Novartis: Pipeline, Products, Performance, Potential

Table of Contents

Principal Operating Results

Latest Results

EXECUTIVE SUMMARY

• Introduction
  • Current Growth Drivers
  • Key Late-Phase Products Reaching the Market
  • Key Late-Stage Products
• Financial Performance 2005
  • Sales and Market Position
  • Income
  • Expenditure
    • Capital Expenditure
    • Capital Expenditure By Business Area
    • Capital Expenditure By Geographical Area
    • R&D Expenditure
    • Research And Development Expenditure By Business Area
  • Divisional Performance
    • Sales By Business Area
    • Operating Income By Business Area
  • Geographic Performance
    • Operating Income By Geographical Area
    • Total Assets By Destination
    • Sales By Destination
• Company Strategy
  • Mergers, Acquisitions and Divestitures
  • Key Agreements
  • Employees
    • Employees By Business Area (Year End)
    • Employees By Geographical Area (Year End)
• Product / R&D Overview
  • Key Products
    • Recent Product Launches
    • Recent Product Approvals
  • R&D Strategy
    • Key R&D Projects
  • R&D Pipeline Overview
    • Discontinued R&D projects
  • Sales Forecasts
• Conclusions

PRODUCT PORTFOLIO / RESEARCH & DEVELOPMENT

• R&D Pipeline
• Cardiovascular - Products
  • Major Launched Products
  • Diovan/Co-Diovan
    • Mode of Action
    • Sales
    • Key Markets/Indications
    • Further Development
    • Licensees
    • Competitor Products
    • Sales Forecast
    • Clinical Trial Results - Val-HeFT trial
    • VALIANT trial
    • VALUE trial
  • Lescol
    • Sales
    • Key Markets/Indications
    • Further Development
    • Patents/Licensees
    • Competitor Products
    • Sales Forecast
  • Lotrel
    • Mode of Action
    • Sales
    • Key Markets/Indications
    • Further Development
    • Competitor Products
    • Sales Forecast
• Cardiovascular and Metabolism - R&D
  • APP018
  • Exforge
    • Clinical Trial Results
  • Galvus
    • Mode of Action
    • Development Status
    • Clinical Trial Results
  • LBM642
  • Rasilez
    • Mode of Action
    • Development Status
    • Clinical Trial Results
  • VNP489
• Cardiovascular and Metabolism - Summary
• Oncology / Haematology - Products
  • Major Launched Products
  • Exjade
  • Femara
    • Sales
    • Key Markets/Indications
    • Further Development
    • Sales Forecast
    • Clinical Trial Results
  • Glivec/Gleevec
    • Sales
    • Key Markets/Indications
    • Further Development
    • Competitor Products
    • Generic competition
    • Sales Forecast
    • Clinical Trial Results - CML
    • Clinical Trial Results - GIST
    • Clinical Trial Results - ALL
    • Clinical Trial Results - HES
  • Sandostatin
    • Sales
    • Key Markets/Indications/Formulations
    • Further Development
    • Generic Competition
    • Sales Forecast
  • Zometa/Aclasta
    • Sales
    • Key Markets/Indications
    • Further Development
    • Safety Issues
    • Sales Forecast
    • Clinical Trial Results - Paget's Disease
• Oncology / Hematology - R&D
  • AEE788
  • ABJ879
  • Gimatecan (LBQ707)
  • LBH589
  • Tasigna
    • Clinical Trial Results
  • Midostaurin
  • Pasireotide (SOM230)
  • Patupilone
  • Vatalanib (PTK787)
    • Development Status
    • Clinical Trial Results
• Oncology / Haematology - Summary
  • Growth Potential
  • Limiting Factors
• Rheumatology, Bone and Hormone Replacement Therapy - Products
  • Major Launched Products
  • Miacalcic/Miacalcin
    • Sales
