Sandoz Shares Slip as Supply Constraints and German Market Weigh

Sandoz now anticipates net sales growth of 5% to 6% for the year, retreating from previous projections that hovered in the mid-to-high single-digit range. This shift stems from unforeseen hurdles in Germany alongside a surge in demand for biosimilars—lower-cost versions of biologic medicines—which has outpaced the company’s current production capacity in Europe and international territories.

While the sales outlook dampened sentiment, the company simultaneously raised its core EBITDA margin forecast to a range of 23% to 23.5%. This improvement marks a notable pivot from previous expectations of a one-percentage-point expansion over the prior year’s 21.7% result.

Financial performance for the third quarter highlighted the disconnect: Sandoz posted $2.94 billion in sales, a 4% year-over-year increase that failed to meet analyst consensus estimates of $3.01 billion. Strong biosimilar performance was insufficient to mask a broader decline within the company’s core generics business. Analysts at RBC Capital Markets noted that while the margin upgrade offers a degree of relief, the combination of a revenue miss and a lowered growth trajectory remains a persistent drag on the stock.