Sandoz H1 Profit Down; Lifts FY24 Sales View, Backs Core Margin Forecast; Names New Executives

(RTTNews) - Sandoz Group AG (SDZNY), a Swiss generic and biosimilar medicines maker, reported Thursday that its first-half net income attributable to shareholders fell 36 percent to $150 million from last year's $235 million.

Earnings per share were $0.35, down 36 percent from $0.55 a year ago.

Core net income was $484 million or $1.12 per share, compared to $591 million or $1.37 per share a year ago.

Core EBITDA declined 11 percent from last year to $885 million, and core EBITDA margin fell to 17.5 percent from 20.8 percent last year.

Net sales to third parties grew 6 percent to $5.05 billion from last year's $4.77 billion with strong double-digit growth in biosimilars and a positive contribution by all three regions. Sales grew 7 percent at constant currency rates.

In its second quarter, net sales were $2.6 billion, an increase of 7 percent on a reported basis and up 9 percent in constant currencies. Biosimilars were a key driver of growth in the quarter, while generics remained in line with the strong prior year sales.

Looking ahead for fiscal 2024, Sandoz lifted its net sales guidance to mid- to high-single digit growth in constant currencies versus prior year from previously expected mid-single digit growth, based on favorable business momentum and accelerated growth in United States biosimilars.

The company continues to expect core EBITDA margin of around 20 percent for the year.

Further, Sandoz Group announced that Pierre Bourdage, Sandoz Chief Commercial Officer and a member of the Executive Committee, is stepping down from his role for personal health reasons.

The company has appointed Rebecca Guntern, currently President Europe and a member of the Executive Committee, as the new Chief Commercial Officer effective September 1.

Christophe Delenta will succeed Guntern as President Europe and become a member of the Executive Committee, also effective September 1.

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