Frequently asked questions

Top 10 social impact and sustainability-related questions from shareholders and our responses

Last updated: February 2026

Access, Global Health, and clinical trial diversity

Novartis recently announced an agreement to lower drug prices in the US. What impact do you expect the agreement to have on pricing and access ex-US, including in LMICs?

• In December 2025, Novartis announced that it had reached an agreement with the US government and voluntarily agreed to take actions aimed at meeting the US Administration’s drug pricing priorities, including:
  • Launching future medicines with comparable prices across high-income countries;
  • Building direct-to-patient platforms, accessible through TrumpRx, for Mayzent® (siponimod), Rydapt® (midostaurin) and Tabrecta® (capmatinib);
  • Applying to participate in the GENEROUS Model aimed at further improving access to medicines in the US Medicaid program; and
  • Supporting efforts to address the global imbalance in investment in pharmaceutical innovation.
• The agreement’s pricing provisions for future medicines specifically apply to a defined group of high-income countries (G7 excluding the US, plus Switzerland and Denmark). We will aim to launch our medicines across these countries at comparable prices according to the value they deliver to patients, healthcare systems and society.
• Novartis remains committed to investing in markets that value innovation and implement policies that support broad and fast access to medicines.
• For LMICs, we remain committed to our access strategies, including adopting innovative access models, focusing research and development based on society’s unmet healthcare needs, and supporting approaches to strengthen healthcare systems.

What is the business case for Novartis Global Health?

• The main motivation of our Global Health programs is to create sustainable impact by addressing unmet medical needs across diseases, geographies, and population groups. We focus on three pillars:
• End-to-end disease management in areas where investment in R&D has historically been limited, including malaria, Chagas disease, sickle cell disease, and leprosy. Novartis has one of the most advanced global health pipelines, with eight new chemical entities in clinical development, reflecting our long term commitment to tackling some of the world’s most persistent health challenges.
• Our Sub Saharan Africa unit, a dedicated regional organization designed to maximize societal and health impact by expanding access to a portfolio of innovative medicines tailored to the region’s epidemiological needs.
• Our Community Health programs, which operate as inclusive business models that address access gaps among lower income populations, concentrating on health system strengthening. Originating in Vietnam, this model has demonstrated strong proof of concept, and we plan to scale it to 10 countries by 2029.
• Our work in Global Health is designed to be financially self sustaining, reducing dependency on ongoing investment and avoiding trade off decisions between commercial and social priorities. In several countries, components of the program are accretive to the business, demonstrating that advancing societal impact and generating financial value can go hand-in-hand.

Governance

What have the new Board Chair’s areas of focus been during his first year and has he brought any changes?

• Our new Chair, Giovanni Caforio, transitioned seamlessly into the role and has demonstrated strong, inclusive leadership, ensuring that Board discussions are well-informed, allowing all voices to be heard and creating alignment before proceeding to the next topics.
• Giovanni spent time across the organization visiting R&D sites, meeting with commercial and functional teams, and engaging with leaders across the business, including Asia, deepening understanding of the company’s global reach. He has also conducted deep-dive reviews of each function, which have been invaluable in understanding both the company’s strengths and the opportunities ahead.
• One of the changes Giovanni introduced is a new approach to Board-level strategic oversight: rather than holding a single annual strategy meeting, we now dedicate time at each Board meeting to explore a specific strategic theme - including R&D, commercial strategy, social impact and sustainability, or talent and succession planning. This allows for more focused, in-depth discussions and greater continuity in strategic dialogue.

Does the Novartis Board skills matrix include AI? How does the Board oversee AI risks and opportunities?

