(USD millions unless indicated otherwise)		Q3 2024 USD m		Q3 2023 USD m		% change USD		% change cc 1		9M 2024 USD m		9M 2023 USD m		% change USD		% change cc 1
Net sales from continuing operations		12 823		11 782		9		10		37 164		34 017		9		11
Other revenues		349		310		13		13		1 000		867		15		15
Cost of goods sold		-3 234		-3 117		-4		-3		-9 503		-9 450		-1		0
Gross profit from continuing operations		9 938		8 975		11		12		28 661		25 434		13		15
Selling, general and administration		-3 134		-3 091		-1		-2		-9 065		-9 073		0		-1
Research and development		-2 392		-3 925		39		40		-7 180		-8 804		18		19
Other income		355		224		58		57		877		1 322		-34		-35
Other expense		-1 140		-421		-171		-167		-2 279		-1 692		-35		-33
Operating income from continuing operations		3 627		1 762		106		123		11 014		7 187		53		61
% of net sales		28.3		15.0						29.6		21.1
Loss from associated companies		-4		-3		-33		-14		-35		-7		nm		nm
Interest expense		-264		-222		-19		-25		-731		-638		-15		-18
Other financial income and expense		26		15		73		-34		107		204		-48		-8
Income before taxes from continuing operations		3 385		1 552		118		129		10 355		6 746		53		62
Income taxes		-200		-39		nm		nm		-1 236		-812		-52		-60
Net income from continuing operations		3 185		1 513		111		121		9 119		5 934		54		62
Net income from discontinued operations				250		nm		nm				440		nm		nm
Net income		3 185		1 763		nm		nm		9 119		6 374		nm		nm
Basic earnings per share from continuing operations (USD)		1.58		0.73		116		127		4.50		2.84		58		67
Basic earnings per share from discontinued operations (USD)				0.12		nm		nm				0.21		nm		nm
Total basic earnings per share (USD)		1.58		0.85		nm		nm		4.50		3.05		nm		nm
Net cash flows from operating activities from continuing operations		6 286		5 304		19				13 426		11 673		15
Non-IFRS measures 1
Free cash flow from continuing operations		5 965		5 043		18				12 618		11 019		15
Core operating income from continuing operations		5 145		4 405		17		20		14 635		12 551		17		20
% of net sales		40.1		37.4						39.4		36.9
Core net income from continuing operations		4 133		3 585		15		17		11 822		10 320		15		18
Core basic earnings per share from continuing operations (USD)		2.06		1.74		18		20		5.83		4.95		18		21
1  Constant currencies (cc), core results and free cash flow are non-IFRS measures. An explanation of non-IFRS measures can be found on page 46. Unless otherwise noted, all growth rates in this release refer to same period in prior-year.
nm = not meaningful

In 2023, Novartis completed its transformation into a “pure-play” innovative medicines business. We have a clear focus on four core therapeutic areas (cardiovascular-renal-metabolic, immunology, neuroscience and oncology), with multiple significant in-market and pipeline assets in each of these areas, that address high disease burden and have substantial growth potential. In addition to two established technology platforms (chemistry and biotherapeutics), three emerging platforms (gene & cell therapy, radioligand therapy and xRNA) are being prioritized for continued investment into new R&D capabilities and manufacturing scale. Geographically, we are focused on growing in our priority geographies – the US, China, Germany and Japan.

1. Accelerate growth: Renewed attention to deliver high-value medicines (NMEs) and focus on launch excellence, with a rich pipeline across our core therapeutic areas.

2. Deliver returns: Continuing to embed operational excellence and deliver improved financials. Novartis remains disciplined and shareholder-focused in our approach to capital allocation, with substantial cash generation and a strong capital structure supporting continued flexibility.

3. Strengthening foundations: Unleashing the power of our people, scaling data science and technology and continuing to build trust with society.

Following the September 15, 2023, shareholder approval of the spin-off of Sandoz, Novartis reported its consolidated financial statements as “continuing operations” and “discontinued operations.”

Continuing operations include the retained business activities of Novartis, comprising the innovative medicines business and the continuing corporate activities. Discontinued operations include the Sandoz Division and selected portions of corporate activities attributable to Sandoz’s business, as well as certain expenses related to the spin-off.

While the commentary below focuses on continuing operations, we also provide information on discontinued operations.

Net sales were USD 12.8 billion (+9%, +10% cc), with volume contributing 12 percentage points to growth. Generic competition had a negative impact of 2 percentage points and pricing was flat. Sales in the US were USD 5.4 billion (+16%) and in the rest of the world USD 7.4 billion (+4%, +6% cc).

Sales growth was mainly driven by continued strong performance from Entresto (USD 1.9 billion, +26%, +26% cc), Cosentyx (USD 1.7 billion, +27%, +28% cc), Kisqali (USD 787 million, +40%, +43% cc), Kesimpta (USD 838 million, +28%, +28% cc), Pluvicto (USD 386 million, +51%, +50% cc) and Leqvio (USD 198 million, +120%, +119% cc), partly offset by erosion due to generic competition, mainly for Gilenya and Lucentis.

In the US (USD 5.4 billion, +16%), sales growth was mainly driven by Cosentyx, Entresto, Kesimpta and Kisqali, partly offset by the impact of generic competition on Gilenya, and the Xiidra divestment. In Europe (USD 4.0 billion, +1%, +1% cc), sales growth was mainly driven by Entresto, Pluvicto, Cosentyx, Jakavi and Kisqali, partly offset by increased generic competition for Lucentis and Gilenya. Sales in emerging growth markets were USD 3.3 billion (+8%, +12% cc), including USD 1.0 billion sales from China (+19%, +18% cc).

Operating income was USD 3.6 billion (+106%, +123% cc), mainly driven by higher net sales and lower impairments, partly offset by higher R&D investments. Operating income margin was 28.3% of net sales,

increasing 13.3 percentage points (+14.6 percentage points cc). Other revenue as a percentage of sales was in-line with the prior year. Cost of goods sold as a percentage of sales decreased by 1.5 percentage points (cc). R&D expenses as a percentage of net sales decreased by 15.3 percentage points (cc). SG&A expenses as a percentage of net sales decreased by 2.1 percentage points (cc). Other income and expense as a percentage of net sales decreased the margin by 4.3 percentage points (cc).

Core adjustments were USD 1.5 billion, mainly due to amortization and impairments, compared to USD 2.6 billion in the prior year. Core adjustments decreased compared to the prior year, mainly due to lower impairments.

