Sandoz (SDZ) Q3 2024 earnings summary

Executive summary

• Achieved 9% net sales growth in constant currencies for the first nine months of 2024, with Q3 accelerating to 12% growth, driven by biosimilars up 32% year-over-year.

• Biosimilars now represent 27% of total net sales for the first nine months, up from 22% prior year.

• Advanced biosimilar launches and regulatory approvals, including Hyrimoz, Tyruko, Wyost/Jubbonti, Pyzchiva, and Enzeevu, supporting momentum.

• Marked one year as a standalone company, achieving key milestones and positioning for sustainable value creation.

Financial highlights

• Q3 2024 net sales rose 12% year-over-year in constant currencies to $2.6bn, with biosimilars up 37% and generics up 4%.

• Nine-month 2024 net sales increased 9% year-over-year to $7.6bn, with biosimilars up 32% and generics up 2%.

• Volume contributed 11–13 percentage points to net sales growth, partially offset by 1–2 percentage points of price erosion.

• Foreign exchange negatively impacted sales by one percentage point in both Q3 and the first nine months.

Outlook and guidance

• Full-year 2024 net sales growth guidance raised to high single-digit in constant currencies, with core EBITDA margin expected around 20%.

• Margin expansion in H2 2024 expected from favorable biosimilar mix, manufacturing efficiencies, and transformation program savings.

• Transformation program expected to generate $50 million in savings in H2 2024.

• Key biosimilar launches planned for 2025, including Pyzchiva and Jubbonti in the U.S.