http://www.sec.gov/Archives/edgar/data/1114448/000104746910000310...
`
`20-F 1 a2196017z20-f.htm 20-F
`
`Use these links to rapidly review the document
`TABLE OF CONTENTS
`NOVARTIS GROUP INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
`
`As filed with the Securities and Exchange Commission on January 26, 2010
`
`UNITED STATES
`SECURITIES AND EXCHANGE COMMISSION
`Washington D.C. 20549
`
`FORM 20-F
`
`o
`
`ý
`
`o
`
`o
`
`REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934
`OR
`ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended December 31, 2009
`OR
`TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
`OR
`SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
`
`Commission file number 1-15024
`
`NOVARTIS AG
`(Exact name of Registrant as specified in its charter)
`
`NOVARTIS Inc.
`(Translation of Registrant's name into English)
`
`Switzerland
`(Jurisdiction of incorporation or organization)
`
`Lichtstrasse 35
`4056 Basel, Switzerland
`
`(Address of principal executive offices)
`
`Thomas Werlen
`Group General Counsel
`Novartis AG
`CH-4056 Basel
`Switzerland
`011-41-61-324-2745
`thomas.werlen@novartis.com
`(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
`
`Securities registered pursuant to Section 12(b) of the Act:
`
`Title of class
`American Depositary Shares
`each representing 1 share,
`nominal value CHF 0.50 per share,
`and shares
`
`Name of each exchange on which registered
`New York Stock Exchange, Inc.
`
`Securities registered or to be registered pursuant to Section 12(g) of the Act:
`
`None
`
`Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
`
`None
`
`Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report:
`
`Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
`
`2,274,353,351 shares
`
`Yes ý No o
`
`If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
`
`1/11/2016 12:49 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 1 of 35
`
`

`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746910000310...
`
`Yes o No ý
`
`Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that
`the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
`
`Yes ý No o
`
`Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act
`(Check one):
`
`Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
`
`Large accelerated filer ý
`
`Accelerated filer o
`
`Non-accelerated filer o
`
`o U.S. GAAP
`
`ý International Financial Reporting Standards as issued by the International Accounting Standards Board
`
`o Other
`
`If "Other" has been checked in response to the previous question indicate by check mark which financial statement item the registrant has elected to follow.
`
`If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
`
`Item 17 o Item 18 o
`
`Yes o No ý
`
`1/11/2016 12:49 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 2 of 35
`
`

`
`Table of Contents
`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746910000310...
`
`TABLE OF CONTENTS
`
`INTRODUCTION AND USE OF CERTAIN TERMS
`
`FORWARD LOOKING STATEMENTS
`
`PART I
`
`Item
`
`Item
`
`Item
`
`Item
`
`1.
`
`2.
`
`3.
`3.A
`3.B
`3.C
`3.D
`
`4.
`4.A
`4.B
`
`4.C
`4.D
`
`Identity of Directors, Senior Management and Advisers
`
`Offer Statistics and Expected Timetable
`
`Key Information
`Selected Financial Data
`Capitalization and Indebtedness
`Reasons for the offer and use of proceeds
`Risk Factors
`
`Information on the Company
`History and Development of Novartis
`Business Overview
`Pharmaceuticals
`Vaccines and Diagnostics
`Sandoz
`Consumer Health
`Organizational Structure
`Property, Plants and Equipment
`
`Item
`
`4A.
`
`Unresolved Staff Comments
`
`Item
`
`Item
`
`Item
`
`Item
`
`Item
`
`5.
`5.A
`5.B
`5.C
`5.D
`5.E
`5.F
`
`6.
`6.A
`6.B
`6.C
`6.D
`6.E
`
`Operating and Financial Review and Prospects
`Operating Results
`Liquidity and Capital Resources
`Research & Development, Patents and Licenses
`Trend Information
`Off-Balance Sheet Arrangements
`Aggregate Contractual Obligations
`
`Directors, Senior Management and Employees
`Directors and Senior Management
`Compensation
`Board Practices
`Employees
`Share Ownership
`
`Major Shareholders and Related Party Transactions
`7.
`7.A Major Shareholders
`7.B
`Related Party Transactions
`7.C
`Interests of Experts and Counsel
`
`8.
`8.A
`8.B
`
`Financial Information
`Consolidated Statements and Other Financial Information
`Significant Changes
`
`The Offer and Listing
`9.
`Listing Details
`9.A
`Plan of Distribution
`9.B
`9.C Market
`9.D
`Selling Shareholders
`9.E
`Dilution
`9.F
`Expenses of the Issue
`
`1
`
`1
`
`3
`
`3
`
`3
`
`3
`3
`6
`6
`6
`
`18
`18
`21
`23
`57
`64
`71
`76
`76
`
`83
`
`83
`83
`149
`153
`153
`154
`154
`
`156
`156
`164
`185
`201
`202
`
`203
`203
`204
`204
`
`205
`205
`205
`
`205
`205
`206
`207
`207
`207
`207
`
`1/11/2016 12:49 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 3 of 35
`
`