Core operating income was USD 5.1 billion (+17%, +20% cc), mainly driven by higher net sales, partly offset by higher R&D investments. Core operating income margin was 40.1% of net sales, increasing 2.7 percentage points (+3.4 percentage points cc). Other revenue as a percentage of sales was in-line with the prior year. Core cost of goods sold as a percentage of sales decreased by 0.3 percentage points (cc). Core R&D expenses as a percentage of net sales decreased by 0.7 percentage points (cc). Core SG&A expenses as a percentage of net sales decreased by 2.1 percentage points (cc). Core other income and expense as a percentage of net sales increased the margin by 0.3 percentage points (cc).

Interest expense amounted to USD 264 million and other financial income and expense amounted to an income of USD 26 million, both broadly in line with prior-year quarter.

Core other financial income and expense amounted to an income of USD 56 million, broadly in line with prior-year quarter.

The tax rate in the third quarter was 5.9% compared to 2.5% in the prior year. The current year tax rate was favorably impacted by the effect of changes in uncertain tax positions, the recognition of deferred tax assets on prior years' tax credit carryforwards and the effect of adjusting the current year tax rate to the estimated full year tax rate, which was lower than previously estimated, partially offset by a non-deductible impairment of goodwill. The prior year third quarter tax rate was impacted by tax benefits from the write-down of investments in subsidiaries, net decreases in uncertain tax positions and the effect of adjusting to the estimated full year tax rate, which was lower than previously estimated. Excluding these impacts, the tax rate in the third quarter would have been 15.1% compared to 14.9% in the prior year. The increase from the prior year was mainly the result of the impact of the enactment of Pillar Two tax legislation in Switzerland, which became effective on January 1, 2024, partially offset by of a change in profit mix.

The core tax rate (core taxes as a percentage of core income before tax) was 16.2% compared to 15.2% in the prior year. The prior year third quarter core tax rate was impacted by the effect of adjusting to the estimated full year core tax rate, which was lower than previously estimated. Excluding this impact the prior year quarter core tax rate would have been 15.4%. The increase from the prior year was mainly the result of the impact of the enactment of Pillar Two tax legislation in Switzerland, which became effective on January 1, 2024, partially offset by a change in profit mix.

Net income was USD 3.2 billion (+111%, +121% cc), mainly driven by higher operating income. EPS was USD 1.58 (+116%, +127% cc), benefiting from the lower weighted average number of shares outstanding.

Core net income was USD 4.1 billion (+15%, +17% cc), mainly due to higher core operating income. Core EPS was USD 2.06 (+18%, +20% cc), benefiting from the lower weighted average number of shares outstanding.

Free cash flow from continuing operations amounted to USD 6.0 billion (+18% USD), compared with USD 5.0 billion in the prior-year quarter, driven by higher net cash flows from operating activities from continuing operations.

Net sales were USD 37.2 billion (+9%, +11% cc) with volume contributing 14 percentage points to growth. Generic competition had a negative impact of 2 percentage points and pricing had a negative impact of 1 percentage point. Sales in the US were USD 15.1 billion (+15%) and in the rest of the world USD 22.0 billion (+6%, +8% cc).

Sales growth was mainly driven by continued strong performance from Entresto (USD 5.6 billion, +28%, +30% cc), Cosentyx (USD 4.5 billion, +24%, +25% cc), Kesimpta (USD 2.3 billion, +49%, +49% cc), Kisqali (USD 2.1 billion, +45%, +48% cc), Pluvicto (USD 1.0 billion, +47%, +47% cc) and Leqvio (USD 531 million, +129%, +130% cc), partly offset by erosion due to generic competition, mainly for Lucentis and Gilenya, and the Xiidra divestment.

In the US (USD 15.1 billion, +15%), sales growth was mainly driven by Cosentyx, Entresto, Kesimpta, Kisqali, Pluvicto and Leqvio, partly offset by the Xiidra divestment and the impact of generic competition on Gilenya. In Europe (USD 11.6 billion, +3%, +4% cc), sales growth was mainly driven by Entresto, Kesimpta, Pluvicto, Cosentyx and Kisqali, partly offset by erosion due to generic competition, mainly for Lucentis and Gilenya. Sales in emerging growth markets were USD 10.0 billion (+12%, +16% cc), including USD 3.1 billion sales from China (+22%, +25% cc).

Operating income was USD 11.0 billion (+53%, +61% cc), mainly driven by higher net sales, lower impairments and restructuring charges, partly offset by prior-year one-time income from legal matters and higher R&D investments. Operating income margin was 29.6% of net sales, increasing 8.5 percentage points (+9.5 percentage points cc). Other revenue as a percentage of sales increased by 0.1 percentage points (cc). Cost of goods sold as a percentage of sales decreased by 2.6 percentage points (cc). R&D expenses as a percentage of net sales decreased by 6.9 percentage points (cc). SG&A expenses as a percentage of net sales decreased by 2.4 percentage points (cc). Other income and expense as a percentage of net sales decreased the margin by 2.5 percentage points (cc).

Core adjustments were USD 3.6 billion, mainly due to amortization, compared to USD 5.4 billion in the prior year. Core adjustments decreased compared to the prior year, mainly due to lower impairments and restructuring charges, partly offset by prior-year one-time income from legal matters.

Core operating income was USD 14.6 billion (+17%, +20% cc), mainly driven by higher net sales, partly offset by higher R&D investments. Core operating income margin was 39.4% of net sales, increasing 2.5 percentage points (+3.2 percentage points cc). Other revenue as a percentage of sales increased by 0.1 percentage points (cc). Core cost of goods sold as a percentage of sales increased by 0.2 percentage points (cc). Core R&D expenses as a percentage of net sales decreased by 0.7 percentage points (cc). Core SG&A expenses as a percentage of net sales decreased by 2.4 percentage points (cc). Core other income and expense as a percentage of net sales increased the margin by 0.2 percentage points (cc).

Interest expense amounted to USD 731 million compared to USD 638 million in the prior year mainly due to an increase in financial debts. Other financial income and expense amounted to an income of USD 107 million compared with an income of USD 204 million in the prior year, mainly due to higher net losses from the impact of IAS Standards 29 “Financial Reporting in Hyperinflationary Economies” and lower interest income, partly offset by realized gains on sale of financial assets.

Core other financial income and expense amounted to an income of USD 212 million compared to an income of USD 293 million in the prior year, mainly due to lower interest income.

The tax rate in the first nine months was 11.9% compared to 12.0% in the prior year period. The current year tax rate was favorably impacted by the effect of changes in uncertain tax positions and the recognition of deferred tax assets on prior years' tax credit carryforwards, partially offset by the effect of a non-deductible impairment of goodwill. The prior year tax rate was favorably impacted by the effect of non-taxable income recognized related to a legal matter, tax benefits from the write-down of investments in subsidiaries and net decreases in uncertain tax positions. Excluding these impacts, the tax rate in the first nine months would have been 15.1% compared to 15.3% in the prior year period. The decrease from the prior year was mainly the result of a change in profit mix, partially offset by the impact of the enactment of Pillar Two tax legislation in Switzerland, which became effective on January 1, 2024.

