Sandoz Group Ltd · SIX:SDZ
Sandoz — J.P. Morgan Healthcare Conference 2024
25 slides from Sandoz's conference presentation, Jan 9, 2024
Slide 1: Pioneering access for patients
January 9, 2024 Pioneering access for patients Richard Saynor, CEO
Slide 2: Disclaimer
Disclaimer This presentation contains forward‐looking statements that reflect the current views of management, and which are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Sandoz Group to differ materially from th
Slide 3: Sandoz at a glance
Sandoz at a glance >$200 billion ~$9 billion #1 or #2 Market size1 FY 2022 net sales3,4 In 70% of European markets5 Growing at 8%1,2 with 50% Europe and 50% North America & European champion increasing share of biosimilars International Present in over 40 markets 21% biosimilars and 79% generics 25
Slide 4: European champion and a leader in off-patent medicines
European champion and a leader in off-patent medicines Net sales by region Net sales by business FY 2022, in USD (billions) FY 2022, in USD (billions) Europe 21% 27% + 6%1 Generics $9.1 + 3%1 50% $9.1 International + 4%1 +4%1 + 7%1 Biosimilars +9%1 23% North America 79% - 2%1 4 Note: Net sales to th
Slide 5: Advancing initiatives in 2023 as an independent company
Advancing initiatives in 2023 as an independent company Biosimilars Corporate • Biosimilar denosumab filing accepted in • Successful completion of spin-off from Novartis US and Europe • Stand-up of new functions ensuring business continuity • Investment in a new biosimilars production plant in Slove
Slide 6: Broad and deep pipeline
Broad and deep pipeline Generics Biosimilars >400 products Generics 25 products Biosimilars ~$170 billion of originator sales targeted1 ~$200 billion of originator sales targeted2 >30% of targeted originator sales are complex generics +10pts increase in biosimilar as a % of net sales3 by 2028 3x # o
Slide 7: Partner of choice across the value chain
Partner of choice across the value chain Securing long-term biosimilars manufacturing capacity Accessing development capabilities, expertise and innovative technologies Adding new pipeline and commercial assets Leveraging commercial, development, regulatory and legal capabilities Efficient use of ca
Slide 8: Topline drivers
Topline drivers SANDOZ
Slide 9: Robust mid-term pipeline focused on high value assets
Robust mid-term pipeline focused on high value assets 2024 – 2028 Complex generics3 Biosimilars Sandoz potential launches1 12 10 (# products) Targeted originator sales2 ~$20 billion ~$45 billion Key products / Complex injectables Natalizumab, denosumab, classes (iron products, GLP-1s) aflibercept an
Slide 10: Positioning Hyrimoz for success
Positioning Hyrimoz® for success Best coverage among adalimumab-adaz biosimilars in the US3 37% Recent milestones Key competitive advantages 12% • Launched Hyrimoz® HCF1 in Europe, • #1 ex-US with >100 million patient days of experience providing two dosage options to patients • Device recommended a
Slide 11: Ongoing launch of Tyruko
Ongoing launch of Tyruko® First and only biosimilar for multiple sclerosis Best coverage Strengthens well-established among adalimumab biosimilar portfolio biosimilars in the US2 Trusted partner in multiple sclerosis • Global commercialization agreement with Polpharma Biologics Seamless patient expe
Slide 12: Margin expansion
Margin expansion 12
Slide 13: Significant margin expansion opportunity
Significant margin expansion opportunity Core EBITDA Margin Strong volume growth 2023 – 2028 (illustrative), % of net sales across regions and businesses, price erosion in line with historical averages ~150bps ~24 to 26% Growing share of higher ~350bps margin products, biosimilars Organizational and
Slide 14: Multiple drivers of operational improvement
Multiple drivers of operational improvement Procurement Network Operational Focused vertical optimization design excellence integration Leveraging scale of Optimizing internal sites Maximizing asset utilization Creating internal biosimilar external spend • 25 in 2017 • Increasing equipment capacity
Slide 15: Multiple drivers of organizational efficiency
Multiple drivers of organizational efficiency Leveraging 30% topline growth over infrastructure Reducing ~1,500 IT applications Accelerating exit of transitional service agreement with former parent Creating a more nimble and focused organization Simplifying organizational design Streamlining proces
Slide 16: Core EBITDA margin expansion driving strong free cash flow uptake
Core EBITDA margin expansion driving strong free cash flow uptake Attractive cash flow profile and strong balance sheet Free cash flow 2021 – 2028 (illustrative), in USD billion • Increasing EBITDA to cash conversion • Working capital optimization ~2.5x • Prudent capital structure 1.0 Capital alloca
Slide 17: Mid-term guidance
Mid-term guidance 2028E Sales growth1 % Mid-single digit Core EBITDA margin % of net sales to third parties ~24 to 26% Dividend policy % of core net income 30 to 40% 17 Note: Unless the context requires otherwise, the expression "mid-term" used in this section refers to a 1. Net sales to third parti
Slide 18: Long-term pipeline to drive future growth
Long-term pipeline to drive future growth
Slide 19: Significant long-term opportunities in our existing pipeline
Significant long-term opportunities in our existing pipeline 2029 and beyond Complex generics2 Biosimilars Sandoz potential launches 19 15 (# assets) Targeted originator sales1 ~$40 billion ~$155 billion 3% 4% 7% GLP-1 Central nervous system 28% 6% Oncology Respiratory 45% Immunology Therapy area sp
Slide 20: Pursuing GLP-1s through internal development and partnerships
Pursuing GLP-1s through internal development and partnerships Deploy GLP-1 Market internal • Expanding analytical capabilities for peptide characterization Accelerating since 2018 driven by the obesity indication capabilities • Leveraging synergies with biosimilars on Projected to represent over $10
Slide 21: Everything in our hands to execute on top-line growth and margin expansion
Everything in our hands to execute on top-line growth and margin expansion Compelling market dynamics for generics and biosimilars European champion and well positioned in North America and International Significant biosimilar launches planned in the next five years Comprehensive and expanding pipel
Slide 22: Appendix
Appendix SANDOZ
Slide 23: Glossary
Glossary Abbreviation Definition API Active pharmaceutical ingredient ATC Anatomical therapeutic chemical CAGR Compound annual growth rate EMA European Medicines Agency FDA Food and Drug Administration IP Intellectual property MAT Moving annual total (refers to rolling 12 months average) NFC New for
Slide 24: Maximizing near-term biosimilars launches
Maximizing near-term biosimilars launches Originator net sales Targeted brand Therapeutic areas targeted (USD bn)1 Current status Proposed launch dates Humira® adalimumab2 Immunology 21 Launched in US and Europe Tysabri® Neurology / US: H1 2024 natalizumab Immunology 2 FDA and EMA approved EU: H1 20
Slide 25: Non-IFRS financial definitions included in this presentation
Non-IFRS financial definitions included in this presentation Core results Growth rate calculation The Company’s core results – including core EBITDA, core operating income and core net income – exclude fully the amortization For ease of understanding, Sandoz uses a sign convention for its growth rat
Sandoz Group — J.P. Morgan Healthcare Conference 2024 on 6ix