Sandoz Group (SDZ) Q3 2024 earnings summary

Executive summary

• Net sales grew 9% in constant currencies for the first nine months of 2024, reaching $7.6 billion, with Q3 accelerating to 12% growth and biosimilars up 32% year-over-year.

• Generics business grew 2% for the nine months and accelerated to 4% in Q3, with Europe as a key driver and all regions contributing.

• Recent biosimilar launches and regulatory approvals, including Pyzchiva, Enzeevu, and Jubbonti, supported momentum and market uptake.

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

• Celebrated first year as an independent company following spin-off, achieving key milestones and positioning for sustainable value creation.

Financial highlights

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

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

• Europe grew 12% in Q3 and 6% for the first nine months; North America up 18% in Q3 and 15% for nine months; International grew 8% in Q3 and 9% for nine months.

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

• Price erosion was -1% in Q3 and -2% for the first nine months, both below historical levels.

Outlook and guidance

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

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

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

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