The core tax rate (core taxes as a percentage of core income before tax) was 16.2% in the first nine months and 15.4% in the prior year period. The increase from the prior year was mainly the result of a change in profit mix and the impact of the enactment of Pillar Two tax legislation in Switzerland, which became effective on January 1, 2024.

Net income was USD 9.1 billion (+54%, +62% cc), mainly driven by higher operating income. EPS was USD 4.50 (+58%, +67% cc), benefiting from the lower weighted average number of shares outstanding.

Core net income was USD 11.8 billion (+15%, +18% cc), mainly due to higher core operating income. Core EPS was USD 5.83 (+18%, +21% cc), benefiting from the lower weighted average number of shares outstanding.

Free cash flow from continuing operations amounted to USD 12.6 billion (+15% USD), compared with USD 11.0 billion in the prior-year period, driven by higher net cash flows from operating activities from continuing operations.

		Q3 2024		Q3 2023		% change		% change		9M 2024		9M 2023		% change		% change
		USD m		USD m		USD		cc		USD m		USD m		USD		cc
Cardiovascular, renal and metabolic
Entresto		1 865		1 485		26		26		5 642		4 400		28		30
Leqvio		198		90		120		119		531		232		129		130
Total cardiovascular, renal and metabolic		2 063		1 575		31		31		6 173		4 632		33		35

Entresto (USD 1 865 million, +26%, +26% cc) sustained robust, demand-led growth. In the US and Europe, Entresto penetration grew through the continued adoption of guideline-directed medical therapy in heart failure. In China and Japan, Entresto volume growth was fueled by heart failure as well as hypertension. In the US, Novartis is in ANDA litigation with generic manufacturers. Novartis has appealed to reverse the negative US district court decision to uphold the validity of its combination patent covering Entresto and combinations of sacubitril and valsartan, which expires in 2025 (with pediatric exclusivity). Several generics have received final approval in the US. Novartis filed a lawsuit against FDA challenging the approval of one generic ANDA, which is now on appeal. Any US commercial launch of a generic Entresto product prior to the final outcome of the combination patent appeal, or ongoing litigations involving other patents or the FDA, may be at risk of later litigation developments.

Leqvio (USD 198 million, +120%, +119% cc) launch in the US and other markets is ongoing, delivering a medicine with effective and consistent LDL-C reduction in two maintenance doses per year. Focus remains on increased account and patient adoption and continuing medical education. Leqvio is registered in more than 100 countries and commercially available in 78. Novartis obtained global rights to develop, manufacture and commercialize Leqvio under a license and collaboration agreement with Alnylam Pharmaceuticals.

		Q3 2024		Q3 2023		% change		% change		9M 2024		9M 2023		% change		% change
		USD m		USD m		USD		cc		USD m		USD m		USD		cc
Immunology
Cosentyx		1 693		1 329		27		28		4 545		3 677		24		25
Xolair 1		418		369		13		15		1 244		1 085		15		17
Ilaris		372		335		11		12		1 096		979		12		16
Other										1				nm		nm
Total immunology		2 483		2 033		22		23		6 886		5 741		20		22
1  Net sales reflect Xolair sales for all indications.
nm = not meaningful

Cosentyx (USD 1 693 million, +27%, +28% cc) sales grew mainly in the US, Europe and emerging growth markets, driven by strong demand from recent launches (including the HS indication and the IV formulation in the US) and volume growth in core indications (PsO, PsA, AS and nr-axSpA). Since initial approval in 2015, Cosentyx has shown sustained efficacy and a robust safety profile, treating more than 1.6 million patients across 8 indications.

Xolair (USD 418 million, ex-US +13%, +15% cc) growth was driven mainly by emerging growth markets and Europe. Novartis co-promotes Xolair with Genentech in the US and shares a portion of revenue as operating income but does not record any US sales.

Ilaris (USD 372 million, +11%, +12% cc) sales grew across all regions, led by the US and Europe. Contributors to growth include strong performance in the Periodic Fever Syndromes and Still’s disease indications.

		Q3 2024		Q3 2023		% change		% change		9M 2024		9M 2023		% change		% change
		USD m		USD m		USD		cc		USD m		USD m		USD		cc
Neuroscience
Kesimpta		838		657		28		28		2 274		1 530		49		49
excl. PY revenue deduction adjust. 1						55		56						61		62
Zolgensma		308		308		0		1		952		928		3		4
Aimovig		79		69		14		16		232		197		18		18
Other										1				nm		nm
Total neuroscience		1 225		1 034		18		19		3 459		2 655		30		31
1  Sales growth benefiting from a one-time revenue deduction adjustment in Europe in the prior period
nm = not meaningful

Kesimpta (USD 838 million, +28%, +28% cc) sales grew reflecting increased demand and strong access. The prior period benefitted from a one-time revenue deduction adjustment (USD 118 million) in Europe. Kesimpta is a high efficacy B-cell therapy, with a favorable safety and tolerability profile and an at-home self-administration for a broad population of RMS patients. Kesimpta is now approved in 90 countries with more than 100,000 patients treated.

Zolgensma (USD 308 million, 0%, +1% cc) continues to treat mainly incident patients in established markets, translating into stable sales this quarter. Zolgensma is now approved in 55 countries with more than 4,000 patients treated globally through clinical trials, early access programs and in the commercial setting.

Aimovig (USD 79 million, ex-US, ex-Japan +14%, +16% cc) sales grew mainly in Europe driven by increased demand for migraine prevention. Novartis commercializes Aimovig ex-US and ex-Japan, while Amgen retains all rights in the US and in Japan.

