5.00% | ||
Sandoz | Canada and Latin America [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 180 | $ 194 | $ 376 | $ 371 |
Net sales (in % of total net sales) | 8.00% | 8.00% | 8.00% | 7.00% |
Sandoz | Canada and Latin America [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (7.00%) | 1.00% | ||
Net sales, change in %, cc | 5.00% | 12.00% | ||
Sandoz | Established Markets [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 1,621 | $ 1,796 | $ 3,466 | $ 3,491 |
Net sales (in % of total net sales) | 75.00% | 74.00% | 74.00% | 73.00% |
Sandoz | Established Markets [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (10.00%) | (1.00%) | ||
Net sales, change in %, cc | (9.00%) | 1.00% | ||
Sandoz | Emerging Growth Markets [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 538 | $ 642 | $ 1,221 | $ 1,273 |
Net sales (in % of total net sales) | 25.00% | 26.00% | 26.00% | 27.00% |
Sandoz | Emerging Growth Markets [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (16.00%) | (4.00%) | ||
Net sales, change in %, cc | (9.00%) | 2.00% |
Segmentation of key figures (_6
Segmentation of key figures (Details 6) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 11,347 | $ 11,764 | $ 23,630 | $ 22,870 |
Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (4.00%) | 3.00% | ||
Net sales, change in %, cc | (1.00%) | 6.00% | ||
Innovative Medicines | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 9,188 | 9,326 | $ 18,943 | 18,106 |
Innovative Medicines | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (1.00%) | 5.00% | ||
Net sales, change in %, cc | 1.00% | 7.00% | ||
Innovative Medicines | Oncology [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 3,548 | 3,606 | $ 7,196 | 6,927 |
Innovative Medicines | Oncology [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (2.00%) | 4.00% | ||
Net sales, change in %, cc | 1.00% | 6.00% | ||
Innovative Medicines | Oncology [member] | Tasigna [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 480 | 468 | $ 967 | 902 |
Innovative Medicines | Oncology [member] | Tasigna [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 3.00% | 7.00% | ||
Net sales, change in %, cc | 5.00% | 9.00% | ||
Innovative Medicines | Oncology [member] | Sandostatin [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 341 | 403 | $ 715 | 795 |
Innovative Medicines | Oncology [member] | Sandostatin [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (15.00%) | (10.00%) | ||
Net sales, change in %, cc | (13.00%) | (8.00%) | ||
Innovative Medicines | Oncology [member] | Afinitor/Votubia [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 266 | 401 | $ 562 | 774 |
Innovative Medicines | Oncology [member] | Afinitor/Votubia [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (34.00%) | (27.00%) | ||
Net sales, change in %, cc | (33.00%) | (26.00%) | ||
Innovative Medicines | Oncology [member] | Promacta/Revolade [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 422 | 349 | $ 825 | 656 |
Innovative Medicines | Oncology [member] | Promacta/Revolade [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 21.00% | 26.00% | ||
Net sales, change in %, cc | 23.00% | 28.00% | ||
Innovative Medicines | Oncology [member] | Tafinlar + Mekinist [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 371 | 340 | $ 737 | 637 |
Innovative Medicines | Oncology [member] | Tafinlar + Mekinist [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 9.00% | 16.00% | ||
Net sales, change in %, cc | 12.00% | 19.00% | ||
Innovative Medicines | Oncology [member] | Gleevec/Glivec [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 288 | 323 | $ 617 | 630 |
Innovative Medicines | Oncology [member] | Gleevec/Glivec [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (11.00%) | (2.00%) | ||
Net sales, change in %, cc | (8.00%) | 0.00% | ||
Innovative Medicines | Oncology [member] | Jakavi [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 310 | 284 | $ 628 | 542 |
Innovative Medicines | Oncology [member] | Jakavi [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 9.00% | 16.00% | ||
Net sales, change in %, cc | 14.00% | 20.00% | ||
Innovative Medicines | Oncology [member] | Exjade/Jadenu [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 163 | 253 | $ 335 | 491 |
Innovative Medicines | Oncology [member] | Exjade/Jadenu [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (36.00%) | (32.00%) | ||
Net sales, change in %, cc | (35.00%) | (31.00%) | ||
Innovative Medicines | Oncology [member] | Votrient [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 162 | 193 | $ 328 | 380 |
Innovative Medicines | Oncology [member] | Votrient [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (16.00%) | (14.00%) | ||
Net sales, change in %, cc | (14.00%) | (12.00%) | ||
Innovative Medicines | Oncology [member] | Kisqali [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 159 | 111 | $ 320 | 202 |
Innovative Medicines | Oncology [member] | Kisqali [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 43.00% | 58.00% | ||
Net sales, change in %, cc | 49.00% | 64.00% | ||
Innovative Medicines | Oncology [member] | Lutathera [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 105 | 109 | $ 217 | 215 |
Innovative Medicines | Oncology [member] | Lutathera [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (4.00%) | 1.00% | ||
Net sales, change in %, cc | (3.00%) | 1.00% | ||
Innovative Medicines | Oncology [member] | Kymriah [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 118 | 58 | $ 211 | 103 |
Innovative Medicines | Oncology [member] | Kymriah [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 103.00% | 105.00% | ||
Net sales, change in %, cc | 103.00% | 106.00% | ||
Innovative Medicines | Oncology [member] | Piqray [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 79 | 6 | $ 153 | 6 |
Innovative Medicines | Oncology [member] | Adakveo [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | 21 | 36 | ||
Innovative Medicines | Oncology [member] | Other [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 263 | 308 | $ 545 | 594 |
