Sandoz reports first quarter 2024 sales
Ad hoc announcement pursuant to art. 53 SIX Swiss Exchange
Listing Rules
MEDIA RELEASE
- Strong first quarter performance, with net sales
[1] of USD 2.5 billion, up 6% in constant currencies (up
5% in USD)
- Biosimilar business growing 21% in constant
currencies
- All regions contributing to growth
- Acquisition of CIMERLI® (ranibizumab-eqrn) completed in March
2024
Basel, May 7, 2024 – Sandoz
(SIX:SDZ/OTCQX:SDZNY), the global leader in generic and biosimilar
medicines, today announced net sales for the first quarter 2024.
Net sales were USD 2.5 billion, an increase of 6% in constant
currencies compared to the same quarter of the prior year.
Biosimilars saw another quarter of double-digit net sales growth,
an increase of 21% in constant currencies. Generics sales remained
in line with prior year levels.
Richard Saynor, Chief Executive Officer of Sandoz, said: “We saw
a strong start to the year as we report our 10th consecutive
quarter of topline growth. The momentum in our business continues
as demonstrated by double-digit growth in biosimilars and a
positive contribution by all regions.”
Mr. Saynor continued: “Biosimilars are a key element of
performance, driven by strong results in our existing portfolio,
demand for our recently launched product Hyrimoz® (adalimumab-adaz)
in the US and the recent acquisition of CIMERLI®
(ranibizumab-eqrn), which closed in early March. Generics remained
in line with the strong prior year sales. Looking forward, we are
confident in our ability to continue to grow our top line and meet
our full-year net sales guidance of mid-single digits in constant
currencies.”
FIRST QUARTER NET SALES RESULTS
Net sales for the first quarter were USD 2.5 billion, up 6% in
constant currencies, compared to the first quarter of 2023. Volume
contributed 10 percentage points of growth, partially offset by
price erosion of 4 percentage points. Biosimilars were a key driver
of growth in the quarter, while generics remained in line with the
strong prior year sales.
Net sales by business
| |
Three months ended March 31 |
|
Change % |
| USD millions
unless indicated otherwise |
2024 |
2023 |
|
USD |
cc* |
| Generics |
1869 |
1868 |
|
0 |
1 |
|
Biosimilars |
623 |
516 |
|
21 |
21 |
|
Net sales to third parties |
2492 |
2384 |
|
5 |
6 |
*Constant currencies
Generics overview
Net sales for the first quarter were USD 1.9 billion, up 1% in
constant currencies, compared to the first quarter of 2023. Solid
volume demand was partly offset by the impact from the withdrawal
of apixaban in the Netherlands following a court decision in August
2023, an exceptional cough and cold season in the first half of
2023 and the timing of new launches in the US.
Biosimilars overview
Net sales for the first quarter were USD 623 million, up 21% in
constant currencies, compared to the first quarter of 2023. This
strong double-digit biosimilar growth reflects the ongoing launch
of Hyrimoz® high-concentration formulation, the acquisition of
CIMERLI® as well as continued strong demand for our first-ever
biosimilar, Omnitrope®.
Net sales by region
| |
Three months ended March 31 |
|
Change % |
| USD millions
unless indicated otherwise |
2024 |
2023 |
|
USD |
cc |
| Europe |
1326 |
1270 |
|
4 |
2 |
| North
America |
524 |
496 |
|
6 |
6 |
|
International |
642 |
618 |
|
4 |
12 |
|
Net sales to third parties |
2492 |
2384 |
|
5 |
6 |
Europe overview
Net sales for the first quarter were USD 1.3 billion, up 2% in
constant currencies, compared to the first quarter of 2023. Generic
volume growth remained positive despite a strong prior year
comparison from peak sales of apixaban and an exceptional cough and
cold season. Biosimilars showed strong sales growth, led by demand
for Omnitrope® and contribution from the recent launch of Tyruko®
(natalizumab) in several key countries.
North America overview
Net sales for the first quarter were USD 524 million, up 6% in
constant currencies, compared to the first quarter of 2023. Growth
was driven by the ongoing launch of Hyrimoz® in the US, continued
demand for Omnitrope®, the acquisition of CIMERLI® which closed in
early March, and the transfer of mature brands from our former
parent in the fourth quarter of 2023. This was partly offset by a
decline in generics sales due to the timing of new launches in the
US.
International overview
Net sales for the first quarter were USD 642 million, up 12% in
constant currencies, compared to the first quarter of 2023. This
was primarily a result of strong volume growth across both generics
and biosimilars, the acquisition of Mycamine® in the prior year and
favorable price dynamics.
GUIDANCE 2024
The company reiterates its full-year 2024 guidance, expecting net
sales to grow mid-single digit in constant currencies versus prior
year and core EBITDA margin around 20%.
FIRST QUARTER STRATEGIC MILESTONES
On January 31, we announced the launch of Tyruko® in Germany.
