$SDZ (+7.65%)
$NOVO B (-3.26%)
$LLY (+0.2%)
$HIMS (+0.65%)

Basel (awp) - In its second year as an independent company, the generics specialist Sandoz has grown as planned. In an interview with journalists, CEO Richard Saynor and CFO Remco Steenbergen emphasized that both divisions and all regions contributed to the good performance.

The CFO said he was particularly proud of the 160 basis point increase in the core EBITDA margin to 21.7%. "This is in line with our medium-term targets for 2028 (between 24% and 26%)." The higher proportion of biosimilars in the sales mix contributed significantly to the margin improvement, Steenbergen adds.

While Sandoz is therefore moving towards its medium-term margin targets, the Group has already achieved another target ahead of schedule. "Our biosimilar mix ratio was already 30 percent in 2025, originally planned for 2028 - so we are ahead of schedule," announces Steenbergen. CEO Saynor adds that the "30 percent was more of a guideline than an exact figure." Ultimately, Sandoz wants to further accelerate this development.

Looking ahead, Sandoz CEO Saynor also emphasizes once again that the Group is facing a "golden decade" in which a record number of biologics patents are expiring, while regulations are also changing.

The generics specialist should clearly benefit from this thanks to its broad and deep product pipeline, the CEO is convinced. "Around 600 billion US dollars in drug patents will expire in the next few years, of which we currently cover around 60 percent." Biosimars account for around half of this.

Both pillars important

With its two main pillars - generics and biosimilars - Sandoz is also well positioned to benefit from future trends, Saynor emphasized in an interview with AWP Financial News after the conference call. "The generics business continues to be important as a stable cash generator, as small molecules can be developed quickly and cost-effectively." Although biologics are more expensive to develop, they offer greater value in the long term. "We see the combination of both segments as our strategic strength."

Challenges exist in the antibiotics segment in particular, where price falls due to global overproduction are putting pressure on profitability. The management is therefore calling for support from the European and Swiss governments to keep these important medicines available. "Europe must recognize how important these products are," appeals Saynor. "We are the last major producer of penicillin antibiotics in the West. Prices for raw materials are falling too much, which is not sustainable."

Meanwhile, the market is expecting new products such as the novel diabetes and weight loss GLP1 preparations to be launched in 2026 as soon as they have been approved in Canada and Brazil. However, no approval has yet been granted. "We expect a launch later this year."

Two years ago, Novo Nordisk $NOVO B (-3.26%) was regarded as the best European company, as evidenced by the fact that it was the most valuable European company by market capitalization. Added to this was the seemingly endless fantasy for the weight loss product GLP-1.

After two years, the company has now reached a new low: the announcement that its own "weight loss pill" failed to meet expectations in a study and also performed worse than the product of its biggest competitor Eli Lilly $LLY (+0.2%) . This can happen; after all, the success of such a new drug is by no means guaranteed.

However, the company's management does not present a good picture at all. First, the CEO is fired to make a fresh start clear - including downward adjustments to the forecast, of course. Not an unusual move to come clean and deliberately keep expectations low. But this was followed by further forecast cuts and earnings misses. Earnings are now expected to shrink in the coming financial year.

As a shareholder, you get the feeling that you are only being told half the truth. The salami-slicing tactic is being used. This is rarely a good sign, because there is a lack of clear transparency and a strategy for getting out of this situation.

This is why I sold 2/3 of my Novo Nordisk position at a price of around €45 before yesterday's sell-off. I am keeping the remaining position as a "watcher" position. The loss of around 25% hurts, but without confidence and a clear plan from the top management, I see little perspective here.

How are you dealing with your Novo Nordisk position? What recovery prospects do you see? Let's have a discussion.

Stay tuned

For $NOVO B (-3.26%) . And I'm going to say $LLY (+0.2%) this will last longer. Further declining profit margins bring us closer to the assessment I made yesterday that there will be a dividend cut.

Novo Nordisk intensifies price war with Eli Lilly on weight-loss drugs

Novo Nordisk plans to raise US list prices for its popular weight-loss and diabetes drugs, Wegovy and Ozempicby up to half from next year, intensifying the price war with competitor Eli Lilly. The companies are competing on price, lowering net prices for popular GLP-1 weight-loss drugs through rebates to insurers and consumers, including recent agreements with the Trump administration. Both companies have also sought to make the drugs more accessible to potential customers by offering their drugs for sale directly through websites.

Now, after the expensive and disappointing dry spell, I am also pulling the ripcord, as the management and the way they are dealing with the current crisis have really disappointed me. Fortunately, not much money has been invested. $NOVO B (-3.26%)

$NOVO B (-3.26%)

Hello everyone,

After today's (renewed) slump in Novo Nordisk, I'm wondering what your assessments of the company are.

As a young "buy & hold" investor, I remain relaxed despite the significant drop, we are still talking about a great company. But how many setbacks can still be absorbed here?

I would be interested in your opinions.

• Opportunity to buy more or a sinking ship after all?
• Have we reached the bottom?

Many thanks in advance!

$VKTX (-0.54%)

Can't find any news. Does the market now expect $NOVO B (-3.26%) that the market will look around again because its own products are flopping?

and it will say:

"I MADE MONEY WITH $NOVO B (-3.26%) EARNED" 😂

But seriously, the mood in November was already very depressive and I tightened my stop during the recovery, which was then also triggered.

I would have expected it to go even higher...

Now we are back where we were in November minus a few percent.

Let's see, I'll try my luck again at €30.00.

It's not as if they are highly indebted and loss-making, so the bottom should come at some point.

Where do you see the bottom and why?

Oh Oh Oh 🫢

$NOVO B (-3.26%)

https://finance.yahoo.com/news/novo-nordisks-obesity-drug-cagrisema-100546806.html

After the share price $NOVO B (-3.26%) fell by another 13% this morning, the dividend is now already around 4.5% p.a..

So the stock is slowly becoming interesting for dividend investors as well. I still think the P/E ratio of around 13 is fair.

The savings plan will probably be increased again, or as it is called in the ups and downs:

Let's go for the next round! Be there again, be free again, we're about to go backwards 🗣️🗣️🗣️