Novartis AG Files 20-F Report for Fiscal Year Ended December 31, 2023

Ticker: NVSEF · Form: 20-F · Filed: Jan 31, 2024 · CIK: 1114448

Novartis Ag 20-F Filing Summary
FieldDetail
CompanyNovartis Ag (NVSEF)
Form Type20-F
Filed DateJan 31, 2024
Risk Levellow
Pages15
Reading Time18 min
Sentimentneutral

Complexity: moderate

Sentiment: neutral

Topics: Novartis AG, 20-F Filing, Annual Report, Financial Statements, Fiscal Year 2023

TL;DR

<b>Novartis AG submitted its 20-F filing detailing financial performance and structure for the fiscal year 2023.</b>

AI Summary

NOVARTIS AG (NVSEF) filed a Foreign Annual Report (20-F) with the SEC on January 31, 2024. Novartis AG filed its annual report on Form 20-F for the fiscal year ending December 31, 2023. The filing covers financial data for the fiscal years 2021, 2022, and 2023. The report includes details on continuing and discontinued operations for the specified periods. Key financial statement components such as issued capital, treasury shares, and retained earnings are detailed. Equity attributable to owners of the parent and noncontrolling interests are also reported.

Why It Matters

For investors and stakeholders tracking NOVARTIS AG, this filing contains several important signals. This filing provides a comprehensive overview of Novartis AG's financial health and operational status for the past fiscal year, crucial for investors assessing the company's performance and future prospects. The detailed breakdown of equity, operations, and historical financial data allows stakeholders to track trends and make informed investment decisions regarding Novartis AG.

Risk Assessment

Risk Level: low — NOVARTIS AG shows low risk based on this filing. The filing is a standard annual report (20-F) and does not contain new material events or significant financial deviations that would indicate elevated risk.

Analyst Insight

Investors should review the detailed financial statements and segment information within the 20-F to understand Novartis AG's performance drivers and potential risks for the upcoming fiscal year.

Key Numbers

Key Players & Entities

Forward-Looking Statements

FAQ

When did NOVARTIS AG file this 20-F?

NOVARTIS AG filed this Foreign Annual Report (20-F) with the SEC on January 31, 2024.

What is a 20-F filing?

A 20-F is a annual report for foreign private issuers, equivalent to a 10-K but following international reporting standards. This particular 20-F was filed by NOVARTIS AG (NVSEF).

Where can I read the original 20-F filing from NOVARTIS AG?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by NOVARTIS AG.

What are the key takeaways from NOVARTIS AG's 20-F?

NOVARTIS AG filed this 20-F on January 31, 2024. Key takeaways: Novartis AG filed its annual report on Form 20-F for the fiscal year ending December 31, 2023.. The filing covers financial data for the fiscal years 2021, 2022, and 2023.. The report includes details on continuing and discontinued operations for the specified periods..

Is NOVARTIS AG a risky investment based on this filing?

Based on this 20-F, NOVARTIS AG presents a relatively low-risk profile. The filing is a standard annual report (20-F) and does not contain new material events or significant financial deviations that would indicate elevated risk.

What should investors do after reading NOVARTIS AG's 20-F?

Investors should review the detailed financial statements and segment information within the 20-F to understand Novartis AG's performance drivers and potential risks for the upcoming fiscal year. The overall sentiment from this filing is neutral.

How does NOVARTIS AG compare to its industry peers?

Novartis AG operates in the pharmaceutical preparations industry, a sector focused on the research, development, manufacturing, and marketing of drugs and medicines.

Are there regulatory concerns for NOVARTIS AG?

As a foreign private issuer, Novartis AG files an annual report on Form 20-F with the SEC, which is a substitute for the annual report on Form 10-K required for domestic U.S. companies.

Industry Context

Novartis AG operates in the pharmaceutical preparations industry, a sector focused on the research, development, manufacturing, and marketing of drugs and medicines.

Regulatory Implications

As a foreign private issuer, Novartis AG files an annual report on Form 20-F with the SEC, which is a substitute for the annual report on Form 10-K required for domestic U.S. companies.

