Sandoz lifts annual margin view but cuts sales outlook

(AWP Alliance News) - Sandoz Group AG on Wednesday cut its annual sales guidance on Wednesday, but it raised its margin view.

The Basel, Switzerland-based pharmaceutical company said third quarter net sales amounted to USD2.94 billion, up 4.1% on-year from USD2.83 billion.

"Sandoz made further progress in the third quarter, reflecting the strength of a growing portfolio and continued momentum in biosimilars. We also continued to strengthen the foundations for our long-term growth by expanding our biosimilar pipeline to 40 assets and achieving more milestones with our biosimilar hub in Slovenia," Chief Executive Officer Richard Saynor said.

At constant currency, quarterly sales rose 5%.

Sandoz now expects annual constant currency sales growth between 5% and 6%, its guidance lowered from a mid-to-high single-digit percentage view.

However, it lifted its core earnings before interest, tax, depreciation and amortisation margin view. It now sees its core Ebitda margin rising to a 23.0% to 23.5% range. Previously, it predicted a rise of some 100 basis points from 21.7% in 2025, implying a margin of around 22.7% for 2026.

"Stronger volume demand in the third quarter resulted in short-term biosimilar-supply constraints in Europe and International. Sandoz has recently increased its market share in Europe further, including a significant expansion in biosimilars, but it has faced more-challenging temporary market conditions in the quarter in Germany than anticipated. These factors have led the Company to update its 2026 net-sales guidance," Sandoz said.

"The benefits of an increasingly favourable net-sales mix and stronger operational performance are reflected in today's upgraded core-Ebitda margin guidance."

Sanoz shares were down 2.4% at CHF80.14 each in Zurich on Wednesday.

By Eric Cunha, Alliance News news editor

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