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

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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.

(Press release, Sandoz, AUG 5, 2026, View Source [SID1234669670])