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v3.20.2

Segmentation of key figures | 6 Months Ended
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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 on distribution of Alcon Inc. to Novartis AG shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | – 101 |
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 |
(USD millions) |  | Jun 30, 2020 |  | Dec 31, 2019 |  | Jun 30, 2020 |  | Dec 31, 2019 |  | Jun 30, 2020 |  | Dec 31, 2019 |  | Jun 30, 2020 |  | Dec 31, 2019 |
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 Q2 2020 and H1 2020 include an impairment of USD 485 million related to the write-down of IPR&D related to cessation of clinical development program ZPL389 for atopic dermatitis. H1 2019 includes an impairment of USD 416 million related to the write-down of IPR&D acquired through the 2015 Spinifex Pharmaceuticals Inc. acquisition.
Segmentation – Net sales by region 1 Second quarter
|  | Q2 2020 USD m |  | Q2 2019 USD m |  | % change USD |  | % change cc 2 |  | Q2 2020 % of total |  | Q2 2019 % of total |
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 Net sales from operations by location of third-party customer. Emerging Growth Markets comprise all markets other than the Established Markets of the US, Canada, Western Europe, Japan, Australia and New Zealand.
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 54.
Segmentation – Net sales by region 1 First half
|  | H1 2020 USD m |  | H1 2019 USD m |  | % change USD |  | % change cc 2 |  | H1 2020 % of total |  | H1 2019 % of total |
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 Net sales from operations by location of third-party customer. Emerging Growth Markets comprise all markets other than the Established Markets of the US, Canada, Western Europe, Japan, Australia and New Zealand.
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 54.
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 Group |  | 149 |  | 166 |  | – 10 |  | – 7 |
Other |  | 6 |  | 5 |  | 20 |  | – 10 |
Total Respiratory |  | 444 |  | 461 |  | – 4 |  | 0 |
Established Medicines |  |  |  |  |  |  |  |  |
Galvus Group |  | 279 |  | 320 |  | – 13 |  | – 8 |
Diovan Group |  | 268 |  | 283 |  | – 5 |  | 0 |
Exforge Group |  | 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 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 54.
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 Group |  | 309 |  | 323 |  | – 4 |  | – 1 |
Other |  | 10 |  | 12 |  | – 17 |  | – 18 |
Total Respiratory |  | 915 |  | 906 |  | 1 |  | 5 |
Established Medicines |  |  |  |  |  |  |  |  |
Galvus Group |  | 617 |  | 635 |  | – 3 |  | 1 |
Diovan Group |  | 542 |  | 544 |  | 0 |  | 4 |
Exforge Group |  | 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 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 54.
nm = not meaningful