		Q3 2024		Q3 2023		% change		% change		9M 2024		9M 2023		% change		% change
		USD m		USD m		USD		cc		USD m		USD m		USD		cc
Oncology
Kisqali		787		562		40		43		2 131		1 470		45		48
Promacta/Revolade		569		576		-1		0		1 633		1 706		-4		-3
Tafinlar + Mekinist 1		534		482		11		12		1 531		1 436		7		9
Jakavi		500		427		17		18		1 449		1 276		14		16
Tasigna		419		464		-10		-9		1 260		1 402		-10		-9
Pluvicto		386		256		51		50		1 041		707		47		47
excl. revenue deduction adjust. 2						37		36						42		42
Lutathera		190		159		19		19		534		458		17		17
Scemblix		182		106		72		72		482		288		67		69
Piqray/Vijoice		111		128		-13		-13		340		374		-9		-9
Kymriah		102		124		-18		-17		335		388		-14		-12
Fabhalta		44				nm		nm		72				nm		nm
Other												1		nm		nm
Total oncology		3 824		3 284		16		18		10 808		9 506		14		15
1  Majority of sales for Mekinist and Tafinlar are combination, but both can be used as monotherapy.
2  Sales growth benefiting from a one-time revenue deduction adjustment in Europe
nm = not meaningful

Kisqali (USD 787 million, +40%, +43% cc) sales grew strongly across all regions, based on increasing recognition of its consistently reported overall survival in HR+/HER2- advanced breast cancer, Category 1 NCCN

guidelines recommendation, and highest ESMO-Magnitude of Clinical Benefit Scale scores in the CDK4/6 inhibitor class. Novartis is in US ANDA litigation with a generic manufacturer.

Promacta/Revolade (USD 569 million, -1%, 0% cc) sales were broadly in line following discontinued proactive promotion in most markets.

Tafinlar + Mekinist (USD 534 million, +11%, +12% cc) sales grew mainly in the US and emerging growth markets, driven by demand in BRAF+ adjuvant melanoma, NSCLC, pediatric low-grade glioma, and tumor agnostic indications, while maintaining demand in the highly competitive BRAF+ metastatic melanoma market.

Jakavi (USD 500 million, +17% USD, +18% cc) sales grew across all regions driven by strong demand in all indications. Incyte retains all rights to ruxolitinib (Jakafi®) in the US.

Tasigna (USD 419 million, -10%, -9% cc) sales declined across most regions due to lower demand and increasing competition.

Pluvicto (USD 386 million, +51%, +50% cc) sales grew in the US and Europe. Pluvicto is the only radioligand therapy approved by the FDA for the treatment of adult patients with progressive, PSMA-positive metastatic castration-resistant prostate cancer, who have already been treated with other anti-cancer treatments (ARPI and taxane-based chemotherapy). Pluvicto is now on the market in several EU countries. Current period sales benefited from a one-time revenue deduction adjustment (USD 36 million) in Europe. Novartis is in litigation with a manufacturer developing a radiopharmaceutical to treat PSMA-positive prostate cancer.

Lutathera (USD 190 million, +19%, +19% cc) sales grew across all regions due to increased demand and earlier line adoption (within indication) in the US and Japan. Novartis is in ANDA litigation with a generic manufacturer.

Scemblix (USD 182 million, +72% USD, +72% cc) sales grew across all regions, demonstrating continued high unmet need for effective and tolerable treatment options for adult CML patients treated with two or more tyrosine kinase inhibitors.

Piqray/Vijoice (USD 111 million, -13%, -13% cc) sales declined in the US due to increased competition.

Kymriah (USD 102 million, -18% USD, -17% cc) declined both in the US and ex-US, partly offset by strong performance in pediatric and young adult patients up to 25 years of age with B-cell acute lymphoblastic leukemia (pALL) in the US, and follicular lymphoma indication uptake ex-US.

Fabhalta (USD 44 million, nm) launch continues in PNH with an approval in IgAN in August 2024.

		Q3 2024		Q3 2023		% change		% change		9M 2024		9M 2023		% change		% change
		USD m		USD m		USD		cc		USD m		USD m		USD		cc
Established brands
Sandostatin Group		305		338		-10		-8		973		998		-3		-1
Lucentis		245		363		-33		-32		834		1 174		-29		-28
Exforge Group		174		187		-7		-4		544		557		-2		1
Galvus Group		159		181		-12		-6		458		539		-15		-8
Diovan Group		150		153		-2		2		450		466		-3		1
Gilenya		130		270		-52		-51		443		771		-43		-41
Contract manufacturing		279		471		-41		-41		829		1 174		-29		-29
Other		1 786		1 893		-6		-5		5 307		5 804		-9		-8
Total established brands		3 228		3 856		-16		-15		9 838		11 483		-14		-13

Sandostatin Group (USD 305 million, -10%, -8% cc) sales declined mainly in the US ahead of the entry of the first generic product in the US in October 2024.

Lucentis (USD 245 million, ex-US -33%, -32% cc) sales declined in Europe, emerging growth markets, and Japan, mainly due to competition.

Exforge Group (USD 174 million, -7%, -4% cc) sales declined mainly in China.

Galvus Group (USD 159 million, -12%, -6% cc) sales declined mainly in Japan and Europe, primarily due to generic competition.

Diovan Group (USD 150 million, -2%, +2% cc) sales grew (cc) mainly in emerging growth markets and Europe, partly offset by a decline in the US.

Gilenya (USD 130 million, +52%, -51% cc) sales declined (cc) due to generic competition, mainly in the US and Europe.

Discontinued operations include the Sandoz generic pharmaceuticals and biosimilars division, certain corporate activities attributable to Sandoz and certain other expenses related to the spin-off of the Sandoz business.

As the Sandoz spin-off was completed on October 3, 2023, there were no operating results in the third quarter of 2024 related to discontinued operations. In the third quarter of 2023, discontinued operations net sales were USD 2.5 billion, operating loss amounted to USD 86 million and net income from discontinued operations was USD 250 million. For further details see Note 3 “Significant acquisition of businesses and spin-off of Sandoz business” and Note 11 “Discontinued operations” to the condensed interim consolidated financial statements.

As the Sandoz spin-off was completed on October 3, 2023, there were no operating results in the first nine months of 2024 related to discontinued operations. In the first nine months of 2023, discontinued operations net sales were USD 7.4 billion, operating income amounted to USD 265 million and net income from discontinued operations was USD 440 million. For further details see Note 3 “Significant acquisition of businesses and spin-off of Sandoz business” and Note 11 “Discontinued operations” to the condensed interim consolidated financial statements.

Total Company net income was USD 3.2 billion in 2024, compared to USD 1.8 billion in 2023 and basic EPS was USD 1.58 compared to USD 0.85 in prior year quarter. Net cash flows from operating activities for total Company amounted to USD 6.3 billion and free cash flow amounted to USD 6.0 billion.

Total Company net income was USD 9.1 billion in 2024, compared to USD 6.4 billion in 2023 and basic EPS was USD 4.50 compared to USD 3.05 in prior year. Net cash flows from operating activities for total Company amounted to USD 13.4 billion and free cash flow amounted to USD 12.6 billion.

Net cash flows from operating activities from continuing operations amounted to USD 6.3 billion, compared with USD 5.3 billion in the prior-year quarter. This increase was mainly driven by higher net income from continuing operations, adjusted for non-cash items and other adjustments, including divestment gains.

