Novartis New Organizational Model
SG&A is the key focus for improving margins
Novartis SG&A stable at -29% of sales
Core SG&A as % of sales
Median
Novartis
31
30
29
29
20
29
Novartis above peer median SG&A spend
Core SG&A 2021 as % of sales
Illustrative
Company 1
Company 2
Company 3
Company 4
Company 5
Company 6
Company 7
Company 8
Company 9
Company 10
2017
2018
2019
2020
2021
Company 11
Novartis
Company 12
Company 13
Company 14
Median
25%
29%
Note: Peer group includes 14 pharma companies: Bristol Meyers Squibb, Johnson & Johnson, Pfizer, Eli Lilly, AstraZeneca, GSK, Roche, AbbVie, Merck, Sanofi, Takeda, Gilead, Amgen and Novo Nordisk
Source: S&P Capital IQ, Evaluate Pharma (Oct 2021); Novartis
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NOVARTIS NEW ORGANIZATIONAL MODEL | APRIL 04, 2022 | NOVARTIS INVESTOR PRESENTATION
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