Sandoz Group AG Sandoz delivers strong H1 2026 results, with outstanding biosimilar growth in the second quarter

Ad hoc announcement pursuant to art. 53 SIX Swiss Exchange Listing Rules
MEDIA RELEASE
 

Basel, 5 August 2026. Sandoz (SIX: SDZ; OTCQX: SDZNY), the global leader in affordable medicines, today presents its financial results for the first half of 2026 and net-sales performance for the second quarter of 2026.

H1 2026 RESULTS

• H1 net sales up by 5% at constant currencies (CC) to USD 5,761 million

• Anti-infective B2B^[1] headwind on net sales of one percentage point at CC. Impact all in Q1

• Q2 2026 net sales up by 7% at CC, with all regions contributing to outstanding biosimilar growth of 22% at CC; generics returned to growth of 1% at CC in second quarter

• Biosimilars represented record 33% of total net sales in first half (H1 2025: 29%)

• Standout North America performance in H1, driven by biosimilar growth of 47% at CC

• H1 core EBITDA increased by 15% in USD, resulting in core-EBITDA margin expansion to 20.9%

• Full-year 2026 guidance confirmed
   

USD millions unless indicated otherwise	H1 2026	H1 2025	change %	change CC[2] %
Biosimilars	1,875	1,496	25%	20%
Generics	3,886	3,736	4%	-1%
Net sales	5,761	5,232	10%	5%
Core EBITDA	1,206	1,046	15%	9%
Core-EBITDA margin	20.9%	20.0%
Core diluted earnings per share	USD 1.71	USD 1.46	17%	11%
Management free cash flow	503	503

USD millions unless indicated otherwise	Q2 2026	Q2 2025	change %	change CC %
Biosimilars	1,022	825	24%	22%
Generics	1,983	1,927	3%	1%
Net sales	3,005	2,752	9%	7%

Richard Saynor, Chief Executive Officer of Sandoz, said: “Sandoz delivered excellent progress during the first half of the year, building further momentum across the business and reinforcing the growth trajectory. The sales result in the second quarter was particularly encouraging, driven by an outstanding biosimilar performance. Biosimilars now represent a record one-third of net sales, reflecting our ability to successfully translate innovation into launch execution. We added four additional in-house assets to our industry-leading biosimilars pipeline, taking the total to 36. I was also delighted by more progress made in profitability and cash generation, while we continue to invest in sustainable long-term growth.

“The consistent high-growth profile of our biosimilars reinforces our conviction that Sandoz is uniquely well positioned for the opportunities ahead. Our expanding portfolio and pipeline, combined with an increasingly streamlined regulatory environment and the forthcoming completion of our vertically integrated biosimilars platform, will further strengthen our leadership position. We look forward to sharing our plans to maximise value in our golden decade for biosimilars at our Capital Markets Day in September.”
H1 2026 FINANCIAL HIGHLIGHTS

• H1 net sales of USD 5.8 billion (H1 2025: USD 5.2 billion), up by 5% at CC

• Biosimilar net sales delivered excellent growth of 20% at CC across all regions in the first half, with North America increasing by 47% at CC and recent launches, notably Wyost^® & Jubbonti^® (denosumab), performing well

• The 10 largest-selling medicines grew by a combined 14% at CC in H1 and represented 35% of net sales

• A H1 core-EBITDA margin of 20.9%, reflecting a 90-basis points year-on-year improvement (H1 2025: 20.0%), driven by an improved mix of sales, cost-price savings and operating leverage

• Increased capital expenditures (capex) in the first half; management free cash flow, however, remained strong at an unchanged USD 503 million. Free cash flow of USD 337 million (H1 2025: USD 207 million)

• Core diluted earnings per share of USD 1.71 in H1 represented growth of 17% in USD

BUSINESS HIGHLIGHTS

• Sandoz recently announced that it will host a Capital Markets Day in London on 8 September, focused on ‘maximising Sandoz value in its golden decade for biosimilars’. The Company will also host an analyst and investor site visit in Slovenia on 9-10 November, providing participants with the opportunity to visit the expanding biosimilar development and manufacturing network

