(USD millions unless indicated otherwise)		Q1 2025 USD m		Q1 2024 USD m		% change USD		% change cc 1
Net sales to third parties		13 233		11 829		12		15
Other revenues		387		291		33		33
Cost of goods sold		-3 227		-3 096		-4		-6
Gross profit		10 393		9 024		15		18
Selling, general and administration		-3 058		-2 840		-8		-10
Research and development		-2 366		-2 421		2		1
Other income		226		249		-9		-6
Other expense		-532		-639		17		15
Operating income		4 663		3 373		38		44
% of net sales		35.2		28.5
Loss from associated companies		-3		-29		90		90
Interest expense		-270		-221		-22		-26
Other financial income and expense		17		6		183		-46
Income before taxes		4 407		3 129		41		44
Income taxes		-798		-441		-81		-84
Net income		3 609		2 688		34		37
Basic earnings per share (USD)		1.83		1.31		40		42
Net cash flows from operating activities		3 645		2 265		61
Non-IFRS measures 1
Free cash flow		3 391		2 038		66
Core operating income		5 575		4 537		23		27
% of net sales		42.1		38.4
Core net income		4 482		3 681		22		26
Core basic earnings per share (USD)		2.28		1.80		27		31
1  Constant currencies (cc), core results and free cash flow are non-IFRS measures. An explanation of non-IFRS measures can be found on page 31. Unless otherwise noted, all growth rates in this release refer to same period in prior-year.

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

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

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

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

Net sales were USD 13.2 billion (+12%, +15% cc), with volume contributing 15 percentage points to growth. Generic competition had a negative impact of 2 percentage points and pricing had a positive impact of 2 percentage points, benefiting from revenue deduction adjustments mainly in the US. Sales in the US were USD 5.7 billion (+24%) and in the rest of the world USD 7.5 billion (+4%, +8% cc).

Sales growth was mainly driven by continued strong performance from Entresto (USD 2.3 billion, +20%, +22% cc), Kisqali (USD 956 million, +52%, +56% cc), Kesimpta (USD 899 million, +41%, +43% cc), Cosentyx (USD 1.5 billion, +16%, +18% cc) and Leqvio (USD 257 million, +70%, +72% cc), partly offset by erosion due to generic competition, mainly for Lucentis and Gilenya.

In the US (USD 5.7 billion, +24%), sales growth was mainly driven by Kisqali, Entresto, Kesimpta and Cosentyx. In Europe (USD 3.9 billion, +4%, +7% cc), sales growth was mainly driven by Kesimpta, Entresto, Tafinlar + Mekinist, Pluvicto, Leqvio and Kisqali, partly offset by erosion due to generic competition for Lucentis and Gilenya. Sales in emerging growth markets were USD 3.6 billion (+7%, +13% cc), including USD 1.2 billion of sales from China (+17%, +19% cc).

Operating income was USD 4.7 billion (+38%, +44% cc), mainly driven by higher net sales, partly offset by higher investments behind priority brands and launches. Operating income margin was 35.2% of net sales, increasing 6.7 percentage points (7.1 percentage points in cc). Other revenue as a percentage of net sales increased by 0.4 percentage points (0.4 percentage points cc). Cost of goods sold as a percentage of net sales decreased by 1.8 percentage points (1.9 percentage points cc). R&D expenses as a percentage of net sales decreased by 2.6 percentage points (2.8 percentage points cc). SG&A expenses as a percentage of net sales decreased by 0.8 percentage points (1.1 percentage points cc). Other income and expense as a percentage of net sales increased the margin by 1.1 percentage points (0.9 percentage points cc).

Core adjustments were USD 0.9 billion, mainly from amortization, compared with USD 1.2 billion in the prior-year quarter. Core adjustments decreased compared with the prior-year quarter mainly due to lower impairments and contingent consideration adjustments.

Core operating income was USD 5.6 billion (+23%, +27% cc), mainly driven by higher net sales, partly offset by higher investments behind priority brands and launches, and R&D investments. Core operating income margin was 42.1% of net sales, increasing 3.7 percentage points (4.0 percentage points cc). Other revenue as a percentage of net sales increased by 0.1 percentage points (cc). Core cost of goods sold as a percentage

of net sales decreased by 0.7 percentage points (cc). Core R&D expenses as a percentage of net sales decreased by 1.4 percentage points (cc). Core SG&A expenses as a percentage of net sales decreased by 1.1 percentage points (cc). Core other income and expense as a percentage of net sales increased the margin by 0.7 percentage points (cc).

Interest expense amounted to USD 270 million compared with USD 221 million in the prior-year quarter, mainly due to higher financial debt.

Other financial income and expense amounted to an income of USD 17 million, broadly in line with the prior-year quarter.

Core other financial income and expense amounted to an income of USD 46 million compared with USD 96 million in the prior-year quarter, mainly due to lower interest income.

The tax rate in the first quarter was 18.1% compared with 14.1% in the prior-year quarter. The current year tax rate was negatively impacted by deferred tax expense related to a tax rate change in Switzerland, which will become effective January 1, 2026, and a true-up adjustment to the prior-year income tax provision. The prior-year tax rate was favorably impacted by the effect of changes in uncertain tax positions. Excluding these impacts, the current and prior-year tax rate would have been 16.7% and 17.3% respectively. The decrease from the prior-year quarter was mainly the result of a change in profit mix.

The core tax rate (core taxes as a percentage of core income before tax) was 16.2% compared with 16.5% in the prior-year quarter. The decrease from the prior-year quarter was mainly the result of a change in profit mix.

Net income was USD 3.6 billion (+34%, +37% cc), mainly driven by higher operating income, partly offset by higher income taxes. EPS was USD 1.83 (+40%, +42% cc), benefiting from the lower weighted average number of shares outstanding.

Core net income was USD 4.5 billion (+22%, +26% cc), mainly due to higher core operating income. Core EPS was USD 2.28 (+27%, +31% cc), benefiting from the lower weighted average number of shares outstanding.

Net cash flows from operating activities amounted to USD 3.6 billion (+61% USD), compared with USD 2.3 billion in the prior-year quarter. Free cash flow amounted to USD 3.4 billion (+66% USD), compared with USD 2.0 billion in the prior-year quarter, driven by higher net cash flows from operating activities.

		Q1 2025		Q1 2024		% change		% change
		USD m		USD m		USD		cc
Cardiovascular, renal and metabolic
Entresto		2 261		1 879		20		22
Leqvio		257		151		70		72
Total cardiovascular, renal and metabolic		2 518		2 030		24		26

Entresto (USD 2 261 million, +20%, +22% cc) sustained robust, demand-led growth, driven by the heart failure indication in the US and Europe, and both heart failure and hypertension in China and Japan. In the US, Novartis is in ANDA litigation with generic manufacturers, and in other litigations with generic manufacturers and FDA to protect its Entresto IP and regulatory rights. Novartis successfully appealed to uphold the validity of its combination patent covering Entresto and combinations of sacubitril and valsartan, which expires in 2025 (with pediatric exclusivity). Several generics have received final approval in the US. Any US commercial launch of a generic Entresto product prior to the final outcome of these litigations may be at risk of later litigation developments.