Net sales of the top 20 Innovative Medicines Division products in 2020 Second quarter
|  |  |  |  |  | US |  | Rest of world |  | Total |
Brands |  | Business franchise |  | Key indication |  | USD m |  | % change USD/cc 1 |  | USD m |  | % change USD |  | % change cc 1 |  | USD m |  | % change USD |  | % change cc 1 |
Cosentyx |  | Immunology, Hepatology and Dermatology |  | Psoriasis, ankylosing spondylitis and psoriatic arthritis and non-radiographic axial spondyloarthritis |  | 614 |  | 15 |  | 330 |  | 2 |  | 6 |  | 944 |  | 10 |  | 12 |
Gilenya |  | Neuroscience |  | Relapsing multiple sclerosis |  | 416 |  | – 6 |  | 322 |  | – 16 |  | – 13 |  | 738 |  | – 11 |  | – 9 |
Entresto |  | Cardiovascular, Renal and Metabolism |  | Chronic heart failure |  | 308 |  | 39 |  | 272 |  | 36 |  | 41 |  | 580 |  | 38 |  | 40 |
Tasigna |  | Oncology |  | Chronic myeloid leukemia |  | 221 |  | 8 |  | 259 |  | – 2 |  | 2 |  | 480 |  | 3 |  | 5 |
Lucentis |  | Ophthalmology |  | Age-related macular degeneration |  |  |  |  |  | 401 |  | – 25 |  | – 24 |  | 401 |  | – 25 |  | – 24 |
Promacta/Revolade |  | Oncology |  | Immune thrombocytopenia (ITP), severe aplastic anemia (SAA) |  | 212 |  | 25 |  | 210 |  | 17 |  | 22 |  | 422 |  | 21 |  | 23 |
Tafinlar + Mekinist |  | Oncology |  | BRAF V600+ metastatic and adjuvant melanoma; advanced non-small cell lung cancer (NSCLC) |  | 147 |  | 20 |  | 224 |  | 3 |  | 8 |  | 371 |  | 9 |  | 12 |
Sandostatin |  | Oncology |  | Carcinoid tumors and acromegaly |  | 200 |  | – 8 |  | 141 |  | – 24 |  | – 19 |  | 341 |  | – 15 |  | – 13 |
Jakavi |  | Oncology |  | Myelofibrosis (MF), polycytomia vera (PV) |  |  |  |  |  | 310 |  | 9 |  | 14 |  | 310 |  | 9 |  | 14 |
Gleevec/Glivec |  | Oncology |  | Chronic myeloid leukemia and GIST |  | 70 |  | – 27 |  | 218 |  | – 4 |  | 0 |  | 288 |  | – 11 |  | – 8 |
Galvus Group |  | Established Medicines |  | Diabetes |  |  |  |  |  | 279 |  | – 13 |  | – 8 |  | 279 |  | – 13 |  | – 8 |
Xolair |  | Respiratory |  | Severe Allergic Asthma (SAA) and Chronic Spontaneous Urticaria (CSU) |  |  |  |  |  | 289 |  | 0 |  | 4 |  | 289 |  | 0 |  | 4 |
Afinitor/Votubia |  | Oncology |  | Breast cancer/TSC |  | 163 |  | – 37 |  | 103 |  | – 27 |  | – 24 |  | 266 |  | – 34 |  | – 33 |
Diovan Group |  | Established Medicines |  | Hypertension |  | 34 |  | 21 |  | 234 |  | – 8 |  | – 2 |  | 268 |  | – 5 |  | 0 |
Exforge Group |  | Established Medicines |  | Hypertension |  | 2 |  | – 50 |  | 236 |  | – 9 |  | – 5 |  | 238 |  | – 10 |  | – 5 |
Ilaris |  | Immunology, Hepatology and Dermatology |  | Auto-inflammatory (CAPS, TRAPS, HIDS/MKD, FMF, SJIA, AOSD and gout) |  | 95 |  | 23 |  | 105 |  | 19 |  | 22 |  | 200 |  | 21 |  | 23 |
Zolgensma |  | Neuroscience |  | Spinal muscular atrophy (SMA) |  | 105 |  | nm |  | 100 |  | nm |  | nm |  | 205 |  | nm |  | nm |
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 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 54.
