Sandoz Group Ltd · SIX:SDZ
Sandoz — Q3 2024 Earnings Presentation
29 slides from Sandoz's earnings presentation, Oct 30, 2024
Slide 1: Q3 and 9M sales 2024
October 30, 2024 Q3 and 9M sales 2024
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management’s views and assumptions regarding future events and business performance at the time the statements are made. They are su
Slide 3: Agenda
Agenda 1. Highlights 2. Business review 3. Financial performance 4. Guidance & outlook 5. Wrap-up 3
Slide 4: 1. Highlights
1. Highlights
Slide 5: Continued momentum across generics and biosimilars
Continued momentum across generics and biosimilars 1 Strong nine-month Advanced on biosimilar FY 2024 top line growth of 32%1 in launches, including guidance raised to biosimilars and solid Hyrimoz®2, Tyruko®3, high-single digit1 and generics growth of 2%1 Wyost®/Jubbonti®4 and core EBITDA margin of
Slide 6: Accelerating top-line growth in the third quarter alongside stabilizing price erosion
Accelerating top-line growth in the third quarter 1 alongside stabilizing price erosion Net sales growth and price erosion 9% 12% 1% 8% 10% 6% 4% 4% 8% 4% 0% 9% 9.4 9.1 9.1 9.6 10.2 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 -1% 0% -1% -2% -2% -5% -4% -6% -6% -7% -9% -8%
Slide 7: 2. Business review
”n ” ® = a S aa) N review
Slide 8: Strong biosimilars growth of 32%; launching successful products and advancing on our pipeline
Strong biosimilars growth of 32%1; launching successful 2 products and advancing on our pipeline 9M 2024 business update • Omnitrope® (somatropin): strong customer demand in a constrained market supply environment • Hyrimoz® (adalimumab): leading biosimilar in the US, uptake of branded Hyrimoz® and
Slide 9: Continued demand for Omnitrope
Continued demand for Omnitrope® 2 Designed to help patients with growth-hormone-related disorders Omnitrope® market share evolution1 Sandoz 40% 36% 30% • Overtook originator as market leader with 36% market share1 • Strong double-digit growth, 20% 20% 18 years after launch 17% 13% • Generally constr
Slide 10: Hyrimoz/adalimumab-adaz with most preferred coverage of all adalimumab biosimilars
Hyrimoz®/adalimumab-adaz with most preferred 2 coverage of all adalimumab biosimilars US market share1,2 • Preferred access to ~65% of CVS Caremark's commercial templated 81% business • Broadest payer coverage of the biosimilars, with coverage by all three major PBMs 13% 19% • Continued uptake of Sa
Slide 11: Increasing market share of Tyruko in Europe
Increasing market share of Tyruko® in Europe 2 First and only biosimilar for multiple sclerosis Market share1 Best coverage Strengthens well-established among adalimumab biosimilar portfolio biosimilars in the US2 16% Trusted partner in multiple sclerosis 12% Seamless patient 8% experience through d
Slide 12: Achieving key milestones on Pyzchiva
Achieving key milestones on Pyzchiva® 2 Strengthen well-established immunology portfolio Launched in Europe in July Leveraging US expertise • First ustekinumab biosimilar to launch with • FDA approval received in July all key reference strengths • Launch in the US expected in Q1 2025 • Leverage exis
Slide 13: 3. Financial performance
3. Financial performance
Slide 14: Third-quarter sales further accelerating from strong volume growth and limited price erosion
Third-quarter sales further accelerating from strong volume 3 growth and limited price erosion Q3 9M In USD billion % cc1 +9% +12% 11%pts 13%pts 7.6 2.6 -2%pts -1%pts -1%pts -1%pts 7.1 2.3 Q3 2023 Volume Price FX Q3 2024 9M 2023 Volume Price FX 9M 2024 erosion erosion 14 Note: Net sales in this docu
Slide 15: Net sales by business
Net sales by business 3 Strong double-digit growth of biosimilars Q3 In USD billion % cc1 +12% Biosimilars 2.3 2.6 Strong double-digit growth from the uptake of 0.5 0.7 +37% Hyrimoz® in the US, acquisition of Cimerli®, 1.8 1.9 +4% continued strong demand for Omnitrope® and launch of Tyruko® and Pyzc
Slide 16: Net sales by region
Net sales by region 3 All three regions contributing to strong sales performance Q3 In USD billion International % cc1 +12% Contribution from acquisition of Mycamine®, 2.3 2.6 favorable pricing dynamics and launches, partly 0.6 +8% offset by divestment of Chinese business 0.6 0.5 0.6 +18% North Amer
Slide 17: Shift towards high-value biosimilar products continuing in the third quarter
Shift towards high-value biosimilar products 3 continuing in the third quarter In USD billion % cc1 Business mix Regional mix 9M 2024 9M 2023 9M 2024 International 1.9bn 78% 73% 25% 7.1bn 22% 27% 7.6bn 7.6bn 53% +9% 22% North Europe Biosimilars America 4.0bn Generics 1.7bn 17 Note: Net sales in this
Slide 18: Continuously optimizing our financial structure
Continuously optimizing our financial structure 3 • Newly issued bond in September Maturity profile1 • EUR 600m, coupon 3.25%, in USD million 5-year term • Debt portfolio actively managed: 1,070 • Duration of approx. 5 years 800 778 693 728 • Fixed: 76%, floating 24% • Investment grade credit rating
Slide 19: 4. Guidance & outlook
4. Guidance & outlook
Slide 20: Raised top-line and confirmed margin guidance
Raised top-line and confirmed margin guidance 4 Full-year 2024 guidance As of October 30, 2024 As of August 8, 2024 Sales growth1 High-single digit Mid- to high-single % in constant currencies digit Core EBITDA Around 20% Around 20% % margin on net sales 20 1. Net sales to third parties, in constant
Slide 21: Mix, leverage and transformation driving second half margin expansion
Mix, leverage and transformation driving 4 second half margin expansion Core EBITDA margin FY 2024 % of net sales around 20% Continued favorable mix from strong biosimilar growth, including ongoing launches of Hyrimoz®, 17.5% Pyzchiva® and Tyruko®, and manufacturing efficiencies Leveraging SG&A and
Slide 22: Outlook
Outlook 4 Commercial Corporate milestones calendar • Pyzchiva® launch in the US in Q1 2025 • Full-year results on March 5, 2025 • Wyost® /Jubbonti® launch in the US in Q2 • Annual General Meeting on April 15, 2025 20251 • Three-month sales on April 30, 2025 • Tyruko® launch in the US in 2025, pendin
Slide 23: 5. Wrap-up
5. Wrap-up
Slide 24: Year of standalone Sandoz
We have achieved significant milestones in the first year since the spin-off, putting us in the best position to year of generate sustainable value standalone Sandoz
Slide 25: Q&A
Q&A
Slide 26: Appendix
Appendix
Slide 27: Maximizing near-term biosimilars launches
Maximizing near-term biosimilars launches Own/targeted Originator net sales brand Therapeutic areas targeted (USD bn)1 Current status Proposed launch dates5 Tyruko® Neurology / Approved in US US: 20252 natalizumab Immunology 2 Launched in Europe Wyost®/Jubbonti® Bone diseases / Approved in US US: Q2
Slide 28: Glossary
Glossary Abbreviation Definition CHMP Committee for Medicinal Products for Human Use FDA Food and Drug Administration JCV John Cunningham virus LoE Loss of exclusivity PBMs Pharmacy benefit managers 28
Slide 29: Thank you
Thank you SANDOZ