Developed by Polpharma Biologics, Tyruko® is the first and only
biosimilar to treat relapsing remitting multiple sclerosis. The
availability of Tyruko® is a crucial milestone in improving access
to effective and safe therapies for those in Europe that need them
most.
On March 4, we announced the completion of the US biosimilar
CIMERLI® acquisition from Coherus BioSciences, Inc, ahead of
anticipated timelines. The acquisition builds on the leading Sandoz
ophthalmic platform in the US and lays an even stronger foundation
for future product launches.
On March 5, we announced that Remco Steenbergen, currently a
Sandoz Board member, will become a member of the Executive
Committee and take on the responsibility of Sandoz CFO as of July
1, 2024. Remco will succeed Colin Bond who will step down from
his position as of June 30, 2024, and retire in January 2025 per
Swiss employment practice. Colin will be available for
transition as a senior advisor through the end of 2024.
On March 5, we also announced that the US Food and Drug
Administration (FDA) approved Wyost® (denosumab-bbdz) and Jubbonti®
(denosumab-bbdz), the first and only FDA-approved denosumab
biosimilars, to treat all indications of the reference medicines
including osteoporosis and cancer-related skeletal events.
KEY LINKS
Webcast – Live at 9am CET
Analyst Call Presentation
Analyst Consensus
NON-IFRS MEASURES IN THIS DOCUMENT AS DEFINED BY
SANDOZ
Sandoz uses certain non-IFRS metrics when measuring performance,
especially when measuring current period results against prior
periods, including core results, constant currencies and free cash
flow. Despite the use of these measures by management in setting
goals and measuring Sandoz performance, these are non-IFRS measures
that have no standardized meaning prescribed by IFRS Accounting
Standards. As a result, such measures have limits in their
usefulness to investors. Because of their non-standardized
definitions, the non-IFRS measures (unlike IFRS measures) may not
be comparable to the calculation of similar measures of other
companies. These non-IFRS measures are presented solely to permit
investors to more fully understand how Sandoz management assesses
underlying performance. These non-IFRS measures are not, and should
not be viewed as, a substitute for IFRS measures, and should be
viewed in conjunction with IFRS financials. As an internal measure
of Group performance, these non-IFRS measures have limitations, and
Sandoz performance management process is not solely restricted to
these metrics.
The definitions of the non-IFRS financial metrics as used by
Sandoz are as follows:
Core results
Sandoz core results – including core EBITDA, core operating income,
core net income and core earnings per share – exclude fully:
- The amortization and impairment charges of intangible assets
other than software;
- Net gains and losses on fund investments and equity securities
valued at fair value through profit and loss;
- Certain acquisition and divestment- related items;
- Tax liabilities for uncertain tax positions.
The following items that exceed a threshold of USD 25 million
are also excluded:
- Integration- and divestment- related income and expenses;
- Divestment gains and losses;
- Restructuring charges/releases and related items;
- Legal related items;
- Impairments of property, plant and equipment, software and
financial assets;
- And income and expense items that management deems exceptional
and that are or are expected to accumulate within the year to be
over a USD 25 million threshold. Income tax impacts of such items
are also excluded from core measures.
Sandoz believes that investor understanding of its performance
is enhanced by disclosing core measures of performance because,
since core measures exclude items that can vary significantly from
year to year, they enable a better comparison of business
performance across years. For this same reason, Sandoz uses these
core measures in addition to IFRS and other measures as important
factors in assessing its performance.
The following are examples of how these core measures are
utilized:
- In addition to monthly reports containing financial information
prepared under IFRS, senior management receives a monthly analysis
incorporating these core measures;
- Annual budgets are prepared for both IFRS and core
measures.
As an internal measure of Sandoz performance, the core results
measures have limitations, and the Sandoz performance management
process is not solely restricted to these metrics.
A limitation of the core results measures is that they provide a
view of the Sandoz operations without including all events during a
period, such as the effects of an acquisition, divestment, or
amortization/impairments of purchased intangible assets,
impairments to property, plant and equipment and restructurings and
related items.
Constant currencies
Changes in the relative values of non-US currencies to the US
dollar can affect Sandoz financial results and financial position.
To provide additional information that may be useful to investors,
including changes in sales volume, Sandoz presents information
about its net sales and various values relating to operating and
net income that are adjusted for such foreign currency effects.
Constant currency calculations have the goal of eliminating two
exchange rate effects so that an estimate can be made of underlying
changes in the consolidated income statement excluding the impact
of fluctuations in exchanges rates:
- The impact of translating the income statements of consolidated
entities from their non-USD functional currencies to USD;
- The impact of exchange rate movements on the major transactions
of consolidated entities performed in currencies other than their
functional currency.
Sandoz calculates constant currency measures by translating the
current year’s foreign currency values for sales and other income
statement items into USD (excluding the IAS 29 “Financial Reporting
in Hyperinflationary Economies” adjustments to the local currency
income statements of subsidiaries operating in hyperinflationary
economies), using the average exchange rates from the prior year
and comparing them to the prior year values in USD. Sandoz uses
these constant currency measures in evaluating its performance,
since they may assist the Group in evaluating its ongoing
performance from year to year. However, in performing its
evaluation, Sandoz also considers equivalent measures of
performance that are not affected by changes in the relative value
of currencies.
