Sandoz (SDZ) 43rd Annual J.P. Morgan Healthcare Conference 2025 summary

Market position and performance

• Operates in a $200 billion market with 7% growth and nearly $10 billion in 2023 sales, holding a leading position in Europe and globally among the top three, with Sandoz reporting FY 2023 net sales of USD 9.6 billion.

• Maintains 80% small molecule coverage in Europe and targets 60% of loss-of-exclusivity (LOE) value in biosimilars.

• Sandoz is a top 3 player in 90% of European markets and holds the #1 global position in biosimilars, with 28 biosimilars in development.

• Launched key products like Hyrimoz, Ustekinumab, Tyruko, and Pyzchiva, achieving strong market shares and outperforming competitors.

• Expanded U.S. business, stabilized operations, and raised top-line guidance twice in 2023, with high single-digit growth expected for 2024.

Pipeline, launches, and innovation

• Holds a robust pipeline with 28 biologics, adding two new assets annually, and 19 products in early-stage development.

• Plans significant launches in the U.S. and Europe, including Ustekinumab, Denosumab, Aflibercept, Tyruko, Wyost/Jubbonti, Enzeevu/Afqlir, and Pyzchiva.

• Focuses on GLP-1s, with initial launches in Canada and emerging markets from 2026, and broader opportunities in the 2030s, with major US/EU launches from 2031.

• Invests in manufacturing, notably in Slovenia, to support future demand and maintain flexibility through partnerships.

• Maintains leadership in biosimilars, with Omnitrope still growing after 18 years and strong positions in Adalimumab and Ustekinumab.

Operational efficiency and financial strategy

• Undertook a transformation post-separation from Novartis, reducing network to 15 sites and consolidating suppliers, with internal manufacturing simplification achieved a year ahead of schedule.

• Achieved $50 million in cost savings, targeting $200 million by 2026, supporting margin expansion from 18% to 24–26% by 2028.

• Balances CapEx and R&D investments, with up to $200 million extra annual CapEx anticipated, while increasing R&D as a percentage of sales.

• Maintains a strong balance sheet with less than two times net debt to core EBITDA and investment-grade rating.

• Dividend payout is set to increase to 30–40% of core net income in the mid-term.