`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746910000310...
`
`Table of Contents
`
`Item
`
`Additional Information
`10.
`10.A Share capital
`10.B Memorandum and Articles of Association
`10.C Material contracts
`10.D Exchange controls
`10.E
`Taxation
`10.F Dividends and paying agents
`10.G Statement by experts
`10.H Documents on display
`10.I
`Subsidiary Information
`
`Item
`
`11.
`
`Quantitative and Qualitative Disclosures about Non-Product-Related Market Risk
`
`Item
`
`Description of Securities other than Equity Securities
`12.
`12.A Debt Securities
`12.B Warrants and Rights
`12.C Other Securities
`12.D American Depositary Shares
`
`PART II
`
`Item
`
`Item
`
`Item
`
`13.
`
`14.
`
`15.
`
`Defaults, Dividend Arrearages and Delinquencies
`
`Material Modifications to the Rights of Security Holders and Use of Proceeds
`
`Controls and Procedures
`
`Item
`
`16A. Audit Committee Financial Expert
`
`Item
`
`16B. Code of Ethics
`
`Item
`
`16C.
`
`Principal Accountant Fees and Services
`
`Item
`
`16D. Exemptions from the Listing Standards for Audit Committees
`
`Item
`
`16E.
`
`Purchases of Equity Securities by the Issuer and Affiliated Purchasers
`
`Item
`
`16F
`
`Change in Registrant's Certifying Accountant
`
`Item
`
`16G. Corporate Governance
`
`PART III
`
`Item
`
`Item
`
`Item
`
`17.
`
`18.
`
`19.
`
`Financial Statements
`
`Financial Statements
`
`Exhibits
`
`207
`207
`207
`212
`212
`212
`217
`217
`217
`218
`
`219
`
`224
`224
`224
`224
`225
`
`227
`
`227
`
`227
`
`228
`
`228
`
`228
`
`229
`
`230
`
`231
`
`231
`
`231
`
`232
`
`232
`
`232
`
`233
`
`1/11/2016 12:49 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 4 of 35
`
`

`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746910000310...
`
`Table of Contents
`
`NOTES TO THE NOVARTIS GROUP
`
`CONSOLIDATED FINANCIAL STATEMENTS (Continued)
`
`3.
`
`Segmentation of key figures 2009, 2008 and 2007 (Continued)
`
`Pharmaceuticals Division therapeutic area net sales
`
`Therapeutic areas
`
`Cardiovascular and Metabolism
`Diovan
`Exforge
`Lotrel
`Tekturna/Rasilez
`Galvus
`Total strategic franchise products
`Mature products (including Lescol)
`Total Cardiovascular and Metabolism products
`Oncology
`Gleevec/Glivec
`Zometa
`Femara
`Sandostatin
`Exjade
`Tasigna
`Afinitor
`Other
`Total Oncology products
`Neuroscience and Ophthalmics
`Lucentis
`Exelon/Exelon Patch
`Comtan/Stalevo
`Ritalin/Focalin
`Tegretol
`Trileptal
`Extavia
`Other
`Total strategic franchise products
`Mature products
`Total Neuroscience and Ophthalmics products
`
`2009
`$ millions
`
`2008
`$ millions
`
`Change
`(2008 to
`2009)
`$ (%)
`
`Change
`(2007 to
`2008)
`$ (%)
`
`2007
`$ millions
`
`6,013
`671
`322
`290
`181
`7,477
`1,319
`8,796
`
`3,944
`1,469
`1,266
`1,155
`652
`212
`70
`231
`8,999
`
`1,232
`954
`554
`449
`375
`295
`49
`649
`4,557
`384
`4,941
`
`5,740
`406
`386
`144
`43
`6,719
`1,464
`8,183
`
`3,670
`1,382
`1,129
`1,123
`531
`89
`1
`286
`8,211
`
`886
`815
`502
`440
`451
`332
`
`775
`4,201
`404
`4,605
`
`5
`65
`(17)
`101
`321
`11
`(10)
`7
`
`7
`6
`12
`3
`23
`138
`NM
`(19)
`10
`
`39
`17
`10
`2
`(17)
`(11)
`NM
`(16)
`8
`(5)
`7
`
`5,012
`103
`748
`40
`8
`5,911
`1,494
`7,405
`
`3,050
`1,297
`937
`1,027
`357
`4
`
`279
`6,951
`
`393
`632
`420
`375
`413
`692
`
`987
`3,912
`435
`4,347
`
`15
`294
`(48)
`260
`438
`14
`(2)
`11
`
`20
`7
`20
`9
`49
`NM
`NM
`3
`18
`
`125
`29
`20
`17
`9
`(52)
`NM
`(21)
`7
`(7)
`6
`
`F-28
`
`1/11/2016 12:49 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 5 of 35
`
`

