Q3 2025 Novartis AG Earnings Call

October 28, 2025

Speaker #1: Good morning and good afternoon , and welcome to the NOVARTIS AG Q3 2025 Results Release , conference call and live webcast . Please note that during the presentation , all participants will be in a listen only mode and the conference is being recorded .

Operator: Good morning and good afternoon, welcome to the Novartis Q3 2025 Results Release Conference Call and live webcast. Please note that during the presentation, all participants will be in a listen-only mode, and the conference is being recorded. After the presentation, there'll be an opportunity to ask questions by pressing star one and one at any time during the conference. Please limit yourself to one question and return to the queue for any follow-ups. A recording of the conference call, including the Q&A session, will be available on our website shortly after the call ends. With that, I would like to hand over to Ms. Sloan Simpson, Head of Investor Relations. Please go ahead, madam.

Speaker #1: After the presentation , there will be an opportunity to ask questions by pressing star one and one at any time during the conference .

Speaker #1: Please limit yourself to one question and return to the Q for any follow ups . A recording of the conference call , including the Q&A session , will be available on our website shortly after the call ends .

Speaker #1: With that , I would like to hand over to Miss Sloan Simpson , Head of Investor Relations . Please go ahead , madam .

Speaker #2: Thank you . Sharon . Good morning and good afternoon , everyone , and welcome to our Q3 2025 Earnings call . The information presented today contains forward looking statements that involve known and unknown risks , uncertainties and other factors .

Sloan Simpson: Thank you, Sharon. Good morning and good afternoon, everyone, welcome to our Q3 2025 Earnings Call. The information presented today contains forward-looking statements that involve known and unknown risks, uncertainties, and other factors. These may cause actual results to be materially different from any future results, performance, or achievements expressed or implied by such statements. Please refer to the company's Form 20-F on file with the US Securities and Exchange Commission for a description of some of these factors. The discussion today is not the solicitation of a proxy nor an offer of any kind with respect to the securities of Avidity Biosciences or SpinCo. The parties intend to file relevant documents with the US SEC, including a proxy statement for the transactions, and a registration statement for the spin-off. We urge you to read these materials that contain important information when they become available.

Speaker #2: These may cause actual results to be materially different from any future results , performance or achievements expressed or implied by such statements . Please refer to the company's form 20 F on file with the US Securities and Exchange Commission for description of some of these factors .

Speaker #2: The discussion today is not the solicitation of a proxy , nor any nor an offer of any kind with respect to the securities of avidity Biosciences or Spinco .

Speaker #2: The parties intend to file relevant documents with the US SEC , including a proxy statement for the transactions and a registration statement for the spin offs .

Speaker #2: We urge you to read these materials that contain important information when they become available , before we get started , I want to reiterate to our analysts , please limit yourself to one question at a time , and we'll cycle through the Q as needed .

Sloan Simpson: Before we get started, I want to reiterate to our analysts, please limit yourselves to 1 question at a time. We'll cycle through the queue as needed. With that, I will hand over to Vas.

Speaker #2: And with that , I will hand over to Vas .

Speaker #3: Great . Thank you Sloane , and thanks everybody for joining today's conference call . If you turn to slide five , Novartis delivered solid sales and core operating income growth .

Vas Narasimhan: Great. Thank you, Sloan, and thanks everybody for joining today's conference call. If you turn to slide 5, Novartis delivered solid sales and core operating income growth. I think importantly for us, important pipeline milestones through Q3. Sales were up 7%. Core operating income was up 7% with our core margin at 39.3%. In the quarter, we were able to deliver some important approvals, including Rhapsido, our FDA approval in CSU for our BTK inhibitor, as well as important Phase III results, which we'll go through in a bit more detail. Yanalimab, Pluvicto, Kisqali's 5-year data, as well as positive opinions for Scemblix. Also positive data that came out relatively recently on Cosentyx in PMR and Fabhalta in IgAN. Moving to slide 6.

Speaker #3: And I think importantly for us , important pipeline milestones through quarter three , sales were up 7% . Core operating income was up 7% .

Speaker #3: With our core margin at 39.3% . And in the quarter , we were able to deliver some important approvals , including Rapsodo , our FDA approval , and CSU for our BTK inhibitor , as well as important phase three results , which we'll go through in a bit more detail .

Speaker #3: Pluvicto Kisqali five year data , as well as positive opinions for Scemblix . And then also positive data that came out relatively recently on Cosentyx in P.m.r .

Speaker #3: And in Igan . Now moving to slide six . Our priority brands drove robust growth in the quarter . So I think really while we of course are contending with our lows , that as particularly interesting , but also Cigna and Promacta .

Vas Narasimhan: Our priority brands drove robust growth in the quarter. I think really while we of course are contending with our LOEs, that especially Entresto, but also Tasigna and Promacta, what I hope we can get the focus to be on is on our strong underlying growth of our key growth drivers. Here you can see growing 35%, really excellent performance from Kisqali, Kisympa, Pluvicto, and Scemblix, solid performance from Leqvio and Fabhalta. I think we're on a solid track to drive growth through the coming years. Now moving to slide 7. Now taking each brand in turn, Kisqali grew 68% in Q3, outpacing the market and our CDK4/6 competition.

Speaker #3: What I hope we can get the focus to be on is on our strong underlying growth of our key growth drivers . Here you can see growing 35% really excellent performance from Kisqali , Kesimpta , Pluvicto , Scemblix , solid performance from Leqvio and Fabhalta .

Speaker #3: So, I think we're on a solid track to drive growth through the coming years. Now, moving to slide seven. Now, taking each brand in turn.

Speaker #3: Kisqali grew 68% in quarter three , outpacing the market . And our Cdk4 six competition . If I could draw your attention to the center panel , our total to brand for now , as you can see , is in the market leading position , particularly driven by the early breast cancer launch .

Vas Narasimhan: If I could draw your attention to the center, panel, our total to brand NBRX now, as you can see, is in a market-leading position, particularly driven by the early breast cancer launch. Our US growth was up 91% in Q3. We are the metastatic breast cancer leader in NBRX and TRx. In early breast cancer, our share is 63%, and we're leading both in the overlapping populations with our competitor and the exclusive population. In particular, I'd say we see significant growth potential in that exclusive population, where we estimate more than 60% of patients are currently not on a CDK4/6 inhibitor. Outside of the US, we saw 37% growth in constant currency. We are the MBC leader in NBRX and TRx share across our key markets.

Speaker #3: Our US growth was up 91% in quarter three . We are the metastatic breast cancer leader in NBR and TRH , and an early breast cancer .

Speaker #3: Our share is 63% and we're leading both in the overlapping populations with our competitor and the exclusive population in particular . I'd see I'd say we see significant growth potential in that exclusive population where we estimate more than 60% of patients are currently not on a Cdk4 six inhibitor outside of the US , we saw 37% growth in constant currency .

Speaker #3: We are the NBC leader in NBR and TRX share across our key markets . Our early breast cancer indication now is approved in 56 countries .

Vas Narasimhan: Our early breast cancer indication now is approved in 56 countries. We'll start to see the effect of the early breast cancer launch in the next few quarters ex-US. I think as a good indicator of what we see as possible outside the United States, our Germany NBRx share is already at 77%, and I think that helps demonstrate the kind of power that we have to drive Kisqali's utilization and enable women to prevent breast cancer recurrence across the globe. I'll close by just reminding you we have a Category One NCCN guideline support as the only preferred CDK4/6 inhibitor with the highest score in early breast cancer and metastatic breast cancer. Moving to slide 8, just wanted to say a word about Kisqali's 5-year data, which we showed at ESMO.

Speaker #3: And so we'll start to see the effect of the early breast cancer launch in the next few quarters . Ex US now , I think is a good indicator of what we see as possible outside the United States .

Speaker #3: Our Germany and share is already at 77% . And I think that helps demonstrate the kind of power that we have to drive Kisqali utilization and enable women to prevent breast cancer recurrence across the globe .

Speaker #3: I'll close by just reminding you we have a category one and CCN guideline support . As the only preferred Cdk4 six inhibitor with the highest score in early breast cancer and metastatic breast cancer .

Speaker #3: Now moving to slide eight . I just wanted to say a word about Kisqali five year data , which we showed at ESMO .

Speaker #3: There was a 28.4% reduction in the risk of recurrence in the broadest population of early breast cancer patients . That has been studied .

Vas Narasimhan: There was a 28.4% reduction in the risk of recurrence in the broadest population of early breast cancer patients that have been studied. You can see here the data is very consistent across tumor stage 2 or stage 3 in node-negative patients and node-positive patients. I'd also note that our OS data, while still maturing, has reached a hazard ratio of 0.8, and we see a narrowing confidence interval, as you can see here in the 3rd bullet, just a little bit above 1 on the upper bound of the confidence interval. A clear trend favoring Kisqali. The safety is consistent. We also had some notable, important trends in the data continue to demonstrate a reduction in distant recurrence to distant metastases, which is excellent to see.

Speaker #3: You can see here the data is very consistent across tumor stage two or stage three . In node negative patients and node positive I'd also note that our OS data , while still maturing , has reached a hazard ratio of 0.8 , and we see a narrowing confidence interval .

Speaker #3: As you can see here in the third bullet , just a little bit above one on the upper bound of the confidence interval .

Speaker #3: So clear trend favoring kisqali . The safety is consistent . We also had some notable important patients . trends in the data continue to demonstrate a reduction in distant recurrence .

Speaker #3: So distant metastases , which is excellent to see . So we'll continue to follow these patients . And continue to provide updates on this data as it matures .

Vas Narasimhan: We'll continue to follow these patients and continue to provide updates on this data as it matures. Moving to slide nine, Kisqali grew 44% in Q3, and this was primarily demand-driven growth, particularly in the United States. US, we had 45% growth in Q3, robust TRX growth outpacing both the MS and B-cell markets. We have broad first-line access now, almost 80% of the patients receiving Kisqali are first line or first switch. Outside of the US, we had 43% growth, and we're the leader in NBRx share in 8 out of the 10 major markets that we participate in. We see a significant opportunity now looking ahead for Kisqali outside of the US, where approximately 70% of disease-modifying treated patients are not currently being treated with a B-cell therapy.

Speaker #3: Now moving to slide nine I grew 44% in quarter three . And this was primarily demand driven growth , particularly in the United States US we had 45% growth in Q3 .

Vas Narasimhan: As we continue to get that B-cell class up with Kisqali having leading share in many markets, we see the opportunity to drive dynamic growth at US. We did present some additional data at ECTRIMS that show the benefit of Kisqali. I think I'd highlight that 90% of naive patients receiving Kisqali showed no evidence of disease activity at 7 years, really demonstrating the durability of the response to this medicine. Now moving to slide 10. Pluvicto grew 45% in constant currencies in Q3. That's really momentum driven off of the pre-taxane castrate-resistant prostate cancer approval, which we recently achieved. The Q3 sales in the US were up 53%, driven by new patient starts, increasing to 60% versus prior year.

Vas Narasimhan: 60% of our new patients in the pre-taxane setting, with market share already surpassing chemotherapy. Really driven now by the pre-taxane launch. The key enablers to sustain our growth now in the US is really to drive community adoption. We have 60% of our TRx in the community. We have 9 out of 10 patients within 30 miles of a treating site, so over 730 sites. We believe that we need to get to around 900 sites to also support the HSPC indications. We're well on our way. Our rollout of the prefilled syringe is really positive, around 70% of sites using the prefilled syringe already. Outside of the US, our rollout continues. We see good growth in the post-taxane setting in Europe, Canada, and Brazil.

Vas Narasimhan: We also received a Japan approval and expect a China approval in Q4. All on track for Pluvicto to reach its peak sales potential. Now moving to slide 11, we presented last week the PSMA addition data where we demonstrated that Pluvicto plus standard of care reduced the risk of progression or death for standard of care alone by 28%. The primary endpoint was met, clinically meaningful, 28% reduction in these patients with a compelling T-value. A clear positive trend in OS, with a hazard ratio of 0.84, and that's even with crossovers. I think that really demonstrates we're having the attended effect. The time to progression to castrate-resistant prostate cancer was delayed, which demonstrates we are achieving disease control.

Vas Narasimhan: Overall, the Pluvicto tolerability profile was consistent with the Phase III trials in PSMAfore, VISION. We would see global regulatory submissions in Q4 of this year. Moving to slide 12. Leqvio was up 54% in the quarter, on track for over $1 billion in sales in the year. In the US, we're up 45%, outpacing the advanced lipid-lowering market. We had solid TRx gains of 44% versus prior year. Our key focus is particularly in Part B accounts, and accounts that have a high interest, of course, in using the buy and bill Leqvio model to drive more depth in those accounts, particularly as we've now evolved our field model to better support those accounts.