In the prior-year quarter, net cash flows from operating activities from discontinued operations amounted to USD 0.1 billion (Q3 2024: nil).

Net cash outflows used in investing activities from continuing operations amounted to USD 0.4 billion, compared with USD 2.0 billion in the prior-year quarter.

In the current-year quarter, net cash outflows used in investing activities from continuing operations were mainly driven by USD 0.5 billion for purchases of intangible assets and USD 0.3 billion for purchases of property, plant and equipment. These were partly offset by cash inflows of USD 0.2 billion from the sale of financial assets; and by net proceeds of USD 0.3 billion from the sale of marketable securities, commodities and time deposits.

In the prior-year quarter, net cash outflows used in investing activities from continuing operations of USD 2.0 billion were mainly driven by cash outflows of USD 3.4 billion for acquisitions and divestments of businesses, net (including the acquisition of Chinook Therapeutics, Inc. for USD 3.1 billion, net of cash acquired USD 0.1 billion, and the acquisition of DTx Pharma Inc. for USD 0.5 billion, net of cash acquired USD 0.1 billion); USD 0.4 billion for purchases of intangible assets; and USD 0.3 billion for purchases of property, plant and equipment. These cash outflows were partly offset by the proceeds from the sale of intangible assets of USD 1.8 billion (including USD 1.75 billion proceeds from the divestment of the ‘front of eye’ ophthalmology assets to Bausch + Lomb); and USD 0.1 billion from the sale of financial assets and property, plant and equipment. Net proceeds from the sale of marketable securities, commodities and time deposits amounted to USD 0.2 billion.

In the prior-year quarter, net cash outflows used in investing activities from discontinued operations amounted to USD 0.2 billion (Q3 2024: nil).

Net cash outflows used in financing activities from continuing operations amounted to USD 0.4 billion, compared with USD 4.3 billion in the prior-year quarter.

In the current-year quarter, the cash outflows used in financing activities from continuing operations of USD 4.1 billion were mainly driven by USD 2.8 billion for net treasury share transactions, the change in current financial debts of USD 0.8 billion, and the repayments of other current financial debts of USD 0.3 billion. These cash outflows were partly offset by cash inflows of USD 3.7 billion from the issuance of US dollar denominated bonds with a notional amount of USD 3.7 billion.

In the prior-year quarter, net cash outflows used in financing activities from continuing operations of USD 4.3 billion were mainly driven by USD 2.2 billion for the repayment of two bonds denominated in euro (notional amounts of EUR 1.25 billion and of EUR 0.75 billion) at maturity; USD 1.6 billion payments for net treasury share transactions; and USD 0.4 billion from the net decrease in current financial debts.

In the prior-year quarter, net cash inflows from financing activities from discontinued operations amounted to USD 3.5 billion (Q3 2024: nil).

Free cash flow from continuing operations amounted to USD 6.0 billion (+18% USD), compared with USD 5.0 billion in the prior-year quarter, driven by higher net cash flows from operating activities from continuing operations.

For the total Company, net cash flows from operating activities amounted to USD 6.3 billion, compared with USD 5.4 billion in the prior-year quarter, and free cash flow amounted to USD 6.0 billion, compared with USD 5.0 billion in the prior-year quarter.

Net cash flows from operating activities from continuing operations amounted to USD 13.4 billion, compared with USD 11.7 billion in the prior-year period. This increase was mainly driven by higher net income from continuing

operations, adjusted for non-cash items and other adjustments, including divestment gains and lower payments out of provisions, partly offset by unfavorable changes in working capital.

In the prior-year period, net cash flows from operating activities from discontinued operations amounted to USD 0.2 billion (9M 2024: nil).

Net cash outflows used in investing activities from continuing operations amounted to USD 4.5 billion, compared with USD 7.7 billion net cash inflows in the prior-year period.

In the current year period, net cash outflows used in investing activities from continuing operations were mainly driven by USD 3.6 billion for acquisitions and divestments of businesses, including the acquisition of Mariana Oncology for USD 1.0 billion (USD 1.1 billion, net of cash acquired of USD 0.1 billion) and the acquisition of MorphoSys AG for USD 2.3 billion (USD 2.5 billion, net of cash acquired of USD 0.2 billion). Cash outflows for purchases of intangible assets amounted to USD 1.9 billion; purchases of property, plant and equipment amounted to USD 0.8 billion; and purchases of financial assets amounted to USD 0.1 billion. These were partly offset by cash inflows of USD 0.9 billion from the sale of financial assets (including USD 0.7 billion proceeds from the sale of Sandoz Group AG shares by consolidated foundations); and by net proceeds of USD 1.0 billion from the sale of marketable securities, commodities and time deposits.

In the prior-year period, net cash inflows from investing activities from continuing operations of USD 7.7 billion were driven by the net proceeds of USD 11.1 billion from the sale of marketable securities, commodities and time deposits; USD 2.0 billion from the sale of intangible assets (including USD 1.75 billion cash proceeds from the divestment of the ‘front of eye’ ophthalmology assets to Bausch + Lomb); and USD 0.3 billion from the sale of financial assets and property, plant and equipment. These cash inflows were partly offset by cash outflows of USD 3.6 billion for acquisitions and divestments of businesses, net (including the acquisition of Chinook Therapeutics, Inc. for USD 3.1 billion, net of cash acquired of USD 0.1 billion, and the acquisition of DTx Pharma Inc. for USD 0.5 billion, net of cash acquired of USD 0.1 billion); USD 1.3 billion for purchases of intangible assets; USD 0.7 billion for purchases of property, plant and equipment; and USD 0.1 billion for purchases of financial assets.

In the prior-year period, net cash outflows used in investing activities from discontinued operations amounted to USD 0.4 billion (9M 2024: nil).

Net cash outflows used in financing activities from continuing operations amounted to USD 8.7 billion, compared with USD 17.1 billion in the prior-year period.

In the current-year period, net cash outflows used in financing activities from continuing operations were mainly driven by USD 7.6 billion for the dividend payment; USD 5.5 billion for net treasury share transactions; the USD 2.15 billion repayment of a US dollar bond at maturity, and the USD 0.3 billion repayments of other current financial debts. These cash outflows were partly offset by cash inflows from the issuance of bonds totaling USD 6.1 billion (denominated in US dollars with a notional amount of USD 3.7 billion and in Swiss francs with a notional amount of CHF 2.2 billion, equivalent to USD 2.5 billion). The change in current financial debts resulted in net cash inflows of USD 1.0 billion.

