Sandoz (SDZ) CMD 2026 summary

Strategic vision and ambition

• Bio 100 initiative targets over 100 biosimilars in market by 2040, aiming to cover 80% of LoE value by 2035 and more than double net sales versus 2025, with ambitions for a core EBITDA margin above 30% by 2035 and additional upside from GLP-1s.

• Bio 100 strategy plans to ramp up internal biosimilar development from 2 to 10 assets per year by 2040, leveraging vertical integration, strategic partnerships, and a disciplined asset selection framework.

• GLP-1s represent a significant new market, with phased launches in early markets and major entries in the US and EU planned for 2031–2035.

• Regulatory streamlining, such as removal of phase III requirements, is expected to reduce development time by over two years and cut costs by ~50%, enabling faster pipeline expansion.

• The company is investing $2–2.5 billion over five years in R&D and manufacturing to support Bio 100, with CapEx remaining flat in absolute terms but declining as a percentage of sales.

Financial guidance and growth outlook

• Net sales expected to grow at a mid-to-high single-digit CAGR from 2025–2030, with double-digit growth targeted in the 2030s, driven by biosimilars becoming the majority of revenues by 2035.

• Core EBITDA margin targeted at 24–26% by 2028, 25–27% by 2030, and at least 30% by 2035, supported by vertical integration and operational leverage.

• Free cash flow projected to grow by 50% by 2030 versus last year, with ongoing deleveraging and a progressive dividend policy (30–40% of core net income).

• Core ROIC expected to rise to 16–18% by 2030 and at least 20% by 2035, reflecting improved business mix and disciplined capital allocation.

• Margin expansion will be driven by sales mix improvement, operational efficiencies, procurement savings, and SG&A efficiencies.

Operational execution and competitive positioning

• Building a fully integrated European biosimilar hub with advanced manufacturing in Slovenia, France, and Germany, targeting 60% in-house manufacturing by 2030 and 50–70% in-house development by 2035.

• Proven commercial engines in Europe, International, and North America, leveraging local market intimacy, tailored go-to-market models, and strong customer relationships.

• Europe remains the largest region, with 21 consecutive quarters of growth and a 28% biosimilar market share, supported by launch excellence and local execution.

• International and North America regions are positioned for strong biosimilar growth, leveraging partnerships, tailored models, and policy engagement.

• Investments in new technologies and a scalable, flexible supply network are expected to drive cost reductions and supply flexibility.