Vas Narasimhan: Outside of the US, we see a continued strong performance, 63% growth, driven by a number of markets, particularly China out of pocket, but we also see strong uptake in Japan, strong uptake in the Middle East and the Gulf countries. All of that taken together I think really portends well for Leqvio in the medium to long term. We did achieve some important regulatory and clinical trial highlights. Our US monotherapy label expansion, removing the statin prerequisite in the primary prevention population, was, it added to the label, the B differenceA data was presented at ESC, which showed Leqvio helps patients get to goal faster. I'd also note that our pediatric submissions are on track, which of course supports our longer-term LOE profile.

Lexio was up 54%, uh, in the quarter on track for over a billion dollars in sales, in the year, in the US, we're up. 45% outpacing, the advanced lipid lowering Market, we had solid, um, TRX gains of 44% versus prior year. And our key focus is particularly in Part B accounts and accounts that have a high interest, of course, in using the buying Bill, lexio model to drive more depth in those accounts, particularly, as we've now evolved our field model to better support. Uh, at those accounts outside of the us, we see it continued, strong performance 63% growth driven by a a number of markets, particularly China out of pocket, but we also see strong uptake in Japan, strong uptake, uh, in the Middle East and the gulf countries. So, all of that taken together, I think really portends, well for Leo, uh, in the medium, it's a long term. We did achieve, some important, Regulatory and clinical trial highlights. Uh our us monotherapy label expansion, uh removing the Staten prerequis

Vas Narasimhan: Now moving to slide 13, Semglee grew 95% in constant currencies in Q3. It's on track to be the most prescribed TKI by NBRX in the US. Focusing on the middle panel, you can see that our all line of therapy NBRX has now reached 39% and is steadily climbing, built off of that first line approval. In first line specifically, we've reached 22% share. We're now approaching NBRX leadership in first line. We already are the NBRX leader in second line and third line plus with 52% and 53% share respectively. Outside of the US, our focus currently is on the third line plus setting where we have 68% share. We do have the early line now approved in 26 countries, including China and Japan, and a positive CHMP recommendation from October.

It, uh, in the primary prevention population, was it added to the label. The V difference data was presented at ESC, which showed Lefou helped patients get to goal faster. I'd also note that our pediatric submissions are on track, which of course supports our longer-term LOE profile.

Vas Narasimhan: We would expect now to start to see our ability to reach patients in the first line setting picking up outside of the United States. As an indicator of that, you can see here our strong launch momentum in Japan, first line share already up to 18%, second line at 25%. We continue to be very optimistic about the outlook for Semglee. Moving to slide 14. Cosentyx had a mixed quarter. Our growth was impacted by one-time effects in Q3, which I'll go through in a moment. Most importantly, we remain on track for mid-single digit growth in full year 2025 and are confident in the peak sales potential of the brand. You can see that in constant currencies, our growth was down 1%. In US dollars, we're more or less flat.

The moon, decide 13 assemblies, grew, 95% in constant, currency is in quarter 3. It's on track to be the most prescribed tki by nvx, uh, in the US, uh, focusing on the middle panel. You can see that our all line of therapy and BRX has now reached 39% in a steadily climbing built off of that first, line approval in first line specifically we've reached 22, uh, percent share. So we're now the, uh, approaching and we are actually leadership in first line. We already are the NBR leader in second line, and third line plus with 52 and 53% share respectively, outside of the us. Our Focus currently is on the third line plus setting where we have 68% share, but we do have the early line now approved in 26 countries, uh, including China and Japan and a positive chmp recommendation from October. So we would expect now to start to see uh, our ability to reach patients in the first line setting picking up outside of the United States.

State as an indicator of that, you can see here our strong launch momentum in Japan. First line, share already up to 18% second line of 25%. So we continue to to be very optimistic about the outlook for assembly.

Then moving to slide 14.

Vas Narasimhan: Now when you remove the one-time RD adjustment of $74 million, our global sales growth was around 4% in constant currencies. In the US, when we adjust for that one-time RD, our growth goes from +1% to +9%. Cosentyx continues to be the number one prescribed IL-17 across indications. In HS, now we see a stabilization of the performance, 52% share in naive and 50% overall. When the competitor came in, we did see a dip in that share, but that's now stabilized. We are better able now to manage patients alongside physicians to achieve step-up dosing rather than switching off of Cosentyx. I think that'll be important. We can really turn our focus to market expansion in HS with the stable share that we've been able to achieve.

Now cosentyx had a mixed quarter. Our growth was impacted by 1-time effects, uh, in quarter 3, which I'll go through in a moment. But most importantly, we remain on track for Mid single digit growth in full year 2025 and are confident in the peak sales potential of the brand. So you can see that in constant currencies, our growth was uh, down 1% uh, in US Dollars were more or less flat. Now, when you remove the 1-time Rd adjustment of 74 million our, Global sales growth was around 4%. In constant, currencies in the us. When we adjust for that 1 time Rd, our growth goes from plus 1% to plus 9%, uh, to that continues to be the number 1. Prescribed IL 17 across indications in HS. Now we see a stabilization of the, of the performance 52% share in naive and 50% overall. So in the competitor came in, we did see a dip in that share, but that's not stabilized. And we are better able now to manage, uh, to patients alongside Physicians to

Vas Narasimhan: Outside of the US, we were down 3% in constant currencies, but this again was driven by a one-time price effect in the prior year. Importantly, we saw 4% volume growth, and we're the leading originator biologic in Europe and China. So overall, I think the key message is we're confident in the $8 billion peak sales potential. We expect continued market growth in our core indications and rollout of the recent launches in HS and IBD. I think also importantly, we did achieve a positive phase III readout in polymyalgia rheumatica. It's the second most common inflammatory disease in adults over 50. An estimated 800,000 patients in the US and 1 million patients in Europe have the condition.

Vas Narasimhan: This is a market that's on par with the HS market when you think about the size of the segment. We have global regulatory submissions planned in the first half of 2026, and we'll be working to accelerate them as well and really hope to drive rapid uptake in PMR. We believe the data is compelling. We demonstrated, as you saw in the press release, a positive, clinically meaningful primary endpoint, and we also hit all of the secondary endpoints. We're looking forward to presenting that data and taking this launch forward. Now moving to slide 15. Our renal portfolio continues to gain traction in the US. We had a positive Fabhalta eGFR data, really the first oral therapy to generate such compelling eGFR data. Looking forward to presenting that. We see steady growth in the US.

Switching off of cosens and I think that'll be important. And so we can really turn our Focus to Market expansion in HS with the stable. Uh, share that we've been able to achieve uh, outside of the us. We were down, 3% in constant currencies, but this again was driven by a 1-time price effect in the prior year, uh, importantly, we saw 4% volume growth and we're the leading originator biologic in Europe and China. So, overall, I think the, the key message is we're confident in the 8 billion dollar Peak sales potential. We expect continued market growth, uh, in our core indications and roll out of the recent launches in HSN IB. But I think also importantly, we did achieve a positive phase. We read out in polymyalgia rheumatica. It's the second most common inflammatory disease in adults over 50 and estimated uh 800,000 patients in the US and 1 million patients in Europe. Uh are have the condition. So this is a market that's on par with the HS Market. When you think about the size of the segment we have Glo

Global regulatory submissions plan in the first half of 2026 and we'll be working to accelerate them as well and really hope to drive rapid uptake in PMR. We believe the data is compelling. We demonstrated as you saw in the press release, a positive, uh, clinically meaningful primary endpoint. And we also hit all of the secondary end points. So we're looking forward to presenting that data and taking this launch for

Vas Narasimhan: Our IgAN portfolio grew 98% versus a market growth of 23%. Our NBRX share is now 18% and climbing steadily. We see strong uptake as the first approved therapy in C3G. Outside of the US, we're beginning to get the key approvals, particularly in China, where there's a large market for IgAN therapies. Turning to the Phase III APPLAUSE-IgAN study, we saw a statistically significant clinically meaningful improvement in eGFR slope versus placebo. It's the longest renal function data for IgAN to date, so we're excited to present that data at a future meeting. This data should support a full approval, traditional approval with FDA. Now moving to slide 16. Rhapsido was approved by FDA as the only oral targeted BTK inhibitor for CSU. I think many of you know the medicine well. It's something we're quite excited about.

Then moving to slide 15. Our regional portfolio continues to grain Traction. In the US. We had a positive fabula egfr data. Really the first oral therapy to generate such compelling, uh, egfr data. So looking forward to presenting that we see steady growth uh in the US our Ian portfolio grew 98% versus a market growth of 23%. Our nvx share is now 18% climbing, steadily we see strong uptake as the first approved therapy uh in c3g outside of the us where we getting to get the key approvals, particularly in China where there's a large market for Ian therapies and turning to the phase 3, Applause. Ian study, we saw a statistically significant cleaning, meaningful Improvement in egfr slope risk, Placebo. It's the longest renal function data for Ian to date. So, we're excited to present that data at a future meeting. And this data should support a full approval, traditional approval with FDA then moving to slide 16,

Vas Narasimhan: It's indicated for the treatment in adult patients who remain symptomatic despite antihistamine treatment. We estimate that patient population to be around 400,000 patients uncontrolled, out of 1.5 million treated patients. We achieved a clean safety profile with this medicine, no box warning, no contraindications, no requirements for routine lab or liver monitoring, oral administration, 25 mg twice daily with or without food. A really good profile for these patients. I would want to highlight it as well, we're very excited to have a medicine with rapid onset in a highly symptomatic condition. These patients have to deal with itch, loss of sleep, discomfort. If you can have a medicine that has a really rapid efficacy benefit, that's really, I think something that could drive rapid uptake.

Wraps, Ito was approved by FDA as the only oral targeted. BTK inhibitor for CSU. Uh, I think many of you know, know the medicine. Well, it's something we're quite excited about. It's indicated for the treatment and adult patients, who remain symptomatic despite antihistamine treatment and we estimate that patient population to be around 400,000 patients uncontrolled out of 1.5 million treated patients. We achieved a clean safety uh profile with this medicine. No box warning. No contraindications no requirements for routine, lab or liver monitor.

Vas Narasimhan: Our initial patient, physician feedback is excellent, and we're already seeing a steady increase in start forms. Our goal will be to improve the access environment for the drug as fast as possible, and then we would start to expect to see rapid uptake over the course of next year. Lastly, in both EU and China, we've completed our submissions, and our Japan submission is slated for also later this year. Moving to the next slide. In adalimumab, we announced our positive phase 3 studies earlier in the quarter. Yesterday, we released our top-line data. The full data set will be presented soon, I think tomorrow. Then our analyst day to discuss this data, as well as the rosuvastatin data, as well as other immunology data, including our CAR therapy platform for immunology.

Ing, oral Administration, 25 milligrams, twice daily with or without food. It's a really good profile for these patients. I wouldn't want to highlight a as well. We're very excited to have a medicine with rapid onset and highly symptomatic condition these, uh, patience. I have to deal with itch loss of sleep discomfort. And so, if you can have a medicine that has a really rapid, uh, efficacy benefit. That's really, I think something that could drive rapid uptake. Our initial patient physician feedback is excellent. Uh, and we're already seeing a steady increase in start forms. Our goal will be to improve the access environment for the drug as fast as possible. And then we would start expect to see wrap it up, take over the course of next year.

Vas Narasimhan: Immune reset platform will be on Thursday, so I hope you'll be able to join that, and we'll give you a lot more detail on the secondary endpoints, on post-hoc endpoints, on biopsy data, et cetera. Here, just on a top line, the phase III endpoint was met in both studies, statistically significant improvement in SDAI. I do wanna highlight here there's a lot of focus, a lot of reports on the aggregate SDAI. From a patient standpoint and a physician standpoint, what matters is where the individual patients are and how much we're able to improve their relative disease and also what is the starting point for the SDAI score. The fact that we've achieved two positive phase III trials, I think will really enable us to roll this out to patients.

Uh, and then lastly, in, in both EU and China, we completed our submissions and our Japan submission is slated for uh also later this year, the moving to the next slide. Uh, inian alamab. We announced our positive phase 3 studies earlier in the quarter. Yesterday, we released our Topline data, the full data set will be presented uh soon uh I think tomorrow uh and then our analyst day to discuss this data as well as the Reps that are data, as well as other Immunology data, including our part therapy platform for Immunology. Immune reset platform will be on Thursday. So I hope you'll be able to enjoy join that and we'll give you a lot more detail on the secondary endpoints on post staff and points on biopsy data Etc. Uh but here just at the Top Line, the phase 3 endpoint, we

Vas Narasimhan: As patients see the symptom benefit with given their profile, they'll hopefully be able to get the benefits and stay on the medicine. We have consistent numerical endpoints, second improvements in the secondary endpoint, a favorable safety profile, and as I mentioned, the data will be provided shortly. Regulatory submissions are on track for the 1st half of 2026. Moving to slide 18. Overall, I think a strong innovation year for the company. You can see all the various milestones that we've reached. We've been, I think, the leading player in the sector in terms of deals, bringing in medicines at all stages, from pre-clinical to Phase I to late-stage assets, also continuing to bolster our technology platform.