`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746911000325...
`
`20-F 1 a2201576z20-f.htm 20-F
`
`Use these links to rapidly review the document
`TABLE OF CONTENTS
`NOVARTIS GROUP INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
`
`Table of Contents
`
`As filed with the Securities and Exchange Commission on January 27, 2011
`
`UNITED STATES
`SECURITIES AND EXCHANGE COMMISSION
`Washington D.C. 20549
`
`FORM 20-F
`
`o
`
`ý
`
`o
`
`o
`
`REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934
`
`OR
`
`ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended
`December 31, 2010
`
`OR
`
`TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
`
`OR
`
`SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
`
`Commission file number 1-15024
`
`NOVARTIS AG
`(Exact name of Registrant as specified in its charter)
`
`NOVARTIS Inc.
`(Translation of Registrant's name into English)
`
`Switzerland
`(Jurisdiction of incorporation or organization)
`
`Lichtstrasse 35
`4056 Basel, Switzerland
`
`(Address of principal executive offices)
`
`Thomas Werlen
`Group General Counsel
`Novartis AG
`CH-4056 Basel
`Switzerland
`011-41-61-324-2745
`thomas.werlen@novartis.com
`(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
`
`Securities registered pursuant to Section 12(b) of the Act:
`
`Title of class
`American Depositary Shares
`each representing 1 share,
`nominal value CHF 0.50 per share,
`and shares
`
`Name of each exchange on which registered
`New York Stock Exchange, Inc.
`
`Securities registered or to be registered pursuant to Section 12(g) of the Act:
`
`1/11/2016 12:43 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 6 of 35
`
`

`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746911000325...
`
`None
`
`Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
`
`None
`
`Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report:
`
`Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
`
`2,289,445,178 shares
`
`Yes ý No o
`
`If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
`
`Yes o No ý
`
`Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such
`shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
`
`Yes ý No o
`
`Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of
`the Exchange Act (Check one):
`
`Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
`
`Large accelerated filer ý
`
`Accelerated filer o
`
`Non-accelerated filer o
`
`o U.S. GAAP
`
`ý International Financial Reporting Standards as issued by the International Accounting Standards Board
`
`o Other
`
`If "Other" has been checked in response to the previous question indicate by check mark which financial statement item the registrant has elected to follow.
`
`If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
`
`Item 17 o Item 18 o
`
`Yes o No ý
`
`1/11/2016 12:43 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 7 of 35
`
`

`
`Table of Contents
`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746911000325...
`
`TABLE OF CONTENTS
`
`INTRODUCTION AND USE OF CERTAIN TERMS
`
`FORWARD LOOKING STATEMENTS
`
`PART I
`
`Item
`
`Item
`
`Item
`
`Item
`
`1.
`
`2.
`
`3.
`3.A
`3.B
`3.C
`3.D
`
`4.
`4.A
`4.B
`
`4.C
`4.D
`
`Identity of Directors, Senior Management and Advisers
`
`Offer Statistics and Expected Timetable
`
`Key Information
`Selected Financial Data
`Capitalization and Indebtedness
`Reasons for the offer and use of proceeds
`Risk Factors
`
`Information on the Company
`History and Development of Novartis
`Business Overview
`Pharmaceuticals
`Vaccines and Diagnostics
`Sandoz
`Consumer Health
`Organizational Structure
`Property, Plants and Equipment
`
`Item
`
`4A.
`
`Unresolved Staff Comments
`
`Item
`
`Item
`
`Item
`
`Item
`
`Item
`
`5.
`5.A
`5.B
`5.C
`5.D
`5.E
`5.F
`
`6.
`6.A
`6.B
`6.C
`6.D
`6.E
`
`Operating and Financial Review and Prospects
`Operating Results
`Liquidity and Capital Resources
`Research & Development, Patents and Licenses
`Trend Information
`Off-Balance Sheet Arrangements
`Aggregate Contractual Obligations
`
`Directors, Senior Management and Employees
`Directors and Senior Management
`Compensation
`Board Practices
`Employees
`Share Ownership
`
`Major Shareholders and Related Party Transactions
`7.
`7.A Major Shareholders
`7.B
`Related Party Transactions
`7.C
`Interests of Experts and Counsel
`
`8.
`8.A
`8.B
`
`Financial Information
`Consolidated Statements and Other Financial Information
`Significant Changes
`
`The Offer and Listing
`9.
`Listing Details
`9.A
`Plan of Distribution
`9.B
`9.C Market
`9.D
`Selling Shareholders
`
`1
`
`1
`
`3
`
`3
`
`3
`
`3
`3
`6
`6
`6
`
`20
`20
`23
`25
`58
`67
`74
`79
`79
`
`86
`
`87
`87
`166
`172
`172
`172
`172
`
`174
`174
`182
`210
`230
`232
`
`233
`233
`234
`235
`
`235
`235
`235
`
`236
`236
`237
`237
`237
`
`1/11/2016 12:43 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 8 of 35
`
`