    • Key Markets/Indications/Formulations
    • Further Development
    • Generic Competition
    • Competitor Products
    • Sales Forecast
• Rheumatology, Bone and Hormone Replacement Therapy - R&D
  • Balicatib
  • Prexige
    • Clinical Trial Results
• Rheumatology Bone and Hormone Replacement Therapy - Summary
• Central Nervous System - Products
  • Major Launched Products
  • Comtan
    • Sales
    • Key Markets/Indications
    • Further Development
  • Exelon
    • Sales
    • Key Markets/Indications
    • Further Development
    • Sales Forecast
    • Clinical Trial Results
  • Focalin
    • Key Markets/Indications
  • Ritalin
    • Competitor Products
    • Lawsuits
    • Generic Competition
    • Clinical Trial Results - Ritalin LA versus Concerta
  • Stalevo
    • Further Development
  • Tegretol
    • Sales
    • Key Markets/Indications
    • Generic Competition
    • Sales Forecast
  • Trileptal
    • Sales
    • Key Markets/Indications
    • Safety Issues
    • Sales Forecast
• Central Nervous System - R&D
  • Fingolimod
    • Clinical Trial Results
  • Licarbazepine (LIC477)
  • SAB378
  • Valdoxan
  • XBD173 (AC-5216)
• Central Nervous System - Summary
• Respiratory / Dermatology - Products
  • Elidel
    • Sales
    • Key Markets/Indications
    • Further Development
    • Safety Issues
    • Competitor Products
    • Sales Forecast
  • Foradil
    • Sales
    • Key Markets/Indications
    • Safety Issues
    • Further Development
    • Competitor Products
  • Lamisil
    • Sales
    • Key Markets/Indications
    • Further Development
    • Competitor Products
    • Generic Competition
    • Sales Forecast
  • Xolair
    • Key Markets/Indications
    • Further development
    • Clinical Trial Results
• Respiratory / Dermatology- R&D
  • Indacaterol
    • Clinical Trial Results
  • NVA237
• Respiratory / Dermatology - Summary
• Autoimmunity & Transplantation - Products
  • Major Launched Products
  • Certican
    • Key Markets/Indications
    • Further Development
    • Lawsuit
    • Clinical Trial Results
    • Everolimus versus azathioprine
    • Everolimus versus MMF
  • Sandimmun/Neoral
    • Sales
    • Key Markets/Indications
    • Patents/Generic Competition/Lawsuits
    • Sales Forecast
• Autoimmunity & Transplantation / Immunology R&D
  • AEB071
• Autoimmunity & Transplantation - Summary
• Ophthalmics - Products
  • Major Launched Products
  • Visudyne
    • Sales
    • Key Markets/Indications
    • Further Development
    • Lawsuits
    • Sales Forecast
• Ophthalmics - R&D
  • Lucentis
    • Key Markets/Indications
    • Further Development
    • Clinical Trial Results
  • Rebamipide
• Ophthalmics - Summary
• Gastrointestinal - Products
  • Major Launched Products
  • Zelmac/Zelnorm (HTF919)
    • Sales
    • Key Markets/Indications
    • Further Development
    • Sales Forecast
• Gastrointestinal - R&D
  • CS-526 (R-105266)
• Gastrointestinal - Summary
• Infectious Diseases - Products
  • Major Launched Products
  • Famvir/Denavir
    • Mode of Action
    • Sales
    • Key Markets/Indications
    • Patents
    • Sales Forecast
  • Voltaren/Cataflam
    • Sales
    • Key Markets/Indications/Formulations
    • Further Development
    • Generic Competition
    • Sales Forecast
• Infectious Diseases - R&D
  • ANA975
    • Clinical Trial Results
  • RSV604
  • Sebivo
    • Clinical Trial Results
  • VAG624
  • Valopicitabine
    • Clinical Trial Results
  • Valtorcitabine
• Infectious Diseases - Summary

