Novartis

Novartis AG is a Swiss pharmaceutical company, headquartered in Basel, that researches, makes and sells prescription medicines. It was created on December 20, 1996, when Ciba-Geigy AG and Sandoz AG merged into one new company. Novartis reported net sales from continuing operations of $54.5 billion for 2025, and its website gives a workforce of about 77,000 people.

History of Novartis

Novartis dates its present form to the merger of two Swiss companies. According to its annual report on Form 20-F, its predecessor companies Ciba-Geigy AG and Sandoz AG merged into a new entity on December 20, 1996, and the result was named Novartis. The company is domiciled in Switzerland and governed by Swiss law, and its registered office is at Lichtstrasse 35 in Basel.

Over the following decades Novartis narrowed its focus to prescription medicines. The most visible step came in 2023, when it separated the business that operated as Sandoz. The 20-F says the Sandoz spin-off was completed on October 3, 2023, and that there were no operating results from discontinued operations in 2024 or 2025.

The company now describes that change as a transformation into a pure-play innovative medicines company. Its compensation report says this allowed a more focused allocation of resources and execution on priority brands, and it names Entresto among the products that beat their 2023 to 2025 sales targets by more than $1 billion.

Products and services of Novartis

Novartis says it is an innovative medicines company engaged in the research, development, manufacturing, distribution, marketing and sale of a broad range of pharmaceutical products. Its core strategy focuses on four therapeutic areas: cardiovascular, renal and metabolic; immunology; neuroscience; and oncology.

In cardiovascular medicine the best-known brand is Entresto, a heart failure treatment that the company says exceeded its three-year sales target. In neuroscience the report describes increased demand and share gain for multiple sclerosis treatments across all markets, and Kesimpta is among the products it lists in that area. The company also works in gene therapy, and its website lists Novartis Gene Therapies among its units.

New medicines have to pass through a clinical trial process before regulators will approve them, and Novartis relies on this pipeline as well as on acquisitions. The 20-F records business combinations that include Chinook Therapeutics in 2023 and Tourmaline Bio and Avidity Biosciences in 2025. Several of these deals are in biotechnology, where smaller companies often develop the next generation of treatments.

Selling medicines requires a large sales organization. The report says the company had 17,491 full-time equivalent field force employees at December 31, 2025, including supervisors and administrative staff. These representatives present the benefits and risks of Novartis products to physicians, pharmacists, hospitals, insurance groups and managed care organizations. The company also uses patient support programs and its own digital platforms.

Corporate structure and operations

Novartis AG is a Swiss holding company that owns subsidiaries around the world, directly or indirectly. The 20-F lists a long set of local operating companies in countries from Italy and Japan to Mexico and Malaysia, including a Japanese firm that still carries the Ciba-Geigy name. The company says its products are sold in 118 countries, and its website reports 304 million patients reached.

Financial results are reported under International Financial Reporting Standards. For 2025, the 20-F reports that net sales from continuing operations were $54.5 billion, up 8 percent both as reported in U.S. dollars and at constant currencies, which strips out the effect of exchange rate changes. The auditor, KPMG AG in Basel, has served Novartis since 2022 and signed its report on February 3, 2026.

Profit figures are also in the filing. Operating income from continuing operations was $17.6 billion in 2025, up 21 percent, and net income was $14.0 billion, up 17 percent. Core operating income, which excludes impairments, amortization and certain other items, was $21.9 billion. The company notes that its net sales are primarily concentrated in the United States and Europe.

The website’s footprint summary lists 77,000 employees, 118 countries with products sold and 304 million patients reached. The report on nonfinancial matters for 2025 gives more detail on how those figures are defined, and readers who need exact definitions should consult it directly. The headline figures are best treated as company statements for 2025.

Impact of Novartis

Novartis matters to health systems because it supplies treatments in areas that include heart failure, multiple sclerosis and cancer. The 1996 merger brought together two long-established Swiss companies, and the 2023 spin-off of Sandoz is a second structural change that shows how pharmaceutical groups have narrowed their focus from broad portfolios to specialist ones. Novartis states that this narrower focus supports its operational execution.

Sales are also tied to public policy. The report discusses how rebate provisions in the United States, which are discounts paid to payers and intermediaries, affect reported revenue, and the auditor reviewed management’s estimates of those provisions. Because the company sells in 118 countries, including Switzerland, it deals with many national price and reimbursement systems.

Risks and challenges

Novartis lists patent expiry as a major business risk. In the 20-F it explains that competition for a patented branded medicine in a country typically results in a significant reduction in net sales and operating income for that product. It adds that in any given year the company may see a notable effect from products that have already lost intellectual property protection or may lose it during the year.

The report also lists the need to replace revenue and income lost to generic, biosimilar and other competition. It warns that the company cannot be sure it will divest or spin off other businesses successfully, or that completed transactions will deliver the expected benefits. These statements describe risks identified by the company. They are not findings about any particular dispute, and the filing should be read for the full list.

Editorially reviewed by Specialty Digest Editorial TeamLast reviewed November 4, 2026Researched and drafted with AI assistanceReport an issue