`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746911000325...
`
`Table of Contents
`
`9.E
`9.F
`
`Dilution
`Expenses of the Issue
`
`Item
`
`Additional Information
`10.
`10.A Share Capital
`10.B Memorandum and Articles of Association
`10.C Material Contracts
`10.D Exchange Controls
`10.E Taxation
`10.F Dividends and Paying Agents
`10.G Statement by Experts
`10.H Documents on Display
`10.I
`Subsidiary Information
`
`Item
`
`11.
`
`Quantitative and Qualitative Disclosures about Non-Product-Related Market Risk
`
`Item
`
`Description of Securities other than Equity Securities
`12.
`12.A Debt Securities
`12.B Warrants and Rights
`12.C Other Securities
`12.D American Depositary Shares
`
`PART II
`
`Item
`
`Item
`
`Item
`
`13.
`
`14.
`
`15.
`
`Defaults, Dividend Arrearages and Delinquencies
`
`Material Modifications to the Rights of Security Holders and Use of Proceeds
`
`Controls and Procedures
`
`Item
`
`16A. Audit Committee Financial Expert
`
`Item
`
`16B. Code of Ethics
`
`Item
`
`16C.
`
`Principal Accountant Fees and Services
`
`Item
`
`16D. Exemptions from the Listing Standards for Audit Committees
`
`Item
`
`16E.
`
`Purchases of Equity Securities by the Issuer and Affiliated Purchasers
`
`Item
`
`16F.
`
`Change in Registrant's Certifying Accountant
`
`Item
`
`16G. Corporate Governance
`
`PART III
`
`Item
`
`Item
`
`Item
`
`17.
`
`18.
`
`19.
`
`Financial Statements
`
`Financial Statements
`
`Exhibits
`
`237
`237
`
`237
`237
`237
`242
`243
`243
`247
`247
`248
`248
`
`249
`
`254
`254
`254
`254
`255
`
`257
`
`257
`
`257
`
`258
`
`258
`
`258
`
`259
`
`260
`
`261
`
`261
`
`261
`
`262
`
`262
`
`262
`
`263
`
`1/11/2016 12:43 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 9 of 35
`
`