In the prior-year period, net cash outflows used in financing activities from continuing operations of USD 17.1 billion were mainly driven by USD 7.3 billion for the dividend payment; USD 7.3 billion for net treasury share transactions; USD 2.2 billion for the repayment of two bonds denominated in euro (notional amounts of EUR 1.25 billion and of EUR 0.75 billion) at maturity, and USD 0.1 billion from the net decrease in current financial debts. Payments of lease liabilities amounted to USD 0.2 billion.

In the prior-year period, net cash inflows from financing activities from discontinued operations amounted to USD 3.4 billion (9M 2024: nil).

Free cash flow from continuing operations amounted to USD 12.6 billion (+15% USD), compared with USD 11.0 billion in the prior-year period, driven by higher net cash flows from operating activities from continuing operations.

For the total Company, net cash flows from operating activities amounted to USD 13.4 billion, compared with USD 11.9 billion in the prior-year period, and free cash flow amounted to USD 12.6 billion, compared with USD 11.0 billion in the prior-year period.

Total non-current assets of USD 72.3 billion increased by USD 2.8 billion compared to December 31, 2023.

Intangible assets other than goodwill increased by USD 1.0 billion mainly due the impact of the Mariana Oncology and MorphoSys business acquisitions, additions and favorable currency adjustments, partially offset by amortization, and impairments.

Goodwill increased by USD 1.6 billion mainly due the impact of the Mariana Oncology and MorphoSys business acquisitions, and favorable currency adjustments, partially offset by an impairment (see Note 3 to the interim consolidated financial statements).

Financial assets decreased by USD 0.5 billion mainly due to the sale of Sandoz AG shares by consolidated foundations. Property, plant and equipment increased by USD 0.2 billion mainly as additions were only partly offset by depreciation charges. Deferred tax assets increased by USD 0.3 billion.

Other non-current assets, right-of-use assets and investments in associated companies were broadly in line with December 31, 2023.

Total current assets of USD 31.3 billion increased by USD 0.8 billion compared to December 31, 2023.

Cash and cash equivalents increased by USD 0.2 billion mainly as cash generated through operating activities of USD 13.4 billion, net proceeds from changes in financial debts of USD 4.7 billion and other net cash from investing and financing activities of USD 0.7 billion, were only partly offset by the USD 7.6 billion dividend payment, USD 3.6 billion for acquisitions of businesses (mainly for the Mariana Oncology and MorphoSys AG business acquisitions), USD 1.9 billion for purchases of intangible assets, and USD 5.5 billion for net purchases of treasury shares.

Marketable securities, commodities, time deposits and derivative financial instruments decreased by USD 0.6 billion, mainly due to the net sales of marketable securities, commodities and time deposits and fair value adjustments on derivative financial instruments. Trade receivables increased by USD 0.9 billion, mainly driven by the increase in net sales. Other current assets increased by USD 0.5 billion. Income tax receivables and inventories were broadly in line with December 31, 2023.

Total non-current liabilities of USD 32.0 billion increased by USD 5.1 billion compared to December 31, 2023.

Non-current financial debts increased by USD 5.3 billion mainly due to the issuance of Swiss franc denominated bonds of USD 2.6 billion (notional amount of CHF 2.2 billion) and from the issuance of US dollar denominated bonds with a notional amount of USD 3.7 billion and financial debts acquired through the MorphoSys business acquisition of USD 0.6 billion, partly offset by the reclassification of USD 1.6 billion from non-current to current financial debts consisting of a US dollar denominated bond with notional amount of USD 1.0 billion and a Swiss franc denominated bond of notional amount of CHF 0.5 billion both maturing in 2025.

Non-current lease liabilities, deferred tax liabilities and provisions and other non-current liabilities were broadly in line with December 31, 2023.

Total current liabilities of USD 28.1 billion increased by USD 1.7 billion compared to December 31, 2023.

Current financial debts and derivative financial instruments increased by USD 0.4 billion compared to December 31, 2023, mainly due to the issuance of commercial paper notes under the US commercial paper program and the reclassification of USD 1.6 billion from non-current to current financial debts of a US dollar denominated bond with notional amount of USD 1.0 billion and a Swiss franc denominated bond of notional amount of CHF 0.5 billion both maturing in 2025, partly offset by the repayment of a US dollar bond at maturity of USD 2.15 billion.

Trade payables decreased by USD 0.8 billion. Provisions and other current liabilities increased by USD 1.9 billion mainly driven by the increase in provisions for deductions from revenue. Current income tax liabilities increased by USD 0.3 billion. Current lease liabilities were broadly in line with December 31, 2023.

The Company’s equity decreased by USD 3.3 billion to USD 43.4 billion compared to December 31, 2023.

This decrease was mainly driven by the net income of USD 9.1 billion and favorable impact from equity-based compensation of USD 0.8 billion being more than offset by the cash-dividend to Novartis AG shareholders of USD 7.6 billion and the purchase of treasury shares of USD 5.8 billion.

The Company’s liquidity amounted to USD 14.0 billion as at September 30, 2024, compared with USD 14.4 billion as at December 31, 2023. Total non-current and current financial debts, including derivatives, amounted to USD 30.3 billion as at September 30, 2024, compared with USD 24.6 billion as at December 31, 2023.

The debt/equity ratio increased to 0.70:1 as at September 30, 2024, compared with 0.53:1 as at December 31, 2023. The net debt increased to USD 16.3 billion as at September 30, 2024, compared with USD 10.2 billion as at December 31, 2023.

Novartis continues to focus its R&D portfolio prioritizing high value medicines with transformative potential for patients. We now focus on ~100 projects in clinical development.

Product		Active ingredient/ Descriptor		Indication		Region
Kisqali		ribociclib		Hormone receptor-positive / human epidermal growth factor receptor 2-negative early breast cancer (adjuvant)		US
Fabhalta		iptacopan		IgA nephropathy		US

				Completed submissions
Product		Indication		US		EU		Japan		News update
Kisqali		Hormone receptor-positive / human epidermal growth factor receptor 2-negative early breast cancer (adjuvant)				Q3 2023				– Positive CHMP opinion received in October
Scemblix		1L chronic myeloid leukemia		Q2 2024				Q3 2024		– US Priority Review granted – Japan and China submissions
Atrasentan		IgA nephropathy		Q2 2024
Fabhalta		C3G				Q3 2024		Q3 2024		– EU and Japan submissions
Pluvicto		Metastatic castration-resistant prostate cancer, pre-taxane		Q3 2024						– US submission
Lutathera		Gastroenteropancreatic neuroendocrine tumors, 1L in G2/3 tumors				Q2 2024
Coartem		Malaria (<5kg patients)								– Submission using MAGHP procedure in Switzerland to facilitate rapid approvals in developing countries

