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    Change
                                                    31                  %
                                        --------------------------- --------
 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
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*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    Change
                                                    31                 %
                                        --------------------------- -------
 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

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Net sales to third parties 2492 2384 5 6
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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 (https://sandoz-q1-results-2024.open-exchange.net/registration) - Live
at 9am CET
Analyst Call Presentation (https://www.investors.sandoz.com/financials)
Analyst Consensus
(https://prod.cms.investors.sandoz.com/sites/spare89_sandoz_com/files/2024-
04/Sandoz%20Analyst%20Consensus_240423%201.pdf)
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
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Global Media Relations contacts Investor Relations contacts
-------------------------------------------------------------------
Global.MediaRelations@sandoz.com Investor.Relations@sandoz.com
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  Joerg E. Allgaeuer                 Karen M. King
  +49 171 838 4838                   +1 609 722 0982

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  Chris Lewis                        Laurent de Weck
  +49 174 244 9501                   +41 61 529 14 85

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SUPPORTING FINANCIAL INFORMATION
Quarterly sales
Q1 2024

                                                          Change %
                                                        -----------
  USD millions unless indicated otherwise   Q1 2024       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

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Net sales to third parties 2492 5 6
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FY 2023

 USD millions         Change           Change           Change           Change
 unless                  %                %                %               %
 indicated      Q1   ---------   Q2   ---------   Q3   ---------   Q4   -------
 otherwise     2023   USD cc    2023   USD cc    2023   USD cc    2023   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
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 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

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Net sales to
third parties 2384 4 9 2383 5 8 2337 6 4 2543 11 10
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( 1 ) Net sales in this document refer systematically to net sales to third
parties.
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