$SDZ (+0,86 %)
$NOVO B (+0,21 %)
$LLY (-2,25 %)
$HIMS (-6,48 %)

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."

While it $HIMS (-6,48 %) will certainly not make it onto the market with their cheap "Wegovy copies", they will soon be joining $NOVO B (+0,21 %) and $LLY (-2,25 %) another pharmaceutical heavyweight (nice pun) in the GLP-1 sector will soon be entering the market: generics specialist $SDZ (+0,86 %) from Switzerland

From Gemini:

Sandoz's planned GLP-1 products are primarily based on the active ingredient semaglutide.

As Sandoz specializes in the development of biosimilars and generics, the company aims to launch more cost-effective versions of the well-known originator products (such as Novo Nordisk's Ozempic® and Wegovy® ) as soon as their patent protection expires.

Details of Sandoz's drug strategy:

• Semaglutide: This is the most important active ingredient in the pipeline. Sandoz is preparing intensively for market entry, particularly in markets such as Canada, where patent protection for semaglutide expires in January 2026. Sandoz is expected to launch its own version there by mid-2026.

• Liraglutide: In addition to semaglutide, Sandoz also has biosimilars for liraglutide (the original preparation is Saxenda® or Victoza®) in development, as the patents here have already expired or will expire shortly in many regions.

• Technology: Sandoz uses both traditional chemical synthesis routes (for generics) and biotechnological processes (for biosimilars) for these complex molecules in order to ensure a high degree of conformity with the original product

Sandoz is a global leader in generics and biosimilars, now operating as an independent player in the market following its spin-off from Novartis in 2023. With a portfolio of around 1,500 products, the company covers almost all important therapeutic areas and relieves the burden on healthcare systems worldwide with low-cost generics. Its pioneering role in biosimilars (biotechnologically produced drugs) and its strong position as one of the last major vertically integrated antibiotics producers in Europe are particularly noteworthy.

At some point, it's time to call it a day and take the profits. Besides, I wanted to reduce my tech share anyway.

Profit flows into $7974 (+0,02 %) and pharma top-ups $SDZ (+0,86 %) & $SFZN. (-3,1 %)

$SDZ (+0,86 %) - Approval for Enzeevu

The generics manufacturer has received approval in the USA for the biosimilar Enzeevu. Enzeevu is an active ingredient for the treatment of neovascular age-related macular degeneration, which Sandoz hopes will lead to growth in the important US market. The copycat drug Enzeevu is based on the blockbuster Eylea from Regeneron.

GG

$SDZ (+0,86 %) - Convincing quarterly figures from Sandoz

The generics manufacturer generated sales of $2.6 billion in the second quarter of 2024, which corresponds to an increase of 9% in constant currencies. In the first half of 2024, sales rose by 7% to $5.0 billion. The biosimilar business in particular grew by 29%. Based on the positive business performance, Sandoz has raised its full-year sales growth guidance to a mid to high single-digit range in constant currencies.

Own position:

38 shares at 27.60

Happy Investing

GG