INTRODUCTION

Novartis based in Basel, Switzerland was created in 1996 through the merger of Ciba-Geigy and Sandoz, two companies with a rich and diverse corporate history. Throughout the years, Novartis and its predecessor companies have discovered and developed many innovative products for patients and consumers worldwide.

AIM
Novartis aims to change the practice of medicine and innovation at novartis not only means developing effective targeted medicines quickly but also ensuring that these medicines get to the patients who need them.

INNOVATION AT NOVARTIS
Growing need for innovation in healthcare
Rapid aging of the population, greater access to healthcare in emerging markets and advances in science create opportunities to enhance the lives of patients through innovation. Healthcare innovation generally refers to the drug discovery and development process the translation of fundamental science into new drugs, vaccines, devices and diagnostic tests. This type of innovation requires significant investment and teams commanding specialized, yet complementary skills.

Innovation at Novartis
Our strategy of focused diversification helps us to capitalize on this changing healthcare environment while balancing risk. Novartis has leading businesses in science-based, fast growing segments of healthcare. Novartis aims to change the practice of medicine, and innovation at Novartis not only means developing effective, targeted medicines quickly, but also ensuring that these meet the need of people .

MISSION

MISSION
We want to discover, develop and successfully market innovative products to prevent and cure diseases, to ease suffering and to enhance the quality of life. We also want to provide a shareholder return that reflects outstanding performance and to adequately reward those who invest ideas and work in our company.

Healthcare portfolio
We believe our portfolio best meets the varied and often complex needs of patients and societies. Novartis is positioned to lead in innovation, partner with others and offer solutions to patients across a broad healthcare spectrum. In addition, a diverse portfolio reduces financial risk, bringing greater value to those who invest in our company. Our unique portfolio focuses on science-based healthcare sectors that are growing rapidly, reward innovation, and enhance the lives of patients.

KEY AREAS
Novartis is the only company with leading positions in each of these key areas: Pharmaceuticals: innovative patent-protected medicines Alcon: global leader in eye care with surgical, ophthalmology and consumer products Sandoz: affordable, high-quality generic medicines and biosimilars Consumer Health: self-medication products and treatments for animals Vaccines and Diagnostics: vaccines and diagnostic tools to protect against life-threatening diseases

Business strategy
Innovation is flourishing, bringing new effective treatments to patients. There are significant challenges, however, and the healthcare environment is undergoing unprecedented change. The world's population is aging. Better healthcare treatments are needed, also prompting payors to manage costs aggressively. Advancing science and technology are enabling new drug discovery while increasing the cost of innovation. Economic growth in emerging countries is providing better healthcare access, but the poorest still lack basic medicines. Changing lifestyles are leading to higher prevalence of chronic and degenerative diseases.

PRODUCTS

Pharmaceuticals Alcon (eye care) Vaccines and Diagnostics Over-the-Counter Animal Health Sandoz (generics)

Pharmaceuticals
Innovating to treat disease more effectively Their global Pharmaceuticals portfolio includes more than 60 key marketed products, many of which are innovative leaders in their therapeutic areas. In 2010 they received a total of 13 major approvals and made 16 regulatory submissions in the United States, Europe and Japan.

Alcon (eye care)

Novartis proposes to complete purchase of majority of stake in Alcon, followed by direct merger of alcon into novartis. Products to enhance, preserve and restore vision Alcon's mission is to provide innovative products that enhance quality of life by helping people see better. Alcon's leadership in eye care is founded in pharmaceutical and surgical products as well as overthe-counter ophthalmic products - including contact lens care - with differentiated technology, created through dedicated research and development The integration of CIBA Vision into Alcon adds a comprehensive contact lens and lens care business to Alcon's current portfolio

Sandoz (Generics)
Delivering affordable, high-quality medicines Sandoz, the generic pharmaceuticals division of Novartis, is a global industry leader, offering affordable, high-quality medicines to everyone, everywhere. It is the second-largest division of Novartis. 2010 net sales - USD 8.5 billion Number 3 in sale of Sandoz

Over-the-Counter
Novartis OTC (Over-the-Counter) is a world leader in the research, development, production and marketing of selfmedication products that do not require prescriptions. Our products are designed for in-home treatment and prevention of medical conditions and ailments to enhance health and improve life every day.

Novartis OTC has a robust portfolio of cough, cold, respiratory disease, digestive health and pain management medication as well as analgesics, skin care products, smoking-cessation treatments and mineral supplements

Vaccines and Diagnostics

Preventing diseases with innovative products The Novartis Vaccines and Diagnostics Division provides more than 20 products to fight vaccinepreventable viral and bacterial diseases as well as sophisticated instruments, assays and software to test donated blood for infectious diseases before use in transfusions or other medical therapies. The division consists of two businesses: Novartis Vaccines ,Novartis Diagnostics

Novartis Animal Health Products

Advancing animal healthcare Novartis Animal Health is a leader in developing new and better ways to prevent and treat diseases in pets, farm animals and cultivated fish. Our innovative, high-quality medicines contribute to the quality of life, health and welfare of animals around the world.

Our culture
At Novartis, our performance-oriented culture and responsible approach are the foundations of our success. We recognize that our business depends on the creativity, dedication and performance of our associates. We encourage associates to focus on achievement through collaboration and innovation. A global healthcare leader, Novartis has one of the most exciting product pipelines in the industry today. A pipeline of innovative medicines brought to life by diverse, talented, performance driven people. All of which makes us one of the most rewarding employers in our field.

ASSOCIATES
With more than 1,15 ,000 associates in 140 countries worldwide, Novartis associates share a vision of a better today and tomorrow for patients a vision that drives our growth and success. The greatest job satisfaction for our associates is the knowledge that they improve the quality of life for patients with increasing precision and efficiency through breakthrough science and innovation.

Collaborations
The path from scientific breakthrough to successful pharmaceutical brand depends on mobilizing the best global resources, expertise and experience. At Novartis, we often achieve success through close collaboration with partners who share a common vision and complementary strengths. A key Novartis priority is to build winning collaborations in the research of new medicines and vaccines.

FOCUS
Our focus is on patients they are the reason for what we do. During 2009 medicines and vaccines from Novartis were used to treat and protect more than 930 million people worldwide, according to internal estimates.