Following its successful spin-off from Novartis in October 2023, Sandoz has reported strong financial performance with a 9% increase in net sales to third parties for 2024, totaling $10.4 billion. The company's growth was primarily driven by its expanding biosimilars portfolio, which demonstrated remarkable momentum in its first year as an independent entity.
Strong Biosimilar Growth Leads Performance
The biosimilars division emerged as the standout performer, recording a 30% growth to reach $2.8 billion in sales. While generics continued to form the backbone of Sandoz's business with $7.5 billion in revenue, this segment showed more modest growth of 2% at constant exchange rates.
The company's success in the biosimilars market has been particularly evident in its Humira biosimilar Hyrimoz, which gained significant traction in the US market through a private-label agreement with CVS biosimilar subsidiary Cordavis. This strategic partnership has helped Sandoz capture a portion of the market previously dominated by AbbVie's Humira, which generated $21.2 billion in revenue in 2022.
Strategic Expansion in Ophthalmology
Sandoz has strengthened its position in the ophthalmology sector through multiple strategic moves. The FDA's approval of Enzeevu (aflibercept-abzv) in August 2024 for wet age-related macular degeneration (AMD) marked a significant milestone. The company further consolidated its ophthalmology portfolio with the $170 million acquisition of Cimerli (ranibizumab-eqrn) in March 2024, a biosimilar approved for various retinal diseases.
Operational Optimization and Future Outlook
As part of its efficiency drive, Sandoz has streamlined its manufacturing operations, reducing its internal manufacturing sites from 18 to 15 while boosting capacity at remaining facilities. CEO Richard Saynor emphasized that this consolidation aims to "simplify our supply chain and optimize capacity usage and processes" to enhance patient access to critical medicines worldwide.
The company maintains a positive outlook for 2025, projecting mid-single digit percentage growth in net sales at constant currencies. Key growth drivers include the recent US launch of Stelara biosimilar Pyzchiva (ustekinumab-ttwe) and the anticipated launch of Tysabri biosimilar Tyruko.
Market Challenges and Opportunities
Despite potential headwinds from US trade tariffs, Sandoz appears well-positioned with its diversified global presence. The company notes that the US market represents less than 20% of its global revenues, providing some insulation from market-specific challenges.
The broader biosimilar market shows promising growth potential, with GlobalData forecasting an increase in biosimilar sales from 5.7% in 2022 to 18.3% in 2032 across major markets, despite ongoing legal challenges in the sector, such as the recent Johnson & Johnson lawsuit against Samsung Bioepis over Stelara.
