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Sandoz lowered its full-year sales-growth outlook Wednesday while raising its forecast for underlying profit margins, as short-term supply constraints held back its growing biosimilars business.
The Swiss drugmaker now expects 2026 net sales to rise 5-6% at constant exchange rates, down from its previous expectation of mid-to-high single-digit growth. It raised its core EBITDA margin forecast to 23.0-23.5%, citing a more favorable sales mix and stronger operations.
In its third-quarter sales announcement, Sandoz said stronger demand had caused short-term biosimilar supply constraints in Europe and its International region. Temporary market conditions in Germany were also more difficult than it had expected.
Biosimilars lead growth
Third-quarter net sales reached $2.942 billion, up 4% in reported dollars and 5% at constant currencies. Biosimilar sales rose 17% at constant currencies to $998 million, accounting for 34% of the total.
Generic-drug sales were $1.944 billion, down 1% in reported dollars but unchanged at constant currencies. Lower prices for penicillin ingredients sold to other businesses weighed on that division. Excluding this effect, Sandoz said overall sales would have grown 7% and generics sales 2% at constant currencies.
North America led regional growth, with sales up 20% at constant currencies to $757 million. Europe and the International region each grew 1% on that basis.
Higher margin target despite supply limits
The new margin forecast replaces guidance for an increase of around 100 basis points from the 21.7% core EBITDA margin recorded in 2025. Core EBITDA is an adjusted measure of earnings before interest, taxes, depreciation and amortization, not net profit.
For the first nine months, Sandoz reported sales of $8.703 billion, up 8% in dollars and 5% at constant currencies. Biosimilar sales rose 19% at constant currencies, while generics sales fell 1%.
The company said the revised 2026 guidance does not change its outlooks for 2028 or 2030. It expects no material sales contribution this year from generic semaglutide and continues to forecast a mid-single-digit decline in overall pricing. Its guidance excludes unforeseen events and unconfirmed developments, including potential new U.S. tariffs.
JBizNews Desk | Basel
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