Sandoz (AO) | Buy | High confidence in the biosimilar-led growth algorithm

Research evidence excerpt

Sandoz (AO) | Buy | High confidence in the biosimilar-led growth algorithm

Marketing event feedback

Release date: 09 June 2026

Nicolas Pauillac

Equity Research Analyst

+33 1 53 65 34 97

npauillac@keplercheuvreux.com

David Evans

Head of Pharma & Biotech Sector Research

Buy +44 (0) 207 621 5197Sandoz

devans@keplercheuvreux.com

Switzerland | Pharma & biotech Beta Profile: MCap: CHF28.0bn

Target Price: CHF80.00 Bloomberg: SDZ SW Reuters: SDZ.S

Current Price: CHF64.88 Free float 96%

Up/downside: 23.3% Avg. daily volume (CHFm) 73.5

YTD abs performance 12.2% Market data: 08 June 2026

52-week high/low (CHF) 72.42/42.30

High confidence in the biosimilar-led growth algorithm

Key points:

We hosted Sandoz CFO Remco Steenbergen and Craig Marks, Head of IR, for a fireside chat, giving the company an opportunity to

revisit recent business dynamics and provide comments on some of the latest investor focus points, mainly aflibercept/Eylea,

GLP-1 generics, manufacturing investments, margin trajectory and the potential impact from recent news flow. Overall, the tone

was constructive throughout, with management reiterating confidence in the medium-term growth algorithm and again framing

Sandoz primarily as a biosimilar equity story, with generics providing the global commercial infrastructure and GLP-1

representing more of an attractive longer-term optionality than a near-term base-case driver.

Overall, our main takeaway from the call was management’s continued confidence regarding 2027/28 growth visibility, despite

market concerns around a more limited launch calendar. The CFO framed the equation quite simply: the generics business should

continue to grow at a low-single-digit rate, while biosimilars should continue to benefit from the ramp-up of recent and upcoming

launches.