Be able to, to get the benefits and stay on the medicine. We had consistent numerical endpoints, a second improvements in the secondary endpoint, a favorable safety profile. Uh and as I mentioned, the data will be Pro uh provided shortly. So regulatory submissions are on track for the first half of 26.

And moving to slide 18.

Vas Narasimhan: We'll look forward to giving you a full innovation update and technology update at Meet the Management in November. With that, let me hand it over to Harry.

Overall I think the strong Innovation year uh for the company. You can see all the various Milestones that we've reached also we've been I think the leading player in the sector in terms of the deal bringing in medicines at all stages of from preclinical to phase 1, to late stage assets. Also continuing to bolster our technology platform. So we'll look forward to giving you a full Innovation update and Technology update at meet the management. Uh in November. So with that let me hand it over to Harry.

Harry Kirsch: Thank you very much, Ras. Good morning, good afternoon, everybody. As usual, I will take you through the financial results now for the third quarter, the first nine months, and the full-year guidance. As always, unless otherwise noted, all growth rates are presented in constant currencies. If you go to our slide 20, you see a summary of the financial performance. In the third quarter, net sales grew 7% versus prior year. Core operating income was also up 7%. In the US, we had some negative growth to net true-ups, first time since a year. Prior, we had mostly positive. They were mainly related to Medicare Part D redesign, which was new for the industry this year, based on invoices for prior periods, mainly Q2.

Thank you very much. Uh, good morning, good afternoon, everybody. Um, as usual, I will take you through the financial results. Now, for the third quarter,

the first 9 months and the full year guidance. And as always,

Unless otherwise noted all growth rates are presented in constant currencies.

So if you go to our slide 20, you see a summary of the financial performance in the third quarter. Let's say it's up 7% versus prior. Operating income was also up 7% in the U.S. We had some negative growth to net through UPS for the first time since the prior year; we had mostly positive growth before. But, um, they were mainly related to the Medicare Part D redesign, which was new for the industry this year, based on invoices for prior periods.

Harry Kirsch: Excluding these true-ups, the underlying growth would have been 9% on the top line and 11% on the bottom line, as the priority brands and launches continue to offset the increasing generic erosions, mainly for Entresto, Tasigna, and Promacta in the US. Our core margin was 39.3% in Q3, and core EPS came in at $2.25, reflecting a 10% increase, and free cash flow totaled $6.2 billion. For the first 9 months, obviously, as we had less generic erosion, you know, net sales grew 11%, core operating income 18%, and the core margin expanded 250 basis points to reach 41.2%, and with core EPS at $6.94, up 21%.

Many quarter 2 and excluding these 2 UPS, the underlying growth would have been 9% on the top line and 11% on the bottom line as the priority Brands and launches continue to offset the increasing, generic erosions mainly for interested testing on market and us. Our core margin was 39.3% in Q3 and core EPS came in at $2.25 reflecting a 10% increase and free cash flow totaled, 6.2 billion.

For the first 9 months, um, obviously as we had less generic erosion, you know, net sales crew, 11% cooperating income 18%, and the core margin expanded 250 basis points to reach 41.2%.

Harry Kirsch: Free cash flow reached after nine months already $16 billion, growing 26% in US dollars versus prior year. Moving to the next slide. Speaking of free cash flow, up 26%, as I mentioned, already close to actually prior year, full year $16 billion after nine months. It really shows continued strong conversion from profits to cash flow. Of course, cash flow remains a strategic priority as it increases further our ability to convert strong core operating income growth and robust free cash flow and gives us the capacity to reinvest in our business organically, pursue value-creating bolt-ons, like the proposed acquisition of Avidity Biosciences, and return attractive shareholder attractive capital levels to our shareholders through growing dividends and share repurchases. Speaking of capital allocation, let's go to the next page. That is really unchanged.

And with Coops at 6.94, up 21%.

Free cash flow reached $16 billion after 9 months, growing 26% in U.S. dollars per year.

Moving to next slide.

Speaking of free cash flow up 26 as I mentioned already close to actually prior year full year, 16 billion after 9 months. So it's really shows continued strong conversion from profits to cash flow and of course, cash flow remains a strategic priority as it increased further. Our ability to, uh, convert strong core, operating income growth and robust free cash flow and gives us the capacity to reinvest in our business.

Organically pursue value creating bolt-ons like the proposed acquisition of avidity and returned. Attractive, shareholder. Uh, attractive cap capital levels to our shareholders. Through growing dividends and share repurchases.

Harry Kirsch: Again, based on very strong free cash flow, we really can optimize both the significant investment in the business to drive top and pipeline and returning capital to our shareholders at attractive levels. In the first 9 months, aside from Avidity, we have executed multiple bolt-on M&As, smaller in size but still very important, which strengthen our key platforms and pipeline for our 4 therapeutic areas. Of course, we also continue to invest in our internal R&D engine. On the capital return side, we successfully completed our up to $15 billion share buyback program early July and have launched a new up to $10 billion buyback program targeted for completion by the end of 2027. We also have distributed $7.8 billion in dividends during the first half of this year as part of our annual dividend.

Speaking of capital allocation let's go to the next page. Alright, it's really unchanged and again, based on a very strong, free cash flow. We really can optimize both

Significant investment in the business to drive top-line growth and pipeline, while returning capital to shareholders at attractive levels in the first nine months. Aside from our ability, we have executed multiple smaller M&A deals, which are still very important and strengthen our key platforms and pipelines for our four therapy areas.

And of course, we also continue to invest in our internal R&D engine.

Harry Kirsch: Turning to the next slide. We reaffirm our full-year guidance. We expect high single-digit growth in net sales and low teens growth in core operating income, even after accounting for negative growth in net true-ups in Q3. To complete our outlook, we now anticipate the core net financial expenses is slightly higher at $1.1 billion before we had $1.0 billion. Bit higher, hedging costs, but overall nothing dramatic. The core tax rate continues to be in this range of 16% to 16.5%. So far in first three quarters at 16.2%. Let's move to the next slide. Usually we don't provide so much level of quarterly guidance, right? Quarter is a bit more volatile than the full year usually.

On the capital return side, we successfully completed our up to $15 billion share buyback program in early July and have launched a new up to $10 billion buyback program targeted for completion by the end of 2027. We also distributed $7.8 billion in dividends during the first half of this year as part of our annual dividend.

Turning to the next slide.

Now, anticipate the coordinate Financial expenses is slightly higher at 1.1 billion before and we have 1. 0, 2 4,

Now, let's move to the next slide. So um,

Harry Kirsch: Given that we have US generics entry in the middle of the year for 3 of our brands, of course, the biggest being Entresto, but also Promacta and Tasigna, were of course blockbusters. It resides in very different quality dynamic this and next year. As a reminder, in Q4 of last year, we benefited from significant positive growth in net adjustments, which added back then about 3 points of growth. It makes for a very high prior year base. Adjusting for these one-timers, we expect Q4 underlying growth to be low single digit on the top line and mid-single digit on the bottom line, reflecting the increasing generic erosion from a full year impact of Entresto US generics, but better obviously than what we expect to report, including the prior year gross to net adjustments.

Usually, we don't provide so much level of quality guidance. So it's quarters a bit more volatile than the full year, usually. But given that, uh, we have us generics entry in the middle of the year, for 3 of our brands, of course, the biggest being and Resto, but also Pro signal were, of course, Blockbusters. It resided in very different quality Dynamic this and next year. And so, as a reminder, in quarter 4 of last year, we benefited from significant positive growth in net adjustments, which added back then about 3 points of growth. So it makes for a very high priority year base adjusting for these 1 timers, we expect quarter for underlying growth to be low single digit on the top line and mid single digits on the bottom line.

Reflecting the increasing generic erosion from a full year impact of your interest to us generics. But better, obviously, than what we expect to report, including the prior year across the net adjustments.

Harry Kirsch: We provide full year guidance for 2026, of course, next quarter with the full year results. You can imagine it will be a year of two halves. The first half of 2026 will be depressed due to the impact of generics with still a high prior year base. We expect to emerge much stronger in the second half, but much more on that as we go, as we report our full year results early February. Now let's move to our currency. Estimated impact of currencies should remain where they are basically late October. We expect the full year in 2025 impact of 0% to 1% on net sales and minus 2 percentage points on core margin, you see also the quarter. We roll this forward to 2026.

Um we provide full year guidance for 2026, of course, next quarter with the full year results but you can imagine it will be a year of 2. Halves. The first half of 2026 will be uh, depressed to the impact of generics with still a high price a year base. But we expect to emerge much stronger in the second half, but much more on that as we go as we report our fully results, early February,

Now, let's move to our currency. Estimated impact of currencies should um, countries.

Harry Kirsch: In 2026 we would expect with these exchange rates a slight positive 1 percentage point on net sales and basically no material impact on core operating income. As you know, we publish this on a monthly basis as it is quite difficult to forecast this from the outside in, and we hope you find it helpful. Lastly, I hope you were able to join our presentation on the proposed acquisition of Avidity yesterday. If not, I would encourage you to listen to the replay. Adding Avidity, as we mentioned yesterday, raises our 2024 to 2029 sales average growth rate from 5% to 6%. Of course, even more importantly, further supports our mid-single digit growth over the long term, with main impacts of course in the 2030s and beyond.

Uh, remain, where they are basically in late October. Then we expect the full year, is in 25 of 0 to 1% on that sales and minus 2% points on core Banks. You see, also the quarter and we roll This forward to 26. So in 26, you we would expect with these exchange rates, a slight positive 1% point on that sales and basically no material impact on cooperating income. And as you know, we published this on a monthly basis as it is quite uh, difficult to forecast. This from the outside in and we hope you find it helpful.

And then, lastly.

um,

I hope you, you were able to join our presentation on the proposed acquisition of avidity yesterday. If not, I would encourage you to listen to the replay and, um, adding a Vitti, as we mentioned yesterday, raises our 24 to 29 say, it's average growth rate from 5 to 6%.

Harry Kirsch: It brings of course these near-term product launches, two with multibillion blockbuster potential with LOEs in the 2040s and no IRA impact. We also mentioned yesterday that we do expect some short-term core margin dilution given phase three trials are basically now starting to run or up and running shortly in the range of 1 to 2 percent points for the next three years. We are confident that we return to the 40% margin which we already achieved this year. Odds will return then back to that in 2029. Please make sure that you also model this 1 to 2 points core margin dilution as you finalize your 2026 models for us.

But of course, even more importantly, uh, further supports our mid single digital growth over the long term with main impacts, of course, in the 2030s and Beyond.

and it brings, of course, these near-term product launches

2 with multi multi-billion, Blockbuster potential with Eloise in the 2040s and no Ira impact.

Now we also mentioned yesterday that we do expect some short-term core margin dilution given phase. 3 trials are basically are now starting to run up and running shortly in the range of 1 to 2% points for the next 3 years. But we are confident that we return to the 40% margin, which we already achieved this year uh all the return them back to that in 2029.

Harry Kirsch: This deal of course overall is expected to deliver very strong sales and profits contributions post, starting in 2029 and then even more and therefore driving significant shareholder value with a small price to pay over the next 3 years on the margin dilution as part of the investment. That's all I had for now and handing back to Vas.

Please make sure that you also model this 1 to 2 points for margin dilution. As you finalize your 2026 models for us.

This deal, of course, overall is expected to deliver very strong sales and profit contributions post, uh, starting in 2029, and then even more, and therefore driving significant shareholder value.

With small price to pay over the next, uh, 3 years on a margin dilution as part of the investment.

Vas Narasimhan: Great. Thank you, Harris. Moving to slide 28. In summary, solid sales and core operating income growth in the quarter despite generic headwinds. I think we're navigating that well with strong underlying performance of our priority brands, which is reflecting strong execution. A strong pipeline progress. We delivered strong pipeline progress in the quarter. We also reaffirm our 2025 guidance remain highly confident in our mid to long term growth, which is further bolstered by our proposed acquisition of Avidity, not just through the end of the decade, but into the next decade and beyond. Want to just quickly remind you as well, we have our immunology pipeline update on October 30th and our Meet Novartis Management on November 19th and 20th in person in London. Thank you again, and we'll open the line for questions.

Strong pipeline. Uh, progress. We, we delivered strong pipeline progress in the quarter and we also reaffirm our 2025 guidance to remain highly confident in our mid to long-term growth, which is further bolstered by a proposed acquisition of avidity. Not just through the end of the decade, but into the next decade and Beyond

Harry Kirsch: Thank you. To ask a question, you will need to press star one on your telephone and wait for your name to be announced. Please limit yourself to one question and return to the queue for any follow-up. To withdraw your question, please press star one and one again. We will now take the first question. The question comes from Matthew Weston, UBS. Please go ahead.