`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746911000325...
`
`Table of Contents
`
`NOTES TO THE NOVARTIS GROUP
`
`CONSOLIDATED FINANCIAL STATEMENTS (Continued)
`
`3.
`
`Segmentation of key figures 2010, 2009 and 2008 (Continued)
`
`Pharmaceuticals Division therapeutic area net sales
`
`Therapeutic areas
`
`Cardiovascular and
`Metabolism
`Hypertension medicines
`Diovan
`Exforge
`Tekturna/Rasilez
`Subtotal
`Galvus
`Lotrel
`Total strategic franchise
`products
`Established medicines
`(Lescol included)
`Total Cardiovascular and
`Metabolism products
`Oncology
`BCR-Abl franchise
`Gleevec/Glivec
`Tasigna
`Subtotal
`Zometa
`Femara
`Sandostatin
`Exjade
`Afinitor
`Other
`Total Oncology products
`Neuroscience and
`Ophthalmics
`Lucentis
`Exelon/Exelon Patch
`Comtan/Stalevo
`Extavia
`Other
`Total strategic franchise
`products
`Established medicines
`Total Neuroscience and
`Ophthalmics products
`
`2010
`$ millions
`
`2009
`$ millions
`
`Change
`in $
`(2009 to
`2010)
`%
`
`Change
`in constant
`currencies
`(2009 to
`2010)
`%
`
`Change
`in $
`(2008 to
`2009)
`%
`
`Change
`in constant
`currencies
`(2008 to
`2009)
`%
`
`2008(1)
`$ millions
`
`6,053
`904
`438
`7,395
`391
`266
`
`8,052
`
`1,103
`
`9,155
`
`4,265
`399
`4,664
`1,511
`1,376
`1,291
`762
`243
`181
`10,028
`
`1,533
`1,003
`600
`124
`457
`
`3,717
`567
`
`4,284
`
`1
`35
`51
`6
`116
`(17)
`
`8
`
`(16)
`
`4
`
`8
`88
`12
`3
`9
`12
`17
`nm
`(22)
`11
`
`24
`5
`8
`nm
`0
`
`14
`(1)
`
`12
`
`6,013
`671
`290
`6,974
`181
`322
`
`7,477
`
`1,319
`
`8,796
`
`3,944
`212
`4,156
`1,469
`1,266
`1,155
`652
`70
`231
`8,999
`
`1,232
`954
`554
`49
`459
`
`3,248
`575
`
`3,823
`
`F-32
`
`0
`35
`53
`5
`122
`(18)
`
`7
`
`(17)
`
`4
`
`7
`89
`11
`2
`9
`11
`16
`nm
`(23)
`11
`
`24
`6
`8
`nm
`(1)
`
`14
`(4)
`
`11
`
`5,740
`406
`144
`6,290
`43
`386
`
`6,719
`
`1,464
`
`8,183
`
`3,670
`89
`3,759
`1,382
`1,129
`1,123
`531
`1
`286
`8,211
`
`886
`815
`502
`—
`543
`
`2,746
`636
`
`3,382
`
`5
`65
`101
`11
`321
`(17)
`
`11
`
`(10)
`
`7
`
`7
`138
`11
`6
`12
`3
`23
`nm
`(19)
`10
`
`39
`17
`10
`nm
`(15)
`
`18
`(10)
`
`13
`
`6
`72
`104
`12
`327
`(17)
`
`13
`
`(7)
`
`9
`
`12
`145
`15
`9
`16
`7
`27
`nm
`(16)
`14
`
`47
`22
`14
`nm
`(11)
`
`24
`(5)
`
`18
`
`1/11/2016 12:43 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 10 of 35
`
`

`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746912000354...
`
`20-F 1 a2205643z20-f.htm 20-F
`
`Use these links to rapidly review the document
`TABLE OF CONTENTS
`INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
`INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
`
`Table of Contents
`
`As filed with the Securities and Exchange Commission on January 25, 2012
`
`UNITED STATES
`SECURITIES AND EXCHANGE COMMISSION
`Washington D.C. 20549
`
`FORM 20-F
`
`o
`
`ý
`
`o
`
`o
`
`REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934
`
`OR
`
`ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended December 31, 2011
`
`OR
`
`TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
`
`OR
`
`SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
`
`Commission file number 1-15024
`
`NOVARTIS AG
`(Exact name of Registrant as specified in its charter)
`
`NOVARTIS Inc.
`(Translation of Registrant's name into English)
`
`Switzerland
`(Jurisdiction of incorporation or organization)
`
`Lichtstrasse 35
`4056 Basel, Switzerland
`
`(Address of principal executive offices)
`
`Felix R. Ehrat
`Group General Counsel
`Novartis AG
`CH-4056 Basel
`Switzerland
`011-41-61-696-9511
`felix.ehrat@novartis.com
`(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
`
`Securities registered pursuant to Section 12(b) of the Act:
`
`Title of class
`American Depositary Shares
`each representing 1 share,
`nominal value CHF 0.50 per share,
`and shares
`
`Name of each exchange on which registered
`New York Stock Exchange, Inc.
`
`Securities registered or to be registered pursuant to Section 12(g) of the Act:
`
`None
`
`Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
`
`None
`
`Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report:
`
`1/11/2016 12:39 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 11 of 35
`
`

`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746912000354...
`
`Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
`
`Yes ý No o
`
`2,406,693,857 shares
`
`If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
`
`Yes o No ý
`
`Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the
`registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
`
`Yes ý No o
`
`Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act (Check
`one):
`
`Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
`
`Large accelerated filer ý
`
`Accelerated filer o
`
`Non-accelerated filer o
`
`o U.S. GAAP
`
`ý International Financial Reporting Standards as issued by the International Accounting Standards Board
`
`o Other
`
`If "Other" has been checked in response to the previous question indicate by check mark which financial statement item the registrant has elected to follow.
`
`If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
`
`Item 17 o
`
`Item 18 o
`
`Yes o No ý
`
`1/11/2016 12:39 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 12 of 35
`
`

