Earnings release
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Sandoz Group Centralbahnstrasse 4 Global Corporate Communications 4051 Basel Switzerland www.sandoz.com Ad-hoc announcement pursuant to art. 53 SIX Swiss Exchange Listing Rules MEDIA RELEASE Sandoz delivers a further acceleration in sales growth; full-year margin guidance upgraded Basel, October 30, 2025 - Sandoz (SIX: SDZ / OTCQX: SDZNY), the global leader in affordable medicines, today presents its net-sales performance for the nine months and third quarter ended September 30, 2025. − 9M net sales of USD 8,057 million - up by 5% at constant currencies (CC1) and in USD; up by 6% at comparable growth rates (CGR2). Volume growth of 8% - ten largest-selling medicines grew by combined 9% at CC and represented 34% of net sales − Q3 net sales of USD 2,825 million - up by 6% at CC and by 9% in USD, respectively; up by 7% at CGR. Volume growth of 8% - biosimilars represented more than 30% of net sales for first time − All regions in growth at CC in both periods. Europe 9M net sales grew by 6% at CC, while International was up by 4% at CC (by 6% when adjusted2 for 2024 China divestment). North America grew by 1% at CC (by 7% when adjusted2 for Cimerli acquisition) − Successful launches so far this year, in line with roadmap: primarily in US, including Wyost® & Jubbonti® (denosumab) and Pyzchiva® (ustekinumab) − Anticipated biosimilar launches in fourth quarter include European rollouts of Wyost & Jubbonti and Afqlir® (aflibercept), as well as Tyruko® (natalizumab) in US − Full-year 2025 guidance: mid-single-digit net-sales growth at CC (unchanged); a core EBITDA margin of 21-22% (prior guidance: around 21%) Richard Saynor, Chief Executive Officer of Sandoz, commented: “The third quarter once again demonstrated the ability of Sandoz to deliver on its commitments and execute against the strategic roadmap. Our comprehensive launch program is helping us expand access to affordable medicines for more patients. Looking ahead, Sandoz is well-positioned to capitalize on significant growth opportunities, and we control our ability to seize them . We are making strong progress in building our biosimilar infrastructure, advancing our pipeline, and strengthening our capabilities, all supported by consistent financial performance. These are the reasons I am so c onfident in a Sandoz future reflected in compelling growth that underpins our Purpose to pioneer access for patients.” 1 An explanation of non-IFRS measures can be found in the Supplementary financial information of the Half-Year Report 2025. 2 Sandoz defines the comparable growth rate (CGR) as the growth rate of net sales at CC excluding the effects of material acquisitions and divestments. In the case of divestments, net sales are excluded for the corresponding period. Similarly, for acquisitions, the relevant net sales are excluded for the corresponding period. Material acquisitions and divestments are transactions in scope of significant transact ions in the Company’s Consolidated financial statements. Sandoz believes the presentation of CGR is meaningful for management and investors to evaluate the performance of the business over time. In this announcement, adjustments relate to the impact of the 2024 acquisition of biosimilar Cimerli® (ranibizumab) and the 2024 divestment of the Sandoz business in China.
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Page 2 of 7 FULL-YEAR 2025 GUIDANCE The Company has updated its 2025 financial guidance today: – FY 2025 net sales to grow by a mid-single-digit percentage at CC (unchanged) – a core EBITDA margin in FY 2025 of 21-22% (prior guidance: around 21%) This guidance excludes any impacts of unforeseen events or unconfirmed developments, such as significant further potential trade tariffs emanating from the US government. Remco Steenbergen, Chief Financial Officer of Sandoz, commented: “The upgrade in our guidance for the year particularly reflects the success of our biosimilars and the excellence in execution by colleagues around the world. Our ambition is unrelenting; we aim to fully exploit the many opportunities ahead which we believe will deliver sustained strong results over the long term.” US SETTLEMENT: AFLIBERCEPT Sandoz recently announced that it has reached an agreement with Regeneron Pharmaceuticals, Inc., to resolve all patent disputes between the two companies relating to the US FDA -approved Sandoz aflibercept biosimilar. Under the terms of the agreement, Sandoz may enter the US market with a biosimilar version of Eylea® in the fourth quarter of 2026, or earlier in certain circumstances. PENICILLINS: TRADE DISTORTION As part of its vertically integrated penicillins production, the Company sells certain amounts of active pharmaceutical ingredients (APIs) to other businesses. Recently, the imposition of tariffs by the US government has led to reduced exports from China to the US, prompting Chinese suppliers to significantly lower prices for key penicillin APIs, including 6-APA, the foundational compound for all penicillins. This price drop has coincided with an increase in market supply. As the last remaining fully vertically integrated penicillins producer in Europe, Sandoz is pleased to see growing recognition by policymakers of the need for sustainable European supply, but more action is required . The Company calls on the European Union and national governments to implement measures that reduce geopolitical exposure and safeguard long-term sustainability of European-produced penicillins. KEY LINKS A conference call and webcast for investors and analysts will begin today at 9am CET. Details can be found here, with the accompanying presentation here. CALENDAR The Company intends to publish its full-year results on February 25, 2026.