Leqvio (USD 257 million, +70%, +72% cc) sales grew across all regions, delivering a medicine with effective and consistent LDL-C reduction in two maintenance doses per year. Focus remains on increased account and patient adoption and continuing medical education. Leqvio is registered in more than 105 countries world-wide and commercially available in 86 countries. Novartis obtained global rights to develop, manufacture and commercialize Leqvio under a license and collaboration agreement with Alnylam Pharmaceuticals.

		Q1 2025		Q1 2024		% change		% change
		USD m		USD m		USD		cc
Immunology
Cosentyx		1 534		1 326		16		18
Xolair 1		456		399		14		19
Ilaris		419		356		18		20
Total immunology		2 409		2 081		16		18
1  Net sales to third parties reflect Xolair sales for all indications.

Cosentyx (USD 1 534 million, +16%, +18% cc) sales grew mainly in the US, emerging growth markets and Europe, driven by strong demand from recent launches and volume growth in core indications. Since initial approval in 2015, Cosentyx has shown sustained efficacy and a robust safety profile, treating more than 1.7 million patients across 8 indications.

Xolair (USD 456 million, ex-US +14%, +19% cc) growth was driven by the CSU indication, with a strong contribution from emerging growth markets. Novartis co-promotes Xolair with Genentech in the US and shares a portion of revenue as operating income but does not record any US sales.

Ilaris (USD 419 million, +18%, +20% cc) sales grew across all regions, led by the US and Europe. Contributors to growth include strong performance in the Periodic Fever Syndromes and Still’s disease indications.

		Q1 2025		Q1 2024		% change		% change
		USD m		USD m		USD		cc
Neuroscience
Kesimpta		899		637		41		43
Zolgensma		327		295		11		13
Aimovig		76		76		0		3
Total neuroscience		1 302		1 008		29		31

Kesimpta (USD 899 million, +41%, +43% cc) sales grew across all regions, driven by increased demand and strong access. Kesimpta is a high efficacy B-cell therapy, with a favorable safety and tolerability profile and an at-home self-administration for a broad population of RMS patients. Kesimpta is now approved in 90 countries with more than 135,000 patients treated.

Zolgensma (USD 327 million, +11%, +13% cc) sales grew as it continues to demonstrate strong performance in the incident population. Zolgensma is now approved in 59 countries with more than 4,500 patients treated globally through clinical trials, early access programs and in the commercial setting.

Aimovig (USD 76 million, 0%, +3% cc) sales remained stable (USD) and grew (cc) driven by increased demand for migraine prevention. Novartis commercializes Aimovig ex-US and ex-Japan, while Amgen retains all rights in the US and in Japan.

		Q1 2025		Q1 2024		% change		% change
		USD m		USD m		USD		cc
Oncology
Kisqali		956		627		52		56
Tafinlar + Mekinist 1		552		474		16		19
Promacta/Revolade		546		520		5		8
Jakavi		492		478		3		7
Tasigna		377		395		-5		-2
Pluvicto		371		310		20		21
Scemblix		238		136		75		76
Lutathera		193		169		14		15
Piqray/Vijoice		100		109		-8		-8
Fabhalta 2		81		6		nm		nm
Total oncology		3 906		3 224		21		24
1  Majority of sales for Mekinist and Tafinlar are combination, but both can be used as monotherapy.
2  Net sales to third parties reflect Fabhalta sales for all indications.
nm = not meaningful

Kisqali (USD 956 million, +52%, +56% cc) sales grew strongly across all regions, including +87% growth in the US, with strong momentum from the HR+/HER2- early breast cancer (eBC) launch as well as continued share gains in HR+/HER2- metastatic breast cancer (mBC). Kisqali performance reflects increasing recognition of the consistently demonstrated overall survival benefit across all Phase III clinical trials in mBC, as well as Category 1 preferred NCCN Guidelines recommendation and highest ESMO-MCBS scores in both mBC and eBC indications. Novartis is in US ANDA litigation with a generic manufacturer.

Tafinlar + Mekinist (USD 552 million, +16%, +19% cc) sales grew across all regions, driven by demand in BRAF+ adjuvant melanoma, NSCLC, pediatric low-grade glioma and tumor agnostic indications, while maintaining demand in the highly competitive BRAF+ metastatic melanoma market.

Promacta/Revolade (USD 546 million, +5%, +8% cc) sales grew despite discontinued promotion in most markets.

Jakavi (USD 492 million, +3%, +7% cc) sales grew across all regions driven by strong demand in all indications. Incyte retains all rights to ruxolitinib (Jakafi®) in the US.

Tasigna (USD 377 million, -5%, -2% cc) sales declined across most regions due to lower demand and increasing competition, partly offset by increased sales in the US.

Pluvicto (USD 371 million, +20%, +21% cc) continued stable performance in the US and grew in Europe in the metastatic castration-resistant prostate cancer (mCRPC) post-taxane setting, while laying the foundation for the pre-taxane launch in the US. Pluvicto is the only PSMA-targeted radioligand therapy approved by the FDA to significantly delay progression after one ARPI and now before chemotherapy, for the treatment of adult patients with progressive, PSMA+ mCRPC. Pluvicto is now on the market in several ex-US countries in the mCRPC post-taxane setting. Novartis is in patent litigation with a manufacturer developing a radiopharmaceutical to treat PSMA+ prostate cancer.

Scemblix (USD 238 million, +75%, +76% cc) sales grew across all regions, demonstrating continued high unmet need for effective and tolerable treatment options for adult CML patients previously treated with two or more tyrosine kinase inhibitors, as well as a steady influx of early-line patients in the US following approval in late 2024.

Lutathera (USD 193 million, +14%, +15% cc) sales grew mainly in the US, Europe and Japan due to increased demand, and earlier line adoption (within indication) in the US and Japan. Novartis is in patent litigation with manufacturers having FDA applications referencing Lutathera.

Piqray/Vijoice (USD 100 million, -8%, -8% cc) sales declined, driven by increased competition for Piqray in the US, partially offset by higher demand for Vijoice.

Fabhalta (USD 81 million) sales grew driven by continued launch execution across all markets in PNH as well as the recent launch in IgAN in the US.

		Q1 2025		Q1 2024		% change		% change
		USD m		USD m		USD		cc
Established brands
Sandostatin Group		317		355		-11		-9
Lucentis		189		314		-40		-38
Exforge Group		179		192		-7		-1
Diovan Group		150		140		7		12
Galvus Group		124		149		-17		-11
Kymriah		100		120		-17		-15
Contract manufacturing		343		279		23		26
Other		1 696		1 937		-12		-8
Total established brands		3 098		3 486		-11		-7

Sandostatin Group (USD 317 million, -11%, -9% cc) sales declined, primarily in the US due to erosion from generic competition.

