Sandoz reported net sales of $2.76B for the first quarter of 2026, an increase of 11% versus Q1 2025 on a reported basis and 3% at constant currencies (CC). Net sales growth was driven by a 7% increase in volumes, partially offset by 4% price erosion. Excluding the impact of adverse dynamics in the anti‑infective business-to-business (B2B) segment for penicillin active pharmaceutical ingredients, net sales growth at CC was 5% in the quarter.
Biosimilars generated net sales of $853M, up 27% reported and 18% at CC, and accounted for 31% of total net sales, compared with 27% in Q1 2025. Growth in Europe reflected the launch of Afqlir (aflibercept) and strong performances from Hyrimoz (adalimumab) and Binocrit (epoetin alfa). Exceptional biosimilars performance in North America was driven by the launches of Wyost and Jubbonti (denosumab), while International biosimilar growth was supported by Hyrimoz, Rixathon (rituximab) and recent Wyost and Jubbonti launches.
Generics net sales were $1.90B, up 5% reported but down 3% at CC; excluding the anti‑infective B2B impact, generics declined 1% at CC and represented 69% of total net sales versus 73% a year earlier. The generics decline at CC was mainly driven by the International region, where net sales were affected by active portfolio rationalization, sales phasing and the anti‑infective B2B environment.
By region, Europe delivered net sales of $1.56B, up 13% reported and 2% at CC, with double‑digit biosimilars growth offset by lower generics revenue influenced by anti‑infective B2B dynamics, seasonal weakness in antibiotics and over‑the‑counter cold and cough medicines, price erosion and policy changes in markets such as Germany and France. International net sales were $609M, up 3% reported but down 2% at CC, reflecting strong biosimilars growth and lower generics sales. North America net sales were $591M, an increase of 14% reported and 12% at CC, driven by biosimilar launches and growth in certain generics, including lisdexamfetamine and estradiol.
During the quarter, Sandoz announced a strategic partnership with Samsung Bioepis covering up to five biosimilar assets, with the first focused on a proposed vedolizumab biosimilar; the agreement expands the Sandoz biosimilar pipeline to up to 32 assets. The company also consolidated its biosimilar development, manufacturing and supply activities under a newly created global unit led by Armin Metzger, without changing its financial reporting structure.
In regulatory and policy developments, the European Medicines Agency issued guidance indicating that, for well‑characterized biologics, robust analytical comparability and pharmacokinetic data may be sufficient to demonstrate biosimilarity without requiring comparative efficacy and safety trials in many cases. In the United States, the Food and Drug Administration expanded the label for Enzeevu (aflibercept) to additional retinal indications, supporting a planned Q4 2026 launch, and the European Commission granted marketing authorization for Ranluspec (ranibizumab) across all reference indications, with a European launch expected in the second half of 2026. The U.S. government also confirmed that generic and biosimilar medicines “should not be subject to section 232 tariffs at this time.”
Sandoz issued two Swiss franc bonds of CHF 275M each, with maturities of six and ten years, to refinance maturing debt and for general corporate purposes, and stated it remains on track to extend its average debt maturity to six to seven years. The company reaffirmed its full‑year 2026 guidance, expecting net sales to grow at CC by a mid‑to‑high single‑digit percentage and core EBITDA margin to expand by around 100 basis points. The outlook assumes no material contribution from any potential launch of generic semaglutide in 2026, anticipates overall pricing to decline by a low‑to‑mid single‑digit percentage, and excludes impacts from unforeseen events such as new U.S. tariffs.
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