Sandoz Raises Forecast After Humira Biosimilar Boosts Sales

Sandoz, a spinout from Novartis, reported remarkable financial performance in the second quarter, achieving $2.6 billion in product sales. This success has prompted the company to revise its annual sales forecast, now anticipating a mid- to high-single-digit growth rate for the year, up from its previous mid-single-digit projection. The 9% year-on-year sales increase was significantly driven by its portfolio of biosimilars, which experienced an impressive 29% growth rate.

Among Sandoz's biosimilars, Hyrimoz, a copy of AbbVie’s popular immunology drug Humira, stood out. Hyrimoz currently holds an 81% market share in the competitive Humira biosimilar market and boasts the broadest payer coverage. Sandoz employed a unique strategy for Hyrimoz by launching both a branded and an unbranded version and collaborating with CVS Health’s biosimilar subsidiary, Cordavis, on a co-labeled product. This strategy paid off when CVS Caremark removed AbbVie’s branded Humira from its national commercial formularies, leading to a significant increase in Hyrimoz prescriptions.

Beyond Hyrimoz, Sandoz is preparing for several significant product launches. Recently, the company introduced its version of Johnson & Johnson’s Stelara in Europe, with plans to bring it to the U.S. by February 2025, following a settlement with J&J. Additionally, in the second quarter of the next year, Sandoz aims to launch biosimilars of Amgen’s bone drugs Xgeva and Prolia, branded as Wyost and Jubbonti, respectively.

Sandoz also has its sights on creating a biosimilar for Regeneron and Bayer’s ophthalmology drug, Eylea. While patent litigation is ongoing, CEO Richard Saynor expressed confidence that their Eylea biosimilar would reach the market in the coming years. Meanwhile, Sandoz continues to benefit from sales of its older product, Omnitrope. This biosimilar to Pfizer’s human growth hormone, Genotropin, has been a market leader since its 2006 approval and continues to show sales growth.

Despite only having spun out from Novartis less than a year ago, Sandoz is already embarking on a “multi-year transformation program” aimed at streamlining its organizational structure. The company anticipates saving $50 million in the second half of this year and is targeting annual savings of $200 million by 2026.

These various strategic moves and financial projections underscore Sandoz’s commitment to expanding its presence in the biosimilar market and achieving sustained growth. The company's proactive approach in launching new products and its ability to adapt to market changes positions it well for future success.

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