EU Healthcare Sector Specialist Commentary: Galderma; Sandoz; Straumann

Research evidence excerpt

EU Healthcare Sector Specialist Commentary: Galderma; Sandoz; Straumann

up from $185m in Q1, reflects a continued strong ramp, with JPMe c.4%/$8m ahead of BBG

Cons at $218m. JPMe H1 Core EBITDA margin of 24.9%, a 227bps expansion y-o-y, again largely driven by Nemluvio

approaching breakeven. JPMe H1’26 Core EBITDA at $768m is c.1% ahead of BBG Cons at $760m (24.9% margin). FY26

guidance: we expect reiteratation of its current range of “17-20% LC” growth, though we look for them to direct Net Sales growth

estimates towards the upper end of this range. We also expect the FY margin guide of ~26% LC to be reiterated, but with the FX

outlook improved to a 280bps tailwind on Net Sales (prev. 105bps) and 120bps on Core EBITDA (prev. 45bps). At midpoint, this

implies c.1%/1% upside to BBG Cons on Net Sales / Core EBITDA (c.2%/1% upside to co Cons on Net Sales / Core EBITDA).

**Straumann(OW): Q2/H1 preview (August 19) -note. Regional dynamics appear unchanged, where the Co notes having seen

minimal impact from the macro/ inflation concerns. We expect Q2 to demonstrate STMN’s continued top line delivery and share

gains, likely further pointing to upside risk to FY26 organic growth guidance (currently +HSD%). However, while we see an

opportunity for an upgrade, recent investor feedback suggests this is starting to be factored into expectations. The key question

therefore is likely ‘when’ to expect an upgrade rather than ‘if’. Nevertheless, we think this supports further upside to shares in the

near term. Further out, the company’s comments on a scenario where there is a retraction of VBP 2.0 plans, would likely represent

upside risk to FY27 margins. We make limited changes to underlying assmptions in Q2, although capture favorable FX moves on

the topline.