Innovative Medicines | Oncology [member] | Other [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (15.00%) | (8.00%) | ||
Net sales, change in %, cc | (13.00%) | (6.00%) | ||
Innovative Medicines | Pharmaceutical [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 5,640 | 5,720 | $ 11,747 | 11,179 |
Innovative Medicines | Pharmaceutical [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (1.00%) | 5.00% | ||
Net sales, change in %, cc | 1.00% | 8.00% | ||
Innovative Medicines | Pharmaceutical [member] | Ophthalmology [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 937 | 1,174 | $ 2,133 | 2,335 |
Innovative Medicines | Pharmaceutical [member] | Ophthalmology [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (20.00%) | (9.00%) | ||
Net sales, change in %, cc | (18.00%) | (7.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Ophthalmology [member] | Lucentis [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 401 | 536 | $ 888 | 1,069 |
Innovative Medicines | Pharmaceutical [member] | Ophthalmology [member] | Lucentis [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (25.00%) | (17.00%) | ||
Net sales, change in %, cc | (24.00%) | (15.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Ophthalmology [member] | Xiidra [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 79 | $ 169 | ||
Innovative Medicines | Pharmaceutical [member] | Ophthalmology [member] | Beovu [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | 34 | 102 | ||
Innovative Medicines | Pharmaceutical [member] | Ophthalmology [member] | Other [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 423 | 638 | $ 974 | 1,266 |
Innovative Medicines | Pharmaceutical [member] | Ophthalmology [member] | Other [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (34.00%) | (23.00%) | ||
Net sales, change in %, cc | (32.00%) | (21.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Neuroscience [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 1,025 | 886 | $ 2,045 | 1,683 |
Innovative Medicines | Pharmaceutical [member] | Neuroscience [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 16.00% | 22.00% | ||
Net sales, change in %, cc | 17.00% | 23.00% | ||
Innovative Medicines | Pharmaceutical [member] | Neuroscience [member] | Gilenya [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 738 | 825 | $ 1,510 | 1,591 |
Innovative Medicines | Pharmaceutical [member] | Neuroscience [member] | Gilenya [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (11.00%) | (5.00%) | ||
Net sales, change in %, cc | (9.00%) | (4.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Neuroscience [member] | Zolgensma [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 205 | 15 | $ 375 | 15 |
Innovative Medicines | Pharmaceutical [member] | Neuroscience [member] | Aimovig [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 33 | 24 | $ 69 | 42 |
Innovative Medicines | Pharmaceutical [member] | Neuroscience [member] | Aimovig [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 38.00% | 64.00% | ||
Net sales, change in %, cc | 45.00% | 72.00% | ||
Innovative Medicines | Pharmaceutical [member] | Neuroscience [member] | Mayzent [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 34 | 5 | $ 64 | 5 |
Innovative Medicines | Pharmaceutical [member] | Neuroscience [member] | Other [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 15 | 17 | $ 27 | 30 |
Innovative Medicines | Pharmaceutical [member] | Neuroscience [member] | Other [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (12.00%) | (10.00%) | ||
Net sales, change in %, cc | (26.00%) | (15.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Respiratory [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 444 | 461 | $ 915 | 906 |
Innovative Medicines | Pharmaceutical [member] | Respiratory [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (4.00%) | 1.00% | ||
Net sales, change in %, cc | 0.00% | 5.00% | ||
Innovative Medicines | Pharmaceutical [member] | Respiratory [member] | Ultibro Group [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 149 | 166 | $ 309 | 323 |
Innovative Medicines | Pharmaceutical [member] | Respiratory [member] | Ultibro Group [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (10.00%) | (4.00%) | ||
Net sales, change in %, cc | (7.00%) | (1.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Respiratory [member] | Xolair [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 289 | 290 | $ 596 | 571 |
Innovative Medicines | Pharmaceutical [member] | Respiratory [member] | Xolair [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 0.00% | 4.00% | ||
Net sales, change in %, cc | 4.00% | 8.00% | ||
Innovative Medicines | Pharmaceutical [member] | Respiratory [member] | Other [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 6 | 5 | $ 10 | 12 |
Innovative Medicines | Pharmaceutical [member] | Respiratory [member] | Other [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 20.00% | (17.00%) | ||
Net sales, change in %, cc | (10.00%) | (18.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Cardiovascular, Renal and Metabolism [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 580 | 427 | $ 1,150 | 790 |
Innovative Medicines | Pharmaceutical [member] | Cardiovascular, Renal and Metabolism [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 36.00% | 46.00% | ||
Net sales, change in %, cc | 38.00% | 48.00% | ||
Innovative Medicines | Pharmaceutical [member] | Cardiovascular, Renal and Metabolism [member] | Entresto [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 580 | 421 | $ 1,149 | 778 |
Innovative Medicines | Pharmaceutical [member] | Cardiovascular, Renal and Metabolism [member] | Entresto [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 38.00% | 48.00% | ||
Net sales, change in %, cc | 40.00% | 50.00% | ||
Innovative Medicines | Pharmaceutical [member] | Cardiovascular, Renal and Metabolism [member] | Other [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | 6 | $ 1 | 12 | |
