Sandoz Reports 6% Sales Growth Led by Humira Biosimilar

Seven months after its separation from Novartis, Sandoz has reported a 6% growth in the first quarter, largely fueled by its flourishing biosimilars business. The company, now operating independently, is benefiting significantly from the successful launch of its biosimilar version of AbbVie's Humira (adalimumab), known as Hyrimoz.

In the initial three months, the sales of Sandoz’s biosimilars soared to $623 million, marking a 21% increase from the same period last year. The generics division also contributed positively, with sales reaching $1.87 billion, reflecting a modest 1% gain compared to the first quarter of 2023. Overall, these figures translate to an impressive 6% growth rate for the company. During this timeframe, biosimilars accounted for 25% of Sandoz’s total sales, up from 22% the previous year.

This upward trajectory is anticipated to continue, driven by the momentum of Hyrimoz and the acquisition of the Lucentis biosimilar Cimerli from Coherus BioSciences for $170 million. In March, Coherus revealed that Cimerli generated $52 million in sales during the fourth quarter of 2023 and $125 million for the entire year. Launched in the United States in September of the previous year, Cimerli is expected to strengthen Sandoz's position in the ophthalmology market.

Sandoz CEO Richard Saynor emphasized the strategic importance of this acquisition, stating that it bolsters the company’s ophthalmology platform in the U.S. and sets a solid foundation for future product launches. During a quarterly conference call, Saynor highlighted the strong market performance of Hyrimoz, supported by data from IQVIA, which indicates that the biosimilar has captured 82% of the prescriptions written for adalimumab by late April.

A significant boost for Hyrimoz occurred on April 1 when pharmacy benefit manager CVS Caremark excluded AbbVie's branded Humira from its national commercial formularies in favor of biosimilar alternatives. Analysts from Evercore ISI noted a dramatic surge in new Hyrimoz prescriptions, jumping from 640 to 8,300 within the first week of April alone.

Following the financial results announcement, Intron Health analysts underscored the importance of Hyrimoz securing preferred access to 65% of CVS's commercial business. The Intron team anticipates robust growth for Sandoz’s biosimilar segment in the coming years, citing potential launches of biosimilars for Biogen’s Tysabri, Regeneron and Bayer’s Eylea, Amgen’s Prolia, and Johnson & Johnson’s Stelara.

Intron Health projects that the biosimilar division will become a more significant component of Sandoz's overall business, driving substantial growth and positively impacting the company's stock performance. Despite the positive outlook, Sandoz has maintained its conservative guidance for 2024, aiming for mid-single-digit percentage sales growth.

CEO Saynor, addressing the company's cautious stance on providing detailed future guidance, stated, "At this point, I think it's important that we build credibility as a new company. It’s probably prudent to see how the next quarter evolves and look at that going forward."

This prudent approach reflects Sandoz’s strategy to establish a strong foothold in the market as an independent entity, while capitalizing on its growing biosimilars portfolio to drive future success.