nm = not meaningful
Net sales of the top 20 Innovative Medicines Division products in 2020 First half
|  |  |  |  |  | US |  | Rest of world |  | Total |
Brands |  | Business franchise |  | Key indication |  | USD m |  | % change USD/cc 1 |  | USD m |  | % change USD |  | % change cc 1 |  | USD m |  | % change USD |  | % change cc 1 |
Cosentyx |  | Immunology, Hepatology and Dermatology |  | Psoriasis, ankylosing spondylitis and psoriatic arthritis and non-radiographic axial spondyloarthritis |  | 1 190 |  | 18 |  | 684 |  | 7 |  | 11 |  | 1 874 |  | 14 |  | 15 |
Gilenya |  | Neuroscience |  | Relapsing multiple sclerosis |  | 804 |  | – 3 |  | 706 |  | – 7 |  | – 4 |  | 1 510 |  | – 5 |  | – 4 |
Entresto |  | Cardiovascular, Renal and Metabolism |  | Chronic heart failure |  | 601 |  | 43 |  | 548 |  | 53 |  | 58 |  | 1 149 |  | 48 |  | 50 |
Tasigna |  | Oncology |  | Chronic myeloid leukemia |  | 424 |  | 10 |  | 543 |  | 5 |  | 9 |  | 967 |  | 7 |  | 9 |
Lucentis |  | Ophthalmology |  | Age-related macular degeneration |  |  |  |  |  | 888 |  | – 17 |  | – 15 |  | 888 |  | – 17 |  | – 15 |
Promacta/Revolade |  | Oncology |  | Immune thrombocytopenia (ITP), severe aplastic anemia (SAA) |  | 399 |  | 25 |  | 426 |  | 26 |  | 30 |  | 825 |  | 26 |  | 28 |
Tafinlar + Mekinist |  | Oncology |  | BRAF V600+ metastatic and adjuvant melanoma; advanced non-small cell lung cancer (NSCLC) |  | 279 |  | 21 |  | 458 |  | 13 |  | 17 |  | 737 |  | 16 |  | 19 |
Sandostatin |  | Oncology |  | Carcinoid tumors and acromegaly |  | 413 |  | – 5 |  | 302 |  | – 17 |  | – 12 |  | 715 |  | – 10 |  | – 8 |
Jakavi |  | Oncology |  | Myelofibrosis (MF), polycytomia vera (PV) |  |  |  |  |  | 628 |  | 16 |  | 20 |  | 628 |  | 16 |  | 20 |
Gleevec/Glivec |  | Oncology |  | Chronic myeloid leukemia and GIST |  | 174 |  | – 1 |  | 443 |  | – 3 |  | 1 |  | 617 |  | – 2 |  | 0 |
Galvus Group |  | Established Medicines |  | Diabetes |  |  |  |  |  | 617 |  | – 3 |  | 1 |  | 617 |  | – 3 |  | 1 |
Xolair |  | Respiratory |  | Severe Allergic Asthma (SAA) and Chronic Spontaneous Urticaria (CSU) |  |  |  |  |  | 596 |  | 4 |  | 8 |  | 596 |  | 4 |  | 8 |
Afinitor/Votubia |  | Oncology |  | Breast cancer/TSC |  | 332 |  | – 33 |  | 230 |  | – 18 |  | – 15 |  | 562 |  | – 27 |  | – 26 |
Diovan Group |  | Established Medicines |  | Hypertension |  | 60 |  | 33 |  | 482 |  | – 3 |  | 2 |  | 542 |  | 0 |  | 4 |
Exforge Group |  | Established Medicines |  | Hypertension |  | 6 |  | – 14 |  | 490 |  | – 6 |  | – 3 |  | 496 |  | – 7 |  | – 3 |
Ilaris |  | Immunology, Hepatology and Dermatology |  | Auto-inflammatory (CAPS, TRAPS, HIDS/MKD, FMF, SJIA, AOSD and gout) |  | 183 |  | 29 |  | 230 |  | 32 |  | 36 |  | 413 |  | 31 |  | 33 |
Zolgensma 2 |  | Neuroscience |  | Spinal muscular atrophy (SMA) |  | 231 |  | nm |  | 144 |  | nm |  | nm |  | 375 |  | nm |  | nm |
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 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 54.
2 Includes a reclassification of export sales from the US into rest of the world in the amount of USD 44 million that were in Q1 2020 classified within US net sales. This reclassification has no impact on the reported Q1 2020 total Zolgensma net sales.
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 Of which USD 134 million (2019: USD 186 million) represents Anti-Infectives sold under Sandoz name
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 54.
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 Of which USD 356 million (2019: USD 390 million) represents Anti-Infectives sold under Sandoz name
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 54.
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 Other includes revenue from activities such as manufacturing or other services rendered, to the extent such revenue is not recorded under net sales.
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 Other includes revenue from activities such as manufacturing or other services rendered, to the extent such revenue is not recorded under net sales.

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