Sandoz enters new era as standalone global leader and European champion in generic and biosimilar medicines

The new company is included in key SIX market indices and has an investment-grade credit rating that gives it a strong competitive position. It is well placed for continued profitable growth as a standalone global leader and European champion in generic and biosimilar medicines.

The opening bell-ringing ceremony at SIX headquarters this morning marks the successful completion of the 100% spin-off from former parent company Novartis and the start of trading in Sandoz Group AG shares. The shares are listed on the Swiss Performance Index (SPI®), the Swiss Leader Index (SLI®) and other relevant Swiss indices; Sandoz ADRs (American Depositary Receipts) will also be traded as of today on the US OTCQX®. 

Sandoz Board Chairman Gilbert Ghostine says: “Today marks the dawn of a new era for Sandoz as an independent company, but our Purpose is unchanged: pioneering access for patients. It’s what we do best, have always done best, and will always do best: making quality medicines available to more people, in more places, in more and novel ways.” 

The Sandoz Purpose and brand are deeply rooted in its scientific heritage and legacy of medical firsts since the foundation of chemical pioneer Kern & Sandoz back in 1886: from the development of Calcium Sandoz in 1929, via the world’s first oral penicillin in 1951, to the launch of the world’s first biosimilar in 2006. 

As outlined at the Sandoz Capital Markets Day in June, six strategic levers should drive long-term value: attractive market fundamentals, leadership and scale, multiple growth drivers, margin improvement, accelerated cash generation, and a compelling sustainability story. 

CEO Richard Saynor says: “As an independent company, Sandoz will be fully enabled to deliver on its purpose-driven strategy, which targets sustainable leadership in the growing and critical generics and biosimilars industry.” 

“We already actively pioneer access for patients by shaping the global healthcare environment. We strengthen healthcare systems worldwide by delivering over USD 17 billion in annual savings in Europe and the US alone and we reach some 500 million patients a year in over 100 countries. In doing so, we generate a total social impact estimated to be USD 180 billion annually. And we intend to make an even greater impact going forward.” 

Generics and biosimilars account for an estimated 80% of medicines used worldwide by volume, at about 25% of the total cost. Despite strong competitive pressures, the industry is set to grow steadily over the next decade, driven by underlying demand for these system-critical medicines. 

Robert Ljoljo, President of the Lek d.d. Board of Management and Sandoz Country President Slovenia, added: “As of today, Sandoz and Lek will be even more effective in addressing the needs of half a billion patients under our global wing, which includes Slovenia. Our brand refresh reflects our enduring commitment to healthcare innovation and our dedication to facing global healthcare challenges. Our culture is based on integrity and inclusion, which allow us to be our best selves. When we can stay true to our values, we contribute to the company’s growth and pioneer access for patients. With over 77 years of experience and a solid foundation in the fields of generics and biosimilars, Lek is a valued member of the Sandoz group. The scope of our operations and more than 3000 employees in Slovenia make us the largest company within the group, while two new investments place Slovenia on Sandoz’s map as an important European development and production center for biosimilars. The latter will play a vital part in delivering Sandoz’s mission. 

The Sandoz listing prospectus and related documents can be found here: www.sandoz.com/sandoz-spin.