`
`Table of Contents
`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746912000354...
`
`TABLE OF CONTENTS
`
`INTRODUCTION AND USE OF CERTAIN TERMS
`
`FORWARD LOOKING STATEMENTS
`
`PART I
`
`Item
`
`Item
`
`Item
`
`Item
`
`1.
`
`2.
`
`3.
`3.A
`3.B
`3.C
`3.D
`
`4.
`4.A
`4.B
`
`4.C
`4.D
`
`Identity of Directors, Senior Management and Advisers
`
`Offer Statistics and Expected Timetable
`
`Key Information
`Selected Financial Data
`Capitalization and Indebtedness
`Reasons for the offer and use of proceeds
`Risk Factors
`
`Information on the Company
`History and Development of Novartis
`Business Overview
`Pharmaceuticals
`Alcon
`Sandoz
`Vaccines and Diagnostics
`Consumer Health
`Organizational Structure
`Property, Plants and Equipment
`
`Item
`
`4A.
`
`Unresolved Staff Comments
`
`Item
`
`Item
`
`Item
`
`Item
`
`Item
`
`5.
`5.A
`5.B
`5.C
`5.D
`5.E
`5.F
`
`6.
`6.A
`6.B
`6.C
`6.D
`6.E
`
`Operating and Financial Review and Prospects
`Operating Results
`Liquidity and Capital Resources
`Research & Development, Patents and Licenses
`Trend Information
`Off-Balance Sheet Arrangements
`Aggregate Contractual Obligations
`
`Directors, Senior Management and Employees
`Directors and Senior Management
`Compensation
`Board Practices
`Employees
`Share Ownership
`
`Major Shareholders and Related Party Transactions
`7.
`7.A Major Shareholders
`7.B
`Related Party Transactions
`7.C
`Interests of Experts and Counsel
`
`8.
`8.A
`8.B
`
`Financial Information
`Consolidated Statements and Other Financial Information
`Significant Changes
`
`The Offer and Listing
`9.
`Listing Details
`9.A
`Plan of Distribution
`9.B
`9.C Market
`9.D
`Selling Shareholders
`9.E
`Dilution
`9.F
`Expenses of the Issue
`
`Item
`
`Additional Information
`10.
`10.A Share Capital
`10.B Memorandum and Articles of Association
`10.C Material Contracts
`
`1
`
`1
`
`3
`
`3
`
`3
`
`3
`3
`6
`6
`6
`
`17
`17
`20
`22
`54
`62
`68
`75
`78
`78
`
`85
`
`85
`85
`159
`164
`165
`165
`165
`
`166
`166
`174
`199
`219
`219
`
`220
`220
`221
`222
`
`222
`222
`222
`
`223
`223
`224
`224
`224
`224
`224
`
`224
`224
`224
`228
`
`1/11/2016 12:39 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 13 of 35
`
`

`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746912000354...
`
`Table of Contents
`
`10.D Exchange Controls
`10.E Taxation
`10.F Dividends and Paying Agents
`10.G Statement by Experts
`10.H Documents on Display
`10.I
`Subsidiary Information
`
`Item
`
`11.
`
`Quantitative and Qualitative Disclosures about Non-Product-Related Market Risk
`
`Item
`
`Description of Securities other than Equity Securities
`12.
`12.A Debt Securities
`12.B Warrants and Rights
`12.C Other Securities
`12.D American Depositary Shares
`
`PART II
`
`Item
`
`Item
`
`Item
`
`13.
`
`14.
`
`15.
`
`Defaults, Dividend Arrearages and Delinquencies
`
`Material Modifications to the Rights of Security Holders and Use of Proceeds
`
`Controls and Procedures
`
`Item
`
`16A. Audit Committee Financial Expert
`
`Item
`
`16B. Code of Ethics
`
`Item
`
`16C.
`
`Principal Accountant Fees and Services
`
`Item
`
`16D. Exemptions from the Listing Standards for Audit Committees
`
`Item
`
`16E.
`
`Purchases of Equity Securities by the Issuer and Affiliated Purchasers
`
`Item
`
`16F.
`
`Change in Registrant's Certifying Accountant
`
`Item
`
`16G. Corporate Governance
`
`PART III
`
`Item
`
`Item
`
`Item
`
`17.
`
`18.
`
`19.
`
`Financial Statements
`
`Financial Statements
`
`Exhibits
`
`228
`228
`233
`233
`233
`233
`
`234
`
`238
`238
`238
`238
`239
`
`240
`
`240
`
`240
`
`240
`
`240
`
`240
`
`241
`
`242
`
`242
`
`242
`
`243
`
`244
`
`244
`
`244
`
`245
`
`1/11/2016 12:39 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 14 of 35
`
`

