Novartis publishes updated 2015 segment financials reflecting new division structure
(Thomson Reuters ONE) -
Novartis International AG /
Novartis publishes updated 2015 segment financials reflecting new division
structure
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The issuer is solely responsible for the content of this announcement.
* Updated segment financials reflect transfer of Ophthalmic Pharmaceuticals
franchise from Alcon to Pharmaceuticals, and 19 mature products from
Pharmaceuticals to Sandoz, as outlined in Q4 and FY 2015 earnings release
* No change in audited 2015 Consolidated Financial Statements for the total
Group
Basel, March 31, 2016 - Novartis announced today that it has published updated
2015 quarterly and full year segment financials reflecting the new division
structure, as announced in the January 27, 2016 earnings release, as if the
transfers had taken place from January 1, 2015. The updated segment financials
are provided in accordance with the requirements of IFRS, and to aid
comparability of 2016 quarterly and full year results, which will be reported on
the new division structure.
The updated segment financials reflect the transfer of the Ophthalmic
Pharmaceuticals franchise from the Alcon Division to the Pharmaceuticals
Division (USD 3.8 billion of net sales in 2015), and the transfer of a portfolio
of 19 mature products from the Pharmaceuticals Division to the Sandoz Division
(USD 0.9 billion of net sales in 2015).
The updated operating income for each segment reflects all costs attributable to
operation of the transferred businesses. The updated segment financials do not
include any cost synergies. Future operating costs are expected to be optimized
over time as the transferred businesses are fully integrated.
These changes will be reflected from Q1 2016 for financial reporting purposes,
with transfer of operational control from April 1, 2016.
A presentation of the updated segment financials is available on the Novartis
website at https://www.novartis.com/investors/event-calendar.
2016 Group outlook reiterated
Barring unforeseen events
The presentation also reiterates the guidance given in the January 27, 2016
earnings release. Based on the new division structure, we expect divisional net
sales performance in constant currencies (cc) in 2016 to be as follows:
* Pharmaceuticals: broadly in line with 2015 to a slight decline (mid-single
digit growth excluding Gleevec(®)/Glivec(®) generic impact)
* Alcon: low single digit growth
* Sandoz: low to mid-single digit growth
Group net sales and core operating income in 2016 are expected to be broadly in
line with the prior year (cc), after absorbing the impact of generic
competition. Generic competition impact on sales is expected to be as much as
USD 3.2 billion compared to USD 2.2 billion in 2015.
Excluding Gleevec(®)/Glivec(®) generic impact, we would expect Group net sales
to grow mid-single digit (cc) and Group core operating income to grow in the
mid-teens (cc).
These comparisons are versus 2015 continuing operations.
Investor conference call
We will hold an investor and analyst call today at 14:00 CEST (13:00 BST, 08:00
EDT). Samir Shah, Global Head of Investor Relations, will lead the call and walk
through the presentation of the updated segment financials. There will be an
opportunity for questions at the end. Dial in 5-10 minutes prior to the start
time using the confirmation code and numbers below.
Confirmation code Novartis
France +33 1 70 37 71 66
Germany +49 69 7104 45598
Switzerland +41 22 592 71 03
United Kingdom +44 20 3003 2666
United States +1 866 966 5335
Disclaimer
This press release contains forward-looking statements that can be identified by
words such as "plans," "innovation," "momentum," "turnaround plan," "underway,"
"expected," "outlook," "intend," "plan," "will," "strategy," "committed,"
"expect," "priorities," "progress," "growth drivers," "growth products,"
"pipeline," "priority review," "seeking," "projections," "launched," "would,"
"proposal," "proposes," "submitted," "planned," "Breakthrough Therapy,"
"positive CHMP opinion," "potential," "continue," "priority review," or similar
terms, or by express or implied discussions regarding potential new products,
potential new indications for existing products, or regarding potential future
revenues from any such products; potential shareholder returns or credit
ratings; or regarding any potential financial or other impact on Novartis or any
of our divisions of the strategic actions announced in January 2016 to focus our
divisions, integrate certain functions and leverage our scale; or regarding any
potential financial or other impact on Novartis as a result of the creation and
operation of NBS; or regarding the potential financial or other impact on
Novartis of the transactions with GSK, Lilly or CSL; or regarding potential
future sales or earnings of the Novartis Group or any of its divisions; or by
discussions of strategy, plans, expectations or intentions. You should not place
undue reliance on these statements. Such forward looking statements are based on
the current beliefs and expectations of management regarding future events, and
are subject to significant known and unknown risks and uncertainties. Should one
or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those set
forth in the forward looking statements. There can be no guarantee that any new
products will be approved for sale in any market, or that any new indications
will be approved for any existing products in any market, or that any approvals
which are obtained will be obtained at any particular time, or that any such
products will achieve any particular revenue levels. Nor can there be any
guarantee that Novartis will be able to realize any of the potential strategic
benefits, synergies or opportunities as a result of the strategic actions
announced in January 2016, the creation and operation of NBS, or the
transactions with GSK, Lilly and CSL. Neither can there be any guarantee that
Novartis or any of the businesses involved in the transactions will achieve any
particular financial results in the future. Neither can there be any guarantee
that shareholders will achieve any particular level of shareholder returns. Nor
can there be any guarantee that the Group, or any of its divisions, will be
commercially successful in the future, or achieve any particular credit rating.
