Sandoz Trims Sales Forecast, Boosts Profit Margin Outlook on Q3 Miss

Swiss generic drugmaker Sandoz has revised its full-year financial guidance, lowering its sales growth expectations while simultaneously raising its profit margin forecast. The company attributed the updated outlook to short-term biosimilar supply constraints and a third-quarter performance that fell short of analyst expectations.

Updated 2026 Outlook

Sandoz announced on Wednesday it now anticipates full-year net sales to grow by 5-6% at constant exchange rates, a reduction from its previous forecast of mid-to-high-single-digit growth. This adjustment reflects headwinds experienced during the third quarter.

Conversely, the company lifted its profitability target, projecting a core EBITDA margin of 23% to 23.5% for 2026. The new margin guidance represents a significant increase from the previously expected rise of around 100 basis points over the 21.7% margin recorded in 2025.

Third-Quarter Performance

The revised guidance follows a challenging third quarter, where net sales of $2.94 billion missed the $3.01 billion consensus forecast compiled by Vara research. The company's biosimilars unit, a key growth driver, also slightly underperformed analyst estimates.

Key figures for the quarter include:

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• Biosimilar net sales: $998 million, a 17% increase at constant exchange rates year-over-year.
• Analyst expectation: $1.02 billion.

Sandoz cited market conditions in Germany that were "more challenging than anticipated" as a contributing factor, noting that North America was the leading region for sales during the quarter.

Business and Market Context

Looking ahead, Sandoz stated that it does not expect a material contribution this year from the launch of its generic semaglutide, a competitor in the lucrative diabetes and obesity drug market, despite recent approvals in Brazil and Canada.

The update comes as the company navigates a complex global supply chain. In March, Sandoz filed an anti-dumping complaint with the European Commission against what it called market-distorting imports of Chinese amoxicillin APIs, the active ingredient in a key penicillin product.