Sandoz Group Ltd · SIX:SDZ
Sandoz — Q1 2024 Earnings Presentation
25 slides from Sandoz's earnings presentation, May 7, 2024
Slide 1: Q1 2024 sales results
May 7, 2024 Q1 2024 sales results
Slide 2: Disclaimer
Disclaimer This presentation contains forward‐looking statements that reflect the current views of management, which are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Sandoz to differ materially from those expressed
Slide 3: Agenda
Agenda 1. Highlights 2. Business review 3. Sales performance 4. Guidance & outlook 3
Slide 4: Highlights
Highlights
Slide 5: Q1 2024: A strong start to the year
Q1 2024: A strong start to the year 1 Continued topline Strong double-digit momentum with biosimilar sales all regions due to demand for contributing to Hyrimoz® and growth Omnitrope® Completed Opened new acquisition of antibiotic CIMERLI® business production from Coherus facility in Kundl, Austria
Slide 6: Tenth consecutive quarter of topline growth
Tenth consecutive quarter of topline growth 1 Net sales1 • Starting out the year with strong 10% mid-single digit performance 9% 8% • Volume growth and price erosion below prior year 6% • All regions contributing to 4% growth • Double-digit biosimilar growth Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 6 Note: Net
Slide 7: Business review
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Slide 8: Generics
Generic growth of 1%1; in line with strong prior year sales 2 Business update Volume growth driven by: • Base business in Europe and International • Mycamine® acquisition in the prior year • Mature brand portfolio from former parent Headwinds driven by: • Peak sales of apixaban in Q1 2023 and the su
Slide 9: New antibiotic production facility significantly increases capacity for essential medicines
New antibiotic production facility significantly increases 2 capacity for essential medicines 20% capacity increase to 240 EUR 50m investment million packages per in plant extension year, more than double 2021 levels Only major remaining Commitment to serve vertically-integrated patients with critic
Slide 10: Biosimilars
Strong biosimilar growth of 21%1; advancing regulatory status 2 Business update • CIMERLI® (ranibizumab-eqrn): transaction closed in early March, contributing one month of sales in the first quarter • Omnitrope®: continuous strong customer demand in a constrained market supply environment • Tyruko®
Slide 11: Strong uptake of Hyrimoz scripts in the US following originator displacement
Strong uptake of Hyrimoz® scripts in the US following originator 2 displacement on selected formularies US market share1 • Hyrimoz®/adalimumab-adaz preferred access to ~65% of CVS Caremark's commercial 84% business since April 1, 2024 • Broadest payer coverage of the 9% biosimilars, with coverage by
Slide 12: Sales performance
Sales performance
Slide 13: Strong volume growth, with price erosion below prior year
Strong volume growth, with price erosion below prior year 3 In USD billion % cc1 +6% • Volume contributed -0.1 2.5 10 percentage points of 0.2 0.0 -4 ppts growth 2.4 -1 ppt +10 ppts • Price erosion of 4 percentage points • Negative FX impact of approximately 1 percentage point Q1 2023 Volume Price F
Slide 14: Ongoing mix shift toward higher value products
European champion and global leader in biosimilars 3 Ongoing mix shift toward higher value products Q1 2024 In USD billion Business mix Regional mix % cc1 Biosimilars International 25% 26% 0.6bn 0.6bn 2.5bn 2.5bn +6% 53% +6% Generics North 21% Europe 75% 1.9bn America 1.3bn 0.5bn 14 Note: Net sales
Slide 15: Q1 net sales by business
Q1 net sales by business 3 Strong double-digit growth of biosimilars In USD billion Generics % cc1 +6% • Solid volume demand 2.4 2.5 • Negative impact from withdrawal of apixaban in the Netherlands and exceptional cough and cold 0.5 0.6 +21% season in H1 2023 • Negative impact from timing of generic
Slide 16: Q1 net sales by region
Q1 net sales by region 3 Volume growth in Europe and International, biosimilar demand in North America Europe In USD billion % cc1 • Solid generic volume growth offset by year-over-year +6% headwinds including peak sales of apixaban and exceptional cough and cold season in H1 2023 2.4 2.5 • Strong d
Slide 17: Guidance & outlook
Guidance & outlook
Slide 18: Full-year 2024 guidance confirmed
Full-year 2024 guidance confirmed 4 Sales growth1 % Mid-single digit Core EBITDA margin % of net sales to third parties Around 20% 18 1. Net sales to third parties, in constant currencies Assumptions: Price erosion of mid-single digits, FX rate in line with 2023
Slide 19: Outlook: Commercial milestones and corporate calendar
Outlook 4 Commercial Corporate milestones calendar • Tyruko® launch in the US late in the year, • Half-year results on August 8, 2024 pending FDA approval of JCV assay • Q3 sales update on October 30, 2024 • Pyzchiva® expected launch in Europe in H2 2024 • Full-year results on March 5, 2025 19
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: Maximizing near-term biosimilars launches
Maximizing near-term biosimilars launches Own or targeted Originator net sales brand Therapeutic areas targeted (USD bn)1 Current status Proposed launch dates Hyrimoz® adalimumab2 Immunology 21 Launched in US and Europe Tyruko® Neurology / Approved in US US: Late 20243 natalizumab Immunology 2 Launc
Slide 23: Non-IFRS measures in this presentation as defined by Sandoz
Non-IFRS measures in this presentation as defined by Sandoz Core results that an estimate can be made of underlying changes in the consolidated income statement excluding the impact of fluctuations in exchanges rates: Sandoz core results – including core EBITDA, core operating income, core net incom
Slide 24: Glossary
Glossary Abbreviation Definition CHMP Committee for Medicinal Products for Human Use FDA Food and Drug Administration JCV John Cunningham virus PBMs Pharmacy benefit managers 24
Slide 25: Thank you
Thank you SANDOZ