Lucentis (USD 189 million, ex-US -40%, -38% cc) sales declined in Europe, emerging growth markets and Japan, mainly due to competition.

Exforge Group (USD 179 million, -7%, -1% cc) sales declined mainly in Europe and the US.

Diovan Group (USD 150 million, +7%, +12% cc) sales grew in China, the US and other emerging growth markets, partially offset by a decline in Europe.

Galvus Group (USD 124 million, -17%, -11% cc) sales declined mainly in Japan due to generic competition.

Kymriah (USD 100 million, -17%, -15% cc) sales declined across most markets, partly offset by increased uptake in the follicular lymphoma indication ex-US.

Net cash flows from operating activities amounted to USD 3.6 billion, compared with USD 2.3 billion in the prior-year quarter. This increase was mainly driven by higher net income, adjusted for non-cash items and other adjustments, including divestment gains, and favorable changes in working capital.

Net cash inflows from investing activities amounted to USD 0.3 billion, compared with USD 0.9 billion net cash outflows in the prior-year quarter.

In the current-year quarter, net cash inflows from investing activities were mainly driven by the net proceeds from marketable securities, commodities and time deposits, amounting to USD 1.8 billion, mainly due to the maturity of time deposits. These cash inflows were partly offset by cash outflows of USD 1.2 billion for purchases of intangible assets and by USD 0.3 billion for purchases of property, plant and equipment.

In the prior-year quarter, net cash outflows used in investing activities of USD 0.9 billion were driven by USD 0.9 billion for purchases of intangible assets; USD 0.2 billion for purchases of property, plant and equipment; and USD 0.3 billion for acquisitions and divestments of businesses, net. These cash outflows were partly offset by net proceeds of USD 0.5 billion from the sale of marketable securities, commodities and time deposits.

Net cash outflows used in financing activities amounted to USD 8.5 billion, compared with USD 5.2 billion in the prior-year quarter.

In the current-year quarter, net cash outflows used in financing activities were mainly driven by USD 5.3 billion for the annual net dividend payment (which is the gross dividend of USD 7.8 billion reduced by the USD 2.5 billion Swiss withholding tax, paid in April 2025, according to its due date), the USD 2.7 billion payments for treasury share transactions, and the USD 1.0 billion repayment of a US dollar denominated bond at maturity. These cash outflows were partly offset by the net increase in current financial debts of USD 0.6 billion.

In the prior-year quarter, net cash outflows used in financing activities of USD 5.2 billion were mainly driven by USD 5.2 billion for the annual net dividend payment (which is the gross dividend of USD 7.6 billion reduced by the USD 2.4 billion Swiss withholding tax, paid in April 2024, according to its due date), as the payments for treasury share transactions of USD 1.1 billion were offset by the net increase in current financial debts of USD 1.2 billion.

Free cash flow amounted to USD 3.4 billion (+66% USD), compared with USD 2.0 billion in the prior-year quarter, driven by higher net cash flows from operating activities.

Total non-current assets of USD 74.8 billion increased by USD 2.3 billion compared with December 31, 2024.

Intangible assets other than goodwill increased by USD 0.6 billion, mainly due to favorable currency translation adjustments and additions, partially offset by amortization.

Goodwill increased by USD 0.2 billion due to favorable currency translation adjustments.

Property, plant and equipment increased by USD 0.2 billion, mainly due to favorable currency translation adjustments and additions, partially offset by depreciation.

Other non-current assets increased by USD 0.6 billion, mainly due to the increase in prepaid post-employment benefit plans primarily resulting from changes in the discount rates used to calculate the actuarial defined benefit obligations.

Deferred tax assets increased by USD 0.7 billion, and right-of-use assets, investments in associated companies and financial assets were broadly in line with December 31, 2024.

Total current assets of USD 25.1 billion decreased by USD 4.6 billion compared with December 31, 2024.

Cash and cash equivalents decreased by USD 4.4 billion as cash generated through operating activities of USD 3.6 billion was more than offset by the USD 5.3 billion annual net dividend payment (which is the gross dividend of USD 7.8 billion reduced by the USD 2.5 billion Swiss withholding tax paid in April 2025, according to its due date), and USD 2.7 billion purchase of treasury shares.

Marketable securities, commodities, time deposits and derivative financial instruments decreased by USD 1.9 billion, mainly due to the maturity of time deposits.

Trade receivables increased by USD 1.2 billion, mainly due to the increase in net sales.

Other current assets increased by USD 0.4 billion, and inventories and income tax receivables were broadly in line with December 31, 2024.

Total non-current liabilities of USD 29.9 billion increased by USD 0.4 billion compared with December 31, 2024.

Non-current financial debt increased by USD 0.3 billion, and deferred tax liabilities, non-current lease liabilities and provisions and other non-current liabilities were broadly in line with December 31, 2024.

Total current liabilities of USD 31.6 billion increased by USD 2.9 billion compared with December 31,2024.

Current financial debts and derivative financial instruments decreased by USD 0.4 billion compared with December 31, 2024, mainly due to the repayment of a US dollar denominated bond of USD 1.0 billion at maturity, partially offset by the issuance of commercial paper notes of USD 0.4 billion mainly under the US commercial paper program.

Provisions and other current liabilities increased by USD 2.7 billion, mainly due to USD 2.5 billion Swiss withholding tax on the annual dividend to Novartis AG shareholders that was paid in April 2025, according to its due date. Trade payables decreased by USD 0.3 billion.

Current income tax liabilities increased by USD 1.0 billion, and current lease liabilities were broadly in line with December 31, 2024.

The Company’s equity decreased by USD 5.7 billion to USD 38.5 billion compared with December 31, 2024.

This decrease was mainly driven by the net income of USD 3.6 billion and favorable impact from currency translation differences of USD 0.7 billion being more than offset by the annual gross dividend to Novartis AG shareholders of USD 7.8 billion and the purchase of treasury shares of USD 2.8 billion.

The Company’s liquidity amounted to USD 7.2 billion as at March 31, 2025, compared with USD 13.5 billion as at December 31, 2024. Total non-current and current financial debts, including derivatives, amounted to USD 29.5 billion as at March 31, 2025, compared with USD 29.6 billion as at December 31, 2024.

The debt/equity ratio increased to 0.77:1 as at March 31, 2025, compared with 0.67:1 as at December 31, 2024. The net debt increased to USD 22.3 billion as at March 31, 2025, compared with USD 16.1 billion as at December 31, 2024.