Compound/ product		Potential indication/ Disease area		First planned submissions		Current Phase		News update
Aimovig		Migraine, pediatrics		≥2027		3
AVXS-101 (OAV101)		Spinal muscular atrophy (IT formulation)		2025		3
Beovu		Diabetic retinopathy		2025		3
CFZ533 (iscalimab)		Sjögren's syndrome		≥2027		2
Cosentyx		Giant cell arteritis		2025		3
		Polymyalgia rheumatica		2026		3
DAK539 (pelabresib)		Myelofibrosis				3		– Morphosys aquisition – Based on Novartis review of 48-week data from the Ph3 MANIFEST-2 study, longer follow-up time is needed to determine, in consultation with Health Authorities, the regulatory path for pelabresib in myelofibrosis
FUB523 (zigakibart)		IgA nephropathy		≥2027		3
KAE609 (cipargamin)		Malaria, uncomplicated		≥2027		2
		Malaria, severe		≥2027		2
KLU156 (ganaplacide + lumefantrine)		Malaria, uncomplicated		2026		3		– FDA Orphan Drug designation – FDA Fast Track designation
Leqvio		Secondary prevention of cardiovascular events in patients with elevated levels of LDL-C		≥2027		3
		Primary prevention CVRR		≥2027		3
LNA043		Osteoarthritis		≥2027		2		– FDA Fast Track designation

Compound/ product		Potential indication/ Disease area		First planned submissions		Current Phase		News update
LNP023 (iptacopan)		IC-MPGN		≥2027		3
		Atypical haemolytic uraemic syndrome		≥2027		3
		Myasthenia gravis		≥2027		3
LOU064 (remibrutinib)		Chronic spontaneous urticaria		2025		3
		CINDU		≥2027		3
		Multiple sclerosis		≥2027		3
177Lu-NeoB		Multiple solid tumors		≥2027		1
LXE408		Visceral leishmaniasis		≥2027		2
Pluvicto		Metastatic hormone sensitive prostate cancer		2025		3		– Event-driven trial
		Oligometastatic prostate cancer		≥2027		3
QGE031 (ligelizumab)		Food allergy				3		– Project discontinued
TQJ230 (pelacarsen)		Secondary prevention of cardiovascular events in patients with elevated levels of lipoprotein(a)		2025		3		– FDA Fast Track designation – China Breakthrough Therapy designation
VAY736 (ianalumab)		Auto-immune hepatitis				2		– Project discontinued following Ph2 readout
		Sjögren’s syndrome		2026		3		– FDA Fast Track designation
		Lupus nephritis		≥2027		3
		Systemic lupus erythematosus		≥2027		3
		1L immune thrombocytopenia		≥2027		3
		2L immune thrombocytopenia		≥2027		3
		Warm autoimmune hemolytic anemia		≥2027		3
Vijoyce		Lymphatic malformations		≥2027		3		– US, EU Orphan Drug designation
XXB750		Hypertension				2		– NVS will not advance further development following current scientific assessment and review of available data of early investigational studies.
YTB323		Severe refractory lupus nephritis / Systemic lupus erythematosus		≥2027		2
		1L high-risk large B-cell lymphoma		≥2027		2

Third quarter (unaudited)

(USD millions unless indicated otherwise)		Note		Q3 2024		Q3 2023
Net sales from continuing operations		9		12 823		11 782
Other revenues		9		349		310
Cost of goods sold				-3 234		-3 117
Gross profit from continuing operations				9 938		8 975
Selling, general and administration				-3 134		-3 091
Research and development				-2 392		-3 925
Other income				355		224
Other expense				-1 140		-421
Operating income from continuing operations				3 627		1 762
Loss from associated companies				-4		-3
Interest expense				-264		-222
Other financial income and expense				26		15
Income before taxes from continuing operations				3 385		1 552
Income taxes				-200		-39
Net income from continuing operations				3 185		1 513
Net income from discontinued operations		11				250
Net income				3 185		1 763
Attributable to:
Shareholders of Novartis AG				3 189		1 761
Non-controlling interests				-4		2
Weighted average number of shares outstanding – Basic (million)				2 012		2 062
Basic earnings per share from continuing operations (USD) 1				1.58		0.73
Basic earnings per share from discontinued operations (USD) 1						0.12
Total basic earnings per share (USD) 1				1.58		0.85
Weighted average number of shares outstanding – Diluted (million)				2 027		2 075
Diluted earnings per share from continuing operations (USD) 1				1.57		0.73
Diluted earnings per share from discontinued operations (USD) 1						0.12
Total diluted earnings per share (USD) 1				1.57		0.85
1  Earnings per share (EPS) is calculated on the amount of net income attributable to shareholders of Novartis AG.
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

Nine months to September 30 (unaudited)

(USD millions unless indicated otherwise)		Note		9M 2024		9M 2023
Net sales from continuing operations		9		37 164		34 017
Other revenues		9		1 000		867
Cost of goods sold				-9 503		-9 450
Gross profit from continuing operations				28 661		25 434
Selling, general and administration				-9 065		-9 073
Research and development				-7 180		-8 804
Other income				877		1 322
Other expense				-2 279		-1 692
Operating income from continuing operations				11 014		7 187
Loss from associated companies				-35		-7
Interest expense				-731		-638
Other financial income and expense				107		204
Income before taxes from continuing operations				10 355		6 746
Income taxes				-1 236		-812
Net income from continuing operations				9 119		5 934
Net income from discontinued operations		11				440
Net income				9 119		6 374
Attributable to:
Shareholders of Novartis AG				9 123		6 370
Non-controlling interests				-4		4
Weighted average number of shares outstanding – Basic (million)				2 029		2 085
Basic earnings per share from continuing operations (USD) 1				4.50		2.84
Basic earnings per share from discontinued operations (USD) 1						0.21
Total basic earnings per share (USD) 1				4.50		3.05
Weighted average number of shares outstanding – Diluted (million)				2 044		2 098
Diluted earnings per share from continuing operations (USD) 1				4.46		2.83
Diluted earnings per share from discontinued operations (USD) 1						0.21
Total diluted earnings per share (USD) 1				4.46		3.04
1  Earnings per share (EPS) is calculated on the amount of net income attributable to shareholders of Novartis AG.
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

Third quarter (unaudited)

(USD millions)		Q3 2024		Q3 2023
Net income		3 185		1 763
Other comprehensive income
Items that are or may be recycled into the consolidated income statement
Net investment hedge, net of taxes		-65		38
Cash flow hedge, net of taxes		-25
Currency translation effects, net of taxes		1 310		-467
Total of items that are or may be recycled		1 220		-429
Items that will never be recycled into the consolidated income statement
Actuarial (losses)/gains from defined benefit plans, net of taxes		-16		116
Fair value adjustments on equity securities, net of taxes		-34		27
Total of items that will never be recycled		-50		143
Total other comprehensive income		1 170		-286
Total comprehensive income		4 355		1 477
Total comprehensive income for the period attributable to:
Shareholders of Novartis AG		4 354		1 476
Continuing operations		4 354		1 292
Discontinued operations				184
Non-controlling interests		1		1
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