EBITDA
Sandoz defines earnings before interest, tax, depreciation, and
amortization (EBITDA) as operating income, excluding depreciation
of property, plant and equipment and right-of-use assets,
amortization of intangible assets, impairments of property, plant
and equipment, right-of-use assets, and intangible assets.
Core EBITDA margin
Sandoz defines core EBITDA margin as the percentage of core EBITDA
over net sales to third parties. It is an indicator to measure the
profitability of the Group.
Currencies
References to “USD” or “U.S. dollars” are to the lawful currency of
the United States of America.
Rounding
Certain figures contained in the media release, including financial
information presented in millions or thousands, certain operating
data and percentages describing financial information or market
shares, have been subject to rounding. Accordingly, in certain
instances, the amounts shown as totals in tables or elsewhere may
not conform exactly to the arithmetic total of the figures that
precede them. In addition, certain percentages reflect calculations
based upon the underlying information prior to rounding and,
accordingly, may not conform exactly to the percentages that would
be derived if the relevant calculations were based upon the rounded
numbers.
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 materialize 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 update or revise any forward-looking statements, except as
required by law.
ABOUT SANDOZ
Sandoz (SIX: SDZ; OTCQX: SDZNY) is the global leader in generic and
biosimilar medicines, with a growth strategy driven by its Purpose:
pioneering access for patients. More than 20,000 people of more
than 100 nationalities work together to ensure 800 million patient
treatments are provided annually by Sandoz, generating substantial
global healthcare savings and an even larger social impact. Its
leading portfolio of approximately 1500 products addresses diseases
from the common cold to cancer. Headquartered in Basel,
Switzerland, Sandoz traces its heritage back to 1886. Its history
of breakthroughs includes Calcium Sandoz in 1929, the world’s first
oral penicillin in 1951, and the first biosimilar in 2006.
CONTACTS
|
Global Media Relations contacts |
Investor Relations contacts |
|
Global.MediaRelations@sandoz.com |
Investor.Relations@sandoz.com |
Joerg
E. Allgaeuer
+49 171 838 4838 |
Karen M. King
+1 609 722 0982 |
Chris
Lewis
+49 174 244 9501 |
Laurent de Weck
+41 61 529 14 85 |
SUPPORTING FINANCIAL INFORMATION
Quarterly sales
Q1 2024
| USD
millions unless indicated otherwise |
Q1 2024 |
|
Change % |
|
|
USD |
cc |
| Generics |
1869 |
|
0 |
1 |
| Biosimilars |
623 |
|
21 |
21 |
|
Net sales to third parties |
2492 |
|
5 |
6 |
| |
|
|
|
|
| Europe |
1326 |
|
4 |
2 |
| North America |
524 |
|
6 |
6 |
| International |
642 |
|
4 |
12 |
|
Net sales to third parties |
2492 |
|
5 |
6 |
FY 2023
| USD
millions unless indicated otherwise |
Q1 2023 |
|
Change % |
|
Q2 2023 |
|
Change % |
|
Q3 2023 |
|
Change % |
|
Q4 2023 |
|
Change % |
|
|
USD |
cc |
|
|
USD |
cc |
|
|
USD |
cc |
|
|
USD |
cc |
| Generics |
1868 |
|
2 |
6 |
|
1850 |
|
4 |
6 |
|
1794 |
|
5 |
4 |
|
1920 |
|
6 |
6 |
| Biosimilars |
516 |
|
11 |
17 |
|
533 |
|
13 |
14 |
|
543 |
|
7 |
4 |
|
623 |
|
29 |
26 |
|
Net sales to third parties |
2384 |
|
4 |
9 |
|
2383 |
|
5 |
8 |
|
2337 |
|
6 |
4 |
|
2543 |
|
11 |
10 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Europe |
1270 |
|
10 |
16 |
|
1277 |
|
14 |
12 |
|
1204 |
|
11 |
3 |
|
1272 |
|
10 |
4 |
| North America |
496 |
|
(5) |
(3) |
|
508 |
|
(4) |
(2) |
|
510 |
|
(4) |
(3) |
|
615 |
|
20 |
20 |
| International |
618 |
|
(1) |
4 |
|
598 |
|
(3) |
8 |
|
623 |
|
3 |
12 |
|
656 |
|
4 |
14 |
|
Net sales to third parties |
2384 |
|
4 |
9 |
|
2383 |
|
5 |
8 |
|
2337 |
|
6 |
4 |
|
2543 |
|
11 |
10 |
[ 1 ] Net sales in this document refer
systematically to net sales to third parties.
- SANDOZ Q1 Sales Media Release
Sandoz (LSE:0SAN)
過去 株価チャート
から 11 2024 まで 12 2024
Sandoz (LSE:0SAN)
過去 株価チャート
から 12 2023 まで 12 2024