What Investors Should Do

  1. Review the detailed financial statements for 2023, comparing them against 2022 and 2021 to identify performance trends.
  2. Analyze the breakdown of continuing and discontinued operations to understand the impact of divestitures or strategic shifts.
  3. Examine the components of equity and debt to assess the company's capital structure and financial leverage.

Year-Over-Year Comparison

This filing represents the standard annual disclosure for Novartis AG and does not indicate a change from previous reporting cycles, as it is a routine submission.

Filing Stats: 4,404 words · 18 min read · ~15 pages · Grade level 15 · Accepted 2024-01-31 07:38:06

Filing Documents

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No Table of contents Introduction and use of certain terms

Forward-looking statements

Forward-looking statements Part I

Identity of Directors, Senior Management and Advisers

Item 1. Identity of Directors, Senior Management and Advisers

Offer Statistics and Expected Timetable

Item 2. Offer Statistics and Expected Timetable

Key Information

Item 3. Key Information 3.A [Reserved] 3.B Capitalization and indebtedness 3.C Reasons for the offer and use of proceeds 3.D Risk factors

Information on the Company

Item 4. Information on the Company 4.A History and development of Novartis 4.B Business overview 4.C Organizational structure 4.D Property, plants and equipment

Unresolved Staff Comments

Item 4A. Unresolved Staff Comments

Operating and Financial Review and Prospects

Item 5. Operating and Financial Review and Prospects 5.A Operating results 5.B Liquidity and capital resources 5.C Research and development, patents and licenses 5.D Trend information 5.E Critical accounting estimates

Directors, Senior Management and Employees

Item 6. Directors, Senior Management and Employees 6.A Directors and senior management 6.B Compensation 6.C Board practices 6.D Employees 6.E Share ownership 6.F Erroneously awarded compensation

Major Shareholders and Related Party Transactions

Item 7. Major Shareholders and Related Party Transactions 7.A Major shareholders 7.B Related party transactions 7.C Interests of experts and counsel

Financial Information

Item 8. Financial Information 8.A Consolidated statements and other financial information 8.B Significant changes

The Offer and Listing

Item 9. The Offer and Listing 9.A Offer and listing details 9.B Plan of distribution 9.C Markets 9.D Selling shareholders 9.E Dilution 9.F Expenses of the issue

Additional Information

Item 10. Additional Information 10.A Share capital 10.B Memorandum and articles of association 10.C Material contracts 10.D Exchange controls 10.E Taxation 10.F Dividends and paying agents 10.G Statement by experts 10.H Documents on display 10.I Subsidiary information 2

Quantitative and Qualitative Disclosures About Market Risk

Item 11. Quantitative and Qualitative Disclosures About Market Risk

Description of Securities Other than Equity Securities

Item 12. Description of Securities Other than Equity Securities 12.A Debt securities 12.B Warrants and rights 12.C Other securities 12.D American Depositary Shares PART II

Defaults, Dividend Arrearages and Delinquencies

Item 13. Defaults, Dividend Arrearages and Delinquencies

Material Modifications to the Rights of Security Holders and Use of Proceeds

Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds

Controls and Procedures

Item 15. Controls and Procedures

Audit Committee Financial Expert

Item 16A. Audit Committee Financial Expert

Code of Ethics

Item 16B. Code of Ethics

Principal Accountant Fees and Services

Item 16C. Principal Accountant Fees and Services

Exemptions from the Listing Standards for Audit Committees

Item 16D. Exemptions from the Listing Standards for Audit Committees

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Change in Registrant's Certifying Accountant

