Frequently Asked Questions

• Novartis does not file or enforce patents in least developed countries (LDCs), low-income countries (LICs) or in over 80% of the lower-middle income countries (LMICs).
• In the small number of remaining LMICs where we do file patents, we aim to restrict patent filings to those patent applications covering new molecules or new chemical entities. In addition, we are committed to granting non-exclusive licenses to qualified third parties for supply of our patented products exclusively to LDCs or LICs.
• We are a founding member of the ‘Patent Information Initiative for Medicines’ where will list patent information for all our small-molecule medicines. We are a founding signatory of the IP Principles for Advancing Cures and Therapies (IP PACT), which launched in April 2021. The IP PACT is a public statement of our patient-centric approach to IP that explains some of the ways in which we use the IP system for the benefit of patients and society.
• Novartis continues our pro bono efforts in the IP space through the Inventor Assistance program, a WIPO initiative. The program aims to match developing country inventors and small businesses with patent attorneys, who provide pro bono legal assistance.

• Novartis believes profits should accrue where economic value is created and we continue to pay our fair share of taxes where we operate. We consider this part of our contribution to society.
• Novartis is committed to a collaborative and transparent approach to tax compliance and tax planning, including in our relationships with tax authorities. We support G7 and G20 initiatives on ensuring tax rights in markets where value is generated, on minimum tax standards and on tax dispute resolution by engaging directly with multilateral organisations and jurisdictions where we operate.
• The Novartis Tax Governance framework, which has been approved by the Finance and Governance committee chaired by the CEO, ensures that controls and in place to monitor and enforce adherence to the tax governance rules and procedures across Novartis.

• Novartis began measuring and valuing Social, Environmental and Economic (SEE) impact in 2015.Our impact valuation metrics are based on material topics identified though the Novartis Materiality Assessment. These include components such as greenhouse gasses, living wages, employee development and the social impact of our medicines.
• Our three objectives are a) to engage differently and deeply with a broad range of stakeholders, b) enhance our decision-making with additional impact-relevant quantitative insights and c) meaningfully increase the transparency of our non-financial disclosures to build trust with society.
• While our impact valuation approach continues to evolve, Novartis’ SEE impact valuation has already resulted in valuable insights, and elevated ESG themes across core business functions. Our results are now available globally with specific data sets for 190 countries.
• In 2019, our total social impact was estimated at USD 221 billion. A considerable part of this (USD 219 billion) was contributed by the social impact of our Innovative Medicines and Sandoz product portfolios across 132 countries. The remaining USD 2 billion came from human impact capital.

• There is growing concern about the potential for misuse or abuse of opioid medications, in particular addiction and overdosing. Novartis will continue to work closely with healthcare authorities to establish appropriate risk management plans and monitor all our medications in line with well-established pharmacovigilance norms.
• Novartis does not have a material footprint in opioids, and we do not view this as a strategic segment for our business, having exited the US market in 2018.
• Currently, sales of opioids are only in our Sandoz division, which makes up approximately a fifth of overall Novartis sales. Opioid sales represent approximately 2% in global sales of Sandoz, mostly in Fentanyl in Western Europe.

• At Novartis, we aspire to have an employee population that reflects the populations we serve in terms of the representation of women and people of color, particularly at the leadership level.
• To help us realize this important goal, we have designed and implemented a number of initiatives that already are yielding results.In 2018, we became the first pharmaceuticals company to join the Equal Pay International Coalition (EPIC) to achieve equal pay for women and pay globally. We remain on track to meet our EPIC pay equity and transparency commitments by 2023, both in the US and globally.
• Novartis has taken the initiative to publicly disclose the consolidated US EEO demographics that we prepared for the US Equal Opportunity Commission. More detail can be found here.

The Annual General Meeting of shareholders held on March 2, 2021 approved a gross dividend (before taxes and duties) of CHF 3.00 per dividend-bearing share of CHF 0.50 nominal value.

The last trading day with entitlement to receive the dividend is March 3, 2021.

As from March 4, 2021 the shares will be traded ex-dividend. This dividend will be paid as of March 8, 2021 (the Swiss payment date).

Yes, the preliminary announcement only provides an estimated rate based on a current FX rate. The actual rate will be determined when the Swiss Francs are converted to US dollars on the Swiss payment date once all the funds are received by J.P. Morgan, the Depositary.

The remainder of the funds due to ADR holders will be converted only after a tax reclaim has been completed and once any such reclaimed funds have been received by J.P. Morgan from the Swiss Tax Authorities. Once the funds are received and converted into US dollars a payment will be made shortly thereafter to any ADR holders entitled thereto. From previous years, we can expect tax reclaim funds to be distributed to ADR holders six to seven weeks after the Swiss payment date.

Holders of ADRs entitled to receive the dividend are not able to elect until after the ADR record date which is just one (1) day prior to the Swiss payment date. Eligible holders of ADRs are given 10 days to complete and submit their election. Once any reclaims are submitted to the Swiss Tax Authorities it takes approximately 15 days for such authorities to process the reclaim.
 

There is a process for banks and brokers within Depositary Trust Company to elect their clients’ correct tax status electronically and to provide documentation on behalf of their clients. J.P. Morgan elects on behalf of registered holders based upon their tax status. Please contact J.P. Morgan / Goal Group Recoveries, Inc., New York at 1‐212‐248‐9130 for further questions.