• In July, it was announced that Sandoz will be included in the Swiss Market Index, Switzerland’s leading blue-chip equity index, effective from 21 September

• Sandoz recently advanced from third to second position in terms of gross sales of biosimilar and generic medicines in North America^[3]

• Marking 80 years of antibiotic manufacturing in Europe and 20 years since the approval of the world’s first biosimilar medicine, Omnitrope^® (somatropin), Sandoz celebrated these milestones through anniversary events, highlighting its heritage in affordable medicines, leadership in biosimilars and the importance of resilient European-medicines production

• A new biosimilar development centre in Ljubljana, Slovenia, was officially opened in June, further strengthening the Company’s in-house development capabilities and supporting its long-term biosimilars growth strateg

• Sandoz’s industry-leading biosimilars pipeline expanded during the period by four additional in-house assets, namely through sotatercept, polatuzumab vedotin, burosumab and anifrolumab, bringing the total biosimilars pipeline to 36^[4] assets

• In July, the Company announced that the Agência Nacional de Vigilância Sanitária granted marketing authorisation for Owozy® (semaglutide). This marks the first GLP-1 approval for Sandoz, which the Company will commercialise in Brazil in partnership with Adalvo

• The European Commission recently granted marketing authorisation for Bysumlog^® (insulin lispro) and Dazparda^® (insulin aspart), strengthening Sandoz’s position in diabetes and expanding access to affordable treatment options for patients across Europe

• In June, the US Food and Drug Administration accepted for review two Abbreviated New Drug Applications for proposed generic tirzepatide autoinjectors, marking an important step in advancing the Company’s growing GLP-1 pipeline

• Sandoz recently announced that it has entered into a settlement agreement with the leadership of the consortium of 43 US states and territories to resolve all claims brought by the remaining litigating states and territories against the Company concerning alleged anti-competitive conduct in the US market for generic medicines. Sandoz US has also entered into a settlement agreement with the indirect reseller plaintiffs class. When these two settlements will be completed, Sandoz US will have resolved all claims brought by US federal or state governments against the Company stemming from their investigations of the US generic medicine market from more than a decade ago and all the pending class actions related to this legacy matter. The only remaining anti-trust claims against the Company in the US generic antitrust litigation are those brought by individual plaintiffs who opted out of class settlements. These settlements do not affect full-year 2026 guidance or the Sandoz mid-term outlook

• The Company’s greenhouse-gas reduction targets were recently validated by the Science Based Targets initiative, including combined Scope 1 and 2 emissions reductions of 42% by 2030 and 63% by 2035, respectively

• Several key leadership appointments were announced in the period to support the Company’s next phase of growth, including Pascal Bouye as President, Generics Manufacturing & Supply, Keren Haruvi assuming responsibility for global M&A in addition to her current role and Simon Goeller as Country President, Germany

FULL-YEAR 2026 GUIDANCE
 

Sandoz anticipates continued growth in 2026, partly reflecting the expected performance of recently launched biosimilars. This growth, alongside a favourable shift in the mix of sales, further operating efficiencies and cost discipline, is expected to result in core-EBITDA margin expansion in 2026.

As a result, the Company confirms its expectations for the year:
 

• Net sales to grow at CC by a mid-to-high single-digit percentage
• Core-EBITDA margin expansion of around 100 basis points
   

This guidance excludes any impacts of unforeseen events or unconfirmed developments, including the potential imposition of new tariffs emanating from the US government.

No material contribution from any potential launch of generic semaglutide is expected in 2026. Partly reflecting short-term market dynamics in Germany and an outstanding biosimilars performance in North America, overall pricing is now expected to decline by a mid-single-digit percentage in 2026, compared with the previous expectation of a low-to-mid single-digit percentage decline.

CONFERENCE CALL

A conference call and webcast for investors and analysts will begin today at 9:30 CET. Details can be found here, with the accompanying presentation here.

