Sandoz Group FY Conference Summary Company Overview - **Company**: Sandoz Group (OTCPK:SDZN.Y) - **Event**: 44th JP Morgan Healthcare Conference - **Date**: January 13, 2026 Key Industry Insights - **Market Size**: The biosimilars and generics market is valued at over $250 billion and is expected to grow significantly, with approximately $600 billion in loss of exclusivity (LOE) opportunities over the next decade [6][15] - **European Market**: The European biosimilars and generics market represents an $85 billion opportunity, growing at 8.5% [8] Core Company Strategies - **Mission**: Sandoz aims to pioneer access for patients, treating more patients globally than most pharmaceutical companies [2] - **Competitive Edge**: Sandoz's unique position in the biopharma and generics space is built on three pillars: purpose-led, unmatched global reach, and a people-driven organization [3][4] - **Investment in Infrastructure**: Sandoz has invested approximately EUR 175 million in new facilities, including an antibiotic facility in Austria and a biodevelopment R&D center in Germany [5] Financial Performance - **2024 Net Sales**: Sandoz reported $10.4 billion in net sales with double-digit growth in biosimilars [7] - **Debt Management**: The company maintains a net debt to core EBITDA ratio below two times, supported by a strong balance sheet [7] Product Development and Pipeline - **Biosimilars Pipeline**: Sandoz has 27 biosimilars in development, holding the number one position globally [7] - **Recent Launches**: Successful launches in 2025 included Pyzchiva, Tyruko, and Jubbonti, expanding their market presence in both the U.S. and Europe [12][13] - **Future Opportunities**: Sandoz is targeting significant growth in GLP-1s, with plans for major launches in Europe and the U.S. starting from 2031 [10][15] Market Dynamics - **Regulatory Changes**: Recent regulatory streamlining is expected to accelerate market entry for biosimilars, creating a strategic opportunity for Sandoz [16][28] - **Competitive Landscape**: Sandoz's vertical integration in manufacturing and strong commercial presence positions it favorably against competitors [20][17] Long-term Outlook - **Growth Projections**: Sandoz anticipates capturing over $320 billion in LOE opportunities in biosimilars and around $340 billion in generics over the next decade [15] - **Market Transformation**: The shift from small molecule generics to biologics is expected to drive significant value, with biosimilars becoming key to unlocking access and affordability [17][18] Additional Insights - **Sustainability of Growth**: The aging population and increasing healthcare needs in Europe are expected to sustain growth in Sandoz's base business [38] - **Strategic Partnerships**: Sandoz is exploring partnerships to unlock value in markets like the Middle East and Africa, although its primary focus remains on Europe and the U.S. [29] Conclusion Sandoz is well-positioned to capitalize on the growing biosimilars and generics market through strategic investments, a robust pipeline, and a commitment to patient access. The company’s focus on execution and leveraging its competitive advantages will be critical in navigating the evolving healthcare landscape.

Industry Overview - The U.S. generic drug market is characterized by persistent price erosion, intense competition, and structurally thin margins, despite steady demand for generics [1] - The industry comprises companies that develop and market chemically or biologically identical versions of brand-name drugs after patent expiration, with competition leading to thin margins [4] Current Trends - Generic manufacturers are focusing on complex generics, injectables, and biosimilars, which offer higher margins and limited competition [2] - The loss of patent exclusivity of branded drugs is a key driver for generic drugmakers, allowing them to file for FDA approval to market generics [5] - Stiff competition arises when branded drugs lose exclusivity, leading to aggressive pricing strategies among generic competitors [7] - Patent settlements are crucial for growth, as they expedite the availability of low-cost generics while also involving costly litigation [8] Market Performance - The Zacks Medical – Generic Drugs industry has outperformed both the broader Zacks Medical sector and the S&P 500 Index, growing over 28% year-to-date compared to 6% and 19% respectively [12] - The industry is currently trading at a forward P/E ratio of 14.37X, significantly lower than the S&P 500's 23.61X and the Zacks Medical sector's 21.09X [16] Company Highlights - **Sandoz**: Achieved net sales of $8.06 billion in the first nine months of 2025, up 5%, driven by strong demand for biosimilars [19] [20] - **Teva Pharmaceuticals**: The world's largest generic drug company, focusing on first-to-file opportunities and complex generics, with a stable U.S. generics business [22] [24] - **Dr. Reddy's Laboratories**: Strong position in the U.S. generics market with 75 generic filings pending FDA approval, focusing on complex generics for growth [28] [29]