This Annual Report includes non-IFRS financial measures such as core results, constant currencies and free cash flow. Novartis believes that investor understanding of the Group’s performance is enhanced by disclosing these non-IFRS measures. A definition of non-IFRS measures used by Novartis, and further details, including reconciliation tables, can be found starting on page 171.
Net income from discontinued operations and net income of the Group in 2015 include exceptional divestment gains. Continuing and discontinued operations are defined on page 154.
2016 weighted average number of shares outstanding: 2 378 million (2015: 2 403 million)
Dividend 2016: proposal to shareholders for approval at the Annual General Meeting on February 28, 2017
Payout ratio 2016 is calculated by converting into USD the proposed total gross dividend amount in CHF at the CHF-USD exchange rate of December 31, 2016, based on an estimated number of shares outstanding on dividend payment date, and dividing it by the USD consolidated net income from continuing operations and net income attributable to shareholders of Novartis AG in the Group’s 2016 consolidated financial statements.
Includes Innovative Medicines and Sandoz biosimilars only
Includes programs entering confirmatory development, based on internal R&D activities. First patient, first visit (FPFV) has occurred in post-proof-of-concept stage. Includes small molecules, biologics; new fixed-dose combinations of existing active pharmaceutical ingredients (APIs); and new target indications, defined as new disease or new line of treatment (e.g., first line vs. second line). Counted by indication and not compound
This number has been adjusted due to the revised definition of projects entering portfolio. In 2015, we reported it as 25.
Includes projects with FPFV in a Phase III study but not yet filed in the US, EU or Japan
Number of breakthrough therapy designations by the US Food and Drug Administration for therapies under development by Novartis
Includes small molecules, biologics; new fixed-dose combinations of existing APIs; and new target indications, defined as new disease or new line of treatment (e.g., first line vs. second line)
Includes NMEs such as small molecules, biologics; in the EU, new fixed-dose combinations of existing APIs
Headcount reflects the total number of associates in our payroll systems. Full-time equivalent adjusts headcount for associates working less than 100%. All data as of December 31
Management defined locally
The number of misconduct cases reported may change as matters may be reassessed in the course of the case lifecycle. The number of substantiated allegations may change due to the fact that investigation reports with assessments are received on an ongoing basis, which potentially leads to a difference in numbers at a later stage. In 2016, the Business Practices Office (BPO) received a total of 3 595 complaints of alleged misconduct, of which 1 888 were deemed not to be related to misconduct and were delegated for review and action outside the BPO investigative process. The BPO initiated investigations of 1 707 reported cases related to misconduct; 893 were substantiated, including 401 that resulted in dismissals or resignations.
2016 environmental sustainability data published in the Annual Report are actual data for the period from January through September, and best estimates for the period from October through December. They will be updated with actual data in the first quarter of 2017. Significant deviations will be reported on our website and restated in next year's Annual Report.
Data include Novartis associates and third-party personnel managed by Novartis associates.
Scope 1: combustion and process, and vehicles; Scope 2: purchased energy