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Page 3 of 7 CONTACTS Media Relations contacts Investor Relations contacts global.mediarelations@sandoz.com investor.relations@sandoz.com Alex Kalomparis +41 79 279 02 85 Craig Marks +44 7818 942 383 Danja Spring +41 79 156 74 88 Tamara Hackl +41 79 790 52 17 9M AND Q3 2025 NET SALES By business 9M 9M 2025 % net sales 9M 2024 change USD m USD m USD % CC % CGR % Net sales 8,057 7,642 5% 5% 6% Generics 5,699 71% 5,558 3% 2% 2% Biosimilars 2,358 29% 2,084 13% 12% 17% 9M net sales were USD 8,057 million, up by 5% at CC and by 6% at CGR. Volumes grew by 8%, partly offset by price erosion of 3%; this decline was in line with a full -year assumption of low to mid -single-digit erosion. Net-sales growth was primarily driven by the performance of biosimilars, which continue to benefit from an extensive pipeline and launch program. Generics overview Net sales of generics in the first nine months were USD 5,699 million, reflecting growth of 2% at CC and CGR. Generics represented 71% of net sales (9M 2024: 73%, Q3 2025: 69%). The increase in 9M net sales of generics in Europe was driven by the impact of launches in 2024 and 2025. International net sales of generics grew, after adjusting for the 2024 divestment of the Sandoz business in China. In North America, generics net-sales growth benefited from the successful Q4 2024 launch of paclitaxel. Biosimilars overview Net sales of biosimilars of USD 2,358 million in the first nine months reflected growth of 12% at CC and 17% at CGR. Biosimilars represented 29% of total net sales (9M 2024: 27%, Q3 2025: 31%). Strong Europe biosimilars 9M net-sales growth at CC benefited from several good performances, including Pyzchiva and Tyruko, while excellent International biosimilar net-sales growth reflected the strong contribution
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Page 4 of 7 from Omnitrope® (somatropin) and Hyrimoz® (adalimumab). Wyost and Jubbonti were launched in Q3 2025 in the International region. North America biosimilar net sales declined at CC, reflecting the withdrawal of Cimerli in Q1 2025 and the impact of private-label adalimumab pricing dynamics; excluding the effect of the withdrawal, North America biosimilar net sales grew by a double-digit percentage at CC, partly a result of the strong launch of Wyost and Jubbonti. Q3 Q3 2025 % net sales Q3 2024 change USD m USD m USD % CC % CGR % Net sales 2,825 2,595 9% 6% 7% Generics 1,963 69% 1,854 6% 3% 3% Biosimilars 862 31% 741 16% 13% 17% Net sales for the third quarter were USD 2,825 million, up by 6% at CC and by 7% at CGR. Volumes grew by 8%, partly offset by price erosion of 2%. By region 9M 9M 2025 % net sales 9M 2024 change USD m USD m USD % CC % CGR % Net sales 8,057 7,642 5% 5% 6% Europe 4,362 54% 3,996 9% 6% 6% International 1,943 24% 1,904 2% 4% 6% North America 1,752 22% 1,742 1% 1% 7% Europe overview 9M net sales in Europe were USD 4,362 million, reflecting growth of 6% at CC and CGR. Europe 9M net sales of generics grew at CC, strongly surpassed by the performance of biosimilars. Notable growth included that from Pyzchiva and Tyruko. International overview 9M net sales in International amounted to USD 1,943 million, with good growth of 4% at CC and 6% at CGR. International net sales of generics declined at CC but grew at CGR , with an exceptional biosimilars result driven by the strong performances of Omnitrope and Hyrimoz.