NOTES

The performance shown in this announcement covers the six-month period ended 30 June 2026 (H1 2026) and the three-month period ended 30 June 2026 (Q2 2026), compared to the six-month period ended 30 June 2025 (H1 2025) and the three-month period ended 30 June 2025 (Q2 2025), respectively. Commentary is based on the performance in H1 2026, unless stated otherwise. In this announcement, ‘Company’ refers to Sandoz Group AG. Over one billion patients were reached by Sandoz in 2025, including an estimated 0.2 billion patients reached through API sales.

HALF-YEAR REPORT

Sandoz published its Half-Year Report 2026 today, which can be found here.

CALENDAR

Sandoz will host a Capital Markets Day in London on 8 September 2026 and an analyst & investor site visit in Slovenia on 9-10 November 2026. Invitations have been distributed.

The Company intends to publish its nine-month and third-quarter sales update on 28 October 2026.

DISCLAIMER

This Media Release contains forward-looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management’s views and assumptions regarding future events and business performance at the time the statements are made. They are subject to risks and uncertainties including, but not confined to, future global economic conditions, exchange rates, legal provisions, market conditions, activities by competitors and other factors outside of the control of Sandoz. Should one or more of these risks or uncertainties materialise or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Each forward-looking statement speaks only as of the date of the particular statement, and Sandoz undertakes no obligation to publicly revise any forward-looking statements, except as required by law.

ABOUT SANDOZ

Sandoz (SIX: SDZ; OTCQX: SDZNY) is the global leader in affordable medicines, with a growth strategy driven by its Purpose: pioneering access for patients. More than 20,000 colleagues of 100 nationalities work together to ensure over one billion patients are reached by Sandoz, generating substantial global healthcare savings and an even larger social impact. Its leading portfolio of approximately 1,300 medicines addresses diseases from the common cold to cancer. Headquartered in Basel, Switzerland, Sandoz traces its heritage back to 1886. In 2026, Sandoz celebrates 20 years of pioneering biosimilars, 80 years of antibiotics manufacturing and 140 years of heritage. In 2025, Sandoz recorded net sales of USD 11.1 billion.

CONTACTS

Global Media Relations contacts	Investor Relations contacts
Global.MediaRelations@sandoz.com	Investor.Relations@sandoz.com
Alexis Kalomparis +41 79 279 0285	Craig Marks +44 7818 942 383
Marina Konrad-Maerk +49 151 189 36375	Tamara Hackl +41 79 790 5217
Gregor Rodehueser +49 170 574 3200	Silvia Siegfried +41 79 795 9061

H1 AND Q2 2026 NET SALES

NET SALES BY BUSINESS

H1

	H1 2026	% of	H1 2025	change
	USD m	net sales	USD m	USD %	CC %
Biosimilars	1,875	33%	1,496	25%	20%
Generics	3,886	67%	3,736	4%	-1%
Net sales	5,761	100%	5,232	10%	5%

Net sales for the first half of 2026 were USD 5.8 billion, reflecting growth of 5% at CC. Volumes grew by 10%, partly offset by price erosion of 5%. Net-sales growth was primarily driven by the performance of biosimilars, which continued to benefit from an extensive pipeline and launch programme.

Biosimilars overview
Net sales of biosimilars in the first half were USD 1.9 billion, reflecting growth of 20% at CC, and represented 33% of total net sales (H1 2025: 29%). In Q2, biosimilar net-sales growth accelerated to 22% at CC and represented 34% of total net sales (Q2 2025: 30%).
The European biosimilar performance in the first half benefitted from the launch of Afqlir^® (aflibercept) and strong performances from Hyrimoz^® (adalimumab), Erelzi^® (etanercept) and Binocrit^® (epoetin alfa). Strong North America biosimilar net-sales growth of 47% at CC reflected the launches of Wyost & Jubbonti in June 2025, while International biosimilar net-sales growth of 19% at CC was driven by the performances of Rixathon^® (rituximab), as well as launches of Wyost & Jubbonti.
Generics overview
Net sales of generics in the first half were USD 3.9 billion, reflecting a decline of 1% at CC. In Q2, however, generics net sales returned to growth.
Generics represented 67% of first-half net sales (H1 2025: 71%). The decline in H1 2026 net sales at CC was driven by adverse dynamics in the anti-infective B2B business that were confined to the first quarter. An adverse performance in the International business was impacted by active portfolio rationalisation and market dynamics in Brazil and Japan. Encouraging growth in North America generics net sales, however, reflected several successful launches.
Q2

