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(R) (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(R) (adalimumab-adaz) in the US and the recent acquisition of CIMERLI(R) (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(R) high-concentration formulation, the acquisition of CIMERLI(R) as well as continued strong demand for our first-ever biosimilar, Omnitrope(R).

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(R) and contribution from the recent launch of Tyruko(R) (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(R) in the US, continued demand for Omnitrope(R), the acquisition of CIMERLI(R) 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(R) 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(R) in Germany. Developed by Polpharma Biologics, Tyruko(R) is the first and only biosimilar to treat relapsing remitting multiple sclerosis. The availability of Tyruko(R) 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(R) 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(R) (denosumab-bbdz) and Jubbonti(R) (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

https://www.globenewswire.com/Tracker?data=-ntbLaA0ntq0FsUpRbIh7hqM_aN7QCXlGP2YHZJQj5CI733dqwbXquoCyDxcJkfkbtWKosnEUk0JkN0R7K95bMRPcit7BPegZKJdMGj4v0caUfnarifk--bubZbxQ6Ep Webcast -- Live at 9am CET

https://www.globenewswire.com/Tracker?data=U2MhszTQ07zHE25BE4t1kNOBAoXrpKaB_qWHYnj8fxvUneH9KrSBt41-_afpDYgey0ni97WFyiBmHyypKQBwnBHLnYfVWr6DatiPJIXXau53p4tJf8j26pL3IU5rQ0Qi Analyst Call Presentation

https://www.globenewswire.com/Tracker?data=U2MhszTQ07zHE25BE4t1kFaSAZrTQvwlQq-tvB1jRfpRLnAkh5HS91IsjucRk-uyGdDKCDiMh409JmHTvrAATSTBff3dItwWIDNQ6MW_hfHBhnttJCglHyb_4llXgk42wlgbTwi9Mw2UYkUoqFnThB6tVjBI7QQdR5AY6pZGFYZwkrLg3q14Obpu7d3a73lAmWD5TzlJ28_p_AlIOFPZvWS72wTOWCoY7Yag6UVPgD8= 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.
===
(MORE TO FOLLOW) Dow Jones Newswires

May 07, 2024 01:00 ET (05:00 GMT)