`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746912000354...
`
`Table of Contents
`
`NOTES TO THE NOVARTIS GROUP
`
`CONSOLIDATED FINANCIAL STATEMENTS (Continued)
`
`3.
`
`Segmentation of Key Figures 2011, 2010 and 2009 (Continued)
`
`Pharmaceuticals division therapeutic area net sales
`
`Therapeutic areas
`
`Cardiovascular and Metabolism
`Hypertension medicines
`Diovan
`Exforge
`Subtotal Valsartan Group
`Tekturna/Rasilez
`Subtotal Hypertension
`Galvus
`Total strategic franchise products
`Established medicines
`Total Cardiovascular and Metabolism products
`Oncology
`Gleevec/Glivec
`Tasigna
`Subtotal Bcr-Abl franchise
`Zometa
`Sandostatin
`Femara
`Exjade
`Afinitor
`Other
`Total Oncology products
`Neuroscience and Ophthalmics
`Lucentis
`Exelon/Exelon Patch
`Comtan/Stalevo
`Gilenya
`Extavia
`Other (including Fanapt)
`Total strategic franchise products
`Established medicines
`Total Neuroscience and Ophthalmics products
`
`nm—not
`
`meaningful
`
`F-29
`
`2011
`$ m
`
`2010
`$ m
`
`Change
`(2010 to
`2011)
`$ %
`
`5,665
`1,209
`6,874
`557
`7,431
`677
`8,108
`1,027
`9,135
`
`4,659
`716
`5,375
`1,487
`1,443
`911
`850
`443
`163
`10,672
`
`2,050
`1,067
`614
`494
`154
`159
`4,538
`547
`5,085
`
`6,053
`904
`6,957
`438
`7,395
`391
`7,786
`1,369
`9,155
`
`4,265
`399
`4,664
`1,511
`1,291
`1,376
`762
`243
`181
`10,028
`
`1,533
`1,003
`600
`15
`124
`190
`3,465
`567
`4,032
`
`(6)
`34
`(1)
`27
`0
`73
`4
`(25)
`0
`
`9
`79
`15
`(2)
`12
`(34)
`12
`82
`(10)
`6
`
`34
`6
`2
`nm
`24
`(16)
`31
`(4)
`26
`
`Change
`(2009 to
`2010)
`$ %
`
`1
`35
`4
`51
`6
`116
`9
`(17)
`4
`
`8
`88
`12
`3
`12
`9
`17
`nm
`(22)
`11
`
`24
`5
`8
`
`nm
`(9)
`16
`(1)
`13
`
`2009
`$ m
`
`6,013
`671
`6,684
`290
`6,974
`181
`7,155
`1,641
`8,796
`
`3,944
`212
`4,156
`1,469
`1,155
`1,266
`652
`70
`231
`8,999
`
`1,232
`954
`554
`
`49
`208
`2,997
`575
`3,572
`
`1/11/2016 12:39 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 15 of 35
`
`

`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746913000377...
`
`20-F 1 a2212460z20-f.htm 20-F
`
`Use these links to rapidly review the document
`TABLE OF CONTENTS
`Part III
`NOVARTIS GROUP INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
`
`Table of Contents
`
`As filed with the Securities and Exchange Commission on January 23, 2013
`
`UNITED STATES
`SECURITIES AND EXCHANGE COMMISSION
`Washington D.C. 20549
`
`FORM 20-F
`
`o
`
`ý
`
`o
`
`o
`
`REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934
`
`OR
`
`ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended December 31,
`2012
`
`OR
`
`TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
`
`OR
`
`SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
`
`Commission file number 1-15024
`
`NOVARTIS AG
`(Exact name of Registrant as specified in its charter)
`
`NOVARTIS Inc.
`(Translation of Registrant's name into English)
`
`Switzerland
`(Jurisdiction of incorporation or organization)
`
`Lichtstrasse 35
`4056 Basel, Switzerland
`
`(Address of principal executive offices)
`
`Felix R. Ehrat
`Group General Counsel
`Novartis AG
`CH-4056 Basel
`Switzerland
`011-41-61-696-9511
`felix.ehrat@novartis.com
`(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
`
`Securities registered pursuant to Section 12(b) of the Act:
`
`Title of class
`American Depositary Shares
`each representing 1 share,
`nominal value CHF 0.50 per share,
`and shares
`
`Name of each exchange on which registered
`New York Stock Exchange, Inc.
`
`Securities registered or to be registered pursuant to Section 12(g) of the Act:
`
`None
`
`Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
`
`1/11/2016 12:37 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 16 of 35
`
`