Innovative Medicines | Pharmaceutical [member] | Cardiovascular, Renal and Metabolism [member] | Other [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (92.00%) | |||
Net sales, change in %, cc | (98.00%) | |||
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 1,510 | 1,749 | $ 3,217 | 3,500 |
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (14.00%) | (8.00%) | ||
Net sales, change in %, cc | (9.00%) | (5.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Galvus Group [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 279 | 320 | $ 617 | 635 |
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Galvus Group [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (13.00%) | (3.00%) | ||
Net sales, change in %, cc | (8.00%) | 1.00% | ||
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Diovan Group [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 268 | 283 | $ 542 | 544 |
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Diovan Group [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (5.00%) | 0.00% | ||
Net sales, change in %, cc | 0.00% | 4.00% | ||
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Exforge Group [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 238 | 264 | $ 496 | 531 |
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Exforge Group [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (10.00%) | (7.00%) | ||
Net sales, change in %, cc | (5.00%) | (3.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Zortress/Certican [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 106 | 124 | $ 233 | 240 |
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Zortress/Certican [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (15.00%) | (3.00%) | ||
Net sales, change in %, cc | (12.00%) | 0.00% | ||
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Voltaren/Cataflam [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 82 | 95 | $ 174 | 208 |
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Voltaren/Cataflam [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (14.00%) | (16.00%) | ||
Net sales, change in %, cc | (11.00%) | (15.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Neoral/Sandimmun(e) [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 96 | 110 | $ 197 | 213 |
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Neoral/Sandimmun(e) [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (13.00%) | (8.00%) | ||
Net sales, change in %, cc | (11.00%) | (5.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Other [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 441 | 553 | $ 958 | 1,129 |
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Other [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (20.00%) | (15.00%) | ||
Net sales, change in %, cc | (16.00%) | (12.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 1,144 | 1,023 | $ 2,287 | 1,965 |
Innovative Medicines | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 12.00% | 16.00% | ||
Net sales, change in %, cc | 13.00% | 18.00% | ||
Innovative Medicines | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Cosentyx [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 944 | 858 | $ 1,874 | 1,649 |
Innovative Medicines | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Cosentyx [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 10.00% | 14.00% | ||
Net sales, change in %, cc | 12.00% | 15.00% | ||
Innovative Medicines | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Ilaris [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 200 | $ 165 | $ 413 | $ 316 |
Innovative Medicines | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Ilaris [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 21.00% | 31.00% | ||
Net sales, change in %, cc | 23.00% | 33.00% |
Segmentation of key figures (_7
Segmentation of key figures (Details 7) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 11,347 | $ 11,764 | $ 23,630 | $ 22,870 |
Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (4.00%) | 3.00% | ||
Net sales, change in %, cc | (1.00%) | 6.00% | ||
US | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 4,023 | 3,978 | $ 8,135 | 7,561 |
US | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 1.00% | 8.00% | ||
Net sales, change in %, cc | 1.00% | 8.00% | ||
Innovative Medicines | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 9,188 | 9,326 | $ 18,943 | 18,106 |
Innovative Medicines | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (1.00%) | 5.00% | ||
Net sales, change in %, cc | 1.00% | 7.00% | ||
Innovative Medicines | Top 20 products [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 7,104 | $ 14,494 | ||
Innovative Medicines | Top 20 products [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 0.00% | 6.00% | ||
Net sales, change in %, cc | 2.00% | 8.00% | ||
Innovative Medicines | Rest of portfolio [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 2,084 | $ 4,449 | ||
Innovative Medicines | Rest of portfolio [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (6.00%) | 1.00% | ||
Net sales, change in %, cc | (4.00%) | 4.00% | ||
Innovative Medicines | Oncology [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 3,548 | 3,606 | $ 7,196 | 6,927 |
Innovative Medicines | Oncology [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (2.00%) | 4.00% | ||
Net sales, change in %, cc | 1.00% | 6.00% | ||
Innovative Medicines | Oncology [member] | Tasigna [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 480 | 468 | $ 967 | 902 |
Innovative Medicines | Oncology [member] | Tasigna [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 3.00% | 7.00% | ||
Net sales, change in %, cc | 5.00% | 9.00% | ||
Innovative Medicines | Oncology [member] | Promacta/Revolade [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 422 | 349 | $ 825 | 656 |
Innovative Medicines | Oncology [member] | Promacta/Revolade [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 21.00% | 26.00% | ||
Net sales, change in %, cc | 23.00% | 28.00% | ||