Item 16F. Change in Registrant's Certifying Accountant

Corporate Governance

Item 16G. Corporate Governance

Mine Safety Disclosure

Item 16H. Mine Safety Disclosure

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Insider Trading Policies

Item 16J. Insider Trading Policies

Cybersecurity

Item 16K. Cybersecurity PART III

Financial Statements

Item 17. Financial Statements

Financial Statements

Item 18. Financial Statements

Exhibits

Item 19. Exhibits 3 Introduction and use of certain terms Novartis AG and its consolidated affiliates publish consolidated financial statements expressed in US dollars. Our consolidated financial statements responsive to Item 18 of this Annual Report on Form 20-F (Annual Report) are prepared in accordance with International Financial Reporting Standards Accounting Standards as issued by the International Accounting Standards Board. "Item 5. Operating and Financial Review and Prospects," together with the sections on products in development and key development projects of our businesses (see "Item 4. Information on the Company—Item 4.B. Business overview"), constitute the Operating and Financial Review (" Lagebericht "), as defined by the Swiss Code of Obligations. Unless the context requires otherwise, the words "we," "our," "us," "Novartis," "Group," "Company," and similar words or phrases in this Annual Report refer to Novartis AG and its consolidated affiliates. However, each Novartis affiliate is legally separate from all other Novartis affiliate companies and manages its business independently through its respective board of directors or similar supervisory body or other top local management body, if applicable. Each executive identified in this Annual Report reports directly to other executives of the Novartis affiliate company that employs such executive, or to such company's board of directors. In this Annual Report, references to "US dollars," "USD" or "$" are to the lawful currency of the United States of America; references to "CHF" are to Swiss francs; references to "euro" or "EUR" are to the lawful currency of the member states of the European Union in which it is the official currency; references to the "United States" or to "US" are to the United States of America; references to the "European Union" or to "EU" are to the European Union and its 27 member states; references to "Latin America" are to Central and South America, including the Caribbea

Forward-looking statements

Forward-looking statements This Annual Report contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the United States Private Securities Litigation Reform Act of 1995, as amended. Other written materials filed with or furnished to the SEC by Novartis, as well as other written and oral statements made to the public, may also contain forward-looking statements. Forward-looking statements can be identified by words such as "potential," "expect," "will," "plan," "pipeline," "outlook," "may," "could," "would," "anticipate," "seek," "likely," "ongoing," "estimate," "believe," "target," "intend," or similar terms, or by express or implied discussions regarding potential new products, potential new indications for existing products, or regarding potential future revenues from any such products or indications; or regarding the potential outcome, or financial or other impact on Novartis, of any of the transactions described; or regarding the potential impact of share buybacks; or regarding potential future sales or earnings of Novartis or potential shareholder returns; or regarding potential future credit ratings of Novartis; or by discussions of strategy, plans, expectations or intentions. Such forward-looking statements are based on the current beliefs and expectations of management regarding future events, and are subject to significant known and unknown risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those set forth in forward-looking statements. You should not place undue reliance on these statements. In particular, our expectations could be affected by, among other things: Uncertainties regarding the success of key products, commercial priorities and strategy Uncertainties in the researc

Identity of Directors, Senior Management and Advisers

Item 1. Identity of Directors, Senior Management and Advisers Not applicable. 7

Offer Statistics and Expected Timetable

Item 2. Offer Statistics and Expected Timetable Not applicable. 8

Key Information

Item 3. Key Information 3.A [Reserved] 3.B Capitalization and indebtedness Not applicable. 3.C Reasons for the offer and use of proceeds Not applicable. 3.D Risk factors Our business faces significant risks and uncertainties. You should carefully consider all of the information set forth in this Annual Report and in other documents we file with or furnish to the SEC, including the following risk factors, before deciding to invest in or to maintain an investment in any Novartis securities. Our business, as well as our reputation, financial condition, results of operations, and share price, could be materially adversely affected by any of these risks, as well as other risks and uncertainties not currently known to us or not currently considered material. Strategic risks Key products and commercial priorities Risk description Failure to deliver key commercial priorities and successfully launch new products Context and potential impact Our ability to maintain and grow our business and to replace revenue and income lost to generic, biosimilar and other competition depends heavily on the commercial success of our new or existing key products. The commercial success of these products could be impacted at any time by a number of factors, including pressure from new or existing competitive products, changes in the prescribing habits of healthcare professionals, slower than expected post-launch adoption, unexpected side effects or safety signals, supply chain issues or other product shortages, pricing pressure, regulatory proceedings, changes in labeling, loss of intellectual property protection, and global pandemics. In addition, our revenue and margins could be significantly impacted by the timing and rate of commercial acceptance of new products. Healthcare professionals, patients and payers may choose competitor products instead of ours for various reasons, including if they perceive them to be better in terms of efficacy, safety, cost, convenience or other r

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