Press Release: Novartis delivered sales growth in -4-

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Selected transactions In July, Novartis entered into an agreement to acquire

Myricx Bio, a biotechnology company developing a new

class of antibody-drug conjugates (ADCs). The acquisition

strengthens the Novartis oncology pipeline with two

lead ADC assets targeting B7-H3 and HER2 and a broader

payload platform with potential impact across multiple

solid tumor settings. The transaction is expected

to close in H2 2026, subject to customary closing

conditions.

Novartis successfully completed the acquisition of

Pikavation Therapeutics, Inc and SNV4818, strengthening

its early-stage breast cancer pipeline.

Novartis successfully completed the acquisition of

Excellergy including Exl-111, building on deep Novartis

expertise in IgE biology and allergic disease.

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(1) Also known as prostate-specific membrane antigen (PSMA)-positive metastatic androgen pathway modulation-naive/sensitive (mAPMN/S) prostate cancer.

(2) Also known as prostate-specific membrane antigen (PSMA)-positive metastatic androgen pathway modulation-resistant (mAPMR) prostate cancer.

Capital structure and net debt

Retaining a good balance between investment in the business, a strong capital structure, and attractive shareholder returns remains a priority.

During the first half of 2026, Novartis repurchased 18.2 million shares for USD 2.8 billion on the SIX Swiss Exchange second trading line. These repurchases included 13.8 million shares (USD 2.1 billion) under the up-to USD 10 billion share buyback announced in July 2025 (with up to USD 5.6 billion still to be executed). In addition, 4.4 million shares (USD 0.7 billion) were repurchased to mitigate the anticipated full-year dilution related to participation plans of associates, with the remainder of repurchases for this purpose to be executed in H2 2026. A further 2.0 million shares (USD 0.3 billion) were repurchased from employees. During the same period, USD 0.6 billion equity-based compensation plans expenses were recognized to equity and 12.7 million shares were delivered to employees related to equity-based compensation plans from prior years. As a result, the total number of shares outstanding decreased by 7.5 million compared to December 31, 2025. These treasury share transactions resulted in an equity decrease of USD 2.4 billion and cash outflows of USD 3.1 billion.

Net debt increased to USD 39.4 billion at June 30, 2026, compared to USD 21.9 billion at December 31, 2025. The increase was mainly due to the free cash flow of USD 8.9 billion being more than offset by the net cash outflow for M&A, intangible asset transactions and other acquisitions of USD 15.3 billion, the USD 9.1 billion annual dividend payment and cash outflows for treasury share transactions of USD 3.1 billion.

As of Q2 2026, the long-term credit rating for the company is Aa3 with Moody's Ratings and AA- with S&P Global Ratings.

2026 outlook

Barring unforeseen events; growth vs. prior year in

cc

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Net sales Expected to grow low single-digit

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Core operating income Expected to decline low single-digit

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Foreign exchange impact

If mid-July exchange rates prevail for the remainder of 2026, the foreign exchange impact for the year would be positive 1 percentage point on net sales and positive 1 percentage point on core operating income. The estimated impact of exchange rates on our results is provided monthly on our website.

Key figures(1)

Q2 Q2 H1 H1

2026 2025 % change 2026 2025 % change

USD USD USD USD

m(2) m(2) USD cc m(2) m(2) USD cc

---------------------- ------ ------ ---- ---- ------ ------ ---- ----

Net sales 14 408 14 054 3 1 27 521 27 287 1 -2

---------------------- ------ ------ ---- ---- ------ ------ ---- ----

Operating income 4 750 4 864 -2 -3 8 985 9 527 -6 -7

---------------------- ------ ------ ---- ---- ------ ------ ---- ----

As a % of sales 33.0 34.6 32.6 34.9

---------------------- ------ ------ ---- ---- ------ ------ ---- ----

Net income 3 257 4 024 -19 -19 6 413 7 633 -16 -17

---------------------- ------ ------ ---- ---- ------ ------ ---- ----

EPS (USD) 1.71 2.07 -17 -18 3.37 3.91 -14 -15

---------------------- ------ ------ ---- ---- ------ ------ ---- ----

Net cash flows from

operating activities 5 882 6 664 -12 9 558 10 309 -7

---------------------- ------ ------ ---- ---- ------ ------ ---- ----

Non-IFRS measures

---------------------- ------ ------ ---- ---- ------ ------ ---- ----

Free cash flow 5 561 6 333 -12 8 891 9 724 -9

---------------------- ------ ------ ---- ---- ------ ------ ---- ----

Core operating income 5 940 5 925 0 0 10 837 11 500 -6 -7

---------------------- ------ ------ ---- ---- ------ ------ ---- ----

As a % of sales 41.2 42.2 39.4 42.1

---------------------- ------ ------ ---- ---- ------ ------ ---- ----

Core net income 4 578 4 710 -3 -4 8 372 9 192 -9 -10

---------------------- ------ ------ ---- ---- ------ ------ ---- ----

Core EPS (USD) 2.41 2.42 0 -1 4.39 4.69 -6 -8

---------------------- ------ ------ ---- ---- ------ ------ ---- ----

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 43 of the Condensed Interim Financial Report. Unless otherwise noted, all growth rates in this Release refer to same period in prior year. 2. USD millions unless indicated otherwise.

Detailed financial results accompanying this press release are included in the Condensed Interim Financial Report at the link below:

https://ml-eu.globenewswire.com/resource/download/4e53f554-1093-41f4-95a8-a8ea8022015a

Disclaimer

This communication contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, that can generally be identified by words such as "expected," "anticipated," "planned," "can," "will," "continue," "ongoing," "growth, " "launch," "expanded," "deliver," "accelerate," "guidance," "outlook," "priority," "potential," "momentum," "on track," "look forward," "pipeline," or similar expressions, or by express or implied discussions regarding: potential new products, potential new indications for existing products, potential product launches or potential future revenues from any such products; or results of ongoing clinical trials; potential future, pending or announced transactions; potential future sales or earnings; strategy, plans, expectations or intentions, including discussions regarding our continued investment into new R&D capabilities and manufacturing; our capital structure. You should not place undue reliance on these statements. 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 the forward-looking statements. There can be no guarantee that the investigational or approved products described in this communication will be submitted or approved for sale or for any additional indications or labeling in any market, or at any particular time. Nor can there be any guarantee that such products will be commercially successful in the future. Neither can there be any guarantee that the expected benefits or synergies from the transactions described in this communication will be achieved in the expected timeframe, or at all. In particular, our expectations could be affected by, among other things, uncertainties concerning: global healthcare cost containment, including ongoing government, payer and general public pricing and reimbursement pressures and requirements for increased pricing transparency; the success of key products, commercial priorities and strategy; the research and development of new products, including clinical trial results and additional analysis of existing clinical data; our ability to obtain or maintain proprietary intellectual property protection, including the ultimate extent of the impact on Novartis of the loss of patent protection and exclusivity on key products; our ability to realize the strategic benefits, operational efficiencies or opportunities expected from our external business opportunities; the development or adoption of new technologies, including artificial intelligence, and new business models; the implementation of our new IT projects and systems; potential significant breaches of information security or

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July 21, 2026 01:00 ET (05:00 GMT)