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

Product		Active ingredient/ Descriptor		Indication		Region
Pluvicto		lutetium (177Lu) vipivotide tetraxetan		Metastatic castration-resistant prostate cancer, pre-taxane		US
Vanrafia		atrasentan		IgA nephropathy		US
Fabhalta		iptacopan		C3 glomerulopathy		US, EU, China

				Completed submissions
Product		Indication		US		EU		Japan		News update
LOU064 (remibrutinib)		Chronic spontaneous urticaria		Q1 2025		Q1 2025				– US, EU and CN submissions
Scemblix		1L chronic myeloid leukemia		Approved		Q1 2025		Q3 2024		– EU submission
Fabhalta		C3G		Approved		Approved		Q3 2024		– US, EU and China approvals
Lutathera		Gastroenteropancreatic neuroendocrine tumors, 1L in G2/3 tumors				Q2 2024
Beovu		Diabetic retinopathy						Q4 2024
Coartem		Malaria (<5kg patients)								– Submission using MAGHP procedure in Switzerland to facilitate rapid approvals in developing countries

Compound/ product		Potential indication/ Disease area		First planned submissions		Current Phase		News update
Aimovig		Migraine, pediatrics		≥2028		3
Cosentyx		Giant cell arteritis		2025		3
		Polymyalgia rheumatica		2026		3
DAK539 (pelabresib)		Myelofibrosis				3		– MorphoSys aquisition – Based on Novartis review of 48-week data from the PhIII MANIFEST-2 study, longer follow-up time is needed to determine, in consultation with Health Authorities, the regulatory path for pelabresib in myelofibrosis
FUB523 (zigakibart)		IgA nephropathy		2027		3
KAE609 (cipargamin)		Malaria, uncomplicated		≥2028		2
		Malaria, severe		≥2028		2
Kesimpta		Multiple sclerosis new dosing regimen		≥2028		3		– PhIII trial FILIOS started
KLU156 (ganaplacide + lumefantrine)		Malaria, uncomplicated		2026		3		– FDA Orphan Drug designation – FDA Fast Track designation
Leqvio		Secondary prevention of cardiovascular events in patients with elevated LDL-C		2027		3
		Primary prevention CVRR		≥2028		3

Compound/ product		Potential indication/ Disease area		First planned submissions		Current Phase		News update
LNP023 (iptacopan)		Myasthenia gravis		2027		3
		IC-MPGN		≥2028		3
		Atypical haemolytic uraemic syndrome		≥2028		3
LOU064 (remibrutinib)		CINDU		2026		3
		Hidradenitis suppurativa		≥2028		3		– PhIII trials RECHARGE-1 and -2 started
		Multiple sclerosis		2027		3
		Myasthenia gravis		≥2028		3
Lutathera		GEP-NETs		≥2028		3		– PhIII trial NETTER-3 started
177Lu-NeoB		Multiple solid tumors		≥2028		1
LXE408		Visceral leishmaniasis		≥2028		2		– US Orphan Drug designation granted
MAA868 (abelacimab)		Atrial fibrillation		2027		3		– Anthos Therapeutics acquisition
OAV101		Spinal muscular atrophy (IT formulation)		2025		3		– PhIII STEER and STRENGTH data presented at MDA 2025
Pluvicto		Metastatic hormone sensitive prostate cancer		2025		3		– Event-driven trial
		Oligometastatic prostate cancer		≥2028		3
QCZ484		Hypertension		≥2028		2		– PhII trial started
TQJ230 (pelacarsen)		Secondary prevention of cardiovascular events in patients with elevated levels of lipoprotein(a)		2026		3		– FDA Fast Track designation – China Breakthrough Therapy designation – Lp(a)HORIZON PhIII trial design publication in the American Heart Journal
VAY736 (ianalumab)		Sjögren’s syndrome		2026		3		– FDA Fast Track designation
		Lupus nephritis		≥2028		3
		Systemic lupus erythematosus		≥2028		3
		Systemic scleroderma		≥2028		2
		1L immune thrombocytopenia		2027		3
		2L immune thrombocytopenia		2027		3
		Warm autoimmune hemolytic anemia		2027		3
Vijoice		Lymphatic malformations		≥2028		3		– US, EU Orphan Drug designation
YTB323		Severe refractory lupus nephritis / Systemic lupus erythematosus		≥2028		2
		1L high-risk large B-cell lymphoma		≥2028		2
		Systemic scleroderma		≥2028		2
		Myositis		≥2028		2
		ANCA associated vasculitis		≥2028		2		– PhII trial started

First quarter (unaudited)

(USD millions unless indicated otherwise)		Note		Q1 2025		Q1 2024
Net sales to third parties		9		13 233		11 829
Other revenues		9		387		291
Cost of goods sold				-3 227		-3 096
Gross profit				10 393		9 024
Selling, general and administration				-3 058		-2 840
Research and development				-2 366		-2 421
Other income				226		249
Other expense				-532		-639
Operating income				4 663		3 373
Loss from associated companies				-3		-29
Interest expense				-270		-221
Other financial income and expense				17		6
Income before taxes				4 407		3 129
Income taxes				-798		-441
Net income				3 609		2 688
Attributable to:
Shareholders of Novartis AG				3 606		2 688
Non-controlling interests				3		0
Weighted average number of shares outstanding – Basic (million)				1 968		2 044
Basic earnings per share (USD) 1				1.83		1.31
Weighted average number of shares outstanding – Diluted (million)				1 979		2 056
Diluted earnings per share (USD) 1				1.82		1.31
1  Earnings per share (EPS) is calculated on the amount of net income attributable to shareholders of Novartis AG.
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

First quarter (unaudited)

(USD millions)		Q1 2025		Q1 2024
Net income		3 609		2 688
Other comprehensive income
Items that are or may be recycled into the consolidated income statement
Cash flow hedge, net of taxes		1
Net investment hedge, net of taxes		-60		37
Currency translation effects, net of taxes		720		-1 404
Total of items that are or may be recycled		661		-1 367
Items that will never be recycled into the consolidated income statement
Actuarial gains from defined benefit plans, net of taxes		436		79
Fair value adjustments on equity securities, net of taxes		-56		25
Total of items that will never be recycled		380		104
Total other comprehensive income		1 041		-1 263
Total comprehensive income		4 650		1 425
Total comprehensive income for the period attributable to:
Shareholders of Novartis AG		4 646		1 427
Non-controlling interests		4		-2
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