• The Novartis Board skills matrix includes data and digital skills, with four members (33%) having this expertise. Understanding data and digital is critical and fundamental when considering the risks and opportunities presented by AI. For instance, AI risks are exacerbated if we lack proper data management controls, protections and accuracy. • We continue to assess the necessity to add specific AI skills to our Board. In the meantime, we ensure that the Board maintains adequate access to external AI expertise. AI opportunities and risks are also discussed at the Board level at different times throughout the year. In 2025:
• The Audit & Compliance Committee received a presentation focused on AI risk governance and the risk classification of AI applications – The Governance, Sustainability, and Nomination Committee (GSNC) discussed AI in the context of human capital management, with the dual aims of (1) understanding the potential of AI to disrupt and evolve jobs and (2) establishing AI capabilities and upskilling programs – The Risk Committee looked at strategic risks, discussing the risk of “AI-powered Research, Development, Commercial continuum”.
• The Science and Technology Committee reviewed AI use cases on new target identification, AI-augmented chemistry, discovery of biologics, and translation from preclinical to clinical application, involving internal experts in each area.
• For 2026 onwards, data/digital and AI will be a standing topic at the Board level.

How does the Board ensure proactive succession planning? How are you planning to address the skills gaps from outgoing directors?

• The Novartis Board has a robust process for succession planning and board refreshment, which includes a term limit of 12 years. Since 2019, we have appointed a new member to the board in all but two years.
• One aspect of our succession planning is our commitment to diversity. For us, diversity encompasses more than just gender and ethnicity; it also includes training, skillsets and experiences, including those from different industries and geographic regions. Having these diverse perspectives is essential; it encourages meaningful conversations and helps the Board make the best possible decisions.
• The Board succession process is led by the Chair, with support from the GSNC. This topic is a regular agenda item at GSNC meetings, where the Board continuously reflects on the evolving environment of the company and identifies the skills needed for future success. When selecting new Board members, the Chair and the GSNC first define the desired profile, focusing on necessary skills that may arise due to changes in the environment or skills that may be lost as current Board members choose to resign.
• In 2025, we successfully recruited two new Board members: Giovanni Caforio, who serves as our Chair, and Beth McNally, a cardiologist and geneticist. In 2026, the Board proposes the election of Dr. Charles Swanton, an oncologist, to the Board of Directors. We believe that our proactive succession planning approach has contributed to the successful functioning of the Board.

With respect to executive compensation, how does Novartis ensure a strong link between pay and performance?

• Novartis applies a pay-for-performance philosophy across its executive compensation framework. A significant portion of total compensation is variable and tied to the delivery of financial and strategic objectives. The Compensation Committee oversees this framework to ensure outcomes remain aligned with long-term value creation.
• The Board applies a rigorous target-setting process to ensure targets are suitably robust, challenging and aligned with the strategic priorities of the Company, reinforcing our commitment to pay-for-performance:
• Annual incentive targets reflect the annual plan, market expectations and strategic priorities, and are calibrated to be achievable only with strong performance. – LTPP targets are based on 3-year strategic plans, industry benchmarks and investor expectations, with innovation metrics linked to clear regulatory and pipeline milestones.
• The Board reviews annual and multi-year business plans before approving final performance targets in January. At the end of each cycle, it reviews results versus the targets to confirm that payouts appropriately reflect performance.
• LTPP outcomes demonstrate high variability, consistent with our commitment to pay-for-performance. Since the current CEO’s appointment, payouts have ranged from 57% (2022) to 188% (2024), and we observe a clear correlation between TSR and realized compensation.
• For example, the primary driver of the CEO’s total realized compensation in 2025 is the LTPP, delivered in shares. The 2023–2025 LTPP cycle exceeded the performance targets set three years earlier. This was supported by strong share price performance over the period.

CEO payouts have been variable, performance-dependent

Risk management

Amid today’s backdrop of macroeconomic uncertainty, how  does the leadership team discuss and manage risks?