Innovative Medicines | Oncology [member] | Tafinlar + Mekinist [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 371 | 340 | $ 737 | 637 |
Innovative Medicines | Oncology [member] | Tafinlar + Mekinist [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 9.00% | 16.00% | ||
Net sales, change in %, cc | 12.00% | 19.00% | ||
Innovative Medicines | Oncology [member] | Sandostatin [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 341 | 403 | $ 715 | 795 |
Innovative Medicines | Oncology [member] | Sandostatin [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (15.00%) | (10.00%) | ||
Net sales, change in %, cc | (13.00%) | (8.00%) | ||
Innovative Medicines | Oncology [member] | Jakavi [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 310 | 284 | $ 628 | 542 |
Innovative Medicines | Oncology [member] | Jakavi [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 9.00% | 16.00% | ||
Net sales, change in %, cc | 14.00% | 20.00% | ||
Innovative Medicines | Oncology [member] | Gleevec/Glivec [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 288 | 323 | $ 617 | 630 |
Innovative Medicines | Oncology [member] | Gleevec/Glivec [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (11.00%) | (2.00%) | ||
Net sales, change in %, cc | (8.00%) | 0.00% | ||
Innovative Medicines | Oncology [member] | Afinitor/Votubia [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 266 | 401 | $ 562 | 774 |
Innovative Medicines | Oncology [member] | Afinitor/Votubia [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (34.00%) | (27.00%) | ||
Net sales, change in %, cc | (33.00%) | (26.00%) | ||
Innovative Medicines | Oncology [member] | Exjade/Jadenu [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 163 | 253 | $ 335 | 491 |
Innovative Medicines | Oncology [member] | Exjade/Jadenu [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (36.00%) | (32.00%) | ||
Net sales, change in %, cc | (35.00%) | (31.00%) | ||
Innovative Medicines | Oncology [member] | Votrient [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 162 | 193 | $ 328 | 380 |
Innovative Medicines | Oncology [member] | Votrient [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (16.00%) | (14.00%) | ||
Net sales, change in %, cc | (14.00%) | (12.00%) | ||
Innovative Medicines | Oncology [member] | Kisqali [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 159 | 111 | $ 320 | 202 |
Innovative Medicines | Oncology [member] | Kisqali [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 43.00% | 58.00% | ||
Net sales, change in %, cc | 49.00% | 64.00% | ||
Innovative Medicines | Pharmaceutical [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 5,640 | 5,720 | $ 11,747 | 11,179 |
Innovative Medicines | Pharmaceutical [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (1.00%) | 5.00% | ||
Net sales, change in %, cc | 1.00% | 8.00% | ||
Innovative Medicines | Pharmaceutical [member] | Ophthalmology [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 937 | 1,174 | $ 2,133 | 2,335 |
Innovative Medicines | Pharmaceutical [member] | Ophthalmology [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (20.00%) | (9.00%) | ||
Net sales, change in %, cc | (18.00%) | (7.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Ophthalmology [member] | Lucentis [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 401 | 536 | $ 888 | 1,069 |
Innovative Medicines | Pharmaceutical [member] | Ophthalmology [member] | Lucentis [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (25.00%) | (17.00%) | ||
Net sales, change in %, cc | (24.00%) | (15.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Neuroscience [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 1,025 | 886 | $ 2,045 | 1,683 |
Innovative Medicines | Pharmaceutical [member] | Neuroscience [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 16.00% | 22.00% | ||
Net sales, change in %, cc | 17.00% | 23.00% | ||
Innovative Medicines | Pharmaceutical [member] | Neuroscience [member] | Gilenya [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 738 | 825 | $ 1,510 | 1,591 |
Innovative Medicines | Pharmaceutical [member] | Neuroscience [member] | Gilenya [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (11.00%) | (5.00%) | ||
Net sales, change in %, cc | (9.00%) | (4.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Neuroscience [member] | Zolgensma [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 205 | 15 | $ 375 | 15 |
Innovative Medicines | Pharmaceutical [member] | Neuroscience [member] | Top 20 products [member] | Zolgensma [member] | ||||
Disclosure of operating segments [line items] | ||||
Reclassification of export sales | 44 | |||
Innovative Medicines | Pharmaceutical [member] | Respiratory [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 444 | 461 | $ 915 | 906 |
Innovative Medicines | Pharmaceutical [member] | Respiratory [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (4.00%) | 1.00% | ||
Net sales, change in %, cc | 0.00% | 5.00% | ||
Innovative Medicines | Pharmaceutical [member] | Respiratory [member] | Xolair [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 289 | 290 | $ 596 | 571 |
Innovative Medicines | Pharmaceutical [member] | Respiratory [member] | Xolair [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 0.00% | 4.00% | ||
Net sales, change in %, cc | 4.00% | 8.00% | ||
Innovative Medicines | Pharmaceutical [member] | Cardiovascular, Renal and Metabolism [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 580 | 427 | $ 1,150 | 790 |
Innovative Medicines | Pharmaceutical [member] | Cardiovascular, Renal and Metabolism [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 36.00% | 46.00% | ||
Net sales, change in %, cc | 38.00% | 48.00% | ||
Innovative Medicines | Pharmaceutical [member] | Cardiovascular, Renal and Metabolism [member] | Entresto [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 580 | 421 | $ 1,149 | 778 |
Innovative Medicines | Pharmaceutical [member] | Cardiovascular, Renal and Metabolism [member] | Entresto [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 38.00% | 48.00% | ||