Operator: Thank you. To ask a question, you will need to press star one on your telephone and wait for your name to be announced. Please limit yourself to one question and return to the queue for any follow-up. To withdraw your question, please press star one and one again. We will now take the first question. The question comes from Matthew Weston, UBS. Please go ahead.

Want to just quickly remind you as well. We have our Immunology pipeline update on October 30th and our meeting of artist Management on November 19th, uh, and 20th in person in London. So thank you again, and we'll open the line for questions.

Thank you to ask a question. You will need to press star 1 and 1 on your telephone and wait for your name to be announced. Please limit yourself to 1 question and return to the queue for any follow-ups.

To withdraw your question, please press *1 and *1 again.

We will now take the first question.

And the question comes from Matthew Weston UBS. Please go ahead.

Matthew Weston: Thank you. I hope you can hear me. It's a question about policy, Vas. We've seen now 2 companies do deals with the White House around Medicaid and tariffs. I wondered from your perspective, how much you felt we could see the industry do a cookie-cutter of those deals or whether there are meaningfully greater challenges for some companies, and when we should expect something from Novartis. If, Harry, I can steal, I guess an extension of the same question. Can you walk us through CapEx over the next 5 years, given the investments that you've announced in the US, and how we should think about modeling that as part of cash flow?

Uh, thank you. I hope you can hear me. Um, it's a question about policy vas, and we've seen now, 2 companies do deals with the white house, uh, around Medicaid and tariffs. And I wondered from your perspective, how much you felt we could see the industry do a cookie cutter of those deals or whether they're a meaningfully greater challenges for some companies. And when we should expect something from natis,

And if Harry, I can steal, uh, I guess a extension of the same question. Can you walk us through capex over the next 5 years? Given the Investments that you've announced in the US and how we should think about modeling that as part of cash flow.

Vas Narasimhan: Thank you, Matthew. I think from an industry-wide perspective, I think the pharma industry's view is that the proposed negotiations or proposed actions are not gonna address the underlying issues here, which of course are, we believe are PBMs, 340B, and importantly, perhaps most importantly, G7 countries and related countries outside the United States, properly rewarding innovation and properly assessing the appropriate price for innovation. That said, I think as you point out there, I think now 3 companies that have reached agreements with the administration. I'd say Novartis has. I can't speak to what other companies are doing. We've been in conversations with the administration since the beginning of the year as we've had the various turns in these discussions.

Vas Narasimhan: I'd say we're meeting with the administration weekly to look at what are the best solutions we can come up with. It is important to note that the president was very clear on the 4 parameters, I think those are the 4 parameters that are in discussion. We'll have to see in the coming weeks, and towards the end of the year if we can come to a proposed approach that makes sense for all involved. In terms of CapEx, Harry?

Thank you Matthew. So, uh, I think from an industry-wide perspective, I, I think the Pharma Industries view is that, uh, the proposed, uh, negotiations or proposed actions, are not going to address the underlying issues here, which of course, are we believe are pbms, uh, 340b and importantly, perhaps most importantly, G7 countries and and related countries outside the United States properly, rewarding Innovation and properly. Assessing the appropriate price for, for Innovation. Um, that said, I think as you point out there, I think, now, 3 companies that have reached agreements uh, with the administration I say Novartis has, I can't speak to what other companies are doing. Uh, we've been in conversations with the administration since the beginning of the year, as we've had the, the various uh turns and and these discussions and I'd say we're we're meeting with the administration weekly to to look at what are the best Solutions we can come up with.

Uh, it is important to note that the president was very clear on the 4 parameters and I think those are the 4 parameters that are in discussion and we'll have to see in the coming weeks. Uh, and towards the end of the year, if we can come to uh a proposed approach that makes sense for all involved.

Harry Kirsch: Hi, Matthew. Yes. I think as we mentioned when we also introduced the $23 billion over the 5 years commitment, we made it clear that the majority is actually not CapEx. The majority is R&D OpEx, where we have the choice to invest in the US or anywhere else in the world. We choose, of course, to have strong commitment also for R&D in the US. Then there's a portion, yes, it's CapEx, but it's actually part of our overall worldwide financing plan also for... and we would choose basically incremental to invest in the US to build up our manufacturing base to supply the US from the US instead of further expanding, for example, European sites. From that standpoint, overall, I don't expect, you know, a significant or meaningful CapEx increase.

Harry Kirsch: We are always in this range of 2.5 to 3% of sales. Actually quite a low end of the industry, given our very focused and efficient manufacturing setup. You know, it's always there can be annual fluctuations, but nothing meaningful. Also, we have further opportunities in cash flow and inventory. They're usually on the high side. We keep that as a bit of a buffer in certain times. Overall, in short, would not expect a significant CapEx increase. I would expect free cash flow to grow roughly in line with core operating income growth.

And in terms of capex there, hi Matthew. Yes, I think, as we mentioned when we also introduced the 23 billion, over 5 years commitment, we made it clear that the majority is actually not covering. The majority is R&D Opex where we have the choice to invest in the US. So, anywhere else in the world, and we choose, of course, to have strong commitment. Also for R&D in the US, and then there's a portion. Yes, it's capex, but it's actually part of our overall worldwide financing plan also, for, and we choose basic incremental to invest in us to, to build up their, in our, our manufacturing base to supply, the us from the US instead of further expanding, for example, European sites. Uh, so from that standpoint overall, I don't expect, uh, you know, a significant, you know, meaningful capex, increase we are always in this range of 2 and a half. To 3%, of sales, actually quite a low end of the industry. Given our

Are very focused and efficient manufacturing setup.

Vas Narasimhan: Thanks, Harry. Thank you, Matthew, for your next question.

Matthew Weston: Thanks, Harry.

And, um, you know, there can always be new fluctuations, but nothing meaningful. Also, we have further opportunities in cash flow and inventory. They're usually on the high side; we keep this a bit of a buffer at certain times. So overall, in short, I would not expect a significant increase in capex, and I would expect free cash flow to grow roughly in line with operating income growth.

Harry Kirsch: Thank you, Matthew, for your next question.

Matthew Weston: Thank you.

Operator: Thank you.

Operator: Thank you. Your next question comes from the line of Peter Welford from BNP Paribas. Please go ahead.

Thanks sorry. Thank you man. Question, thank you.

Your next question comes from the line of pizza. For adult from BNP pariba. Please go ahead.

Peter Welford: Yeah, thanks. Peter Welford, BNP. Only one, so I'll keep it topical for Vas. Just on the market reaction to that ACR abstract. I think you've alluded to it being disappointment and you perhaps sharing a different view. Just pushing you on, you know, do you think the market's appreciation of the data set will improve once we see the full details tomorrow? Just could you remind us, and sorry to get technical, of the 12 domains that make up the SDI index, you know, which ones are seen as the most important to patients and physicians? Thank you.

Peter Verdult: Yeah, thanks. Peter Welford, BNP. Only one, so I'll keep it topical for Vas. Just on the market reaction to that ACR abstract. I think you've alluded to it being disappointment and you perhaps sharing a different view. Just pushing you on, you know, do you think the market's appreciation of the data set will improve once we see the full details tomorrow? Just could you remind us, and sorry to get technical, of the 12 domains that make up the SDI index, you know, which ones are seen as the most important to patients and physicians? Thank you.

To set will improve once we see the full details tomorrow and just could you remind us. I'm sorry to get technical.

Vas Narasimhan: Yeah, thanks. Thanks, Peter. I mean, I think for us, the most important thing is that we make a compelling proposition to patients and physicians. If we deliver a strong launch, then I think obviously the markets will do what the markets will do, but presumably we'll follow. I think we will present detailed data on Thursday. I think that will help at least understand where our conviction comes from. I think very important for us is the individual patient benefit. I think practicing physicians and patients don't measure an SDI. They're actually looking for symptomatic benefits in things like fatigue, in salivary flow, in activities of daily living.

Of the 12 domains that make up the SDI index, you know which ones are seen as the most important to patients and physicians. Thank you.

Vas Narasimhan: I think looking at that you know, the global assessment of physicians and how they see patients benefiting is gonna be really important for this launch. It's a highly variable disease, so a lot of this will depend on finding those groups of patients that have a significant benefit. I think important for these patients as well is to feel like they don't need the same level of steroids that they typically are using, which can be hugely disruptive for their lives. Sleep is another topic as well. We'll present that information, but I think we feel confident that there is a high willingness even from the physicians we're talking to now in Chicago, a high interest and a high willingness to make this option available for patients.

Yeah, thanks. Thanks Peter. I mean, I think for for us, the most important thing is that we make a compelling proposition to patients and and and Physicians, and then uh, if we deliver a strong launch, then I think obviously the markets will will do with the markets will do. But presumably, will will follow. I think we will present detailed data on Thursday. Uh, I think that will help at least understand where our conviction comes from. I think very important for us is the individual patient benefit. I think, uh, it practicing Physicians and patients don't measure and esti. They're actually looking for symptomatic benefits in things like fatigue in salivary flow, uh, in activities of daily living. Uh, and I think, looking at that 50, you know, the the global assessment of Physicians and how they see uh, patients benefiting is going to be really important for this launch. It's a highly variable disease. So a lot of this will depend on finding those groups of patients that have a significant benefit and I think important

Vas Narasimhan: Assuming we can make patients materially feel better versus the current standard of care, which is frankly just high-dose steroids, we expect to be able to drive a significant growth from this medicine. Thank you.

Important for these patients as well. Is to feel like they don't need the same level of steroids that they typically are using, which can be hugely disruptive for their lives lives. They sleep is another topic as well, so we'll present that information, but I think we we feel confident that there is a high willingness even from the Physicians we were talking to now in Chicago, a high interest and high willingness to make this option available for patients. And assuming we can make patients, materially feel better versus the current standard of care. Which is frankly, just high dose steroids. We expect to be able to drive a significant growth from from this medicine.

Peter Welford: Thank you.

Peter Verdult: Thank you.

Vas Narasimhan: Next question, operator.

Operator: Thank you. Your next question comes from the line of Steven Scala from TD Cowen. Please go ahead.

Thank you. Next question, operator.

Thank you.

Matthew Weston: Oh, thank you so much. It seems like there may be a subtle change in the messaging on Cosentyx in HS. While Novartis grew overall market share quarter-over-quarter on slide 12 of the Q2 deck.

Your next question comes from the line of Steven scalar from TD Cowen. Please go ahead.

Steven Scala: Novartis noted continued HS market growth, and in the Q3 slide deck, that was not stated explicitly. With that now stabilized, is the point that you need to grow the market and it's not growing at the pace that you expected? Is that the c-contour of the market? This would seem to be a factor in whether Novartis grows earnings in 2026, and when Harry was talking about 2026, he didn't say that specifically. Thank you.

Oh, thank you so much. It seems like there may be a subtle change in the messaging on Coent in HS. Well, Novartis grew overall market share quarter over quarter. On slide 12 of the Q2 deck, Novartis noted HS market growth, and in the Q3 slide deck, that was not stated explicitly. It's clear Novartis has been playing defense on share, but with that now stabilized, is the point that you need to grow the market. And it's not growing at the pace that you expected. So, is that the contour of the market? This would seem to be a factor in whether Novartis grows earnings in 2026. And when Harry was talking about 2...

2026. He didn't say that specifically. So thank you.

Vas Narasimhan: Thanks, Steve. What I can say is that we feel confident that our share has stabilized after the competitor entry. I think we have not seen the market growth that we had originally hoped for. There's clearly a lot of patients who can benefit from biologic therapy with HS. We continue to see this as a $3 to 5 billion plus market, but it's clearly going to take longer for that market to develop. I think we probably did not do the careful analysis that you did on our slides, and I'll look to our IR team to do that more carefully in the future.

Vas Narasimhan: I think your point is absolutely on that we need to see, you know, we need to grow this market, and that's what really both companies should really be focused on and get more patients on these therapies. Now with respect to earnings, we don't comment on 2026. We're focused on clearing out 2025. Once we get there, in January, we can provide you our outlook. I would say that I think, you know, I would focus much more on the dynamic growth you saw in the quarter on Kisqali, Pluvicto, Scemblix, Cosentyx, all of which, to my eyes, were ahead of consensus. I think that's where I think the focus should be now looking ahead for the company. Next question, operator.

Yeah, thanks Steve. So what I can say is that we feel confident that our share has stabilized after the competitor entry. I think we have not seen the market growth, uh, that we had originally hoped for that. We there's clearly a lot of patients who can benefit from biologic therapy with HS. We continue to see this as a 3 to 5 billion dollar Plus Market, but it's clearly going to take longer for that, um, that market to to develop. And so, I think, uh, we probably did not do the careful analysis that you did on our slides, and I'll look to our IR team to do that more carefully in the future, but, um, I think your point is, is absolutely on that we need to see, uh, you know, we need to grow this market. And that's what really both companies should really be focused on and get more patients on these therapies now, with, with, with respect to earnings. So we don't comment on 2026, we're focused on clearing out, 20, uh, 2025. And, and so, once we get there, uh, in January, we can provide you our Outlook.