• Risk management has always been vital in our industry, but it has gained even more prominence amid today’s macroeconomic and geopolitical uncertainty.
• Novartis employs an  enterprise risk management (ERM) process, an integrated approach embedded in our business operations.
  • Our ERM framework is governed by a dedicated team, while business leaders across the organization participate in risk workshops to analyze risks and develop mitigation plans. This approach enhances transparency and provides management and the Board with a clearer understanding of our risk exposure and it may evolve.
  • We integrate intelligence from external risk communities and internal experts. A dedicated Risk Intelligence Forum brings together senior leaders and academic experts to align on our top risks and develop an outside-in view.
  • Insights feed into a single, aligned methodology that ensures consistency in how we identify, assess and manage risks. Each risk is evaluated using a four-point exposure scale based on likelihood and potential impact, and we define a clear risk appetite and mitigation plans.
  • At the end of the annual process, we summarize key risks, our risk appetite, the mitigation actions, and owners, and share this with the Executive Committee for input.
  • This information is also provided to our Board of Directors. Throughout the year, we continue risk discussions and conduct deep dives as needed.
  • We also integrated risk discussions into our strategic planning process to support a more holistic view of how we manage our strategy alongside risks.
• We continue to improve our approach:
  • Historically, the ERM process focused on risks 12 to 24 months into the future. We now place greater emphasis on anticipating risks over the next 5 to 10 years. These longer-term risks are ranked and reviewed with the Executive Committee, and the Board selects topics for deeper discussion.
  • The Board has decided to dissolve the Risk Committee effective from the 2026 AGM, reflecting the maturity of the ERM framework and the strategic nature of the top risks identified. Topics previously overseen by the committee will be incorporated into regular strategic updates to the Board or addressed by other relevant committees. The Audit and Compliance Committee of the Board will continue to provide oversight by annually reviewing the effectiveness of the ERM program. This approach is aligned with governance practices commonly adopted by major Swiss multinationals outside the financial sector.

What is the Novartis approach to ensuring supply chain resilience?

• Ensuring uninterrupted access to our medicines remains a core operational priority for Novartis, and we continue to deliver consistently high service levels (nearing 100% across our portfolio).
  • Our resilience is underpinned by a broad and diversified manufacturing network of more than 30 own sites, complemented by strategic external partnerships. Ongoing investment in this network ensures we maintain efficient, flexible and state of the art production capabilities.
  • We also apply a disciplined inventory strategy, maintaining appropriate stock levels at the country level and across each stage of the manufacturing process.
  • Over 80% of our medicines are supported by dual supply chains, providing redundancy to mitigate potential geopolitical, logistics or transportation related disruptions.
• Earlier this year, Novartis committed to investing USD 23 billion to expand its R&D and manufacturing infrastructure in the US over the next five years. This strategic investment targets a market with significant growth potential, ensuring that all key products can be produced locally in the US over time. Since announcing this investment in April, the company:
  • Announced a new USD 1.1 billion biomedical research hub in California;
  • Broke ground on a new flagship manufacturing hub in North Carolina. The hub, which includes three new facilities, will enable end-to-end manufacturing capabilities to produce medicines across the company’s technology platforms;
  • Opened a new radioligand therapy (RLT) manufacturing facility in California, enabling coast-to-coast manufacturing of RLTs;
  • Announced plans to build a new RLT manufacturing facility in Florida to optimize the delivery of RLT medicines to patients in the Southeast US; and
  • Advanced plans to build a new RLT manufacturing facility in Texas.

How does Novartis identify and manage human rights risks across its supply chain, particularly in high-risk geographies?

• Novartis employs a risk-based approach to manage human rights risks in our global supply chain. Our External Partner Risk Management (EPRM) system screens third-party suppliers before onboarding and continuously thereafter. Most suppliers flagged with “medium” or “high” human rights risk must complete a self-assessment questionnaire, depending on a range of risk factors. Our human rights team then works with these suppliers to create and monitor corrective action plans.
• Most of our human rights team is regionally based, enabling us to conduct country-level risk classifications, assessments, and due diligence. In high-risk areas, we follow a dedicated framework with extra safeguards for enhanced oversight.
• In addition, we periodically assess human rights risks and impacts in our value chain to refine priorities and enhance supplier capabilities. For instance, we launched a digital survey in 84 factories, reaching over 7,000 workers, to gather insights on key topics like contracts and grievance mechanisms, which have informed our engagements with suppliers.
• Novartis is well-positioned to meet the legal obligations in the EU’s revised CSDDD³, effective in 2029, through a structured enterprise-wide compliance program, prioritized workstreams, and systematic integration regulatory expectations.