Net sales, change in %, cc | 40.00% | 50.00% | ||
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 1,510 | 1,749 | $ 3,217 | 3,500 |
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (14.00%) | (8.00%) | ||
Net sales, change in %, cc | (9.00%) | (5.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Galvus Group [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 279 | 320 | $ 617 | 635 |
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Galvus Group [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (13.00%) | (3.00%) | ||
Net sales, change in %, cc | (8.00%) | 1.00% | ||
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Diovan Group [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 268 | 283 | $ 542 | 544 |
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Diovan Group [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (5.00%) | 0.00% | ||
Net sales, change in %, cc | 0.00% | 4.00% | ||
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Exforge Group [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 238 | 264 | $ 496 | 531 |
Innovative Medicines | Pharmaceutical [member] | Established Medicines [member] | Exforge Group [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (10.00%) | (7.00%) | ||
Net sales, change in %, cc | (5.00%) | (3.00%) | ||
Innovative Medicines | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 1,144 | 1,023 | $ 2,287 | 1,965 |
Innovative Medicines | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 12.00% | 16.00% | ||
Net sales, change in %, cc | 13.00% | 18.00% | ||
Innovative Medicines | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Cosentyx [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 944 | 858 | $ 1,874 | 1,649 |
Innovative Medicines | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Cosentyx [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 10.00% | 14.00% | ||
Net sales, change in %, cc | 12.00% | 15.00% | ||
Innovative Medicines | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Ilaris [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 200 | 165 | $ 413 | 316 |
Innovative Medicines | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Ilaris [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 21.00% | 31.00% | ||
Net sales, change in %, cc | 23.00% | 33.00% | ||
Innovative Medicines | US | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 3,515 | $ 3,336 | $ 7,057 | $ 6,329 |
Innovative Medicines | US | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 5.00% | 12.00% | ||
Net sales, change in %, cc | 5.00% | 12.00% | ||
Innovative Medicines | US | Top 20 products [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 2,772 | $ 5,463 | ||
Innovative Medicines | US | Top 20 products [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 5.00% | 9.00% | ||
Innovative Medicines | US | Rest of portfolio [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 743 | $ 1,594 | ||
Innovative Medicines | US | Rest of portfolio [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 8.00% | 21.00% | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Tasigna [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 221 | $ 424 | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Tasigna [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 8.00% | 10.00% | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Promacta/Revolade [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 212 | $ 399 | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Promacta/Revolade [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 25.00% | 25.00% | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Tafinlar + Mekinist [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 147 | $ 279 | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Tafinlar + Mekinist [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 20.00% | 21.00% | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Sandostatin [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 200 | $ 413 | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Sandostatin [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (8.00%) | (5.00%) | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Gleevec/Glivec [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 70 | $ 174 | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Gleevec/Glivec [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (27.00%) | (1.00%) | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Afinitor/Votubia [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 163 | $ 332 | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Afinitor/Votubia [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (37.00%) | (33.00%) | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Exjade/Jadenu [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 34 | $ 78 | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Exjade/Jadenu [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (71.00%) | (66.00%) | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Votrient [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 72 | $ 136 | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Votrient [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (17.00%) | (21.00%) | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Kisqali [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 79 | $ 153 | ||
Innovative Medicines | US | Oncology [member] | Top 20 products [member] | Kisqali [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 36.00% | 37.00% | ||
Innovative Medicines | US | Pharmaceutical [member] | Neuroscience [member] | Top 20 products [member] | Gilenya [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 416 | $ 804 | ||
Innovative Medicines | US | Pharmaceutical [member] | Neuroscience [member] | Top 20 products [member] | Gilenya [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (6.00%) | (3.00%) | ||
Innovative Medicines | US | Pharmaceutical [member] | Neuroscience [member] | Top 20 products [member] | Zolgensma [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 105 | $ 231 | ||