(USD millions)		Mar 31, 2025 (unaudited)		Dec 31, 2024 (audited)
Assets
Non-current assets
Property, plant and equipment		9 680		9 458
Right-of-use assets		1 407		1 415
Goodwill		24 965		24 756
Intangible assets other than goodwill		27 476		26 915
Investments in associated companies		114		119
Deferred tax assets		5 099		4 359
Financial assets		1 981		2 015
Other non-current assets		4 111		3 505
Total non-current assets		74 833		72 542
Current assets
Inventories		5 829		5 723
Trade receivables		8 596		7 423
Income tax receivables		129		133
Marketable securities, commodities, time deposits and derivative financial instruments		130		1 998
Cash and cash equivalents		7 066		11 459
Other current assets		3 358		2 968
Total current assets		25 108		29 704
Total assets		99 941		102 246
Equity and liabilities
Equity
Share capital		766		793
Treasury shares		-19		-53
Reserves		37 622		43 306
Equity attributable to Novartis AG shareholders		38 369		44 046
Non-controlling interests		83		80
Total equity		38 452		44 126
Liabilities
Non-current liabilities
Financial debts		21 666		21 366
Lease liabilities		1 561		1 568
Deferred tax liabilities		2 548		2 419
Provisions and other non-current liabilities		4 095		4 075
Total non-current liabilities		29 870		29 428
Current liabilities
Trade payables		4 261		4 572
Financial debts and derivative financial instruments		7 801		8 232
Lease liabilities		242		235
Current income tax liabilities		2 570		1 599
Provisions and other current liabilities		16 745		14 054
Total current liabilities		31 619		28 692
Total liabilities		61 489		58 120
Total equity and liabilities		99 941		102 246
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

First quarter (unaudited)

								Reserves
(USD millions)		Note		Share capital		Treasury shares		Retained earnings		Total value adjustments		Equity attributable to Novartis AG shareholders		Non- controlling interests		Total equity
Total equity at January 1, 2025				793		-53		46 561		-3 255		44 046		80		44 126
Net income								3 606				3 606		3		3 609
Other comprehensive income										1 040		1 040		1		1 041
Total comprehensive income								3 606		1 040		4 646		4		4 650
Dividends		4.1						-7 818				-7 818				-7 818
Purchase of treasury shares						-14		-2 778				-2 792				-2 792
Reduction of share capital				-27		42		-15
Equity-based compensation plans						6		267				273				273
Taxes on treasury share transactions								-31				-31				-31
Changes in non-controlling interests								1				1		-1
Value adjustments related to financial assets sold and divestments								2		-2
Other movements		4.3						44				44				44
Total of other equity movements				-27		34		-10 328		-2		-10 323		-1		-10 324
Total equity at March 31, 2025				766		-19		39 839		-2 217		38 369		83		38 452
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

								Reserves
(USD millions)		Note		Share capital		Treasury shares		Retained earnings		Total value adjustments		Equity attributable to Novartis AG shareholders		Non- controlling interests		Total equity
Total equity at January 1, 2024				825		-41		49 649		-3 766		46 667		83		46 750
Net income								2 688				2 688		0		2 688
Other comprehensive income										-1 261		-1 261		-2		-1 263
Total comprehensive income								2 688		-1 261		1 427		-2		1 425
Dividends		4.1						-7 624				-7 624				-7 624
Purchase of treasury shares						-6		-1 135				-1 141				-1 141
Reduction of share capital				-32		26		6
Exercise of options and employee transactions								-34				-34				-34
Equity-based compensation						4		280				284				284
Shares delivered to Sandoz employees as a result of the Sandoz spin-off								10				10				10
Taxes on treasury share transactions								20				20				20
Fair value adjustments on financial assets sold								-92		92
Other movements		4.3						66				66				66
Total of other equity movements				-32		24		-8 503		92		-8 419				-8 419
Total equity at March 31, 2024				793		-17		43 834		-4 935		39 675		81		39 756
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

First quarter (unaudited)

(USD millions)		Note		Q1 2025		Q1 2024
Net income				3 609		2 688
Adjustments to reconcile net income to net cash flows from operating activities
Reversal of non-cash items and other adjustments		6.1		2 712		2 497
Interest received				122		164
Interest paid				-232		-147
Other financial payments				-21		-29
Income taxes paid				-540		-576
Net cash flows from operating activities before working capital and provision changes				5 650		4 597
Payments out of provisions and other net cash movements in non-current liabilities				-237		-343
Change in net current assets and other operating cash flow items		6.2		-1 768		-1 989
Net cash flows from operating activities				3 645		2 265
Purchases of property, plant and equipment				-254		-227
Proceeds from sale of property, plant and equipment				10		1
Purchases of intangible assets				-1 240		-929
Purchases of financial assets				-18		-47
Proceeds from sale of financial assets				25		63
Acquisitions and divestments of interests in associated companies, net				-3		16
Acquisitions and divestments of businesses, net		6.3		-4		-279
Purchases of marketable securities, commodities and time deposits				-37		-3
Proceeds from sale of marketable securities, commodities and time deposits				1 851		506
Net cash flows from/(used in) investing activities				330		-899
Dividends paid to shareholders of Novartis AG		4.1		-5 333		-5 207
Purchases of treasury shares				-2 716		-1 099
Proceeds from exercised options and other treasury share transactions, net				1
Repayments of the current portion of non-current financial debts				-1 010
Change in current financial debts				556		1 220
Payments of lease liabilities				-69		-67
Other financing cash flows, net				23		-11
Net cash flows used in financing activities				-8 548		-5 164
Net change in cash and cash equivalents before effect of exchange rate changes				-4 573		-3 798
Effect of exchange rate changes on cash and cash equivalents				180		-126
Net change in cash and cash equivalents				-4 393		-3 924
Cash and cash equivalents at January 1				11 459		13 393
Cash and cash equivalents at March 31				7 066		9 469
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

1. Basis of preparation

The consolidated financial statements of the Company are prepared in accordance with International Financial Reporting Standards (IFRS^®) Accounting Standards as issued by the International Accounting Standards Board. They are prepared in accordance with the historical cost convention, except for items that are required to be accounted for at fair value.

These Condensed Interim Consolidated Financial Statements for the three month period ended March 31, 2025, were prepared in accordance with International Accounting Standards (IAS®) Standards 34 Interim Financial Reporting and accounting policies set out in the 2024 Annual Report published on January 31, 2025.

2. Accounting policies

The Company’s accounting policies are set out in Note 1 to the Consolidated Financial Statements in the 2024 Annual Report and conform with IFRS Accounting Standards as issued by the International Accounting Standards Board.

The preparation of financial statements requires management to make certain estimates and assumptions, either at the balance sheet date or during the period, which affect the reported amounts of revenues, expenses, assets, liabilities, and contingent amounts.

Estimates are based on historical experience and other assumptions that are considered reasonable under the given circumstances and are regularly monitored. Actual outcomes and results could differ from those estimates and assumptions. Revisions to estimates are recognized in the period in which the estimate is revised.

As disclosed in the 2024 Annual Report, goodwill, and the intangible assets not available for use (in-process research and development (IPR&D)) are evaluated for impairment annually, or when facts and circumstances warrant. The intangible assets available for use (currently marketed products and other intangible assets) are evaluated for potential impairment whenever facts and circumstances indicate that their carrying value may not be recoverable. The amount of goodwill and other intangible assets other than goodwill on the Company’s consolidated balance sheet has risen significantly in recent years, primarily from acquisitions. Impairment testing may lead to potentially significant impairment charges in the future that could have a materially adverse impact on the Company’s results of operations and financial condition.