APPENDIX 1 - FINANCIAL PERFORMANCE

• Full Year Results 2005

APPENDIX 2 - KEY AGREE MENTS

• Accelrys Inc/Pharmacopeia Inc
  • 3rd October 1995
  • 9th January 2003
• Ablynx
  • 18th January 2006
• Ajinomoto Co Inc
  • 19th January 1994
• Alfacell Corporation
  • 21st July 2005
• Allergan
  • 18th March 1993
  • 19th April 2005
• Alnylam Pharmaceuticals
  • 7th September 2005
  • 21st February 2006
• ALZA Corporation
• Anadys Pharmaceuticals Inc
  • 2nd June 2005
• Arrow Therapeutics Ltd
  • 30th June 2005
• Astex Therapeutics Ltd
  • 6th December 2005
• AstraZeneca
  • June 1993
• Argenta Discovery Ltd
  • 24th January 2005
• Avanir Pharmaceuticals Corporation
  • 28th April 2005
• Avera Pharmaceuticals Inc
  • 28th October 2003
• Avalon Pharmaceuticals
  • 13th September 2005
• Barrier Therapeutics
  • 15th March 2006
• Bausch & Lomb Inc
  • 10th February 2006
• Broad Institute / Harvard University
  • 27th October 2004
• Bristol-Myers Squibb
  • 3rd June 1997
  • 28th March 2001
• Britannia Pharmaceuticals Ltd
  • 22nd September 2003
• Biovail Corporation
  • 19th May 2006
• Celgene Corporation
  • 26th April 2000
  • 18th January 2001
• Cell Genesys Inc
  • 23rd July 2003
  • August 2004
• Cerimon Pharmaceuticals Inc
  • 21st February 2006
• Chiron Corporation
  • November 1995
  • December 1995
  • November 1996
  • 22nd April 2003
  • 3rd April 2006
• Chugai
  • February 1995
• Conor Medsystems Inc
  • 15th March 2005
  • 16th March 2006
• Cytos Biotechnology AG
  • 28th April 2003
  • 3rd February 2004
  • 14th February 2006
• Cytopia Ltd
  • 4th June 2006
• Daiichi Sankyo
  • 8th October 2003
• Dainippon Sumitomo Pharma
  • 12th February 2002
• Eisai
  • 6th February 2004
• Elan Corporation plc
  • 14th January 1998
  • 1991
• Emisphere Technologies Inc
  • February 2000
  • February 2000
  • 1st December 2004
  • 23rd September 2004
  • 9th January 2006
  • March 2006
• ESBATech AG
  • 31st March 2005
• FFF Enterprises Inc
  • 27th April 2006
• Galapagos Genomics NV
  • 6th July 2005
• Genelabs Technologies
  • 5th June 2006
• Human Genome Sciences (HGS)
  • 6th June 2006
• Idera Pharmaceuticals Inc
  • 1st June 2005
• Idenix Pharmaceuticals Inc
  • 9th May 2003
  • 29th March 2006
• Immusol Incorporated
  • 1st October 2001
  • 16th August 2005
• Infinity Pharmaceuticals Inc
  • 13th February 2003
  • 5th January 2005
  • 6th March 2006
• Intercell AG
  • 13th June 2006
• IVAX Corporation
  • 17th January 2003
• Kalobios Inc
  • 31st May 2006
• Kowa Company Ltd/Nissan Chemical Industries Ltd
  • 23rd April 2001
• Kyorin Pharmaceutical Co Ltd
  • 16th February 2006
• Meda AB
  • 20th January 2005
• Medivir AB
  • 13th August 2004
• Merck KGaA
  • 8th August 2000
• Mitsubishi Pharma Corporation
  • 24th September 1997
• MorphoSys AG
  • 19th May 2004
  • 8th August 2005
• Myogen Inc
  • 13th October 2003
  • 26th May 2005
• Noven Pharmaceuticals Inc
  • 2nd August 2001
• Ono Pharmaceutical Co Ltd
  • 12th December 2005
• Orion Corporation
• February 1996 agreement
  • 7th September 2000
• Otsuka
  • 12th January 1999
  • 7th February 2005
• PDL BioPharma Inc
  • April 1993
  • 11th July 2002
• QLT Inc
  • 6th February 1995
  • 4th April 1995
  • 17th April 2000
  • 30th October 2000
  • 23rd July 2003
• Reliant Pharmaceuticals Inc
  • 11th April 2005
• Saegis Pharmaceuticals Inc
  • 6th January 2004
• sanofi-aventis
  • February 1994
  • 12th September 1997
  • 29th June 1998
  • 5th October 1999
  • 6th November 2000
• Schering AG
  • 25th January 2005
• Schering-Plough
  • 10th April 2003
  • 30th October 2002
• Scripps Research Institute
• December 1992
• Senju Pharmaceutical Co Ltd
  • 9th November 2005
• Servier
  • 29th March 2006
• Sigma-Tau
  • 6th November 2003
• SGX Pharmaceuticals Inc
  • 27th March 2006
• SkyePharma PLC
  • 17th November 1998
  • 2nd December 2003
• Tanabe Seiyaku Co Ltd
  • In July 1993
  • 18th October 2002
• Tanox Biosystems Inc/Genentech Inc
  • 15th May 1990
  • 25th June 2003
  • 26th February 2004
  • 23rd January 2006
• Valley Forge Pharmaceuticals Inc
  • 8th January 2003
• Vectura Group plc/Arakis Ltd
  • 13th April 2005
• Vernalis plc
  • 19th December 2003
  • 9th August 2004
  • 19th December 2005
• Vertex Pharmaceuticals Inc
  • 9th May 2000
  • 3rd February 2004
  • 10th November 2004
• Vicuron Pharmaceuticals Inc
  • 27th March 2003
• Xenon Pharmaceuticals Inc
  • 20th September 2004
• Xenogen Corporation
  • 28th January 1999
  • 1st August 2000
  • 7th December 2005

APPENDIX 3 - INFRASTRUCTURE

• Research and Development Facilities
  • Major Research & Development Facilities
• Manufacturing Facilities
  • Major Production Facilities

APPENDIX 4 - KEY PHARMACEUTICAL SUBSIDIARIES / JOINT VENTURES

• Subsidiaries
• Joint Ventures

APPENDIX 5 - PRODUCT INDEX