Innovative Medicines | US | Pharmaceutical [member] | Cardiovascular, Renal and Metabolism [member] | Entresto [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 308 | $ 601 | ||
Innovative Medicines | US | Pharmaceutical [member] | Cardiovascular, Renal and Metabolism [member] | Entresto [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 39.00% | 43.00% | ||
Innovative Medicines | US | Pharmaceutical [member] | Established Medicines [member] | Top 20 products [member] | Diovan Group [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 34 | $ 60 | ||
Innovative Medicines | US | Pharmaceutical [member] | Established Medicines [member] | Top 20 products [member] | Diovan Group [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 21.00% | 33.00% | ||
Innovative Medicines | US | Pharmaceutical [member] | Established Medicines [member] | Top 20 products [member] | Exforge Group [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 2 | $ 6 | ||
Innovative Medicines | US | Pharmaceutical [member] | Established Medicines [member] | Top 20 products [member] | Exforge Group [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (50.00%) | (14.00%) | ||
Innovative Medicines | US | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Top 20 products [member] | Cosentyx [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 614 | $ 1,190 | ||
Innovative Medicines | US | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Top 20 products [member] | Cosentyx [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 15.00% | 18.00% | ||
Innovative Medicines | US | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Top 20 products [member] | Ilaris [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 95 | $ 183 | ||
Innovative Medicines | US | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Top 20 products [member] | Ilaris [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 23.00% | 29.00% | ||
Innovative Medicines | Rest of the world [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 5,673 | $ 11,886 | ||
Innovative Medicines | Rest of the world [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (5.00%) | 1.00% | ||
Net sales, change in %, cc | (1.00%) | 5.00% | ||
Innovative Medicines | Rest of the world [member] | Top 20 products [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 4,332 | $ 9,031 | ||
Innovative Medicines | Rest of the world [member] | Top 20 products [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (3.00%) | 4.00% | ||
Net sales, change in %, cc | 1.00% | 8.00% | ||
Innovative Medicines | Rest of the world [member] | Rest of portfolio [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 1,341 | $ 2,855 | ||
Innovative Medicines | Rest of the world [member] | Rest of portfolio [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (13.00%) | (7.00%) | ||
Net sales, change in %, cc | (9.00%) | (4.00%) | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Tasigna [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 259 | $ 543 | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Tasigna [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (2.00%) | 5.00% | ||
Net sales, change in %, cc | 2.00% | 9.00% | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Promacta/Revolade [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 210 | $ 426 | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Promacta/Revolade [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 17.00% | 26.00% | ||
Net sales, change in %, cc | 22.00% | 30.00% | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Tafinlar + Mekinist [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 224 | $ 458 | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Tafinlar + Mekinist [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 3.00% | 13.00% | ||
Net sales, change in %, cc | 8.00% | 17.00% | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Sandostatin [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 141 | $ 302 | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Sandostatin [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (24.00%) | (17.00%) | ||
Net sales, change in %, cc | (19.00%) | (12.00%) | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Jakavi [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 310 | $ 628 | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Jakavi [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 9.00% | 16.00% | ||
Net sales, change in %, cc | 14.00% | 20.00% | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Gleevec/Glivec [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 218 | $ 443 | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Gleevec/Glivec [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (4.00%) | (3.00%) | ||
Net sales, change in %, cc | 0.00% | 1.00% | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Afinitor/Votubia [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 103 | $ 230 | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Afinitor/Votubia [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (27.00%) | (18.00%) | ||
Net sales, change in %, cc | (24.00%) | (15.00%) | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Exjade/Jadenu [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 129 | $ 257 | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Exjade/Jadenu [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (4.00%) | (1.00%) | ||
Net sales, change in %, cc | (3.00%) | 1.00% | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Votrient [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 90 | $ 192 | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Votrient [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (15.00%) | (8.00%) | ||
Net sales, change in %, cc | (12.00%) | (5.00%) | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Kisqali [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 80 | $ 167 | ||
