Sandoz Q3 and 9-Month 2024 Sales Report

Sandoz, a leading global provider of generic and biosimilar medicines, reported robust financial performance for the third quarter and the first nine months ending September 30, 2024. The company achieved net sales of USD 2.6 billion for the third quarter, reflecting a 12% increase in constant currencies compared to the same period last year. For the nine-month period, net sales reached USD 7.6 billion, marking a 9% increase in constant currencies.

Richard Saynor, CEO of Sandoz, emphasized the company's commitment to executing key milestones in its biosimilars business as it progresses as an independent entity. Recent approvals and launches, including Pyzchiva® and Enzeevu™ in the US and Pyzchiva® in Europe, have significantly contributed to Sandoz's sales growth. The continued strong uptake of Hyrimoz® in the US has also been a major factor in the company's success.

The growth in net sales was driven by both generics and biosimilars. Generics saw accelerated growth in the third quarter, while biosimilars experienced strong double-digit growth in both the third quarter and the first nine months. All three geographical regions – Europe, North America, and International – contributed to this strong performance. Sandoz anticipates this momentum to persist, expecting further margin expansion through a favorable product mix and leveraging its cost base.

In the third quarter, net sales reached USD 2.6 billion, with volume growth contributing 13 percentage points, partly offset by a 1 percentage point price erosion. Biosimilars were the primary growth driver, while generics also showed solid demand. For the nine-month period, net sales amounted to USD 7.6 billion, with volume growth contributing 11 percentage points, offset by a 2 percentage point price erosion. The biosimilars segment demonstrated strong demand for both existing and newly launched products in the US.

Breaking down the business segments, generics saw third-quarter net sales of USD 1.9 billion, a 4% increase in constant currencies compared to the previous year. For the first nine months, generics net sales were USD 5.6 billion, up 2% in constant currencies. Growth in the Europe region was notably strong due to recent launches, while the International region benefited from favorable pricing dynamics and demand for Mycamine®. However, North American sales declined due to the timing of new product launches.

Biosimilars achieved third-quarter net sales of USD 741 million, a 37% increase in constant currencies. For the first nine months, biosimilars net sales were USD 2.1 billion, a 32% increase. The significant growth in this segment was driven by the uptake of Hyrimoz® in the US, acquisition of Cimerli®, and the launch of new products like Tyruko® and Pyzchiva® in Europe.

Regionally, Europe saw third-quarter net sales of USD 1.4 billion, up 12% in constant currencies, with nine-month net sales of USD 4.0 billion, a 6% increase. The strong performance was led by biosimilars, particularly Omnitrope®, and recent launches of Tyruko® and Pyzchiva®. Generics in Europe also showed accelerated growth due to recent product launches.

North America recorded third-quarter net sales of USD 598 million, an 18% increase in constant currencies. For the first nine months, net sales were USD 1.7 billion, a 15% increase. Growth in this region was driven by the uptake of Hyrimoz® and the acquisition of Cimerli®. However, generics sales declined due to the timing of new launches.

In the International region, third-quarter net sales were USD 635 million, up 8% in constant currencies, with nine-month net sales of USD 1.9 billion, a 9% increase. Strong volume growth in both generics and biosimilars, along with favorable pricing dynamics and recent launches, contributed to this growth, partially offset by the divestment of the Chinese business.

Given the strong momentum in its biosimilars business and solid generics demand, Sandoz has increased its full-year 2024 net sales guidance to high-single digit growth in constant currencies and confirmed its core EBITDA margin guidance of around 20%.

Throughout the third quarter, Sandoz achieved several strategic milestones, including the US FDA approval of Pyzchiva® and its launch in Europe. Additionally, the company received FDA approval for Enzeevu™ to treat neovascular age-related macular degeneration, further strengthening its US ophthalmology portfolio.