SDZ: Model update

研报英文原文证据摘录

SDZ: Model update

Sandoz Group AG

Company description

Sandoz is the leading global manufacturer of generic and biosimilar medicines. Generic medicines are cheaper copies of innovative

medicines and can come to market after the originator intellectual property (or other form of protection) expires. Generic

medicines are a vital part of the healthcare sector, providing essential products at deeply discounted price levels, thus greatly

improving the affordability of healthcare. For instance, Sandoz states that generics and biosimilars account for around 80% of

medicines worldwide at a fraction of the cost.

The company has three commercial divisions. The largest is the European operation, which is active in over 40 countries and

represents around half of group sales. The International region accounts for around a quarter of sales and covers a broad range

of diverse markets from Latin America to Asia. Finally, the North America region covers the US and Canada and represents just

under a quarter of revenues.

Sandoz has a significant opportunity to build its biosimilars business around the world. Biosimilars, copycat versions of biological

medicines, are increasingly important as more major biological medicines lose exclusivity. In 2025, biosimilars reached 30% of

Sandoz's net sales: 3 years ahead of the investment case presented to shareholders before the spin-off. The company has 32

biosimilar medicines in development targeting >$200 billion in reference medicine sales, positioned to capitalize on the $300+

billion biosimilar loss-of-exclusivity opportunity opening over the next decade. Sandoz remains the leading biosimilars company

in Europe, with 12 commercialized products and volume leadership in six of them.

Required disclosures

Non-U.S. analyst disclosure