In the first nine months of 1999, Novartis Group sales from continuing businesses reached CHF 24.2 billion, a sustained increase of 1% in local currencies or 2% in Swiss francs. In Healthcare (+4% in local currencies over nine months), sales growth in Generics and CIBA Vision accelerated in the third quarter, while in Pharmaceuticals it was expectedly below the exceptional performance of the same period last year. Consumer Health (+8%) again posted dynamic growth while Animal Health and Seeds picked up in the third quarter, helping to steady Agribusiness sales (-7%) amid continuing adverse market conditions.

In the third quarter, Novartis published positive results for several important pharmaceutical compounds in late-stage clinical development. First approval filings for Starlix® (diabetes) are targeted for the fourth quarter and those for Zelmac® (irritable bowel syndrome) for early next year. Visudyne(TM), a treatment that can prevent blindness resulting from a form of macular degeneration, is being given accelerated review in several major markets.

For the full year, Novartis anticipates sustained growth in Pharmaceuticals, driven by stronger sales in the fourth quarter, unchanged adverse market conditions for Agribusiness, and a continuation of the favorable trend in Consumer Health. Barring unforeseen economic or financial disturbances and taking into account the exceptional net gains reported in the first six months, the Group foresees an increase in operating and net income to above the previous year's levels.

* Consumer Health: RedLine, Roland, OLW, Wasa, Eden, Italian sugar-free brands

Healthcare (+4% in local currencies)


Pharmaceuticals with positive Phase-III results; growth acceleration at CIBA Vision and Generics

In Pharmaceuticals (+2%), the underlying growth excluding the transfer of products to the OTC
business of Consumer Health was 3%. In line with expectations, sales growth in the third quarter was below the exceptionally high level of the same period in 1998, which was marked by extraordinary wholesale demand in the US.

New products increased market share and expanded sales: Exelon® (Alzheimer's disease) was
launched with strong impact in Italy and made good progress in the UK. Now approved in more than 60 countries, it doubled its market share during the first nine months. Comtan®, a new treatment for Parkinson's disease has now been successfully launched in 30 countries. In September, the epilepsy drug Trileptal® was granted ``approvable'' status in the US and is now available in more than 50 countries.

Key strategic products continued to grow strongly: the new-class antihypertensives Diovan® and
Co-Diovan® (Diovan® combined with the diuretic hydrochlorothiazide) increased sales by 79%.
Other products posting good growth were Aredia® (bone metastasis, +47%), Miacalcic®
(osteoporosis, +18%), Foradil® (asthma, +20%) and Sandostatin® (acromegaly, +8%). Novartis
maintained its lead in transplantation as Sandimmun®/Neoral® (transplantation and autoimmune
diseases) sales rose 6% and Simulect® (transplantation) outperformed the competition both in Europe and the US. The cholesterol-lowering agent Lescol® (+5%) continued to break new ground in Japan. In the Lamisil® range (fungal infections, +1%), the cream formulation was very successfully switched to prescription-free status in the US and transferred to the OTC business of Consumer Health. Lamisil® tablets continued to perform well. As expected, Voltaren® sales (anti-rheumatic, -15%) were eroded by generics and the introduction of new competitor products.

In September, Novartis presented details of its R&D pipeline. Clinical Phase-III results of new
products in late-stage development, Starlix® (diabetes), Zelmac® (irritable bowel syndrome) and E25 (asthma and allergic rhinitis), were revealed and data disclosed for the first time on Zomaril® (schizophrenia). Information was also presented for the first time on a number of other promising new compounds. Streamlining of the R&D portfolio, enhanced development processes, and productivity improvements were discussed.

Generics (+16%) reported a further acceleration in its dynamic growth, driven by the strong
performance of generic retail pharmaceuticals and spurred by new product launches including
omeprazole (anti-ulcer treatment) in Germany and terazosin (benign prostate hypertrophy) in the US. Continued solid results were posted by generic bulk pharmaceuticals, particularly the cephalosporin-antibiotics, which again more than offset price erosion in the erythromycin and  penicillin markets.

CIBA Vision (+4%) continued to perform well against strong competition in the conventional lens and lens-care businesses. Growth was driven by the outstanding sales of Focus® DAILIES® (daily disposable contact lenses) in particular. Focus® NIGHT & DAY(TM), the revolutionary lenses for up to 30 nights extended wear have now been launched in more than 20 countries. The novel bi-focal soft contact lenses Focus® PROGRESSIVES were introduced in the US, their first market, in September. Sales in Ophthalmics developed well thanks to Arteoptic®/Ocupress® (glaucoma), and Zaditen® (anti-allergic eye drops), which was launched in the US in September as Zaditor(TM). In July, SOLO-care(TM) (one-bottle lens cleansing solution) received FDA approval for the ten-minute disinfection indication.