The Company’s activities are not subject to significant seasonal fluctuations.

No new IFRS Accounting Standards were adopted by the Company in 2025. There were no new IFRS Accounting Standards amendments or interpretations that became effective in 2025 that had a material impact on the Company’s consolidated financial statements.

Based on the Company’s assessment, other than IFRS 18 Presentation and Disclosure in Financial Statements that will become effective on January 1, 2027, which Novartis is currently assessing the impact of adopting, there were no other IFRS Accounting Standards, amendments or interpretations not yet effective in 2025 that would be expected to have a material impact on the Company’s consolidated financial statements.

3. Significant acquisitions of businesses

The Company applied the acquisition method of accounting for businesses acquired, and did not elect to apply the optional concentration test to account for acquired business as an asset separately acquired.

There were no acquisitions of businesses in the first quarter of 2025.

On October 31, 2024, Novartis acquired Kate Therapeutics Inc. (Kate Therapeutics), a US based, preclinical-stage biotechnology company focused on developing adeno-associated viruses (AAV) based gene therapies to treat genetically defined muscle and heart diseases.

The purchase price consisted of a cash payment of USD 427 million (including purchase price adjustments of USD 2 million) and potential additional milestones of up to USD 700 million, which the Kate Therapeutics shareholders are eligible to receive upon the achievement of specified development milestones.

The fair value of the total purchase consideration was USD 518 million, consisting of a cash payment of USD 427 million and the fair value of contingent consideration of USD 91 million. The purchase price allocation resulted in net identifiable assets of USD 234 million, consisting primarily of IPR&D intangible assets of USD 135 million, other intangible assets (scientific infrastructure) of USD 135 million, cash and cash equivalents of USD 6 million, net deferred tax liabilities of USD 41 million and other net liabilities of USD 1 million. Goodwill amounted to USD 284 million.

The 2024 results of operations since the date of acquisition were not material.

On May 3, 2024, Novartis acquired Mariana Oncology Inc. (Mariana Oncology), a US based, preclinical-stage biotechnology company focused on developing novel radioligand therapies (RLTs) with a portfolio of RLT programs across a range of solid tumor indications.

The purchase price consisted of a cash payment of USD 1.04 billion and potential additional milestones of up to USD 750 million, which Mariana Oncology shareholders are eligible to receive upon the achievement of specified milestones.

The fair value of the total purchase consideration was USD 1.28 billion, consisting of a cash payment of USD 1.04 billion and the fair value of contingent consideration of USD 239 million. The purchase price allocation resulted in net identifiable assets of USD 754 million, consisting primarily of IPR&D intangible assets of USD 344 million, other intangible assets (scientific infrastructure) of USD 473 million, cash and cash equivalents of USD 80 million, net deferred tax liabilities of USD 133 million and other net liabilities of USD 10 million. Goodwill amounted to USD 528 million.

The 2024 results of operations since the date of acquisition were not material.

On February 5, 2024, Novartis entered into an agreement to acquire MorphoSys AG (MorphoSys), a Germany-based, global biopharmaceutical company developing innovative medicines in oncology. The acquisition of MorphoSys adds to our oncology pipeline pelabresib, a late-stage BET inhibitor for myelofibrosis and tulmimetostat, an early-stage investigational dual inhibitor of EZH2 and EZH1 for solid tumors or lymphomasis.

On April 11, 2024, Novartis, through a subsidiary, commenced a voluntary public takeover offer (the “Offer”) to acquire all outstanding shares of MorphoSys for EUR 68 per share, representing a total consideration of approximately EUR 2.6 billion in cash on a fully diluted basis. The settlement of the Offer was conditional on a minimum acceptance threshold of 65% of the MorphoSys outstanding shares.

Novartis purchased during the Offer acceptance period MorphoSys shares on the market for a total amount of EUR 0.3 billion (USD 0.3 billion). The closing conditions of the Offer, including the minimum acceptance threshold of 65% were fulfilled by the end of the Offer acceptance period, and the acquisition of MorphoSys closed on May 23, 2024, with the settlement payment amounting to EUR 1.7 billion (USD 1.9 billion) to the MorphoSys shareholders for their tendered shares. Subsequent to May 23, 2024, Novartis acquired additional MorphoSys outstanding shares through the German statutory two-week extension period of the Offer (ending on May 30, 2024) for EUR 0.3 billion (USD 0.3 billion). As a result, as at May 30, 2024, Novartis held 89.7% of the total outstanding share capital of MorphoSys. Total cash paid for the MorphoSys shares purchased by Novartis through to the end of the statutory two-week extension period of the Offer amounted to EUR 2.3 billion (USD 2.5 billion). Non-controlling interests represented 10.3% of MorphoSys outstanding shares amounting to USD 0.1 billion and were recognized in equity.

In June 2024, outside the Offer Novartis purchased an additional 1.7% of MorphoSys shares for EUR 44 million (USD 47 million). As a result, at June 30, 2024, Novartis held approximately 91.4% of outstanding MorphoSys shares.

On July 4, 2024, Novartis filed a public purchase offer to delist the MorphoSys shares admitted to trading on regulated markets and acquire all MorphoSys AG shares and American Depository Shares (ADS) not held directly by Novartis. In August 2024, the delisting of the MorphoSys shares admitted to trading on regulated markets was completed, and Novartis purchased an additional 3.2% of MorphoSys shares for EUR 83 million (USD 90 million). As a result,

at September 30, 2024 Novartis held approximately 94.5% of outstanding MorphoSys shares.

On October 15, 2024, the “squeeze-out” of the remaining minority shareholders of MorphoSys was completed by way of a merger into a wholly-owned Novartis entity. As a result, Novartis held 100% of the outstanding shares of MorphoSys and non-controlling interests in equity were reduced to nil. On October 21, 2024, Novartis paid EUR 144 million (USD 156 million) to the former remaining minority shareholders in connection with the “squeeze-out.”

The fair value of the total purchase consideration for the 89.7% stake held on May 30, 2024, was USD 2.5 billion (including cash acquired). The purchase price allocation resulted in net identifiable assets of USD 0.7 billion, consisting primarily of intangible assets other than goodwill of USD 1.1 billion, comprising IPR&D intangible assets of USD 0.6 billion and other intangible assets (customer out-licensing contracts) of USD 0.5 billion, financial investments and other receivables of USD 0.2 billion, marketable securities of USD 0.4 billion, cash and cash equivalents of USD 0.2 billion, financial debt to third parties of USD 0.9 billion, net deferred tax liabilities of USD 0.1 billion and other net liabilities of USD 0.2 billion. Non-controlling interests amounted to USD 0.1 billion, which were recognized at the non-controlling interests’ proportionate share of MorphoSys identifiable net assets. Goodwill as at the acquisition date amounted to USD 1.9 billion.