I I would say that I think you know I I would focus much more on the dynamic growth. You saw in the quarter on kiss, golly pluvicto assemblies. Cosima all of which to my eyes were ahead of consensus. And I think that's where I think the focus should be. Now looking ahead for the company.

Operator: Thank you. Your next question comes from the line of Shirley Tan from Barclays. Please go ahead.

Next question, operator.

Thank you. Your next question comes from the line of Shirley Tan from Barclays. Please go ahead.

Shirley Tan: Hi. Thank you so much for taking my question. Can I ask about Pluvicto? So congrats on a great quarter. Could you please help frame where you are in the launch curve for pretax and new label? How do you expect the inflection in Q4 and also next year? Can you remind us your peak ambition of this drug, and when do you expect Pluvicto to reach at the full potential, within the PSMA 4 population and also potentially PSMA addition population? Also in addition, I think you previously mentioned a few challenges for commercialization, such as reimbursements, education of staffing and referral networks. How do you find where you are tackling these challenges? Thank you.

And also, in addition you, I think you previously mentioned a few challenges for commercialization such as reimbursement, education of Staffing and referral Networks.

Vas Narasimhan: Thanks, Shirley. For Pluvicto overall, I think we're on the steep part of the curve right now. As you saw, very strong growth in Q3. We would expect very solid growth in Q4. It's important to note in Q4, we always have a slowdown in the Thanksgiving and Christmas holidays. We in effect lose two to three weeks because of those holidays, simply because patients don't want to, quote, unquote, have, you know, a nuclear medicine, radioactive medicine that prevents them from being around children or family members, so for a period of time. Important to note that. That said, we do expect continued strong performance in Q4.

Vas Narasimhan: Going into next year, we would expect solid growth, but I think, you know, as always with these launches, good growth but maybe not the same levels of growth you're seeing in Q3 or Q4, kind of an S-shaped curve. Our plan would be to bring on the HSPC indication, which will then propel us, we believe, to the $5 billion peak sales that we've guided to. We fully are confident on that. We see high levels of now receptivity. That, I think, brings me to your point on the structural challenges, which I think we've successfully tackled now. With the PSMA VISION launch, we struggled to get into the community in a way that was scaled.

And how do you find where you are? Tackling these challenges? Thank you. Yeah. Thanks Shirley. So, uh, for Pictou, overall, I think we're on the Steep part of the curve. Right now, we see you. As you saw very strong growth in quarter 3, we would expect very solid growth in quarter 4. It's important to note in quarter 4, we always have a Slowdown in the Thanksgiving, uh, and Christmas holidays to in effect lose 2 to 3 weeks. Uh, because of those holidays simply because patients don't want to quote unquote. Have, you know, a nuclear medicine, radioactive medicine that prevents them from being around children or family members, so for a period of time, so important to note that. But that said we do expect continued strong performance, uh, in quarter 4, uh, and then going into next year, we would expect solid growth. But I think, you know, as always with these launches, good growth and maybe not the same levels of growth, you're seeing in quarter 3, and quarter 4, kind of an s-shaped curve and then our plan would be to bring on the hspc indication uh which will then Propel us.

Vas Narasimhan: Through years of effort by our US commercial team, we've successfully, as I noted, have over 700 prescribing clinics across the country. 9 out of 10 patients are very close to a center that can provide Pluvicto. We're adding centers just to be on the safe side. We've done careful mapping to know the referral pathways. Physicians are much more comfortable now using the PFS pre-filled syringe and dealing with some of the other logistics associated with radioligand therapy. We're in a very good spot in that sense, and that's what gives us confidence that the pretaxing launch can propel us into the $3 billion plus range, and then the HSPC launch will propel us into the $5 billion plus range and will be where we expect.

We Believe to the 5 billion dollar Peak sales that we've guided to so we fully are confident on that we see high high levels of now receptivity. And that I think brings me to your point on um the the structural challenges which I think we've tackled now for with the psma vision launch, we struggled to get into the community in a in a way. That was scaled. Now, through years of effort by our us commercial team, we've successfully as I noted have over 700, prescribing clinics across the country, 9 out of 10 patients are very close to a center that can provide flu, victo. We're adding centers just to be on the safe side. We've done careful, mapping to know the referral Pathways Physicians, are much more comfortable. Now, using the PFS for pre-filled syringe and dealing with some of the other logistics associated with radio, Lions therapy. So we're in a very good spot in that sense. And that that's what gives us confidence that the the pre-tax and launched and Propel us into the 3 billion dollar.

Vas Narasimhan: We continue in the oligometastatic setting as well to go earlier. We also have a number of phase four studies, including in the MCRPC setting in combination with ARPIs to give physicians even more options. We're doing all of the work as well to fully build out the data package to maximize this medicine. I think while I'm on Pluvicto, I think all of that builds the base for our radioligand therapy, you know, platform more broadly. We have that full range of, you know, around 10 different indication medicines that are advancing in the clinic. Now as we bring those forward, we have that infrastructure built in the US and now increasingly Japan, China, and other markets to make those other launches successful. I think all on the right track.

Plus range. And then the hspc launch will Propel us into the 5 billion dollar plus range and will be where we expect we continue in the as well. Uh, in the algo metastatic setting as well to go earlier. We also have a number of phase 4 studies including, uh, in the, uh, uh, in the mcrpc setting in combination with arpi is to give positions even more options. So we're doing all of the work as well to fully build out the data package, to maximize this medicine. I mean, I think while I'm

Vas Narasimhan: It was a very important element for us to strategically solve. In my view, we have solved the challenge of rolling out radioligand therapy in the United States. Next question, operator.

Monthly Victor. I think all of that builds the base for our radio Lian therapy, you know, platform or broadly. We have that full range of you know, 10 around 10 different indication medicines that are advancing in the clinic. And now as we bring those forward, we have that infrastructure built in the US and now increasingly Japan, China and other markets to to make those other launches successful. So I think all on the right track, it was an very important uh, element for us to strategically solve. And in my view, we have solved the challenge of rolling out radio Lian therapy in the United States.

Operator: Thank you. Your next question comes from the line of Florent Cespedes from Bernstein. Please go ahead.

Uh, next question. Operator, thank you. Your next question comes from the line of Florence Suspenders from Burnsy. Please go ahead.

Florent Cespedes: Good afternoon. Thank you very much for taking my question. A question on Rhapsido. Could you maybe share with us how you see the ramp-up of the product as you have a clean safety profile, convenient administration, and you have any feedback from the street even though it's still early days? Any thoughts for the situation in Europe, the adoption knowing that the product will be compared with much cheaper drugs? Thank you.

Vas Narasimhan: Yeah. Thank you, Florent. you know, we're in the early stages of the launch. Right now, our focus is on sampling through, you know, patient start form, getting through patient start forms, and negotiating with payers to ensure broad access in the early part of next year. I think once we get to the early part of next year, we get that base up through sampling in this initial phase, we would then start to expect a more rapid uptake through Q2 forward next year, where I think there will be the opportunity then to really drive uptake. We would expect initial uptake to be in patients who are not responding to biologic. Our goal very much is to be positioned pre-biologic.

Good afternoon. Thank you very much for taking my question, a question on uh, ratio. Um, could you maybe share with us, uh, how you see the ramp up of the product as you have a clean safety profile, convenience Administration, um, and you have any feedback from, uh, from the street even though it's still early days and any thoughts for uh, the um, situation in in Europe, uh, the adoption knowing that the product will be compared with a cheaper uh drugs.

Vas Narasimhan: That's really where the opportunity is for this medicine. That's going to be our long-term focus in the US and really around the world. I think in Europe, you raised an important point. I mean, a lot of this will come down to our payer negotiation. I think in light of the current situation in the US, it will be absolutely our goal to hold the line and ensure that Rhapsido is appropriately reimbursed for the innovation it's bringing and not have it be compared to old generic drugs, but really compared to what it is, a peerless oral twice-a-day option for patients that really need a rapid onset of action. We're hopeful that European payers will realize that and appropriately reward it, and we'll be willing to be patient to achieve that.

Vas Narasimhan: I think once we get access, all of our indications, there's a lot of enthusiasm in both the allergist and the derm community for a safe oral option, and we should see rapid uptake there as well. I think overall, very excited about the medicine. As you know, we're progressing as well in SYNDUE. We would expect that readout next year. We're progressing in food allergy, we're progressing in HS. We have a number of opportunities now ahead of us as well for this medicine. Next question.

In the US that will be absolutely. Our goal to hold the line and ensure that reps is appropriately, reimbursed for the Innovation that's bringing and not have it. Be compared to Old generic drugs, but really compared uh to what it is a Peerless, oral twice, a day option for patients, that really need a rapid onset of action. And we're hopeful that, that European pairs will realize that and then appropriately rewarded. Uh, and then, we'll be willing to be patient to achieve that. But then I think, once we get access to all of our indications of, there's a lot of enthusiasm in both the allergist and The Germ Community for a safe oral option and we should see wrap it up, take there as well. So I think overall very excited about the medicine as you know we're progressing as well in Sindhu, we would expect that read out next year. We're progressing in food allergy, we're progressing in HS, so we have a number of opportunities. Now ahead of us as well for this medicine.

Florent Cespedes: Thank you very much.

Next question, thank you very much.

Operator: Thank you. Your next question comes from the line of James Quincey from Goldman Sachs. Please go ahead.

Thank you.

Your next question comes from the line of James quickly. From Goldman Sachs. Please go ahead.

James Quincey: Hello. Thank you for taking my question. I've got a follow-up on yanalimab, please. One question we've had is that obviously the slide suggests in NEPTUNUS-1 that statistical significance was only achieved in the last two blocks of data. Was that just because of when the tests were run? Or is that sort of what you're expecting as well in terms of when you're planning the study? A second quick one on yanalimab as well, hopefully not to preempt tomorrow or Thursday. You talk about the secondary endpoints and fatigue and saliva flow being more important, but the secondary endpoints were not statistically significant. Again, was this a case of hierarchical testing or anything else?

James Quigley: Hello. Thank you for taking my question. I've got a follow-up on yanalimab, please. One question we've had is that obviously the slide suggests in NEPTUNUS-1 that statistical significance was only achieved in the last two blocks of data. Was that just because of when the tests were run? Or is that sort of what you're expecting as well in terms of when you're planning the study? A second quick one on yanalimab as well, hopefully not to preempt tomorrow or Thursday. You talk about the secondary endpoints and fatigue and saliva flow being more important, but the secondary endpoints were not statistically significant. Again, was this a case of hierarchical testing or anything else?

Hello, thank you for calling question. I've got a follow up on, please. Um, so 1 question, we've had is that, uh, obviously this the slide suggests in, in Neptune, this 1, this statistical, significance. This is only achieved in the last 2, um, box of data was that just because of when the, when the, um, uh, when the tests were run or

James Quincey: How can you show that when the drug hopefully gets approved and you talk to physicians about the data? Thank you.

James Quigley: How can you show that when the drug hopefully gets approved and you talk to physicians about the data? Thank you.

Vas Narasimhan: Yeah, absolutely. I mean, I think the endpoint here is at 52 weeks. I think we were trying to indicate all of the time points to reach nominal significance. Given that endpoint, you know, the goal here is 52 weeks, and both studies achieved the pre-specified primary endpoint at 52 weeks in the independent analyses and in the pooled analyses. No issues there. We feel from a regulatory standpoint, we've 48 weeks, excuse me, at 48 weeks, the standard. I think you can see here on slide 17, 48 weeks was hit in both trials. Separate from that, there is hierarchical testing here as often is the case.

Or is that sort of what you're expecting as well in terms of when you're planning the study? And it it's like a quick 1 on. Um, you know, as well, hopefully not to preempt, uh, tomorrow or or Thursday. Um, but you talked about the, the secondary end points and, uh, fatigue. And this lively flow being being more important but the secondary end points were not specifically significant. So again with this a case of hierarchical testing or anything else, how can you show that when you when the drug? Hopefully it's approved and you um you talked to Physicians about the um the data. Thank you.

Vas Narasimhan: If one of the secondaries are hit, even if they hit from a nominal standpoint, and lower on the hierarchy, it's no longer valid from a pure statistical hierarchy standpoint. It could be nominally statistically significant, but it wouldn't reach the threshold from a regulatory standpoint. That said, I mean, I think as I've tried to articulate, there's the regulatory standpoint here, and in a disease that's never had an approved drug, there's really what are patients and physicians looking for. We've really tried to understand, once we hopefully can get the regulatory approval, then what do we need to educate physicians and patients on?

