Sandoz Group AG announced Wednesday strong full-year financial results for 2025 and issued guidance that anticipates accelerated growth in 2026.
As a global leader in affordable medicines — generics and biosimilars — Sandoz continued to grow net sales in 2025, driven in particular by its expanding biosimilars portfolio. The results reflect progress in key strategic priorities including profitability enhancement, product launches, pipeline expansion and investment in manufacturing capabilities.
Strong full-year performance
According to the press release, Sandoz delivered:
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Net sales of USD 11.09 billion in 2025, up 7 % from USD 10.36 billion in 2024 on a reported basis, and 5 % at constant currencies.
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Generics net sales of USD 7.79 billion, a moderate increase compared to the prior year.
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Biosimilars net sales of USD 3.29 billion, up 15 % year-on-year and outpacing the broader portfolio.
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Core EBITDA of USD 2.41 billion, representing a 16 % improvement and a core EBITDA margin of 21.7 % versus 20.1 % in 2024.
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Core diluted earnings per share of USD 3.64, up 34 % over the prior period.
Management free cash flow increased significantly, reflecting robust operating performance and disciplined capital allocation.
Strategic drivers behind the numbers
Sandoz’s results underscore two structural themes:
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Biosimilars as a Growth Engine — Biosimilars now contribute around 30 % of net sales and delivered double-digit growth, outperforming the overall generics segment. This reflects expanding global uptake, recent product launches, and streamlined regulatory pathways.
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Operational Discipline and Portfolio Mix — Improved profitability stems from tighter cost control, better sales mix, and margin expansion despite pricing pressures on generics.
The group also expanded its manufacturing footprint, including investments in Slovenia and a strategic license to continuous manufacturing technology from Just-Evotec Biologics, reinforcing its position in biosimilar development and production.
Looking agead
Sandoz’s 2026 guidance, according to the press release, reflects expected acceleration in growth. Key points include:
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Mid-to-high single-digit net sales growth at constant currencies.
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An expected 100 basis point expansion in core EBITDA margin.
The outlook excludes potential contributions from future generic semaglutide launches and assumes low-to-mid single-digit declines in overall pricing, reflecting continued generics sector headwinds.
Strategic context and market implications
Sandoz’s performance points to a broader structural pivot within the generics and biosimilars industry: volume and mix growth over price increases. Biosimilars continue to outpace traditional generics, capitalising on regulatory streamlining and healthcare systems’ demand for cost-effective biologic alternatives.
Investment research from Deutsche Bank last year noted the company as a “relatively pure play” on biosimilars growth, forecasting potential expansion of that segment’s revenue share over the next decade.
The 2025 results also come amid ongoing debate over tariff implications and price erosion in key markets, including potential U.S. tariff impacts and competitive pressure in North America. Continued performance in these regions will be a key signal for investors and industry watchers alike.
Investor takeaway
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Sandoz’s 7 % net sales growth and expanding margins for 2025 exceed many market expectations, particularly given persistent pricing pressures in generics.
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The 15 % growth in biosimilars underscores the company’s successful strategic pivot and its role in the broader biologics access trend.
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Guidance for accelerated growth in 2026 — both on top-line and EBITDA margin expansion — suggests management confidence in recent launches, pipeline strength and operating efficiency.
Overall, Sandoz appears to be transitioning from a mid-tier generics player to a more dynamic biosimilars and affordable medicines leader — a shift that aligns with structural growth opportunities in global healthcare.