The 2024 results of operations since the date of acquisition were not material.

Following the completion of management’s analysis of the third-party integrated safety report related to certain clinical trial data readouts, that became available prior to closing the MorphoSys acquisition, the necessity to perform an interim impairment test of the goodwill attributable to the MorphoSys business acquired at the provisional level of the grouping of CGUs of the MorphoSys business was triggered. This impairment test required the use of valuation techniques to estimate the fair value less cost of disposal of the MorphoSys business. These valuations required the use of management assumptions and estimates related to the MorphoSys business’ future cash flows and assumptions on, among others, discount rate (8.5%) and terminal growth/decline rates (-15.0%). These fair value measurements are classified as “Level 3” in the fair value hierarchy. The section “—Goodwill and intangible assets other than goodwill” in Note 1 to the Consolidated Financial Statements in the Annual Report 2024 provides additional information on key assumptions that are highly sensitive in the estimation of fair values using valuation techniques. The interim impairment test indicated an impairment of the goodwill attributable to the MorphoSys business in the amount of USD 0.9 billion, which was recognized as “Other expense” in the consolidated income statement in the second half of 2024. As at December 31, 2024, the remaining carrying value of the goodwill attributable to the MorphoSys business amounting to USD 1.0 billion was allocated to the grouping of CGUs at the level of the operating segment of the Company, which is the level where the future synergies will be realized.

There were no acquisitions of businesses in the first quarter of 2025. The following table presents the fair value of the assets and liabilities acquired through acquisitions of businesses and the total purchase consideration for the year ended December 31, 2024:

(USD millions)		Dec 31, 2024
Property, plant and equipment		20
Right-of-use assets		47
In-process research and development		1 424
Other intangible assets		1 156
Deferred tax assets		465
Non-current financial and other assets		31
Trade receivables and financial and other current assets		613
Cash and cash equivalents		242
Deferred tax liabilities		-799
Current and non-current financial debts		-852
Current and non-current lease liabilities		-47
Trade payables and other liabilities		-297
Net identifiable assets acquired		2 003
Non-controlling interests		-75
Goodwill		2 701
Total purchase consideration for acquisitions of businesses		4 629

The significant business acquisitions in 2024, were Kate Therapeutics, Mariana Oncology and MorphoSys. The goodwill arising out of 2024 acquisitions is not tax deductible and is attributable to synergies, including the cost synergies from pre-acquisition in-licensed IP from MorphoSys, accounting for deferred tax liabilities on acquired assets, and the assembled workforce. In the second half of 2024, an impairment of goodwill was recognized related to the MorphoSys business acquisition of USD 0.9 billion. See Acquisition of MorphoSys AG section of this Note 3 for additional information.

4. Summary of equity attributable to Novartis AG shareholders

				Number of outstanding shares (in millions)				Equity attributable to Novartis AG shareholders
		Note		2025		2024		Q1 2025 USD millions		Q1 2024 USD millions
Balance at beginning of year				1 975.1		2 044.0		44 046		46 667
Shares acquired to be canceled				-24.8		-10.3		-2 639		-1 033
Other share purchases				-1.5		-1.0		-153		-108
Equity-based compensation plans and employee transactions				10.4		7.6		273		250
Taxes on treasury share transactions								-31		20
Dividends		4.1						-7 818		-7 624
Net income of the period attributable to shareholders of Novartis AG								3 606		2 688
Other comprehensive income attributable to shareholders of Novartis AG								1 040		-1 261
Changes in non-controlling interests								1
Other movements		4.3		0.1		0.1		44		76
Balance at March 31				1 959.3		2 040.4		38 369		39 675

4.1. In the first quarter of 2025, the annual gross dividend to shareholders of Novartis AG amounted to USD 7.8 billion (2024: USD 7.6 billion). The net dividend payment to Novartis AG shareholders paid in March 2025 amounted to USD 5.3 billion (2024: USD 5.2 billion paid in March 2024). The USD 2.5 billion Swiss withholding tax on the gross dividend was paid at its due date in April 2025 (2024: USD 2.4 billion paid at its due date in April 2024).

4.2. In July 2023, Novartis entered into an irrevocable, non-discretionary arrangement with a bank to repurchase Novartis shares on the second trading line under its up-to USD 15.0 billion share buyback.

In June 2024, Novartis amended the arrangement to include the repurchase of an additional 8.7 million Novartis shares on the second trading line to mitigate the impact of the shares deliveries under the equity-based compensation plans for employees. These additional repurchases concluded in October 2024. Novartis was able to cancel this arrangement but could have been subject to a 90-day waiting period. As of March 31, 2025, and December 31, 2024, these waiting period conditions were not applicable and as a result, there was no requirement to record a liability under this arrangement as of March 31, 2025, and December 31, 2024.

4.3. Other movements include, for subsidiaries in hyperinflationary economies, the impact of the application of IAS Standards 29 “Financial Reporting in Hyperinflationary Economies.”

5. Financial instruments

The following table illustrates the three hierarchical levels for valuing financial instruments at fair value as of March 31, 2025, and December 31, 2024. For additional information on the hierarchies and other matters, please refer to the Consolidated Financial Statements in the 2024 Annual Report, published on January 31, 2025.

 

		Level 1				Level 2				Level 3				Total
(USD millions)		Mar 31, 2025		Dec 31, 2024		Mar 31, 2025		Dec 31, 2024		Mar 31, 2025		Dec 31, 2024		Mar 31, 2025		Dec 31, 2024
Financial assets
Cash and cash equivalents
Debt securities		50		50										50		50
Total cash and cash equivalents at fair value		50		50										50		50
Marketable securities
Derivative financial instruments						59		106						59		106
Total marketable securities and derivative financial instruments at fair value						59		106						59		106
Current contingent consideration receivables										107		120		107		120
Current equity securities		23		24						18		18		41		42
Long-term financial investments
Debt and equity securities		135		193		8		7		572		599		715		799
Fund investments		11		15						183		195		194		210
Non-current contingent consideration receivables										686		671		686		671
Total long-term financial investments at fair value		146		208		8		7		1 441		1 465		1 595		1 680
Associated companies at fair value through profit or loss										103		109		103		109
Financial liabilities
Current contingent consideration liabilities										-339		-281		-339		-281
Derivative financial instruments						-90		-143						-90		-143
Total current financial liabilities at fair value						-90		-143		-339		-281		-429		-424
Non-current contingent consideration liabilities										-466		-527		-466		-527

The fair value of straight bonds amounted to USD 21.9 billion at March 31, 2025 (USD 22.5 billion at December 31, 2024) compared with the carrying amount of USD 23.4 billion at March 31, 2025 (USD 24.1 billion at December 31, 2024). For all other financial assets and liabilities, the carrying amount is a reasonable approximation of the fair value.

