Novartis AG Q2 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kerry Ann Holford - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : A couple for me, please. Harry, just on the second half outlook. You obviously raised the pharmaa form operating profit growth guide in the slide today, but you're not updating the gross guidance for the group. And although you've not changed the outlook for Sandoz, in the second half, what is it within this division that problems continued caution for that second half outlook just by those improvements you've seen in Q2? And then on inclisiran. Just I think a question was asked on this earlier, but just to clarify. What are your plans on the manufacturing of that drug in the future? Can you remind us where the ex-U. S. supply is manufactured? Should we understand that the global manufacturing sites is now the Austrian site? Or should we anticipate further significant investment at some point, perhaps in the U.S.?

Question: Martial Descoutures - ODDO BHF Corporate & Markets, Research Division - Analyst : I would like to come back on the Sandoz business, and thank you for your previous answer on the H2. We understand the next step with the top line improvement driven by the pipeline with biosimilars and the section of complete generics. But could you share with us your vision on the improvement of the ratability in midterm? Do you see any concrete operation or leverage on the cost or due to the improvement of the top line expected and the affiliated cost plus the price erosion. Should we consider stabilization of this activity for the next year, if you could give us more color maybe to help us to manage the core EBIT margin in the next quarters and years?