Sandoz anticipates $3B in potential net sales over five years in biosimilars pipeline expansion

Sandoz today gave insight into its overall strategy once it becomes an independent company later this year, including plans to expand its work in biosimilars and build revenue after claiming $9.1 billion in sales last year.

The generics maker and current Novartis division hosted a capital markets day in New York City on Thursday — the first of two such days, with the second one planned for London next week.

The company said that its expanding pipeline is expected to add another $3 billion in potential net sales over the next five years — pivoting more to “high-value biosimilars and complex generics,” Sandoz said in a news release. Additionally, the company wrote that its biosimilars pipeline now touts 24 products, on top of its more than 400-strong generics pipeline.

“More than 50% of the launch contribution going forward will come from biosimilars driving the mix, and driving our growth,” CEO Richard Saynor said Thursday morning.

The chief executive, who took the Sandoz CEO spot in 2019 as now-Teva CEO Richard Francis’ replacement, also mentioned that Sandoz’s strength in biosimilars and generics helps make the drugmaker stand out.

Richard Saynor

“We have the cash generation and the scale that the small molecules bring, but the long term cash and margin expansion opportunities that biologics have. And there are strong synergies by having the two,” Saynor noted, adding that having the two “means that we have a stable cash flow.”

Sandoz has seen stagnant and borderline-declining revenue over the past several years, going back to 2016, when it touted $10.1 billion in net sales.

Sandoz chief commercial officer Pierre Bourdage pointed out four drugs that Sandoz is planning on launching its biosimilar or generics for several best-selling drugs in the next few years, including: Humira, Tysabri, Prolia and Eylea. The Humira biosimilar has already been approved by the FDA for seven of Humira’s indications, including rheumatoid arthritis, ulcerative colitis and plaque psoriasis.

A Phase III readout on the Eylea biosimilar is planned for Q3, Bourdage said Thursday.

The company also gave insight into its perspective on the Inflation Reduction Act, also known as the IRA, signed by President Biden into law last year that gives Medicare the power to negotiate drug prices.

While Sandoz said that there are pros and cons to the controversial legislation — especially relevant with Merck filing a lawsuit against the US government challenging the constitutionality of the law earlier this week — Sandoz had some concerns about unintended consequences of the bill.

Keren Haruvi

“[Biosimilars] cost a lot of money, and it takes time. So you need to make sure that you have the market by the time you get there,” Sandoz US President and head of North America Keren Haruvi said. “We’re still assessing, I think, the guidance of CMS, the final guidance and how we will implement the IRA. That’s what will make a difference.”

This insight into the company’s next steps and strategy come just one week after Sandoz announced that it had selected the location of its new headquarters ahead of its split from Novartis — and the company is going roughly 2.5 miles away, staying in Basel, Switzerland. The move is planned for mid-2024.

fda