Innovative Medicines | Rest of the world [member] | Oncology [member] | Top 20 products [member] | Kisqali [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 51.00% | 86.00% | ||
Net sales, change in %, cc | 63.00% | 97.00% | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Ophthalmology [member] | Top 20 products [member] | Lucentis [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 401 | $ 888 | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Ophthalmology [member] | Top 20 products [member] | Lucentis [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (25.00%) | (17.00%) | ||
Net sales, change in %, cc | (24.00%) | (15.00%) | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Neuroscience [member] | Top 20 products [member] | Gilenya [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 322 | $ 706 | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Neuroscience [member] | Top 20 products [member] | Gilenya [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (16.00%) | (7.00%) | ||
Net sales, change in %, cc | (13.00%) | (4.00%) | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Neuroscience [member] | Top 20 products [member] | Zolgensma [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 100 | $ 144 | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Respiratory [member] | Top 20 products [member] | Xolair [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 289 | $ 596 | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Respiratory [member] | Top 20 products [member] | Xolair [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 0.00% | 4.00% | ||
Net sales, change in %, cc | 4.00% | 8.00% | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Cardiovascular, Renal and Metabolism [member] | Entresto [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 272 | $ 548 | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Cardiovascular, Renal and Metabolism [member] | Entresto [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 36.00% | 53.00% | ||
Net sales, change in %, cc | 41.00% | 58.00% | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Established Medicines [member] | Top 20 products [member] | Galvus Group [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 279 | $ 617 | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Established Medicines [member] | Top 20 products [member] | Galvus Group [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (13.00%) | (3.00%) | ||
Net sales, change in %, cc | (8.00%) | 1.00% | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Established Medicines [member] | Top 20 products [member] | Diovan Group [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 234 | $ 482 | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Established Medicines [member] | Top 20 products [member] | Diovan Group [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (8.00%) | (3.00%) | ||
Net sales, change in %, cc | (2.00%) | 2.00% | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Established Medicines [member] | Top 20 products [member] | Exforge Group [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 236 | $ 490 | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Established Medicines [member] | Top 20 products [member] | Exforge Group [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (9.00%) | (6.00%) | ||
Net sales, change in %, cc | (5.00%) | (3.00%) | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Top 20 products [member] | Cosentyx [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 330 | $ 684 | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Top 20 products [member] | Cosentyx [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 2.00% | 7.00% | ||
Net sales, change in %, cc | 6.00% | 11.00% | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Top 20 products [member] | Ilaris [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 105 | $ 230 | ||
Innovative Medicines | Rest of the world [member] | Pharmaceutical [member] | Immunology, Hepatology and Dermatology [member] | Top 20 products [member] | Ilaris [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 19.00% | 32.00% | ||
Net sales, change in %, cc | 22.00% | 36.00% |
Segmentation of key figures (_8
Segmentation of key figures (Details 8) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 11,347 | $ 11,764 | $ 23,630 | $ 22,870 |
Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (4.00%) | 3.00% | ||
Net sales, change in %, cc | (1.00%) | 6.00% | ||
Sandoz [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 2,159 | 2,438 | $ 4,687 | 4,764 |
Sandoz [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (11.00%) | (2.00%) | ||
Net sales, change in %, cc | (9.00%) | 1.00% | ||
Sandoz [member] | Retail Generics [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 1,576 | 1,903 | $ 3,545 | 3,753 |
Sandoz [member] | Retail Generics [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (17.00%) | (6.00%) | ||
Net sales, change in %, cc | (14.00%) | (3.00%) | ||
Sandoz [member] | Biopharmaceuticals [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 466 | 401 | $ 916 | 752 |
Sandoz [member] | Biopharmaceuticals [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | 16.00% | 22.00% | ||
Net sales, change in %, cc | 19.00% | 25.00% | ||
Sandoz [member] | Anti Infectives [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 117 | 134 | $ 226 | 259 |
Sandoz [member] | Anti Infectives [member] | Change over period [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales, change in % | (13.00%) | (13.00%) | ||
Net sales, change in %, cc | (12.00%) | (11.00%) | ||
Sandoz [member] | Anti Infectives [member] | Anti Infectives sold under Sandoz name [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales to third parties from continuing operations | $ 134 | $ 186 | $ 356 | $ 390 |
Segmentation of key figures (_9
Segmentation of key figures (Details 9) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of operating segments [line items] | ||||
Profit sharing income | $ 209 | $ 182 | $ 407 | $ 351 |