	Q2 2026	% of	Q2 2025	change
	USD m	net sales	USD m	USD %	CC %
Biosimilars	1,022	34%	825	24%	22%
Generics	1,983	66%	1,927	3%	1%
Net sales	3,005	100%	2,752	9%	7%

Net sales for the second quarter were USD 3.0 billion, reflecting growth of 9% in USD and 7% at CC.

NET SALES BY REGION
H1

	H1 2026	% of	H1 2025	change
	USD m	net sales	USD m	USD %	CC %
Europe	3,126	54%	2,832	10%	3%
International	1,338	23%	1,284	4%	1%
North America	1,297	23%	1,116	16%	15%
Net sales	5,761	100%	5,232	10%	5%

Europe overview
Net sales in Europe in the first half were USD 3.1 billion, reflecting growth of 3% at CC, with double-digit growth in biosimilars at CC and a stable generics performance; the latter was impacted by unfavourable seasonal effects on the sale of antibiotics and over-the-counter cold & cough medicines in Q1. The biosimilars performance benefitted from the recent launch of Afqlir and strong results from Hyrimoz, Erelzi and Binocrit, partly offset by the impact of short-term market dynamics in Germany.

International overview
Net sales in International in the first half were USD 1.3 billion, reflecting growth of 1% at CC. Biosimilars delivered a strong performance, driven by Rixathon and the recent launches of Wyost & Jubbonti. Generics net sales declined by 4% at CC, primarily due to active portfolio rationalisation and unfavourable market dynamics in Brazil and Japan.

North America overview
Net sales in North America were USD 1.3 billion, representing growth of 15% at CC. Excellent biosimilar growth of 47% at CC was primarily driven by the June 2025 launches of Wyost & Jubbonti. Generics net-sales growth of 1% at CC was a result of several recent launches, partly offset by competitive pressures for paclitaxel.

Q2

	Q2 2026	% of	Q2 2025	change
	USD m	net sales	USD m	USD %	CC %
Europe	1,570	52%	1,460	8%	5%
International	729	24%	694	5%	3%
North America	706	24%	598	18%	18%
Net sales	3,005	100%	2,752	9%	7%

H1 2026 KEY OPERATING AND NON-OPERATING RESULTS
 

	H1 2026	H1 2025	change
	USD m	USD m	USD %	CC %
Net sales	5,761	5,232	10%	5%
Gross profit	2,708	2,411	12%	7%
Operating income	246	602	-59%	-66%
EBITDA	554	870	-36%	-43%
Net income	109	377	-71%	-76%
CORE RESULTS
Core gross profit	2,865	2,575	11%	6%
Core gross-profit margin	49.7%	49.2%
Core operating income	1,028	901	14%	8%
Core operating-income margin	17.8%	17.2%
Core EBITDA	1,206	1,046	15%	9%
Core-EBITDA margin	20.9%	20.0%
Core net income	750	635	18%	12%
Core diluted earnings per share	USD 1.71	USD 1.46	17%	11%

Core gross profit was USD 2.9 billion (H1 2025: USD 2.6 billion), resulting in a core gross-profit margin of 49.7% (H1 2025: 49.2%). The increase was driven by a favourable mix of net sales, reflecting double-digit biosimilars growth and cost-price savings, partly offset by price erosion.

Core EBITDA was USD 1.2 billion (H1 2025: USD 1.0 billion), resulting in a core-EBITDA margin of 20.9% (H1 2025: 20.0%). The increase in the margin was driven by an improvement in the core gross-profit margin and operating leverage, partly offset by a reduction in other income compared with the prior year, which benefitted from favourable one-time items.

