Sandoz delivered 9% revenue growth (7% in constant currency) for its second quarter. Adjusted earnings per share for the first half rose 17%. Shares traded up 7% on Aug. 5.
With autonomy from its former parent, Sandoz should be able to freely allocate resources to fit its best needs and grow the business.
Bears
Off-patent drugs face low- to mid-single-digit price erosion year over year, and regulatory actions and competition in the drug supply chain could increase headwinds.
Sandoz is one of the largest generic pharmaceutical manufacturers in the world, generating over $11 billion annually from off-patent drugs. Once part of Novartis, Sandoz spun off and went public in October 2023. Generics, including small molecules and complex injectables, make up roughly 75% of Sandoz’s total sales, and the firm has a significant presence in Europe, the United States, and other key international markets. Sandoz generates its remaining sales from biosimilars and is among the leaders in the space. Sandoz launched Europe’s first biosimilar, Omnitrope, in 2006, as well as the first US biosimilar, Zarxio, in 2015. It has over 10 launched biosimilars in a number of markets and over 30 assets in its pipeline.