Environmental sustainability

How do you engage with suppliers on Net Zero? What impacts have you observed among your suppliers due to the US Administration’s retreat from green technology investments?

• Our approach to engaging suppliers on decarbonization is grounded in our long-term commitment to achieve SBTi-aligned emissions reductions across our value chain. This ambition remains unchanged, regardless of policy fluctuations in any single market. We are:
  • Onboarding suppliers in alignment with our targets by including Environmental Sustainability (ES) criteria in their supply contracts. As of year-end 2025, 97% of supplier emissions are covered by these criteria.
  • Last year, we also updated our procurement processes – such as sourcing evaluations (where ES accounts for 10% of the weighting) and RFP processes – to ensure these criteria are consistently applied to new suppliers and systematically integrated into our external partnerships.
  • Engaging with direct suppliers to collect product-specific carbon footprint data. To facilitate this, we are utilizing the Siemens data platform, SiGREEN, which helps us track the carbon footprint associated with our medicines.
  • Holding one-on-one meetings with priority suppliers to understand their decarbonization progress and share best practices.
  • Partnering with our peers to define common minimum sustainability standards for suppliers and assist them in building their capabilities⁴.
• Our suppliers continue to value our engagement on decarbonization and reaffirm their commitment to emissions reduction efforts. They note, however, that any slowdown in green technology markets could affect the pace of progress. While closely monitoring these developments, our suppliers remain committed to advancing decarbonization across their operations.

1. For this cycle, two LTI plans existed (with different metrics): LTPP (25% NCVA, 25% Innovation), LTRPP (100% rTSR). Payout represent the average CEO weighted payout.
2. Share of peers was removed from STI metrics effective 2023.
3. Corporate Sustainability Due Diligence Directive.
4. Examples include: ENERGIZE (a program founded by Novartis and 8 other peers during COP26, aims to increase access to renewable energy for suppliers); Sustainable Market Initiative’s joint supplier letter and joint supplier decarbonization targets.
    

What is the new cost basis of my Novartis and Sandoz shares following the spin-off of Sandoz from Novartis?

Information about allocation of tax basis for U.S. holders may be found in the Form 8937: Basis of Securities (PDF 0.1 MB). With regard to non-U.S. holders, please note that the allocation of tax basis for Novartis and Sandoz shares following the spin-off depend on the applicable local tax provisions and each shareholder’s individual circumstances. Accordingly, all shareholders and ADR holders are asked to consult their own tax advisor regarding the tax basis allocation calculations.

Where are Novartis shares traded?

Novartis shares are listed and traded on the SIX Swiss Exchange (Valor No. 001200526, ISIN CH0012005267, symbol: NOVN) as well as on the NYSE in the form of American Depositary Receipts (ADR) (Valor No. 567514, ISIN US66987V1098, symbol: NVS).

What are the ticker symbols for Novartis?

What is an ADR/ADS?

ADR stands for American Depositary Receipt. ADS stands for American Depositary Share. An ADR is a receipt for a number of shares of a foreign-based corporation held by a US depositary bank, entitling the ADR holder to all dividends and capital gains.

What is the number of outstanding shares in Novartis?

Key Novartis share data

1. Approximately 86 million treasury shares (2023: 94 million 2022: 99 million) are held in Novartis entities that restrict their availability for use.

What is the number of outstanding ADRs in Novartis?

Key data on ADRs issued in the US

1. The depositary, JPMorgan Chase Bank, N.A., holds one Novartis AG share for every ADR issued.

When is your dividend going to be paid?

The dividend payment date has been set for March 12, 2026.

What is the dividend history for Novartis shares?

The Novartis AG Board of Directors proposed a dividend of CHF 3.70 per share to be approved at the Annual General Meeting on March 06, 2026.

Learn more about dividend information

What is the new cost basis of my Novartis and Alcon shares following the spin-off of Alcon from Novartis?