Yeah, absolutely man. I think the the end point here is that 52 weeks and so uh I think we were trying to indicate all of the time points to reach nominal significance, but given that that end point, you know, the the goal here is 52 weeks and both studies achieved the pre-specified primary endpoint at 52 weeks in the independent analyses and in the pool analyses. Um, so no, no issues there. Uh, and so we feel from a regulatory standpoint, we've 48 weeks, excuse me at 48 weeks Pro, uh, the standard. Um, so I think, uh, you can see here, but on the slide 17, 48 weeks was hidden, both trials. And then um, separate from that, there is hierarchical testing here as often as the case and so if 1 of the secondaries are hit, even if they hit from a nominal standpoint uh, in lower on the hierarchy, it's no longer valid from a pure statistical hierarchy standpoint. It could be nominally. So,

Vas Narasimhan: You'll hear more about that on Thursday, but our team has done a range of analyses to look at secondary outcomes, look at post-hoc outcomes, look at also biopsies and really try to demonstrate that you're seeing the benefits that patients want. I myself have spent time talking to patients with Sjögren's and, you know, I think what really matters to them is quality of life metrics and very specific quality of life metrics that varies patient to patient. I don't think that for them that the SSI score is gonna make the difference. It's gonna be whether or not their symptoms are getting better and they can live their daily life day in and day out better. Thanks very much, James. Next question.

Significant but it wouldn't reach the threshold uh from a regulatory standpoint that said I mean I think as I've tried to articulate there's the regulatory standpoint here and in a disease that's never had an approved drug. There's really what our patients and Physicians looking for. We've really tried to understand um once we hopefully can get the regulatory approval, then what do we need to educate Physicians and patients on so you'll hear more about that on Thursday, but our team has done a range of analyses. Uh, to look at a secondary outcomes. Look at post talk outcomes. Look at uh, also biopsies and and really try to demonstrate that you're seeing the benefits that that patients want. I myself have spent time talking to patients with shows and, you know, I think what really matters to them is quality of life metrics and very specific quality of life metrics that varies patients to patient. So I don't think that for them that the esti score is going to make the difference. It's going to be whether or not their symptoms are

getting better and they can live their daily life day in and day out, better.

So, thanks very much James. Next question.

Operator: Thank you. Before we take the next question, a quick reminder, please limit yourself to one question and return to the queue for follow-ups. Your next question comes from the line of Richard Vosser from JP Morgan. Please go ahead.

Thank you before we take the next question. A quick reminder. Please limit yourself to 1 question and return to the queue for follow-ups.

Your next question.

Florent Cespedes: Hi. Thanks for taking my question. One on Cosentyx, please. Just whether you're seeing any impact in the US from the Ocrevus subcutaneous launch.

Richard Vosser: Hi. Thanks for taking my question. One on Cosentyx, please. Just whether you're seeing any impact in the US from the Ocrevus subcutaneous launch.

Comes from the line of Richard Foster from JP Morgan. Please go ahead.

Richard Vosser: Doesn't seem like it, but just, wondering what you're seeing here. Linked to that, there's some discussion from you about your new formulation. Just wondering on details of treatment interval, whether this could be a new BLA and how this could protect from potential biosimilars down the line. Thanks very much.

Whether you're seeing any impacts, uh, in the U.S. from the OS sub.

Launch.

Seem like it. But just, uh, wondering what you're seeing here and, and linked to that.

There's some discussion, uh, uh, from you about your new formulation, um,

Just wondering on details of treatment in interval, uh, uh, whether this could be a new BLA and...

and and uh, how

Vas Narasimhan: Yeah, thanks, Richard. On Ocrevus subQ, we don't see an impact to date, as you can see in our overall performance. We're holding share in a growing market. I think the overall market growth for multiple sclerosis drugs has been solid. Within that, the B-cell class continues to steadily increase with the bigger opportunity outside of the US, but still we see the opportunity. I think 25% of patients in the US, give or take, are still not on B-cell therapies that could be. We're really benefiting from the market growth. We are doing a lot of work now to get better at targeting physicians that we think would be more amenable to a self-administered administration rather than the various other options available. But I think the...

Thanks very much.

Vas Narasimhan: you know, overall, this is a growing market where the medicine is holding its share, performing really well. It's all volume-driven growth. From a lifecycle management standpoint, we are advancing our Q2-month formulation. We'll keep you updated as we progress, but that's something that a trial is currently unrolling. We're exploring other options. That's no detail that can get into at this point to get into longer intervals as well, potentially with novel technologies. I think as those progress and if there is the opportunity to get those launched before a biosimilar entry, that's something that we're highly focused on. Absolutely. I think it's premature to comment on that at this point. Next question, operator. Sure, Sharon.

Yeah. Thanks Richard. So, um, on crevice subq, we don't see uh, an impact data as you can see, in our overall performance, we're holding share in a growing Market. I think the overall market growth, uh, for mobile sclerosis, drugs has been solid within that the B cell class continues steadily increase with the bigger opportunity outside of the US. But still, we see the opportunity. I think, 25% of patients in the US give or take, are still not on B cell therapies, that could be. And so we're really benefiting from the market market growth. We are doing a lot of work, now, to get better at targeting Physicians that we think would be more amenable to a patient, a self-administered Administration, rather than the various other options available. Uh, but I think that, you know, overall this is a growing Market where the medicine is holding, its its share of Performing really well. It's all volume volume and driven growth from a life cycle, management standpoint. We are advancing our Q2 months, uh, formulation and so, uh, we we'll we'll keep you updated as we progress but that's something.

That's a trial that's currently unrolling. And then we're exploring other options. That's no details. I can get into at this point to get into longer intervals, uh, as well. Potentially with novel Technologies and I think as those progress and if there is the opportunity to get those launched before bio similar entry, that's something that we're highly. Highly focused on. Absolutely. But I think it's premature to comment on that at this point.

Operator: Thank you. Your next question comes from the line of Thibault Boutherin from Morgan Stanley. Please go ahead.

Thibault Boutherin: Yeah, thank you. Just a question on Abelacimab, the injectable Factor XI acquired with Anthos. I think we are getting the first phase 3 data in AFib next year. This is for patients at high risk of bleeding and for whom oral anticoagulants are not adequate. Can you just sort of frame the opportunity in terms of size? Are you looking to potentially go into a broader patient population with this asset?

Next question, operator. Uh, sure. Sharon. Thank you. Your next question comes from the line of tibo bothering from Morgan Stanley. Please. Go ahead.

Vas Narasimhan: Yeah, thanks, Thibault. This is the, as you know, the antibody we acquired back from Anthos. It's originally a Novartis originated antibody, so we know it quite well. As you know, the study next year will be in patients who are ineligible for DOACs/NOACs. The opportunity here is for these patients, which is a reasonable sizable patient population, to provide them, you know, a significant option with monthly dosing. I think the opportunity here. The size of the opportunity, we believe, is multi-billion, but the scale of that multi-billion dollar opportunity will really depend on how the oral phase three program from one of our competitors performs.

Yeah, thank you. Just a question on the injectable Factor 11. I think we are getting the first phase 3 data in aib. Um, next year, this is for patients at high risk of bleeding and for whom, uh, all that can just uh sort of frame. The opportunity in terms of size and are you looking to potentially go into a broader patient population with uh, Visa set.

Vas Narasimhan: I mean, clearly, if that oral medicine, which is an all-comer, is in a very large study, if that is unsuccessful, then we would have a very significant potential with our medicine. I think with an oral and an antibody, we'll be much more then focused on these more refractory patients, and the opportunity won't be quite as large. I think in either case, it'll be a multi-billion dollar asset we can bring into our cardiovascular portfolio. We're, yeah, we're quite excited about it. Very good. Thank you, Thibault. Next question, operator.

Yeah, thank you both. So this is the as you know, the the antibody we acquired back from anthos is originally in novardis originated antibodies. So we know it um, quite well. As you know, the study next year will be uh, in patients who are ineligible for doax noax. And so the opportunity here is for these patients which is a reasonable sizable patient population to provide them, you know, a uh significant option with monthly dosing. Uh I think the opportunity here will really the size of the opportunity. We believe is multi-billion but the the scale of that multi-billion dollar opportunity will really depend on how the oral uh phase 3 Program from 1 of our competitors performs. I mean clearly um if that oral medicine which is in all Commerce in a very large study, if that is unsuccessful then we would have a very significant potential with our

Medicine. I think with an oral and an auto body will be much more than focus on these more refractory patients. And the opportunity won't be quite as large, but I think, in either case, it'll be a multi-billion dollar asset. We can bring in to our cardiovascular uh portfolio and we're um yeah, we're quite excited about it.

Operator: Thank you. Your next question comes from the line of Michael Leuchten from Jefferies. Please go ahead.

Very good. Thank you, Tibo. Next question, operator.

Michael Leuchten: Thank you very much. If I could please go back to Cosentyx. Could you tell us, please, what your pricing assumptions, the net pricing assumptions are for the US into Q4? Do you expect any drag? Just trying to understand the increase in step-up dosing comment on your slides around HS, the 25% utilization. Could you put that into context? What was that maybe at the half of the year, and how has that developed? Thank you.

Thank you. Your next question comes from the line of Michael L. from Jefferies. Please go ahead.

Vas Narasimhan: Yeah. Thanks, Michael. On Cosentyx pricing, we don't expect any shifts going into Q4. I'd say overall, we expect stable gross to nets as well going into next year. I mean, it's a relatively mature brand, but also with multiple, you know, new indications and a solid payer position. I think we should be stable on that front. We are also monitoring the impact of the Part D redesign, but most of the impacts we've seen on Part D redesign have actually been on Entresto earlier in the year, and then I think that will fade away now as generics enter.

Thank you very much. If I could, please go back to cosentyx. Um, could you tell us please what your pricing assumptions? The net pricing assumptions are for the US into the fourth quarter. Do you expect, any any drag and just, uh, trying to understand the increase in Step Up those? Same comment on your slides around HS, to 25% utilization. Could you put that into context? What was that? Maybe at the half of the year and how is that developed? Thank you. Yeah, thanks Michael. So on on, um, on coent pricing, we don't expect any shifts, going into quarter of 4 and I'd say, overall, we expect stable growth in Nets as well going into next year with relatively mature brand, but also with multiple, you know, new indications and a solid pair of positions. So I think we should be stable. Um on that front. We are also monitoring the impact of the part the redesigned but most of the impacts we've seen on Part D redesign have actually been on a trustee earlier in the year and then I think that will made a way now as

Vas Narasimhan: On HS, this really referred to the fact that early on with the competitor launch, what we were seeing is, with patients who were on the monthly dosing, if they weren't seeing the effect that their physicians weren't seeing the effect that they hoped for, the effect was wearing off, they were switching rather than updosing Cosentyx to every two weeks. Now, we see about 25% of patients on Cosentyx moving up to that every other week dosing, and that's something we'd like to get even higher over time because I think that really demonstrates, patients are persisting on Cosentyx, and that's gonna be important for us to retain our greater than 50% in TRx share and then the correlating TRx share as well. That's very much in focus for us.

Vas Narasimhan: I'd come back again that we also just need to work on growing the market. I think if this ends up being two competitors just trading the same group of patients, that would be a disservice to this patient community. I think we have to get better now at reaching patients who have either fallen out of the system or for whatever reason are being identified as biologic appropriate patients and get them on therapy. Next question, operator.

Every other week dosing, and that's something we'd like to get even higher over time. Because I think that really demonstrates patience are persisting on coent going to be important for us to retain our greater than 50%. And we are extra and then the correlating TRX share as well. So that's very much in focus for us. Uh, and then I come back again that we also just need to work on growing the market. I think, if this ends up being too competitors, just trading the same group of patients, uh that would be a disservice to this patient Community. I think we have to get better now at reaching patients who have either fallen out of the system or for whatever reason are being identified as biologic, uh appropriate patients and get them on therapy.

Operator: Thank you. Your next question comes from the line of Simon Baker, Rothschild and Co, Redburn. Please go ahead.

Next question, operator.

Keyur Parekh: Yeah, I hope you can hear me okay. This is Keyur Parekh, speaking on behalf of Simon Baker. I have 1 quick question. Thanks for taking my question, by the way. 1 quick question on the rebate adjustment. Is there anything you can call out other than the Cosentyx and also any drug benefit from the rebate adjustment in the Q3? Thank you.

Thank you. Your next question comes from the line of fireman, Baker, rooftop, and Co. Please go ahead.

[Company Representative] (Novartis): Yeah, thank you for the question. I'll hand that to Harry.

Vas Narasimhan: Yeah, thank you for the question. I'll hand that to Harry.

