Sandoz (AO) | Buy | "The perfect brilliant storm"

Research evidence excerpt

Sandoz (AO) | Buy | "The perfect brilliant storm"

t reiterated its view that the generics headwinds (Chinese API dumping in anti-infectives, International

portfolio pruning) are transient and expected to largely wash out from Q2, with a meaningfully stronger H2 vs H1.

Overall, we continue to view Sandoz as a structurally advantaged player in the space versus peers, thanks to its industry-leading

biosimilar pipeline, early investments in vertically integrated manufacturing and broad commercial scale, which positions the

group in the driver's seat for the upcoming "golden decade" of biosimilars, which we believe the current market is still

underestimating. Buy reiterated

Speaker

Remco Steenbergen, CFO and Craig Marks, Head of IR

Temperature

Overall, management was constructive and increasingly confident on the medium- to long-term outlook, particularly around biosimilars

and manufacturing strategy. The tone was notably more bullish on the structural growth opportunity beyond 2028 versus prior

interactions, while remaining disciplined around formal guidance and near-term visibility.

Investor focus was concentrated around the Samsung Bioepis transaction and broader biosimilar pipeline strategy, long-term growth

sustainability post-2028 and post-2030, GLP-1 commercialisation timing and economics, manufacturing investments and vertical

integration benefits, as well as margin trajectory and competitive positioning in biosimilars.

Company’s pitch

Sandoz continues to market itself as the global scale leader in biosimilars and generics, with a differentiated strategy built around

a broad commercial footprint, manufacturing independence, vertical integration, and long-duration biosimilar pipeline

expansion.