Information about allocation of tax basis for U.S. holders may be found in the Form 8937: Basis of Securities (PDF 0.1 MB). With regard to non-U.S. holders, please note that the allocation of tax basis for Novartis and Alcon shares following the spin-off depend on the applicable local tax provisions and each shareholder’s individual circumstances. Accordingly, all shareholders and ADR holders are asked to consult their own tax advisor regarding the tax basis allocation calculations.

What are the income tax implications to Canadian shareholders due to the Alcon spin-off?

The following documents include the Finance Canada and Canada Revenue Agency comfort letter, Canada income tax guidelines and tax election letters related to the Alcon Spin-off for Canadian resident shareholders:

Canada Income Tax Alcon Spin-off FAQ - English (PDF 0.1 MB)

Canada Income Tax Alcon Spin-off FAQ- French (PDF 0.1 MB)

Department of Finance Canada Comfort Letter (PDF 0.1 MB)

Download the Canada and Quebec Tax Election Example Letters (ZIP 0.1 MB)

What is the amount and timing of the next dividend payment?

The Novartis Board of Directors will propose a dividend of CHF 3.70 per share to the shareholders for approval at the Annual General Meeting to be held on March 06, 2026.

If this proposal is approved, the dividend to ordinary shareholders will be paid as from March 12, 2026. The last trading day for ordinary shareholders with entitlement to receive the dividend is March 09, 2026. As from March 10, 2026, the ordinary shares will be traded ex-dividend.

Novartis’s dividend to ADR holders will be paid in two stages. The first payment will be equal to 65% of the payout, payable on March 16, 2026. Those holders reclaiming withholding tax will receive a second payment once the reclaim process is completed.

Is the dividend on the Novartis ordinary share and the Novartis ADR the same?

Yes, however, since ADR holders will receive their dividend in US dollars, the amount received will be impacted by currency exchange rates. An estimate of the amount of the US dollar dividend for the ADR will be calculated on the day of the dividend announcement based on that day’s exchange rates. The actual exchange rate applicable to the first payment equal to 65% of the payout will be determined on March 11, 2026.

Novartis’s dividend to ADR holders will be paid in two stages. The first payment will be equal to 65% of the payout, payable on March 16, 2026. Those holders reclaiming withholding tax will receive a second payment once the reclaim process is completed.

Will the FX rate announced for the ADRs change between the preliminary announcement and the ADR payment date?

Yes, the preliminary announcement only provides an estimated rate based on a current FX rate. The actual exchange rate will be determined on March 11, 2026.

When will the remainder of the funds be converted and paid to the ADR holders?

The remainder of the funds due to ADR holders will be converted into US dollars by J.P. Morgan 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 at the then prevailing exchange rate, 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.

Will the entire dividend amount be converted into US dollars on the ADR payment date of March 16, 2026?

The 65% of the dividend paid on the ADR payment date of March 16, 2026, will be converted at the exchange rate determined on March 11, 2026. Any reclaimed withholding tax will be converted into US dollars by J.P. Morgan 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, they are converted into US dollars at the then prevailing exchange rate.

Why is there a difference between the ADR and Ordinary share dividend payment dates?

The payment date for ADR holders is later than for ordinary shareholders because J.P. Morgan must complete several processes before distributing the dividend to ADR holders. For 2026, ADR holders will receive the first payment on March 16, 2026.

Why can’t J.P. Morgan receive all of the funds on the ADR payment date?

The Swiss Tax Authorities require that a tax reclaim be completed prior to each payment for any amounts due above and beyond the non-treaty amount. Investors must certify and elect their entitlement and provide necessary disclosure documentation as required by the treaty between the US and Switzerland based upon their tax status.

Why does it take so long to get the reclaim funds back from the Swiss Tax Authorities?

Holders of ADRs entitled to receive the dividend at a treaty rate 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.

Will another announcement be made once the tax reclaim funds are received?

No, the funds will be converted and paid to the holders.

How does the tax reclaim process work?

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 / Globe Tax, Inc., New York at +1 212 747 9100 (International), +1 800 929 5484 (US) or email [email protected] for further questions.