No, I hope you can hear me. Okay, so this keeps the thing. Um, speaking on behalf of Simon Baker, I have one quick question. Uh, thank you for taking my question, by the way. So, one quick question on the rebate adjustment: is there anything you can call out other than the code centers? And also, did any drug benefit from the rebate adjustment in the queue stream? Thank you.

Harry Kirsch: Yeah, thank you for the question. So overall, of course, when you see the amount that is prior period is roughly $180 million. You see that this has about this 1.5, almost, rounding them to 7% to 9%, if you will, effect on the quarter. Cosentyx is a big piece of it. Another big piece of it is Entresto, actually, where patients got quicker into the catastrophic, you know, as part of the Medicare Part D auto redesign. Of course, that part really should go away as Entresto kind of goes away. There have been some smaller elements, including, like really back into 2024 with some inflation penalty parts. The two biggest ones are Cosentyx and Entresto.

Yeah, thank you for the question. I'll hand that to Harry.

[Company Representative] (Novartis): Great. Thank you, Harry. Sharon, next question.

Vas Narasimhan: Great. Thank you, Harry. Sharon, next question.

Operator: Thank you. As a reminder, if you would like to ask a question, please press star one one on your telephone and wait for your name to be announced. Please limit yourself to one question and return to the queue for any follow-up. We will now go to the next question. Your next question comes from the line of Rajesh Kumar from HSBC. Please go ahead.

Yeah, thank you for the question. So, so overall, of course, when you see the, the amount, um, that is prior period is uh, roughly 180 million. You see that this has about this, this 1 and a half almost rounding them a 7 to 9% if you will affect on the quarter and cosmetics is a big piece of it, another big piece of it is entresto actually where patients got quicker into the catastrophic uh, you know, as part of the Medicare party. Also redesign and of course, that part really should go away and the Resto kind of goes away. And there has been some smaller elements including, um, like really going into back into 24, with some inflation penalty part. But the 2 biggest ones are cosmetics and and Resto. Great. Thank you, Harry. So Sharon, next question,

Thank you.

As a reminder, if you would like to ask a question, please press star 1 and 1 on your telephone, and wait for your name to be announced. Please limit yourself to 1 question and return to the queue for any follow-ups.

We will now go to the next question.

And your next question comes from the line of Kunal Kumar from HSBC. Please go ahead.

Rajesh Kumar: Hi. Good afternoon. Just trying to understand this, you know, the modern cadence over 2026. I know you're not giving a 2026 guidance at the moment, but very helpfully, you said it will be a year of two halves. Given what you know about Part D now, and you know how generics are coming, and what sort of operational hearing you're getting on your, you know, like if end up with, you know, the drugs which are growing, if you were not cutting the cost, would the cadence be a lot more deeper? What have your actions done to offset that impact?

Hi, good afternoon.

just,

Trying to understand this, uh, you know, the, the modern Cadence or or work 2026. I know you're not giving a 26 cards at the moment, but very helpfully is that it will be a year of 2 half. So,

Given what you know about party now.

And you know how generics are coming and what sort of operational gearing you're getting on your, you know, like SMW Victory, you know, the drugs which are growing.

If you.

Cutting the costs.

Rajesh Kumar: You know, what is the mix impact versus self-help, if you could help us quantify as well as, you know, the seasonality of Part D cadence, because this year you have done a prior period adjustment that might not be the next year because you have some accrual history now that'll base your quarterly accruals on the evidence you have. It would really help us model out first half, second half for 2026. Thank you.

Would the Cadence be a lot more steeper and what what have your actions done to offset that impact? So, you know, what is the mixed Impact versus self-help? If you could help us quantify as well as, you know, the seasonality of Part B Cadence because this year you've done a prior period to adjustment, that might not be the next year because you have some approval history now. So you'll pay your quarterly approvals on on the evidence you have. So it would really help us model out first half second half for 26.

[Company Representative] (Novartis): Sure.

Vas Narasimhan: Sure.

Harry Kirsch: Yeah, thank you, Rajesh. A very thoughtful question, of course. In our business with our mix, we usually do not have, you know, Medicare kind of related different gross to net levels quarter by quarter, other than when we have a gross to net true up, right? When the channel makes changes, when a product goes quicker into the catastrophic. Those, if there are, I mean, there are always some deviations, right? We have over 20 billion IDs in US. When these are significant or meaningful, then we let you know, right, how much it is. Like in Q4 of last year, it was 3 points of growth, which is now impacting as a high base. Q1 was 2 points to the positive, and Q3 is now 2 points to the negative.

Thank you. Yeah, thank you much very thoughtful question. Of course. And so, in our business, with our mix, we usually do not have, you know, Medicare kind of related different growth to net levels quarter by quarter.

Other than when we have a gross-to-net true-up.

Harry Kirsch: We show you that stuff. That's up, that's basically true up. The underlying is not changing quarterly dynamics for us. For next year, you will have a very high base Q1, right, with the two points of growth that we got from the... And you will have a relatively low base in Q3 from the two negative points this year. Other than that, it's all about launch uptake and generic erosion of the three main products. Maybe long-winded, but I hope it was addressing your question.

Right. So when the channel makes changes, when a product goes quickly into the catastrophic and those if they are, I mean they are always some deviations, right? We have over 20 billion RDS in us and but when these are significant or meaningful, then we let you know, right? How much it is like, in in quarter, quarter 4 of last year, it was 3 points of growth, which is now impacting as a high base. A quarter 1 was 2 points to the positive and a quarter 3 is now 2 points to the negative. So we we show you that stuff but that's up.

that's basically true UPS, the

Underlying.

For us.

So for next year, you will have a very high base q1, right with the 2 points of growth that we got from the and you will have a relatively low base in Q3 from the tool, a negative points this year. And other than that, it's all about launch uptake.

And generic erosion.

Of the three main products.

[Company Representative] (Novartis): We'll do our best.

Vas Narasimhan: We'll do our best.

Rajesh Kumar: Thank you.

[Company Representative] (Novartis): At the full year earnings as well to provide more guidance on how best to think about the full year 2026. Next question, Sharon.

Vas Narasimhan: At the full year earnings as well to provide more guidance on how best to think about the full year 2026. Next question, Sharon.

Maybe long winded but I hope it was addressing your question, it will and we'll do our best. I think at the full year earnings as well to provide more guidance on how best to to think about the full year 2026.

Rajesh Kumar: Appreciate that. Thank you.

Operator: Thank you. Your next question comes from the line of Matthew Weston, UBS. Please go ahead.

Uh, next question. Sure, appreciate that. Thank you.

Thank you.

Your next question comes from the line of Matthew Weston UBS. Please go ahead.

Keyur Parekh: Thank you. It's just a quick follow-up actually to one of the prior questions. Harry, Cosentyx looks like a very strong quarter in Q3 that looks somewhat off trend, I'm just making sure that as we go into Q4, we aren't going to learn that it was lumpy one way versus the other. Can you just confirm that was underlying operational growth?

Matthew Weston: Thank you. It's just a quick follow-up actually to one of the prior questions. Harry, Cosentyx looks like a very strong quarter in Q3 that looks somewhat off trend, I'm just making sure that as we go into Q4, we aren't going to learn that it was lumpy one way versus the other. Can you just confirm that was underlying operational growth?

[Company Representative] (Novartis): Absolutely. Harry?

Vas Narasimhan: Absolutely. Harry?

Thank you. It's just a quick follow-up. Actually, to 1 of the prior questions. Harry because simp looks like a very strong quarter in Q3 that looks somewhat off Trend. And I'm just making sure that. As we go into Q4, we aren't going to learn that. It was lumpy 1 way versus the other. Can you just confirm? That was underlying operational growth.

Harry Kirsch: Yeah. It was mainly underlying operation growth. A little bit of inventory, but not much.

Absolutely Harry. Yeah, it was mainly underlying operation growth, a little bit of inventory but not much

[Company Representative] (Novartis): Just a strong-

Vas Narasimhan: Just a strong-

Keyur Parekh: Many thanks.

[Company Representative] (Novartis): ...global volume, I think in both US and ex-US for this Q.

Vas Narasimhan: ...global volume, I think in both US and ex-US for this Q.

Harry Kirsch: Exactly.

[Company Representative] (Novartis): Yeah.

Vas Narasimhan: Yeah.

Harry Kirsch: Yes.

Keyur Parekh: Perfect. Thank you.

Matthew Weston: Perfect. Thank you.

[Company Representative] (Novartis): Next question.

Vas Narasimhan: Next question.

Just a strong global volume. I think in both the U.S. and ex-U.S. for this medicine. Yes, perfect. Thank you. Next.

Operator: Thank you. Your next question comes from Simon Baker, Rothschild & Co Redburn. Please go ahead.

question.

Thank you. Your next question comes from Simon Baker, Rothschild & Co Redbarn. Please go ahead.

Keyur Parekh: Hi. Just one quick question on the ianalumab in Sjögren's disease. We observed the placebo response in the Sjögren's trial tend to be plateau at week 48. Why did it reverse in the first trial of those two phase 3 trials, please? The phase 3 trial is called NEPTUNUS-1. Thank you.

Hi. Um, just one quick question. Um, the Lana new map in the selling disease. So we observed the placebo response in the cell green trial tended to be plateau a week for the age. So why did it reverse in the first trial of those two Phase 3 trials, please?

The, um, the patient trial is called Not To 1.

Thank you.

Vas Narasimhan: Yeah, I think the question is regarding the placebo, you know, placebo response. I mean, look, I think these were both adequately controlled, well-designed studies, global studies. This is just a highly variable disease, and so you're gonna see some variability in how the placebo responds. We look at background therapy as well as very comparable across the studies and so also versus normal standard of care. You do see as well that the Q-month data looks much better than the Q-three-month data, but you do see as well the dose response that we would expect. I think that's all positive.

Yeah, I think I think the question is regarding the placebo. Uh, you know, Placebo response. I mean, I think

Look. I think these were both adequately controlled well-designed studies, global global studies. This is just a highly variable disease uh and so you're going to see some variability in how the placebo responds. We look at background therapy as well. It's very comparable across the studies. And so also versus normal standard of care. Uh you do see as well that the queue month's data looks much better than the Q3 months, uh, data, but you do see as well the dose response. So we would expect. So I think that's all

Vas Narasimhan: We'll have our experts on the line, on Thursday, so if you wanna get into more detail, and they'll also be able to go through some of the background on the study design and baseline characteristics. But I think, obviously, I can't comment more until the full data is presented. Next question, Sharon.

All positive. And so we'll have our experts on the line on Thursday. If you want to get into more detail, they'll also be able to go through some of the background on the study design and baseline characteristics. But I think, obviously, I can't comment more until the full data is presented.

Operator: Thank you. Your next question comes from Steven Scala from TD Cowen. Please go ahead.

Steven Scala: Well, thank you for the follow-up. Novartis raised the long-term revenue guidance yesterday, half of which was attributed to the existing business. Of the half attributed to the existing business, how much is due to currently marketed products, and how much is due to higher sites for the pipeline agents? Thank you.

Next question. Sure. Thank you. Your next question comes from Stephen Scala from TD Cowen. Please go ahead.

Vas Narasimhan: Yeah, Steve, I think we can provide better midterm guidance on that in at Meet the Management. Most of that is inline brands. Obviously, you know, you see the strong performance of Kisqali, Cosentyx, Plerixafor, and Scemblix. I think solid performance on Leqvio. There's probably some in there of what we expect will be a strong launch for Ramucirumab, so Rapsido and the label expansion for Plerixafor. Yeah, I think that's roughly the breakdown more or less. I think any other pipeline assets we would expect have limited ramp in this period, just given how long it takes to ramp up these launches when you think out to 2029.

Well, thank you for the follow-up, Novartis raised, the long-term Revenue guidance yesterday, half of which was attributed to the existing business of the half, attributed to the existing business, how much is due to currently marketed products? And how much is due to higher sights for the pipeline agents? Thank you.

Vas Narasimhan: We will provide guidance as well out to 2030, as I said yesterday in Meet the Management, as well as update our peak sales guidance on our various brands where appropriate.

Yes. Steve, I think we can provide better midterm guidance on that in. I meet the management but most of that is in line Brands. Obviously, you know, you see the strong performance of casali, gives them a flu victims. I think solid performance on on lexio and there's probably some in there of what we expect will be a strong launch for Remy. Brood nib, so wrap Seido and the label expansion for for pluvicto. Um, yeah, I think that's roughly, the, the breakdown more more or less, I think, any other pipeline assets, we would expect to have limited ramp, uh, in this period just given how, how long it takes to ramp up these launches when you think out to 29 and we will provide guidance as

As well out to 2030. As I said yesterday, and meet the management as well as update, our Peak sales guidance, on our various, uh, Brands where appropriate

Steven Scala: Thank you.

Vas Narasimhan: Next question, Sharon.

Operator: Thank you. Your next question comes from the line of James Quincey from Goldman Sachs. Please go ahead.