In particular, management's expectations could be affected by, among other
things: unexpected regulatory actions or delays or government regulation
generally; the potential that the strategic benefits, synergies or opportunities
expected from the strategic actions announced in January 2016, the creation and
operation of NBS, or the transactions with GSK, Lilly and CSL may not be
realized or may take longer to realize than expected; the inherent uncertainties
involved in predicting shareholder returns or credit ratings; the uncertainties
inherent in research and development, including unexpected clinical trial
results and additional analysis of existing clinical data; our ability to obtain
or maintain proprietary intellectual property protection, including the ultimate
extent of the impact on Novartis of the loss of patent protection and
exclusivity on key products which commenced in prior years and will continue
this year; unexpected safety, quality or manufacturing issues; global trends
toward health care cost containment, including ongoing pricing pressures, in
particular from increased publicity on pharmaceuticals pricing; uncertainties
regarding actual or potential legal proceedings, including, among others, actual
or potential product liability litigation, litigation and investigations
regarding sales and marketing practices, government investigations and
intellectual property disputes; general economic and industry conditions,
including uncertainties regarding the effects of the persistently weak economic
and financial environment in many countries; uncertainties regarding future
global exchange rates, including the continued significant increase in value of
the US dollar, our reporting currency, against a number of currencies;
uncertainties regarding future demand for our products; uncertainties involved
in the development of new healthcare products; uncertainties regarding potential
significant breaches of data security or disruptions of our information
technology systems; and other risks and factors referred to in Novartis AG's
current Form 20-F on file with the US Securities and Exchange Commission.
Novartis is providing the information in this press release as of this date and
does not undertake any obligation to update any forward-looking statements as a
result of new information, future events or otherwise.
About Novartis
Novartis provides innovative healthcare solutions that address the evolving
needs of patients and societies. Headquartered in Basel, Switzerland, Novartis
offers a diversified portfolio to best meet these needs: innovative medicines,
eye care and cost-saving generic pharmaceuticals. Novartis is the only global
company with leading positions in these areas. In 2015, the Group achieved net
sales of USD 49.4 billion, while R&D throughout the Group amounted to
approximately USD 8.9 billion (USD 8.7 billion excluding impairment and
amortization charges). Novartis Group companies employ approximately 119,000
full-time-equivalent associates. Novartis products are available in more than
180 countries around the world. For more information, please visit
http://www.novartis.com.
Novartis is on Twitter. Sign up to follow (at)Novartis at
http://twitter.com/novartis.
# # #
Novartis Media Relations
Central media line : +41 61 324 2200
Eric Althoff Dermot Doherty
Novartis Global Media Relations Novartis Global Media Relations
+41 61 324 7999 (direct) +41 61 696 8653 (direct)
+41 79 593 4202 (mobile) +41 79 536 9755 (mobile)
eric.althoff(at)novartis.com dermot.doherty(at)novartis.com
e-mail: media.relations(at)novartis.com
Novartis Investor Relations
Central phone: +41 61 324 7944 North America:
Samir Shah +41 61 324 7944 Richard Pulik +1 212 830 2448
Pierre-Michel Bringer +41 61 324 1065 Sloan Pavsner +1 212 830 2417
Thomas Hungerbuehler +41 61 324 8425
Isabella Zinck +41 61 324 7188
e-mail: investor.relations(at)novartis.com e-mail:
investor.relations(at)novartis.com
Media Release (PDF):
http://hugin.info/134323/R/1998764/737051.pdf
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Source: Novartis International AG via GlobeNewswire
[HUG#1998764]
Unternehmensinformation / Kurzprofil:
Datum: 31.03.2016 - 07:00 Uhr
Sprache: Deutsch
News-ID 460853
Anzahl Zeichen: 12686
contact information:
Town:
Basel
Kategorie:
Business News
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