Nine months to September 30 (unaudited)

(USD millions)		9M 2024		9M 2023
Net income		9 119		6 374
Other comprehensive income
Items that are or may be recycled into the consolidated income statement
Net investment hedge, net of taxes		-14		9
Cash flow hedge, net of taxes		-25
Currency translation effects, net of taxes		-54		55
Total of items that are or may be recycled		-93		64
Items that will never be recycled into the consolidated income statement
Actuarial gains from defined benefit plans, net of taxes		120		57
Fair value adjustments on equity securities, net of taxes		85		-19
Total of items that will never be recycled		205		38
Total other comprehensive income		112		102
Total comprehensive income		9 231		6 476
Total comprehensive income for the period attributable to:
Shareholders of Novartis AG		9 234		6 472
Continuing operations		9 234		6 053
Discontinued operations				419
Non-controlling interests		-3		4
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

(USD millions)		Note		Sep 30, 2024 (unaudited)		Dec 31, 2023 (audited)
Assets
Non-current assets
Property, plant and equipment				9 749		9 514
Right-of-use assets				1 452		1 410
Goodwill				24 930		23 341
Intangible assets other than goodwill				27 902		26 879
Investments in associated companies				106		205
Deferred tax assets				4 646		4 309
Financial assets				2 086		2 607
Other non-current assets				1 389		1 199
Total non-current assets				72 260		69 464
Current assets
Inventories				5 939		5 913
Trade receivables				7 966		7 107
Income tax receivables				184		426
Marketable securities, commodities, time deposits and derivative financial instruments				411		1 035
Cash and cash equivalents				13 609		13 393
Other current assets				3 155		2 607
Total current assets				31 264		30 481
Total assets				103 524		99 945
Equity and liabilities
Equity
Share capital				793		825
Treasury shares				-40		-41
Reserves				42 564		45 883
Equity attributable to Novartis AG shareholders		4		43 317		46 667
Non-controlling interests				124		83
Total equity				43 441		46 750
Liabilities
Non-current liabilities
Financial debts		10		23 750		18 436
Lease liabilities				1 596		1 598
Deferred tax liabilities				2 216		2 248
Provisions and other non-current liabilities				4 389		4 523
Total non-current liabilities				31 951		26 805
Current liabilities
Trade payables				4 087		4 926
Financial debts and derivative financial instruments				6 566		6 175
Lease liabilities				247		230
Current income tax liabilities				2 165		1 893
Provisions and other current liabilities				15 067		13 166
Total current liabilities				28 132		26 390
Total liabilities				60 083		53 195
Total equity and liabilities				103 524		99 945
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

Third quarter (unaudited)

								Reserves
(USD millions)		Note		Share capital		Treasury shares		Retained earnings		Total value adjustments		Issued share capital and reserves attributable to Novartis shareholders		Non- controlling interests		Total equity
Total equity at July 1, 2024				793		-25		45 836		-4 871		41 733		169		41 902
Net income								3 189				3 189		-4		3 185
Other comprehensive income										1 165		1 165		5		1 170
Total comprehensive income								3 189		1 165		4 354		1		4 355
Purchase of treasury shares						-15		-2 952				-2 967				-2 967
Exercise of options and employee transactions								33				33				33
Equity-based compensation						0		265				265				265
Shares delivered to Sandoz employees as a result of the Sandoz spin-off								0				0				0
Taxes on treasury share transactions								-35				-35				-35
Changes in non-controlling interests														-4		-4
Fair value adjustments on financial assets sold								22		-22
Impact of change in ownership of consolidated entities								-70				-70		-42		-112
Other movements		4.4						4				4				4
Total of other equity movements						-15		-2 733		-22		-2 770		-46		-2 816
Total equity at September 30, 2024				793		-40		46 292		-3 728		43 317		124		43 441
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

								Reserves
(USD millions)		Note		Share capital		Treasury shares		Retained earnings		Total value adjustments		Issued share capital and reserves attributable to Novartis shareholders		Non- controlling interests		Total equity
Total equity at July 1, 2023				842		-52		55 682		-4 625		51 847		84		51 931
Net income								1 761				1 761		2		1 763
Other comprehensive income										-285		-285		-1		-286
Total comprehensive income								1 761		-285		1 476		1		1 477
Dividend in kind		3						-13 962				-13 962				-13 962
Purchase of treasury shares						-6		-1 390				-1 396				-1 396
Reduction of share capital				-17		26		-9
Exercise of options and employee transactions								-2				-2				-2
Equity-based compensation						0		221				221				221
Taxes on treasury share transactions								3				3				3
Transaction costs, net of taxes		4.3						-74				-74				-74
Changes in non-controlling interests														-4		-4
Fair value adjustments on financial assets sold								52		-52
Other movements		4.4						51				51				51
Total of other equity movements				-17		20		-15 110		-52		-15 159		-4		-15 163
Total equity at September 30, 2023				825		-32		42 333		-4 962		38 164		81		38 245
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

Nine months to September 30 (unaudited)

								Reserves
(USD millions)		Note		Share capital		Treasury shares		Retained earnings		Total value adjustments		Issued share capital and reserves attributable to Novartis shareholders		Non- controlling interests		Total equity
Total equity at January 1, 2024				825		-41		49 649		-3 766		46 667		83		46 750
Net income								9 123				9 123		-4		9 119
Other comprehensive income										111		111		1		112
Total comprehensive income								9 123		111		9 234		-3		9 231
Dividends		4.1						-7 624				-7 624				-7 624
Purchase of treasury shares						-30		-5 750				-5 780				-5 780
Reduction of share capital		4.2		-32		26		6
Exercise of options and employee transactions								-2				-2				-2
Equity-based compensation						5		812				817				817
Shares delivered to Sandoz employees as a result of the Sandoz spin-off								12				12				12
Taxes on treasury share transactions								-27				-27				-27
Changes in non-controlling interests														-4		-4
Fair value adjustments on financial assets sold								73		-73
Impact of change in ownership of consolidated entities								-98				-98		48		-50
Other movements		4.4						118				118				118
Total of other equity movements				-32		1		-12 480		-73		-12 584		44		-12 540
Total equity at September 30, 2024				793		-40		46 292		-3 728		43 317		124		43 441
The accompanying Notes form an integral part of the condensed interim consolidated financial statements