EBITDA was USD 554 million (H1 2025: USD 870 million). Core-EBITDA adjustments in H1 2026 were USD 652million (H1 2025: USD 176 million). These adjustments primarily reflected legal expenses of USD470 million, restructuring expenses of USD 54 million, separation costs of USD 47 million, costs of rationalisation of internal manufacturing sites of USD 41 million and software-implementation cost-accounting impacts of USD 33 million.

Core net income of USD 750 million was mainly driven by an increase in core operating income, offset by a higher core net financial expense.

Core diluted earnings per share of USD 1.71 (H1 2025: USD 1.46) was a result of a higher core net income. The weighted average number of shares diluted as of 30 June 2026 was 438.4 million, versus 435.8 million as of 30 June 2025.

CASH FLOWS, NET WORKING CAPITAL AND NET DEBT
 

	H1 2026	H1 2025	change
	USD m	USD m	USD m
Net cash flows from operating activities	871	523	348
Cash flows used for net capex	(532)	(310)	(222)
Free cash flow	337	207	130
Management free cash flow	503	503	–

Sandoz generated net cash flows from operating activities of USD 871 million (H1 2025: USD 523 million). This increase was mainly driven by higher operating income adjusted for non-cash items and lower payments out of provisions, partly offset by lower net working capital.

Cash flows used for capital expenditures were USD 532 million (H1 2025: USD 310 million), reflecting an increase in purchases of intangible assets and property, plant and equipment. This included the Company’s ongoing investments in biosimilar intangible assets and investments in Slovenia, namely a biosimilar drug-substance production centre in Lendava, a fill/finish production plant in Brnik and a recently completed biosimilar-development centre in Ljubljana.

Free cash flow amounted to USD 337 million (H1 2025: USD 207 million). The increase mainly reflected higher net cash flows from operating activities, partly offset by higher cash flows used for net capex.

Management free cash flow, defined as free cash flow adjusted for one-off items, amounted to USD 503 million (H1 2025: USD 503 million); higher levels of free cash flow included reduced separation costs, while investment in capex increased.
 

	30 Jun 2026	31 Dec 2025	change
	USD m	USD m	USD m
Net working capital	3,441	3,503	(62)
Net debt	3,548	3,563	(15)

Net working capital remained broadly stable year-on-year, despite sales growth, and net debt remained in line with prior year.

SUPPLEMENTARY FINANCIAL INFORMATION
2026 NET SALES
BY BUSINESS

		Q1 2026	change			Q2 2026	change			H1 2026	change
		USD m	USD %	CC %		USD m	USD %	CC %		USD m	USD %	CC %
Biosimilars		853	27%	18%		1,022	24%	22%		1,875	25%	20%
Generics		1,903	5%	-3%		1,983	3%	1%		3,886	4%	-1%
Net sales		2,756	11%	3%		3,005	9%	7%		5,761	10%	5%

BY REGION
		Q1 2026	change			Q2 2026	change			H1 2026	change
		USD m	USD %	CC %		USD m	USD %	CC %		USD m	USD %	CC %
Europe		1,556	13%	2%		1,570	8%	5%		3,126	10%	3%
International		609	3%	-2%		729	5%	3%		1,338	4%	1%
North America		591	14%	12%		706	18%	18%		1,297	16%	15%
Net sales		2,756	11%	3%		3,005	9%	7%		5,761	10%	5%

BY BUSINESS AND REGION
 

	H1 2026	H1 2025	Change
	USD m	USD m	USD %	CC %
Biosimilars	1,049	891	18%	10%
Generics	2,077	1,941	7%	0%
Europe	3,126	2,832	10%	3%
Biosimilars	324	265	22%	19%
Generics	1,014	1,019	0%	-4%
International	1,338	1,284	4%	1%
Biosimilars	502	340	48%	47%
Generics	795	776	2%	1%
North America	1,297	1,116	16%	15%
Net sales	5,761	5,232	10%	5%