CIBA Vision has now completed filing for approval of Visudyne(TM) in the major markets. This
groundbreaking treatment, the first to prevent blindness caused by wet-form age-related macular
degeneration, is being given accelerated review in Australia, New Zealand, Switzerland and the US. The US FDA advisory committee hearing is scheduled for mid-November, and market launch is expected early next year.

Agribusiness (-7% in local currencies)

Project Focus streamlining under way

As Project Focus progresses on track, the first phase of cost reduction has been accomplished: the majority of job reductions have been identified and communicated, decisions have been made on optimizing the use of production assets, and the streamlining of the product portfolio is well under way.

In spite of continued good growth in Asia, Crop Protection (-10%) continued to face difficult
conditions (particularly weak farm economies, increased price pressure and competition) in the major markets. Herbicides and Fungicides were the most adversely affected businesses. Nine-month sales in Insecticides were stable, whilst the Turf & Ornamentals business has continued to grow strongly. Following its successful first market introduction in Switzerland, the new-generation fungicide Flint® (and associated products) received approval in the US sooner than anticipated. Flint's exceptional broad-spectrum of activity will play an important role in managing disease in its first range of applications: apples, pears, grapes, curcurbits, peanuts, and turf and ornamentals.

Seeds (-4%) picked up in the third quarter thanks to increased sales of flowers and young plants in Europe and good corn sales in the Southern hemisphere. The market environment in the NAFTA region remained depressed as a result of heavy price pressure, corn acreage reductions and the increased practice of using farm-saved soybean seed. In Europe, good sales growth came from vegetables, flowers, sugar beet and oilseedrape -- more than offsetting the modest sales in corn.

Animal Health (+4%) recorded a strong third quarter with dynamic sales particularly in the US and Asia Pacific region. Nine-month sales in the companion animal segment were driven by a marked expansion of Interceptor® (intestinal and heartworm treatment) and Sentinel® (combined flea, intestinal and heartworm treatment for pets) in the US, while the farm animal business was held in check by very low commodity prices. The innovative fast-acting flea control product Capstar® was launched in its first three countries, while Econor®, a new veterinary treatment for intestinal and respiratory diseases in pigs, was successfully introduced in Europe.

Consumer Health (+8% in local currencies)

Continued growth momentum; pilot market prepares the way for launch of Aviva® functional food line

The impressive performance of Consumer Health was maintained in the third quarter. The OTC
business reported continued strong performance due to the marked sales expansion of the cough and cold brands, particularly Neo-Citran® and Triaminic®, and the successful switch of Lamisil® cream (athlete's foot) to over-the-counter availability in the US. Overall, the prescription-only products switched to OTC contributed more than 1% to the division's sales growth. Medical Nutrition expanded very rapidly, achieving strong sales growth in all segments, with a 30% increase over last year in Europe and a very strong rise in sales of the newly repositioned product Impact® for patients with compromised immune systems. In Health & Functional Nutrition, the new functional food line Aviva® has generated positive pre-market and pilot market (UK) responses, and preparations have been made for initial launches in the fourth quarter. The Health Foods and Sports Nutrition brands maintained their position. The Gerber infant and baby food business continued to grow strongly in Latin America and in the US.

Outlook

Pharmaceuticals is further concentrating resources on key products and projects as it forges ahead to
strengthen its sales and marketing organization and to prepare for the anticipated launch of several new
products with high commercial potential. At the same time, Agribusiness is rapidly implementing its
two-year Project Focus restructuring program which will strengthen competitiveness, improve
long-term performance and unlock annual cost savings of approximately CHF 100 million. At
Consumer Health, sales growth will continue with the development of exciting new products,
repositioning and expansion of major brands, and the achievement of growth opportunities in the
health-related OTC and nutrition markets.

For the full year, Novartis anticipates sustained growth in Pharmaceuticals, driven by stronger sales in the fourth quarter, unchanged adverse market conditions for Agribusiness, and a continuation of the favorable trend in Consumer Health. Barring unforeseen economic or financial disturbances and taking into account the exceptional net gains reported in the first six months, the Group foresees an increase in operating and net income to above the previous year's levels.

1999 full-year sales and results will be published on February 17, 2000.

Novartis is a world leader in Life Sciences with core businesses in Healthcare, Agribusiness and
Consumer Health. In 1998, Novartis Group sales were CHF 31.7 billion, of which CHF 17.5 billion
were in Healthcare, CHF 8.4 billion in Agribusiness and CHF 5.8 billion in Consumer Health. The
Group annually invests more than CHF 3.7 billion in R&D. Headquartered in Basel, Switzerland,
Novartis employs about 82 000 people and operates in over 140 countries around the world.

Company news release
N2185