Sandoz Group AG

The biosimilars market is expanding, with the global market projected to hit $43.8 billion by 2024 and exceed $100 billion in a decade. Recent FDA and EMA approvals include biosimilars for Johnson & Johnson’s Stelara and Bayer’s Eylea, following patent expirations. Notable approvals include Pyzchiva, Ahzantive, Yesafily, Opuviz, Hercessi, Selarsdi, Wyost, Jubbonti, Simlandi, and Uzpruvo, targeting various conditions and expected to launch by 2025.

In 2024, global drugmakers like AstraZeneca and Novartis are pursuing deals in China to enhance their drug pipelines and market presence, despite Sino-US tensions. This interest benefits local companies and investors, though risks remain due to political and economic uncertainties. Foreign acquisitions in China's healthcare sector have decreased, with domestic buyers dominating.

Global drugmakers like Bristol Myers Squibb and Sanofi are pursuing M&A deals in China to enhance drug pipelines and market presence, despite Sino-U.S. tensions and regulatory challenges. Recent deals include AstraZeneca's $1.2B purchase of Gracell Biotechnologies. Political and economic risks, including U.S.-China relations and data transfer restrictions, are significant considerations.

Switzerland excels in life sciences due to its strong regional hubs like Basel, Zurich, and Geneva/Lausanne, fostering innovation through bioparks and collaboration between academia and industry. This ecosystem supports start-ups and attracts global talent, maintaining Switzerland's leadership in drug discovery and biotech advancements.

Psychedelics, studied since the 1890s, showed potential in psychiatric treatment, especially post-LSD synthesis in 1938. Despite 1960s-70s prohibition, their therapeutic use, emphasizing 'set and setting', has revived since 2006, with modern research exploring their efficacy in treating severe psychiatric conditions, highlighting the need for psychological care and integration in treatment protocols.

FDA approves Sandoz's biosimilar Pyzchiva® (ustekinumab-ttwe), developed by Samsung Bioepis, for all indications of Stelara®, including treating moderate to severe plaque psoriasis, psoriatic arthritis, Crohn's disease, and ulcerative colitis. Pyzchiva® is set to launch in the US in February 2025, aiming to provide affordable biosimilar alternatives for patients.

Samsung Bioepis's Pyzchiva, a biosimilar to J&J's Stelara, approved by FDA for treating severe plaque psoriasis, psoriatic arthritis, Crohn’s, and ulcerative colitis. Set for U.S. commercialization by Sandoz, with competition from Alvotech, Teva, and Amgen biosimilars starting February 2025. J&J's Stelara sales hit $2.4B in Q1 2024, below the $2.6B estimate.

Alvotech and Teva's Selarsdi™, a biosimilar to Stelara®, was FDA approved on April 16, 2024, with a U.S. market entry by February 21, 2025. This marks the second Stelara® biosimilar approval, following Amgen's Wezlana™. Four other Stelara® biosimilars are pending approval. Stelara®'s 2023 U.S. sales were ~$6.97B.

Generic drugmakers like Dr. Reddy's Laboratories, Amphastar Pharmaceuticals, and Sol-Gel Technologies benefit from rising generic drug volumes despite price erosion. They're expanding through collaborations and new product launches. The industry thrives on patent expirations, competition, and patent settlements, with a positive outlook indicated by Zacks Industry Rank.

Express Scripts, part of Cigna's Evernorth, plans to add three biosimilars to its National Preferred Formulary, including Sandoz's Hyrimoz and Adalimumab-adaz, and Boehringer Ingelheim's Cyltezo. These FDA-approved biosimilars offer cost-effective, clinically effective alternatives to HUMIRA for inflammatory conditions, aiming to reduce drug spending and increase treatment access. This move reflects Cigna's strategy to generate cost savings and potentially boost pharmacy revenues, with pharmacy revenues contributing 71.2% to Cigna's 2022 revenues.