NEWS BITES - PEOPLE IN BUSINESS
Dimitri Azar's performance as Director of Novartis is ranked in the second quartile of BuySellSignals Large MCap performers for the past quarter; a percentile ranking of 58.0. The shares were up 6.8% in CHF terms for the quarter ended February 18, 2020. In USD terms the price rise was 6.4%.
IN TODAY'S REPORT:
SECTION 1 BIOGRAPHY
SECTION 2 CORPORATE PROFILE
SECTION 3 RECENT NEWS ON DIRECTORS
SECTION 4 PRICE PERFORMANCE SCORECARD
SECTION 5 FINANCIALS AND GROWTH PERFORMANCE SCORECARD
SECTION 6 GLOBAL RANK
SECTION 1 BIOGRAPHY DIMITRI AZAR, DIRECTOR
Dimitri Azar, M.D., has been a member of the Board of Directors since 2012. He qualifies as an independent Non-Executive Director and is a member of the Audit and Compliance Committee and the Research & Development Committee.
Dr. Azar is senior director of ophthalmological innovation at Verily Life Sciences. He has also served as dean of the University of Illinois at Chicago (UIC) College of Medicine in the United States since 2011, and as professor of ophthalmology, bioengineering and pharmacology at UIC since 2006. From 2006 to 2011, he was head of the Department of Ophthalmology and Visual Sciences at UIC. He is a member of the American Ophthalmological Society, former president of the Chicago Ophthalmological Society, and president-elect of the Chicago Medical Society. Additionally, he is on the board of the Tear Film and Ocular Surface Society, the board of Verb Surgical Inc., and the scientific board of Verily - all based in the US.
Dr. Azar began his career at the American University of Beirut Medical Center in Lebanon, and completed his fellowship and residency training at the Massachusetts Eye and Ear Infirmary at Harvard Medical School in the US. His research on matrix metalloproteinases in corneal wound healing and angiogenesis has been funded by the US National Institutes of Health since 1993. Dr. Azar practiced at the Wilmer Eye Institute at the Johns Hopkins Hospital School of Medicine in the US, and then returned to the Massachusetts Eye and Ear Infirmary as director of cornea and external disease. He became professor of ophthalmology with tenure at Harvard Medical School in 2003. Dr. Azar holds a master's degree from Harvard and an Executive Master of Business Administration from the University of Chicago Booth School of Business in the US.
SECTION 2 CORPORATE PROFILE
2.1 Novartis AG Activities
Novartis AG is a Switzerland-based holding company engaged in the research, development, manufacture and marketing of medicines. The Company's businesses are divided into four operating divisions: Pharmaceuticals, which comprises brand-name patented pharmaceuticals; Vaccines and Diagnostics, which focuses on human vaccines and molecular diagnostics; Sandoz, comprising generic pharmaceuticals, and Consumer Health, which includes over-the-counter (OTC) and animal health medicines, contact lenses and lense-care products. It is Switzerland's largest Pharmaceuticals company by market cap.
2.2 Other directors of Novartis AG
Vasant (Vas) Narasimhan, Chief Executive Officer
Joerg Reinhardt, Chairman
Harry Kirsch, Chief Financial Officer
Frans van Houten, Director
Elizabeth (Liz) Doherty, Director
Nancy C. Andrews, Director
Ton Buechner, Director
William T. Winters, Director
Ann Fudge, Director
Dimitri Azar, Director
Srikant Datar, Director
Andreas von Planta, Director
Charlotte Pamer-Wieser, Company Secretary
Enrico Vanni, Vice Chairman
SECTION 3 RECENT NEWS ON DIRECTORS
3.1 SHAREHOLDER VALUE ADDED BY DIRECTORS
01 February 2020
Vasant (Vas) Narasimhan starts third year as Novartis CEO
Vasant (Vas) Narasimhan was appointed CEO of Novartis (SIX:NOVN) two years ago on February 01, 2018. The shares were up from CHF78.0 to CHF91.2 and the total annualized return to shareholders (TRS) since appointment is 11.9%. The present value of CHF1,000 (PV1000) invested on the appointment date is now worth CHF1,252, a gain of CHF168 and dividend reinvested of CHF83.
01 January 2020
Srikant Datar brings two-bagger value to Novartis
Srikant Datar was appointed Director of Novartis (SIX:NOVN) seventeen years ago on January 01, 2003. The present value of CHF1,000 (PV1000) invested on the appointment date is CHF2,663, for a capital gain of CHF1,142 and dividend reinvested of CHF521.
