Sandoz Q1 2024 Sales Report

Sandoz, a global leader in generic and biosimilar medicines, reported robust financial results for the first quarter of 2024, showcasing significant growth across various regions and product lines. The company's net sales for the quarter reached USD 2.5 billion, marking a 6% increase in constant currencies compared to the same period in the previous year. This growth was driven primarily by the strong performance of its biosimilar portfolio, which saw a 21% increase in constant currencies.

Chief Executive Officer Richard Saynor highlighted the company’s continued momentum, noting it was the 10th consecutive quarter of topline growth. The biosimilar business, a critical component of Sandoz's strategy, played a significant role in the quarter's success. This was bolstered by the launch of Hyrimoz® (adalimumab-adaz) in the US and the completion of the acquisition of CIMERLI® (ranibizumab-eqrn) in March 2024. Generics sales, meanwhile, remained stable, consistent with the prior year's strong performance.

The breakdown of net sales reveals that biosimilars contributed significantly to the company's growth. Net sales for the biosimilar segment were USD 623 million, reflecting a 21% increase in constant currencies. This performance was driven by the recent launches and sustained demand for existing products such as Omnitrope®. The generics segment saw net sales of USD 1.9 billion, a modest 1% increase in constant currencies, with volume growth compensating for price erosion and some regional market challenges.

Regionally, Europe remained the largest market for Sandoz, with net sales of USD 1.3 billion, up 2% in constant currencies. Growth was supported by increased demand for biosimilars, particularly Omnitrope® and the newly introduced Tyruko® (natalizumab) in several countries. North America also showed strong performance, with net sales of USD 524 million, a 6% increase in constant currencies. This was largely due to the launch of Hyrimoz® and the acquisition of CIMERLI®. The international markets recorded net sales of USD 642 million, up 12% in constant currencies, driven by solid volume growth across both generics and biosimilars.

Looking ahead, Sandoz remains optimistic about its growth prospects. The company reiterated its full-year 2024 guidance, expecting net sales to grow by mid-single digits in constant currencies. The core EBITDA margin is projected to be around 20%. The strategic milestones achieved in the first quarter, including the launch of Tyruko® in Germany and the acquisition of CIMERLI® in the US, have set a strong foundation for continued expansion and market penetration.

Additionally, Sandoz made significant strides in its leadership structure. Remco Steenbergen, a current board member, will join the Executive Committee as CFO from July 1, 2024, succeeding Colin Bond, who will retire in January 2025. This transition is expected to ensure a seamless continuation of the company's financial and strategic planning.

In summary, Sandoz’s first-quarter performance in 2024 underscores its leadership in the generic and biosimilar medicines market. With strong growth in net sales driven by biosimilars and strategic acquisitions, the company is well-positioned to continue its upward trajectory. The ongoing launches and regional market expansions, coupled with a steady leadership team, are likely to support Sandoz in achieving its full-year financial targets and sustaining its market leadership.