The carrying amount of financial assets included in the line total long-term financial investments at fair value of USD 1.6 billion at March 31, 2025 (USD 1.7 billion at December 31, 2024) is included in the line “Financial assets” of the consolidated balance sheets. The carrying amount of current contingent consideration liabilities of USD 0.3 billion at March 31, 2025 (USD 0.3 billion at December 31, 2024) is included in the line “Provisions and other current liabilities” of the consolidated balance sheets. The carrying amount of non-current contingent consideration liabilities of USD 0.5 billion at March 31, 2025 (USD 0.5 billion at December 31, 2024) is included in the line “Provisions and other non-current liabilities” of the consolidated balance sheets.

The Company’s exposure to financial risks has not changed significantly during the period and there have been no major changes to the risk management department or in any risk management policies.

6. Details to the consolidated statements of cash flows

The following table shows the reversal of non-cash items and other adjustments in the consolidated statements of cash flows.

(USD millions)		Q1 2025		Q1 2024
Depreciation, amortization and impairments on:
Property, plant and equipment		217		219
Right-of-use assets		65		63
Intangible assets		872		1 032
Financial assets 1		41		28
Change in provisions and other non-current liabilities		182		163
Losses on disposal on property, plant and equipment; intangible assets; other non-current assets; and other adjustments on financial assets and other non-current assets, net		22		70
Equity-settled compensation expense		262		260
Loss from associated companies		3		29
Income taxes		798		441
Net financial expense		253		215
Other		-3		-23
Total		2 712		2 497
1  Includes fair value changes

(USD millions)		Q1 2025		Q1 2024
Decrease/(increase) in inventories		55		-128
Increase in trade receivables		-1 043		-920
Decrease in trade payables		-172		-409
Change in other current and non-current assets		-424		-272
Change in other current liabilities		-184		-260
Total		-1 768		-1 989

The following table is a summary of the cash flow impact of acquisitions and divestments of businesses.

(USD millions)		Q1 2025		Q1 2024
Total purchase consideration for acquisitions of businesses		0		-298
Acquired cash and cash equivalents				2
Contingent consideration payable, net				47
Deferred considerations				8
Cash flows used for acquisitions of businesses		0		-241
Cash flows used for divestments of businesses, net 1		-4		-38
Cash flows used for acquisitions and divestments of businesses, net		-4		-279
1  In the first quarter of 2025, USD 4 million (Q1 2024: USD 38 million) represented the net cash outflows from divestments in previous years.

Note 3 provides further information regarding significant acquisitions of businesses. All acquisitions were for cash.

7. Legal proceedings update

A number of Novartis companies are, and will likely continue to be, subject to various legal proceedings, including litigations, arbitrations and governmental investigations, that arise from time to time. Legal proceedings are inherently unpredictable. As a result, the Company may become subject to substantial liabilities that may not be covered by insurance and may in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations or cash flow. Note 20 to the Consolidated Financial Statements in our 2024 Annual Report and 2024 Form 20-F contains a summary as of the date of these reports of significant legal proceedings to which Novartis or its subsidiaries were a party. As of April 28, 2025, there have been no significant developments in those proceedings, as well as no new significant proceedings commenced since the date of the 2024 Annual Report and 2024 Form 20-F.

Novartis believes that its total provisions for investigations, product liability, arbitration and other legal matters are adequate based upon currently available information. However, given the inherent difficulties in estimating liabilities, there can be no assurance that additional liabilities and costs will not be incurred beyond the amounts provided.

8. Operating segment

Novartis operates as a single global operating segment innovative medicines company that is engaged in the research, development, manufacturing, distribution and commercialization and sale of innovative medicines, with a focus on the core therapeutic areas: cardiovascular, renal and metabolic; immunology; neuroscience; oncology; and established brands. The Company’s research, development, manufacturing and supply of products and functional activities are managed globally on a vertically integrated basis. Commercial efforts that coordinate marketing, sales and distribution of these products are organized by geographic region, therapeutic area and established brands.

The Executive Committee of Novartis (ECN), chaired by the CEO, is the governance body responsible for allocating resources and assessing the business performance of the operating segment of the Company on a global basis and is the chief operating decision-maker (CODM) for the Company.

The determination of a single operating segment is consistent with the financial information regularly reviewed by the CODM for purposes of assessing performance and allocating resources.

See Note 9 for revenues and geographic information disclosures.

9. Revenues and geographic information

		Q1 2025 USD m		Q1 2024 USD m		% change USD		% change cc 2		Q1 2025 % of total		Q1 2024 % of total
US		5 712		4 588		24		24		43		39
Europe		3 905		3 764		4		7		30		32
Asia/Africa/Australasia		2 772		2 580		7		10		21		22
Canada and Latin America		844		897		-6		9		6		7
Total		13 233		11 829		12		15		100		100
Of which in established markets		9 669		8 488		14		15		73		72
Of which in emerging growth markets		3 564		3 341		7		13		27		28
1  Net sales to third parties by location of customer. Emerging growth markets comprise all markets other than the established markets of the US, Canada, Western Europe, Japan, Australia and New Zealand. Novartis definition of Western Europe includes Austria, Belgium, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Malta, The Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.
2  Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 31.

		Q1 2025		Q1 2024		% change		% change
		USD m		USD m		USD		cc 1
Cardiovascular, renal and metabolic
Entresto		2 261		1 879		20		22
Leqvio		257		151		70		72
Total cardiovascular, renal and metabolic		2 518		2 030		24		26
Immunology
Cosentyx		1 534		1 326		16		18
Xolair 2		456		399		14		19
Ilaris		419		356		18		20
Total immunology		2 409		2 081		16		18
Neuroscience
Kesimpta		899		637		41		43
Zolgensma		327		295		11		13
Aimovig		76		76		0		3
Total neuroscience 3		1 302		1 008		29		31
Oncology
Kisqali		956		627		52		56
Tafinlar + Mekinist		552		474		16		19
Promacta/Revolade		546		520		5		8
Jakavi		492		478		3		7
Tasigna		377		395		-5		-2
Pluvicto		371		310		20		21
Scemblix		238		136		75		76
Lutathera		193		169		14		15
Piqray/Vijoice		100		109		-8		-8
Fabhalta 4		81		6		nm		nm
Total oncology 3		3 906		3 224		21		24
Established brands
Sandostatin Group		317		355		-11		-9
Lucentis		189		314		-40		-38
Exforge Group		179		192		-7		-1
Diovan Group		150		140		7		12
Galvus Group		124		149		-17		-11
Kymriah 3		100		120		-17		-15
Contract manufacturing		343		279		23		26
Other 3		1 696		1 937		-12		-8
Total established brands 3		3 098		3 486		-11		-7
Total net sales to third parties		13 233		11 829		12		15
1  Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 31.
2  Net sales to third parties reflect Xolair sales for all indications.
3  Reclassified to conform with 2025 presentation of brands by therapeutic area and established brands.
4  Net sales to third parties reflect Fabhalta sales for all indications.
nm = not meaningful