Novartis reinforces commitment to patient access, pricing a EUR 1.85 billion sustainability-linked bond

• First healthcare industry sustainability-linked bond (SLB) further embeds Environmental Social Governance (ESG) targets into the core of Novartis business operations
  
  
• SLB linked to 2025 Patient Access Targets to increase patients reached in low- and middle-income countries (LMICs) with strategic innovative therapies by 200% and the Novartis Flagship Programs by 50%

Basel, September 16, 2020 — Novartis today announced the pricing of a EUR 1.85 billion sustainability-linked bond (SLB), reinforcing its commitment to ESG principles and the 2025 Patient Access Targets announced earlier this month.

The new bond is the first of its kind in the healthcare industry and the first SLB incorporating social targets, with bondholders entitled to receive a higher amount of interest if Novartis fails to meet its targets for expanding access to its innovative medicines and addressing key global health challenges, two areas where Novartis can drive the greatest value for society. 

“For decades, Novartis has worked to improve access to medicines and tackle global health challenges. We’re currently working to support global health efforts to address diseases like malaria and leprosy, to continue novel research into tropical diseases, and to ensure access to our new medicines in low- and middle-income countries,” said Vas Narasimhan, CEO of Novartis. “Today’s announcement is another important step on our journey to integrate ESG into the core of our business, measure our progress, hold ourselves accountable, and demonstrate our dedication to making good on our promise to broaden global access to our medicines.”

Globally, approximately two billion people have no access to basic medicines and healthcare¹, while 100 million people are impoverished by medical expenses each year². Weak healthcare systems in LMICs also hinder timely diagnosis and treatment. Novartis is taking bold steps to increase patient reach in LMICs with its strategic innovative therapies by at least 200% by 2025. In addition, Novartis is taking steps to increase patient reach of its global health flagship programs in leprosy, malaria, Chagas disease and sickle cell disease by at least 50% over the same time period. Novartis estimates achievement of these targets to result in a potential reach of over 24 million patients across therapy areas.