`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746913000377...
`
`Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report:
`
`None
`
`Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
`
`2,420,620,174 shares
`
`Yes ý No o
`
`If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
`
`Yes o No ý
`
`Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period
`that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
`
`Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange
`Act (Check one):
`
`Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
`
`Large accelerated filer ý
`
`Accelerated filer o
`
`Non-accelerated filer o
`
`Yes ý No o
`
`o U.S. GAAP
`
`ý International Financial Reporting Standards as issued by the International Accounting Standards Board
`
`o Other
`
`If "Other" has been checked in response to the previous question indicate by check mark which financial statement item the registrant has elected to follow.
`
`If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
`
`Item 17 o
`
`Item 18 o
`
`Yes o No ý
`
`1/11/2016 12:37 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 17 of 35
`
`

`
`Table of Contents
`
`http://www.sec.gov/Archives/edgar/data/1114448/000104746913000377...
`
`TABLE OF CONTENTS
`
`INTRODUCTION AND USE OF CERTAIN TERMS
`
`FORWARD LOOKING STATEMENTS
`
`PART I
`
`Item
`
`Item
`
`Item
`
`Item
`
`1.
`
`2.
`
`3.
`3.A
`3.B
`3.C
`3.D
`
`4.
`4.A
`4.B
`
`4.C
`4.D
`
`Identity of Directors, Senior Management and Advisers
`
`Offer Statistics and Expected Timetable
`
`Key Information
`Selected Financial Data
`Capitalization and Indebtedness
`Reasons for the offer and use of proceeds
`Risk Factors
`
`Information on the Company
`History and Development of Novartis
`Business Overview
`Pharmaceuticals
`Alcon
`Sandoz
`Vaccines and Diagnostics
`Consumer Health
`Organizational Structure
`Property, Plants and Equipment
`
`Item
`
`4A.
`
`Unresolved Staff Comments
`
`Item
`
`Item
`
`Item
`
`Item
`
`Item
`
`5.
`5.A
`5.B
`5.C
`5.D
`5.E
`5.F
`
`6.
`6.A
`6.B
`6.C
`6.D
`6.E
`
`Operating and Financial Review and Prospects
`Operating Results
`Liquidity and Capital Resources
`Research & Development, Patents and Licenses
`Trend Information
`Off-Balance Sheet Arrangements
`Aggregate Contractual Obligations
`
`Directors, Senior Management and Employees
`Directors and Senior Management
`Compensation
`Board Practices
`Employees
`Share Ownership
`
`Major Shareholders and Related Party Transactions
`7.
`7.A Major Shareholders
`7.B
`Related Party Transactions
`7.C
`Interests of Experts and Counsel
`
`8.
`8.A
`8.B
`
`Financial Information
`Consolidated Statements and Other Financial Information
`Significant Changes
`
`The Offer and Listing
`9.
`Listing Details
`9.A
`Plan of Distribution
`9.B
`9.C Market
`9.D
`Selling Shareholders
`
`1
`
`1
`
`3
`
`3
`
`3
`
`3
`3
`6
`6
`6
`
`21
`21
`25
`27
`64
`75
`82
`90
`95
`95
`
`104
`
`104
`104
`187
`197
`198
`198
`198
`
`199
`199
`208
`239
`262
`262
`
`263
`263
`265
`265
`
`265
`265
`266
`
`266
`266
`268
`268
`268
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`1/11/2016 12:37 PM
`
`NOVARTIS EXHIBIT 2071
`Par v Novartis, IPR 2016-00084
`Page 18 of 35
`
`

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`http://www.sec.gov/Archives/edgar/data/1114448/000104746913000377...
`
`Table of Contents
`
`9.E
`9.F
`
`Dilution
`Expenses of the Issue
`
`Item
`
`Additional Information
`10.
`10.A Share Capital
`10.B Memorandum and Articles of Association
`10.C Material Contracts
`10.D Exchange Controls
`10.E
`Taxation
`10.F Dividends and Paying Agents
`10.G Statement by Experts
`10.H Documents on Display