Novartis

2Q Revenues: $14.5 billion (+2%)

2Q Earnings: $3.3 billion (+3%)

YTD Revenues: $28.5 billion (+2%)

YTD Earnings: $6.5 billion (+2%)

Comments: Pharmaceutical sales were $8.2 billion in the quarter (+1%). Growth was impacted by Japan, which saw a continued decline in Diovan sales, and in the U.S., Diovan inventory destocking ahead of the generic entry in July 2014 also impacted sales. Growth products generated $3.4 billion in sales, up 15%, and included Gilenya, Afinitor, Tasigna, Galvus, Lucentis, Xolair, the COPD portfolioand Jakavi, which contributed 42% of division sales, up from 36% in 2Q13. Currency had a negative impact of 5%, primarily due to the stronger Swiss franc and weakening of emerging market currencies, partly offset by a stronger euro.