QUARTERLY 2025 NET SALES
BY BUSINESS

		Q1 2025	change			Q2 2025	change			Q3 2025	change			Q4 2025	change
		USD m	USD %	CC %		USD m	USD %	CC %		USD m	USD %	CC %		USD m	USD %	CC %
Biosimilars		671	8%	11%		825	15%	12%		862	16%	13%		934	21%	16%
Generics		1,809	-3%	0%		1,927	5%	2%		1,963	6%	3%		2,095	8%	2%
Net sales		2,480	0%	3%		2,752	8%	5%		2,825	9%	6%		3,029	12%	6%

BY REGION

		Q1 2025	change			Q2 2025	change			Q3 2025	change			Q4 2025	change
		USD m	USD %	CC %		USD m	USD %	CC %		USD m	USD %	CC %		USD m	USD %	CC %
Europe		1,372	3%	7%		1,460	12%	6%		1,530	12%	6%		1,574	15%	6%
International		590	-8%	-2%		694	11%	11%		659	4%	4%		770	18%	14%
North America		518	-1%	1%		598	-4%	-3%		636	6%	7%		685	-1%	-2%
Net sales		2,480	0%	3%		2,752	8%	5%		2,825	9%	6%		3,029	12%	6%

H1 2026: RECONCILIATION FROM IFRS RESULTS TO CORE RESULTS
 

(USD millions unless indicated otherwise)	IFRS results	Amorti- sation of intangible assets1	Impair- ments2	Acquisition or divest- ment of businesses and related items3	Other items4	Core results
Net sales	5,761	–	–	–	–	5,761
Other revenues	23	–	–	–	–	23
Cost of goods sold	(3,076)	111	–	–	46	(2,919)
Gross profit	2,708	111	–	–	46	2,865
Selling, general and administration	(1,367)	–	–	7	36	(1,324)
Development and regulatory	(511)	6	4	–	2	(499)
Other income	79	–	–	(1)	(4)	74
Other expense	(663)	–	–	3	572	(88)
Operating income5	246	117	4	9	652	1,028
Interest expense	(108)	–	–	–	–	(108)
Other financial income and expense	0	–	–	–	5	5
Income before taxes	138	117	4	9	657	925
Income taxes6	(29)					(175)
Net income	109					750
Basic earnings per share (USD)	0.25					1.72
Diluted earnings per share (USD)	0.25					1.71

 
 

1. Amortisation of intangible assets: cost of goods sold and development and regulatory include the amortisation of rights to currently marketed products and other production-related intangible assets.
2. Impairments: development and regulatory includes impairment charges related to intangible assets.
3. Acquisition or divestment of businesses and related items: selling, general and administration, other income and other expense include costs and a release related to business acquisitions and divestments.
4. Other items: cost of goods sold, other income and other expense include the Group-wide rationalisation of manufacturing sites; cost of goods sold, selling, general and administration, development and regulatory, other income and other expense include the separation costs related to the spin-off; cost of goods sold, selling, general and administration, development and regulatory, other income and other expense include the costs related to the transformation programme and other restructuring charges; other expense includes legal-related charges; selling, general and administration includes software-as-a-service implementation costs; cost of goods sold includes an onerous contract adjustment, and other financial income and expense includes the net monetary impacts on the restatement of non-monetary items for subsidiaries in hyperinflationary economies.
5. For further breakdown of core adjustments by category, refer to table Reconciliation from IFRS operating income to core net income on page 26 of the Half-Year Report 2026.
6. Taxes on the adjustments between IFRS and core results take into account, for each individual item included in the adjustment, the tax rate that will finally be applicable to the item based on the jurisdiction where the adjustment will finally have a tax impact. Generally, this results in amortisation and impairment of intangible assets and acquisition-related restructuring and integration items having a full tax impact. There is usually a tax impact on other items, although this is not always the case for items arising from legal settlements in certain jurisdictions. Due to these factors and the differing applicable tax rates in the various jurisdictions, the tax on the total adjustments of USD 787 million to arrive at the core results before tax amounts to USD 146 million. The average tax rate on the adjustments was 18.6%.

Further reconciliations of core results are available in the supplementary financial information of the Half-Year Report 2026.
 

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