Royalty income | 31 | 25 | 225 | 69 |
Milestone income | 16 | 47 | 36 | 121 |
Other | 19 | 6 | 32 | 15 |
Other revenues | 275 | 260 | 700 | 556 |
Innovative Medicines | ||||
Disclosure of operating segments [line items] | ||||
Profit sharing income | 209 | 181 | 407 | 350 |
Royalty income | 24 | 15 | 54 | 49 |
Milestone income | 5 | 47 | 25 | 98 |
Other | 13 | 7 | 21 | 14 |
Other revenues | 251 | 250 | 507 | 511 |
Sandoz | ||||
Disclosure of operating segments [line items] | ||||
Profit sharing income | 1 | 1 | ||
Royalty income | 5 | 4 | 13 | 7 |
Milestone income | 11 | 11 | 23 | |
Other | 6 | 1 | 11 | 3 |
Other revenues | 22 | 6 | 35 | 34 |
Corporate | ||||
Disclosure of operating segments [line items] | ||||
Royalty income | 2 | 6 | 158 | 13 |
Other | (2) | (2) | ||
Other revenues | $ 2 | $ 4 | $ 158 | $ 11 |
Discontinued operations (Detail
Discontinued operations (Details) - USD ($) $ in Millions | Apr. 08, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Statement [line items] | |||||
Net sales to third parties of discontinued operations | $ 11,347 | $ 11,764 | $ 23,630 | $ 22,870 | |
Sales to continuing and discontinued segments | 53 | ||||
Net sales | 11,347 | 11,764 | 23,630 | 22,923 | |
Cost of goods sold | (3,429) | (3,406) | (7,151) | (6,657) | |
Gross profit | 8,193 | 8,618 | 17,179 | 16,822 | |
Selling, general and administration | (3,368) | (3,585) | (6,854) | (6,915) | |
Research and Development | (2,441) | (2,051) | (4,501) | (4,350) | |
Other income | 432 | 989 | 693 | 1,192 | |
Other expense | (464) | (1,308) | (1,421) | (1,844) | |
Operating income of discontinued operations | $ 2,352 | $ 2,663 | $ 5,096 | $ 4,905 | |
Profit (loss) from operating activities, as a percentage from net sales | 20.70% | 22.60% | 21.60% | 21.40% | |
Interest expense | $ (220) | $ (205) | $ (459) | $ (431) | |
Other financial income and expense | (27) | 0 | (34) | 44 | |
Income before taxes | 2,288 | 2,634 | 4,909 | 4,774 | |
Taxes | $ (421) | (525) | $ (869) | (797) | |
Net income/loss from discontinued operations before gain on distribution | (101) | ||||
Gain on distribution | 4,691 | 4,691 | |||
Net income/loss from discontinued operations | 4,691 | 4,590 | |||
Discontinued operations | |||||
Statement [line items] | |||||
Net sales to third parties of discontinued operations | 1,777 | ||||
Sales to continuing and discontinued segments | 32 | ||||
Net sales | 1,809 | ||||
Cost of goods sold | (860) | ||||
Gross profit | 949 | ||||
Selling, general and administration | (638) | ||||
Research and Development | (142) | ||||
Other income | 15 | ||||
Other expense | (113) | ||||
Operating income of discontinued operations | $ 71 | ||||
Profit (loss) from operating activities, as a percentage from net sales | 4.00% | ||||
Interest expense | $ (10) | ||||
Other financial income and expense | (3) | ||||
Income before taxes | 58 | ||||
Taxes | (159) | ||||
Net income/loss from discontinued operations before gain on distribution | (101) | ||||
Gain on distribution | $ 4,691 | 4,691 | 4,691 | ||
Net income/loss from discontinued operations | $ 4,691 | $ 4,590 |
Discontinued operations (Deta_2
Discontinued operations (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement [line items] | ||||
Net cash flows used in investing activities from discontinued operations | $ (91) | $ (682) | $ (105) | $ (1,105) |
Net cash flows used in/from financing activities from discontinued operations | (13) | 2,682 | (26) | 3,299 |
Transaction cost payments | 52 | 532 | (142) | 71 |
Discontinued operations | ||||
Statement [line items] | ||||
Payments out of provisions for transaction costs attributable to the divested business | (3) | (14) | (17) | (14) |
Divested cash and cash equivalents | (628) | (628) | ||
Cash flows attributable to divested business | (3) | (642) | (17) | (642) |
Other cash flows used in investing activities, net | (88) | (40) | (88) | (463) |
Net cash flows used in investing activities from discontinued operations | $ (13) | $ (26) | ||
Cash inflow from borrowings | 3,200 | 3,500 | ||
Transaction cost payments | $ (100) | $ (200) |
Discontinued operations (Deta_3
Discontinued operations (Details 3) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement [line items] | ||||
Net cash flows used in investing activities from discontinued operations | $ (91) | $ (682) | $ (105) | $ (1,105) |
Net cash flows used in/from financing activities from discontinued operations | (13) | 2,682 | (26) | 3,299 |
Transaction cost payments | 52 | 532 | (142) | 71 |
Discontinued operations | ||||
Statement [line items] | ||||
Payments attributable to the spin-off of the Alcon business | (3) | (14) | (17) | (14) |
Divested cash and cash equivalents | (628) | (628) | ||
Cash flows attributable to divested business | (3) | (642) | (17) | (642) |
Other cash flows used in investing activities, net | (88) | (40) | (88) | (463) |
Net cash flows used in investing activities from discontinued operations | $ (13) | $ (26) | ||
Cash inflow from borrowings | 3,200 | 3,500 | ||
Transaction cost payments | $ (100) | $ (200) |
Discontinued operations (Deta_4
Discontinued operations (Details 4) - USD ($) $ in Millions | 1 Months Ended | |||
Mar. 31, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Disclosure of detailed information about business combination [line items] | ||||
Identifiable assets acquired (liabilities assumed) | $ 10,030 | $ 486 | ||
Intangible assets other than goodwill | $ 36,669 | $ 28,787 | ||
Discontinued operations | PowerVision, Inc. | Alcon [member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Consideration transferred, acquisition-date fair value | $ 424 | |||
Portion of consideration paid (received) consisting of cash and cash equivalents | (289) | |||
Contingent liabilities recognised as of acquisition date | 135 | |||
Identifiable assets acquired (liabilities assumed) | 418 | |||
Additional recognition, goodwill | 6 | |||
Other net assets | 6 | |||
Deferred tax liability (asset) | 93 | |||
Intangible assets other than goodwill | $ 505 |