Sandoz Group (SDZ) Sandoz Strategic Review 2024 summary

Strategic and Financial Overview

• Leadership reaffirmed commitment to global leadership in generics and biosimilars, serving over 800 million patient treatments annually and targeting net-zero emissions by 2050.

• The company operates in a $200 billion off-patent medicines market, with strong presence in Europe and growing momentum in North America and international markets.

• Biosimilars are a key growth driver, with double-digit growth, recent and upcoming launches in immunology, oncology, bone disease, and ophthalmology, and a robust pipeline targeting $130 billion in LOE opportunities.

• Margin expansion is targeted through topline growth, operational improvements, and organizational efficiency, aiming for a 24%-26% core EBITDA margin by 2028.

• Investments in manufacturing, digitalization, and transformation programs are underway, including a new biosimilars facility in Slovenia and adoption of continuous manufacturing technology.

Regional and Product Market Focus

• North America is a major growth region, expected to deliver 50% of mid-term topline growth, with a focus on biosimilars and selective participation in generics.

• The U.S. biosimilar market is evolving, with innovative private label agreements and Hyrimoz as the #1 adalimumab biosimilar with broad payer coverage.

• The generics business in the U.S. is selective, with >130 launches planned and a focus on sustainable supply and quality.

• Europe remains a core market, with leadership in immunology and oncology, and a strategy to leverage existing infrastructure for new launches.

• Commercial infrastructure and strong customer relationships are leveraged across 100+ markets and 1,500 products.

Pipeline, Innovation, and Long-term Outlook

• The pipeline includes over 450 generics and 25 biosimilars, with a disciplined selection framework prioritizing LOE launches and high-value assets.

• GLP-1s represent a significant long-term opportunity, with initial launches planned in Canada and Brazil, and a phased approach to major markets.

• Strategic partnerships are key for product and technology access, including collaborations for biosimilar development and continuous manufacturing.

• The company is preparing for future opportunities in antibody-drug conjugates (ADCs) and oligonucleotides, leveraging expertise in both small and large molecule development.

• Advocacy and industry leadership are emphasized, with active engagement in regulatory and policy discussions to support sustainable healthcare systems.