Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com -- Sandoz (SIX:SDZ) shares climbed 5% on Thursday after the Swiss generic drug manufacturer reported first-half (H1) sales and operating profit above analyst estimates, and reiterated its full-year outlook.
The company posted H1 net sales of $5.23 billion, up 4% at constant currencies, with growth accelerating to 5% in the second quarter. The results were 1% ahead of consensus and were driven primarily by biosimilars, with sales growing 12% at constant currencies and 17% on a compound annual growth rate basis.
Generics rose 1% at constant currencies, supported by launches in Europe and North America.
First-half EBITDA came in at $1.05 billion, 6% above consensus.
"H1 sales [were] c.1% and EBITDA c.6% above consensus and the expected impact of recent confirmed tariff announcements is included within guidance (15% tariff from Europe into the U.S.)," Jefferies analysts said.
Volume growth in H1 reached 7%, partly offset by 3% price erosion.
Sandoz reiterated its full-year guidance, expecting mid-single-digit constant-currency sales growth and an adjusted EBITDA margin of around 21%.
Biosimilars performed strongly in Europe, up 17% on the back of launches such as Pyzchiva and Tyruko. International markets posted 30% biosimilar growth, led by Omnitrope, which maintained a market-leading position despite a slight share decline.
In North America, biosimilar sales fell 9% due to the withdrawal of Cimerli and lower adalimumab pricing. When adjusted for these factors, growth in the region would have been positive at 9%, according to Jefferies.
Generics sales totaled $3.74 billion, up 1% year-over-year. Europe rose 2%, North America increased 2% helped by the launch of paclitaxel, while International declined 1% due to the China business divestiture.
Regionally, Europe led growth with sales of $2.83 billion, up 6% at constant currencies.
North America declined 1% to $1.12 billion, mainly from biosimilar headwinds, while International grew 5% at constant currencies to $1.28 billion.
International generics pricing "improved in H1, while biosimilar sales surged 30% CER, supported by continued strength in Omnitrope," Jefferies analysts said. "The Q2 trajectory and pricing tailwinds suggest further upside potential, particularly as H2 biosimilar catalysts materialize."