Thank you next. Uh next question. Sure. Thank you. Your next question comes from the line of James quickly. From Goldman Sachs. Please go ahead.

James Quincey: Thank you. Just a quick one from me. I mean, you may have already answered it, Harry, but it's again going back to the Cosentyx, the rebate adjustment. Which prior periods does that relate to? Is that a Q1, Q2 this year, or is that a 2024 thing? I'm just trying to think in terms of modeling for next year as we look at Cosentyx. Is there a slight headwind from where there was a higher price that you realized in Q1 and Q2 that then reversed out in Q3? What does that mean sort of going forward into 2026? Again, appreciate there is gonna be other dynamics with PMR and HS, but just wanted to clarify that from a modeling perspective. Thank you.

James Quigley: Thank you. Just a quick one from me. I mean, you may have already answered it, Harry, but it's again going back to the Cosentyx, the rebate adjustment. Which prior periods does that relate to? Is that a Q1, Q2 this year, or is that a 2024 thing? I'm just trying to think in terms of modeling for next year as we look at Cosentyx. Is there a slight headwind from where there was a higher price that you realized in Q1 and Q2 that then reversed out in Q3? What does that mean sort of going forward into 2026? Again, appreciate there is gonna be other dynamics with PMR and HS, but just wanted to clarify that from a modeling perspective. Thank you.

Vas Narasimhan: Harry?

Harry Kirsch: Yeah. Thank you, James. It's mainly Q2 this year, most of it. The Q3 underlying, that's why we gave you the Q3 underlying, you know, is what the underlying is, already taking into account if such channel mix would continue to prevail. From that standpoint, it gives you a good basis for future modeling.

Vas Narasimhan: I think, Harry, if I'm correct, if you net out the prior period upside versus this down, that the year-to-date is relatively clean.

Harry Kirsch: Across the whole portfolio.

Vas Narasimhan: Yeah.

Harry Kirsch: Across the.

Vas Narasimhan: Across the whole company-

Harry Kirsch: Yeah

Vas Narasimhan: Year to date is a clean read.

Harry Kirsch: Q1 we had a 2% upside. Now we have almost 2% downside, right?

Vas Narasimhan: Yeah.

Harry Kirsch: It's a bit different brand by brand, but that's why we bring you on the brand that has most of it and is, again, the rest of is deteriorating, of course, but this one, of course, is a brand that will stay long with us. That's why we gave you the underlying, which gives you the real underlying at the moment for Q3.

I um, higher price that that you're realizing q1 and Q2 that then reversed out in in Q3. Uh, and also, what does that mean? Sort of going forward into 2026 again, appreciate there is going to be other Dynamics with PMR and HS but just wanted to clarify that um, from for a modeling perspective. Thank you. All right, yeah. Thank you James. It's mainly a quarter to this year most of it and but a quarter 3, underlying, that's why we gave you the quarter 3. Underlying, you know, is what the underlying is already taking into account if such Channel mix would continue to Prevail. So from that standpoint, that gives you a good basis for future modeling. I think here, if I'm correct, if you net out the prior period, upside versus this, that, that the really the year to date is relatively clean across the whole Port. The whole company a year to date is a commercial to read quarter 1. We had a 2% up so now we have almost 2% downside, right? It's a bit different brand by brand, but that's why we give you on the brand that has most of it and is

I can address those is, is deteriorating, of course, but this 1, of course, is a brand that will stay long with us. That's why we gave you the underlying, which gives you the real underlying at the moment for quarter 3.

James Quincey: Got it. Thank you.

James Quigley: Got it. Thank you.

Got it. Thank you.

Vas Narasimhan: Sharon, next question.

Operator: Thank you. Your next question comes from the line of Sachin Jain from Bank of America. Please go ahead.

All right. Next question.

Sachin Jain: Hi there. Thanks for my questions. Firstly, just a clarification on margins for Harry. Three key margins were a little bit below street, I guess partly on gross margin, which is sort of first impact from generics. I wonder if you could just talk about gross margin, EBIT margin as we think about a full year of Entresto impacting 2026. My simple question is, can you maintain margins stable next year through the full year of generics before we model the underlying Avidity dilution? Given what I'm saying, again, I might just take an additional one on pipeline for Vas. You flagged good uptake in IgAN. You have the phase 3 for APRIL/BAFF next year. I wonder if you could just talk to your excitement on that and differentiation in what's a competitive landscape. Thank you.

Thank you. Your next question comes from the line of satin Dean from Bank of America. Please go ahead.

Vas Narasimhan: Great. Harry?

Hi there, thanks for my questions. Um, so firstly, just a clarification on margins for Harry. So 3, key margins for a little bit below Street, I guess partly on gross margin which is sort of first impact from generic. So when you just talk about gross margin even margin as we think about a full year of Interest, no impact in 26 my single question is, can you maintain margin stable? Uh next year through the full year of generics before we uh model the underlying avidity dilution and then give an understanding, okay? I might just take an additional 1 on pipelines for the VAV, you flag them, good uptake and I again you have the um phase 3 for the April bass next year. So I wonder if you could just talk to your excitement on that and differentiation in what the competitive landscape. Thank you.

Harry Kirsch: Yeah. On the margins, of course, when you have a product like a small molecule, a high-priced product like the 3 going off patent, especially Entresto being so big, there's a slight negative mixed effect. Kisqali is also a super high margin product, right, and growing significantly. That's partly offsetting. We have also significant productivity efforts, especially in our manufacturing supply chain. As I mentioned before, there will be, as we go forward, some pressures on the gross margin. On the other hand, we do also expect that our SG&A becomes even more efficient as we go forward, offsetting that. For the next couple of years, you know, this year we will be around 40%. Q4 is usually a bit lower.

Great T. So so on the margins, uh, of course, when you have a product like a small, small molecule a high price products like the 3 going off, bits, especially, and rest of the week are big, there's a slight negative, um, mixed effect. Uh, now because Carly is also super high marginal product, right? And growing significantly. So that's part of your setting, but we have also a significant, uh, productivity efforts especially in our manufacturing supply chain. So as I mentioned before, there will be as we go forward, some pressures on the gross margin.

Harry Kirsch: Historically, we have been in the first nine months at 41. If you're bringing that in the range of around 40. For the next 2, 3 years, we said because of the Avidity proposed acquisition, 1 to 2 marginal points down from the 40 and returning to 40 in 2029. With that, you know, basically it's driven by development investments. Overall, to close that long answer on a short question, you know, basically the core margin headwinds I do expect to be offset by SG&A productivity.

Uh, on the other hand, we do also expect, uh, that our sgna becomes even more efficient as we go forward offsetting that now, uh, for the next, um, couple of years, you know, this year, we will be around 40% at quarter. 4 is usually a bit lower. Historically, we have been in the first 9 months at 41, so it's your Q4 bring bring that in the range of around at 40. And then for the next 2, 3 years, we said because of the avidity proposed acquisition 1 to 2 margin points, down from from the 40 and returning to 40 and 2029. So with that, you know, basically, but that's driven by a development, uh, Investments. And overall, uh, to close that long answer on a short question. You know, basically, the cross margin headwinds, I do expect to be offset by sgna productivity.

Vas Narasimhan: Sachin, was your second question on the anti-APRIL antibody? I didn't catch it.

Sachin Jain: Yeah. Sorry, in the introduction you talked about the strength of the existing Ligand launches, but I wonder if you could touch on the APRIL/BAFF with data next year and how that, you know, wraps up your portfolio.

and in such in was your second question around the

Vas Narasimhan: Yeah, absolutely. First to note, ours is an anti-APRIL antibody. Our competitors are anti-APRIL/BAFF. I think, you know, one question of course will be to see the profile of those two drugs and does BAFF add anything, and also differences in safety profile. I would say overall, you know, we expect to see proteinuria in the range we hope of what the others have seen. Certainly our phase II data, final phase II data indicated we have very strong proteinuria reductions. We will be, you know, third to market in all likelihood. For us, it's really gonna come down to a portfolio opportunity that we bring to patients, physicians, payers, mostly the physicians offices and payers. Because we'll have the opportunity to have an endothelium antagonist with Vanrafia.

Yeah, sorry in the introduction. You talked about the strength of the existing diagram launches, but I wanted you to touch on the April back with data next year and how that, you know, wraps up your portfolio. Yeah, absolutely. So first to note, ours is an anti April antibody. Our competitors are

Vas Narasimhan: We have the Factor B inhibitor, with Iptacopan and then Fabhalta. We have the anti-APRIL antibody. Bringing that entire solution set to the clinic. Also the opportunity for us to run combination studies. We're already now evaluating what would be the right combination studies to run, generate that combination data so that nephrologists know what would be the right combination agents to optimize care for these patients. These are all the opportunities I think we're looking at. It's going to be important for us to think through those, given that at least in the anti-APRIL space, we'll likely be third to market. Next question, Sharon. I think it's the last question, if I'm not mistaken.

Data. So that neurologists, know what would be the right combination agents to optimize care for these patients? So these are all the opportunities. I think we're looking at but it's going to be important for us to think through those given that at least in the anti-racist space, we'll likely be third to Market.

Operator: Thank you. It is, sir. Your final question for today comes from the line of Steven Scala from TD Cowen. Please go ahead.

Next, uh, question Sharon. I think it's the last question. If I'm not mistaken.

Steven Scala: Oh, thank you so much. Given the proof of concept established by the CANTOS trial eight years ago, what new evidence compelled Novartis to go down the same pathway and acquire Tourmaline at this time? Thank you.

Vas Narasimhan: Yeah, good question, Steve. I think we, you know, clearly understand that IL-1β and hitting the inflammasome has a powerful effect on cardiovascular risk reduction. In that trial where we did an all-comer study of patients who had a prior event without, I think, focusing down, you saw the challenge of having a significant, you know, CVRR. You know, IL-6 has the opportunity to be to a little bit further downstream of IL-1β. The idea here is to get within the first few months to max 6 months to a year after an event when, if patients are at that point in time with an elevated HSCRP, the knocking down that CRP can lead to a significant. We believe the opportunity exists to lead to a significant impact on cardiovascular risk.

Thank you. It is uh, your final question for today comes from the line of Steven scalar from TD Cowen, please go ahead. Oh thank you so much. Give me the proof of concept established by the kantos trial 8 years ago what new evidence compelled Novartis to go down the same pathway and acquire termine at this time.

Vas Narasimhan: I think it's really we've learned from the CANTOS study. We understand a lot more about the biology based on that. We think by targeting now a prospectively patients right after an event who are at elevated CRP levels as a marker of elevated inflammation, we can then have a much more compelling cardiovascular risk reduction than the kind of 14%, 15% that we saw in the CANTOS study. Now, we do have a competitor ahead of us. A lot of our focus is designing, we think with our expertise, a study that can really maximize the opportunity for the Tourmaline asset, the anti-IL-6. All right. Well, thank you all very much for attending two calls in two days. We have another call coming day after tomorrow.

Thank you. Good question Steve. So I think we you know, we clearly understand that I and beta and and hipping the inflamm has a powerful effect on cardiovascular risk reduction but in that trial where we did an all Comer study of patients, who had a prior event. Without I think focusing down, you saw the challenge of having a significant, you know cvrr. Now, you know, aisle 6 has the opportunity to be to a little bit further Downstream of i1 beta and the idea here is to get within the first few months to, you know, Max 6 months to a year after an event. When if patients are at that point in time with an elevated hscrp, the knocking down that CRP can lead to a significant. We believe the opportunity exists to lead to a significant impact on cardiovascular.

Risk. So I think it's really we've learned from the Kanto study. Um, we understand a lot more about the biology based on that and we think by targeting now a prospectively patients right after an event who are at elevated uh CRP levels as a marker of elevated inflammation, we can then have a much more compelling, cardiovascular risk reduction than the kind of 14 15% that we saw uh in the Kanto study. Now we do have a competitor ahead of us but a lot of our focus is designing. We think we have an R expertise. Uh a study that can really maximize the opportunity for the ILS, the tooline asset the anti 6,

Vas Narasimhan: We hope you will attend that as well to learn more about our immunology portfolio. We'll talk about Rhapsido, we'll talk about our ianalumab data, and importantly also talk about our immune reset portfolio, which I think is quite exciting. Thank you again for your interest in the company, and we'll look forward to catching up soon.

All right. Well, thank you all very much for attending. 2 calls in 2 days, but we have another call coming, uh, day after tomorrow. So, we hope you will attend that as well to learn more about our Immunology portfolio. We'll talk about repset. We'll talk about Aryan in alamab data and importantly. Also, talk about our immune reset portfolio, which I think is quite exciting. Uh, so thank you again, for your interest in the company and we'll look forward to catching up soon.

Operator: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect

Q3 2025 Novartis AG Earnings Call

Request a DemoDemo

NVS

Novartis

Earnings