SECTION 4 NOVARTIS AG PRICE PERFORMANCE SCORECARD (Swiss:NOVN):
4.1 Total Shareholder Returns [TSR] (Past 10 years)
Novartis is ranked in the top 14% of BuySellSignals performers for the past ten years; a percentile ranking of 86. In the last 10 years the average annualized return to shareholders was 11.1%. The 10-year average return is ranked 5,965 out of 43,612 public companies traded globally. A two-bagger, the present value of US$1,000 (PV1000) invested 10 years ago is now worth US$2,857; a capital gain of US$1,298 and dividend reinvested of US$559.
4.2 The Past Four Years
Novartis rises for a fourth consecutive year, a four-year rise of 51%
Novartis AG (SIX:NOVN), extended its rise from 8.7% three years ago to 15.6% two years ago to 9.5% a year ago. In the past four years it has risen CHF32.37 (51.2%), compared with the Swiss Market Index SMI Price Index which rose 3,222.3 points (40.6%) in the four years for a relative price increase of 10.7%.
4.3 Moving Annual Return (Past 5 years)
Based on a dynamic start date of 5 years ago, the real rate of return has averaged 8.5%. The Moving Annual Return has been positive in 4 of the last 5 years. An investment a year ago in NOVN would have produced a return of 12.8%.
|NOVN||Close (CHF)||Dividends (CHF)||Capital Gain / (Loss) %||% Yield||Annual Return %|
|1 Yr ago||87.26||2.8||17.7||3.8||21.5|
|2 Yrs ago||74.13||2.75||9.5||4.1||13.5|
|3 Yrs ago||67.72||2.7||10||4.4||14.4|
|4 Yrs ago||61.54||2.6||(23.1)||3.2||(19.8)|
Close 5 years ago CHF80.02
4.4 Present Value of CHF1000 invested in the past
The present value of CHF1000 invested a year ago is CHF1,130
|Swiss Market Index SMI Price Index||1,012||1,029||1,208|
SECTION 5 NOVARTIS AG FINANCIALS AND GROWTH PERFORMANCE SCORECARD (Swiss:NOVN):
5.1 Annual Financials Ranking
Out of 193 stocks in the Swiss Market, Novartis AG is ranked 29th by EBITDA Margin and 85th by Debt to Equity.
|EBITDA Margin (%)||15.10||26.70||29|
|Debt to Equity (The lower the better)||0.70||0.40||85|
5.2 Revenue growth and ROE (All figures in percent)
Revenue Growth has improved from -3.9% in 2015 to 6.0% in 2018, Operating Margin has improved from 17.4% in 2015 to 26.7% in 2018 and Return on Equity has improved from 9.1% in 2015 to 16.0% in 2018.
|NOVN||Revenue Growth||EPS Growth||Operating Margin||ROE|
5.3 Revenue and Net Profit
In the last 3 years Compound Annual Growth Rate (CAGR) averaged 1.0% for Total Revenue and -10.8% for Net Profit.
|Description||Annual ($US B)||3-year Avg ($US B)||3-year CAGR %|
5.4 Performance (All figures in %)
Net Profit Margin 3-year average is 17.9% and Return on Equity 3-year average is 11.8%.
|Operating Profit Margin||26.7||20.9|
|Net Profit Margin||24.3||17.9|
|Return on Equity||16.0||11.8|
|Return on Assets||8.7||6.5|
|Return on Capital Employed||11.9||9.3|
5.5 High Performance Indicators and rank of Novartis in the Swiss market:
|Description||NOVN Value||Rank In Swiss Market|
|Turnover in Quarter||CHF27.6 billion (US$28.1 billion)||In Top 2%|
|EPS Growth %||65.9||In Top 10%|
|Volatility %||0.6||In Top Quartile|
|Price/Earnings/Growth||0.3||In Top Quartile|
|EBITDA Margin %||26.7||In Top Quartile|
SECTION 6 NOVARTIS AG GLOBAL RANK (Swiss:NOVN):
6.1 Global Rank
Rank in the Swiss Market Index SMI Price Index [out of 20 stocks]
|Total Assets (US$)||145.6B||6|
|Net Profit (US$)||12.6B||1|
|Return on Equity %||16.0||9|
|Net Profit Margin %||24.3||1|
|Price to Book||46.5||14|
|PV$1000 (1Year) US$*||1,113||13|
|% Change YTD||5.6||16|
Oct 14, 2019: CHF 1 equals USD 1.0041