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Page 5 of 7 North America overview 9M net sales in North America were USD 1,752 million, reflecting an increase of 1% at CC. Growth at CGR however, namely excluding the impact of the acquisition of Cimerli, amounted to 7%. The increase in North America net sales of generics was driven by the successful Q4 2024 launch of paclitaxel, as well as continued strong growth in Canada, while the region delivered strong biosimilar net-sales growth at CGR. Q3 Q3 2025 % net sales Q3 2024 change USD m USD m USD % CC % CGR % Net sales 2,825 2,595 9% 6% 7% Europe 1,530 54% 1,362 12% 6% 6% International 659 23% 635 4% 4% 4% North America 636 23% 598 6% 7% 12% DISCLAIMER This media release contains forward -looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management’s views and assumptions regarding future events and business performance at the time the statements are made. They are subject to risks and uncertainties including, but not confined to, future global economic conditions, exchange rates, legal provisions, market conditions, activities by competitors and other factors outside of the control of Sandoz. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Each forward -looking statement speaks only as of the date of the particular statement, and Sandoz undertakes no obligation to publicly update or revise any forward -looking statements, except as required by law. This media release includes non-IFRS financial measures as defined by Sandoz. An explanation of non -IFRS measures can be found in the Supplementary financial information section of the Half-Year Report 2025. ABOUT SANDOZ Sandoz (SIX: SDZ; OTCQX: SDZNY) is the global leader in generic and biosimilar medicines, with a growth strategy driven by its Purpose: pioneering access for patients. More than 20,000 people of 100 nationalities work together to ensure more than 900 million patient treatments are provided by Sandoz , generating substantial global healthcare savings and an even larger social impact. Its leading portfolio of approximately 1,300 products addresses diseases from the common cold to cancer. Headquartered in Basel, Switzerland, Sandoz traces its heritage back to 1886. Its history of breakthroughs includes Calcium Sandoz in 1929, the world’s first oral penicillin in 1951, and the world’s first biosimilar in 2006. In 2024, Sandoz recorded net sales of USD 10.4 billion.
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Page 6 of 7 APPENDIX HISTORIC NET SALES The Company intends to provide the net-sales performance by region by generics/biosimilars at each half- year and full-year results. 2025 By business Q1 2025 change Q2 2025 change H1 2025 change USD m USD % CC % USD m USD % CC % USD m USD % CC % Net sales 2,480 0% 3% 2,752 8% 5% 5,232 4% 4% Generics 1,809 -3% 0% 1,927 5% 2% 3,736 1% 1% Biosimilars 671 8% 11% 825 15% 12% 1,496 11% 12% Q3 2025 change 9M 2025 change USD m USD % CC % USD m USD % CC % Net sales 2,825 9% 6% 8,057 5% 5% Generics 1,963 6% 3% 5,699 3% 2% Biosimilars 862 16% 13% 2,358 13% 12% By region Q1 2025 change Q2 2025 change H1 2025 change USD m USD % CC % USD m USD % CC % USD m USD % CC % Net sales 2,480 0% 3% 2,752 8% 5% 5,232 4% 4% Europe 1,372 3% 7% 1,460 12% 6% 2,832 8% 6% International 590 -8% -2% 694 11% 11% 1,284 1% 5% North America 518 -1% 1% 598 -4% -3% 1,116 -2% -1% Q3 2025 change 9M 2025 change USD m USD % CC % USD m USD % CC % Net sales 2,825 9% 6% 8,057 5% 5% Europe 1,530 12% 6% 4,362 9% 6% International 659 4% 4% 1,943 2% 4% North America 636 6% 7% 1,752 1% 1%
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Page 7 of 7 2024 Q1 2024 % change Q2 2024 % change Q3 2024 % change Q4 2024 % change USD m USD CC USD m USD CC USD m USD CC USD m USD CC Net sales 2,492 5% 6% 2,555 7% 9% 2,595 11% 12% 2,715 7% 9% Generics 1,869 0% 1% 1,835 -1% 1% 1,854 3% 4% 1,946 1% 4% Biosimilars 623 21% 21% 720 35% 37% 741 36% 37% 769 23% 25% Q1 2024 % change Q2 2024 % change Q3 2024 % change Q4 2024 % change USD m USD CC USD m USD CC USD m USD CC USD m USD CC Net sales 2,492 5% 6% 2,555 7% 9% 2,595 11% 12% 2,715 7% 9% Europe 1,326 4% 2% 1,308 2% 3% 1,362 13% 12% 1,367 7% 8% International 642 4% 12% 627 5% 9% 635 2% 8% 653 0% 6% North America 524 6% 6% 620 22% 23% 598 17% 18% 695 13% 14%