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Sandoz Group AG
SIX:SDZ

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Sandoz Group AG
SIX:SDZ
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Price: 59.64 CHF 3.36%
Market Cap: 26.2B CHF

Sandoz Group AG
Investor Relations

Sandoz Group AG, a renowned player in the pharmaceutical industry, stands as a global leader in the production of generic drugs and biosimilars. Originally part of the Swiss corporate giant Novartis, Sandoz has cultivated a reputation for delivering affordable healthcare solutions across the globe. Its foundation lies in the manufacturing of cost-effective, high-quality alternatives to branded medicines, making healthcare more accessible to a broader public. By focusing on generic pharmaceuticals—drugs that are comparable to branded products in terms of dosage, safety, strength, quality, and performance—Sandoz effectively manages to carve out a vital niche in the healthcare ecosystem. This strategic emphasis allows the company to offer a vast portfolio that spans across major therapeutic areas such as cardiovascular, central nervous system, pain management, and oncology, to name a few.

Sandoz's business model hinges on its ability to streamline production processes and efficiently navigate regulatory landscapes, which enables the company to sell its products at competitive prices while maintaining profitability. One critical aspect of their operation is the capability to innovate within the generic space, exemplified by their expansion into biosimilars—biopharmaceutical drugs that are highly akin to existing biological products. As patents for major biologics expire, Sandoz capitalizes on the opportunity to introduce biosimilars, thus broadening access to complex therapies. The company invests significantly in research and development to enhance its pipeline of generic drugs and biosimilars, ensuring a steady flow of new market entries. Through a combination of strategic pricing, diverse product offerings, and robust R&D efforts, Sandoz sustains its business model while contributing profoundly to global health, embodying a mission of "Pioneering Access for Patients."

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Last Earnings Call
Fiscal Period
Q4 2023
Call Date
Mar 13, 2024
AI Summary
Q4 2023

Strong Sales Growth: Sandoz reported 2023 sales of $9.6 billion, up 7%, with Q4 sales up 10% year-on-year—both beating company guidance.

Biosimilars Surge: Biosimilars grew rapidly, up 15% for the year and 26% in Q4, now representing 23% of total sales, driven by launches like Hyrimoz and continued demand for Omnitrope.

Margin Pressures: Core EBITDA margin fell to 18.1% from 21.3%, mainly due to higher input costs, FX headwinds, and increased marketing spend, despite strong sales and biosimilar mix.

North America Recovery: The North American region returned to growth, up 20% in Q4 and 3% for the year, helped by biosimilar performance.

Positive 2024 Guidance: For 2024, Sandoz expects mid-single-digit sales growth and core EBITDA margin of around 20%, with margin expansion skewed to the second half.

Operational Initiatives: Company progressing with manufacturing site rationalization and procurement savings to drive future margin gains.

Cash Flow & Investments: Free cash flow was negative in 2023 due to separation and capacity investments, but management expects strong cash generation by 2028.

Strategic Acquisitions: Recent deals such as CIMERLI (ophthalmology biosimilar) and divestment of the Chinese business support portfolio focus and regional strategies.

Key Financials
Revenue
$9.6 billion
Revenue (Q4)
$2.5 billion
Core EBITDA
$1.7 billion
Core EBITDA Margin
18.1%
Free Cash Flow
-$234 million
Net Debt to Core EBITDA Ratio
1.8x
Cash and Cash Equivalents (Year-End 2023)
$1.1 billion
Volume Contribution to Growth
10 percentage points
Price Erosion
3 percentage points negative impact in 2023
Biosimilars as % of Sales
23%
Core Gross Profit Margin
50.9%
Europe Sales Growth (2023)
9%
International Sales Growth (2023)
9%
North America Sales Growth (2023)
3%
Generics Growth (2023)
5%
Biosimilars Growth (2023)
15%
Q4 Europe Sales Growth
4%
Q4 North America Sales Growth
20%
Q4 International Sales Growth
14%
Earnings Call Recording
Other Earnings Calls
2023

Management

Mr. Richard Saynor
Chief Executive Officer
No Bio Available
Mr. Remco J. Steenbergen
Chief Financial Officer
No Bio Available
Mr. Asaf Gal
Chief Technology Officer
No Bio Available
Ms. Claire D'Abreu-Hayling
Chief Scientific Officer
No Bio Available
Ms. Karen M. King
Head Global Investor Relations
No Bio Available
Ms. Ingrid Sollerer
General Counsel & Chief Compliance Officer
No Bio Available
Ms. Tripti Jha
Chief People Officer
No Bio Available
Mr. Francisco Ballester
President of International
No Bio Available
Dr. Glenn A. Gerecke Ph.D.
Chief Manufacturing & Supply Officer
No Bio Available
Ms. Rebecca Guntern
Chief Commercial Officer
No Bio Available

Contacts

Address
ZUG
Rotkreuz
Suurstoffi 14
Contacts