Sandoz Group (SDZ) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales reached $2.48bn, up 3% in constant currencies, marking 14 consecutive quarters of top-line growth driven by double-digit biosimilar growth and strong commercial execution.

• Biosimilars now represent 27% of net sales, up from 25% in Q1 last year, with strong launches and market leadership in OMNITROPE, HYRIMOZ, TYRUKO, and PYZCHIVA.

• Full-year 2025 guidance reaffirmed, with tariffs absorbed and continued strong execution on biosimilar launches and commercial milestones.

• Ten largest-selling medicines grew by 4% and accounted for 33% of net sales.

Financial highlights

• Net sales grew 3% in constant currencies, or 5% adjusted for the CIMERLI acquisition and China divestments; Q1 net sales reached $2.5bn.

• Volume contributed 6 percentage points to growth, offset by 3 percentage points of price erosion and a 3 percentage point adverse currency impact.

• Biosimilars delivered 11% growth, with generics stable year-over-year; Europe accounted for 55% of total sales and grew 7%.

• North America sales grew 1% (3% excluding CIMERLI impact); International up 2% excluding China divestment.

Outlook and guidance

• Full-year 2025 guidance confirmed: mid-single digit net sales growth in constant currencies and core EBITDA margin around 21%.

• Price erosion expected to normalize at low to mid-single digits; margin improvement expected in H2 as new launches contribute.

• Major biosimilar launches planned for H2 2025, including Wyost/Jubbonti, Tyruko, and Afqlir.

• Guidance incorporates US tariffs and excludes impacts from unforeseen events or further trade tariffs.