Swiss generic drugmaker Sandoz lowered its full-year sales growth forecast on October 28, 2026, after supply constraints in its biosimilars business affected third-quarter results. The announcement sent the company's shares down more than 5% in early trading.
Sandoz now expects net sales to grow by 5% to 6% in 2026 at constant exchange rates, down from its previous forecast of mid-to-high single-digit growth. However, the company raised its outlook for its core earnings margin, expecting its core EBITDA margin to reach 23% to 23.5%, compared with 21.7% in 2025.
The company's third-quarter net sales stood at $2.94 billion, below analysts' expectations of $3.01 billion. Its biosimilars business generated $998 million in net sales, representing a 17% increase at constant exchange rates compared with the same period last year. However, the figure fell short of the $1.02 billion forecast by analysts.
Sandoz said market conditions in Germany were more challenging than expected, while North America led sales during the quarter. The company has been expanding its biosimilars portfolio and aims to more than double annual net sales by 2035, with plans to increase its biosimilar medicines portfolio from 13 drugs to 100 by 2040.
The company is also monitoring potential US tariffs on generic medicines and has raised concerns about competition from low-cost Chinese antibiotic ingredients. Chief Executive Richard Saynor said discussions with the US administration were continuing as the industry faces uncertainty over future trade measures.
The revised sales forecast highlights near-term challenges for Sandoz, even as it expects improved profitability and continues pursuing long-term growth in biosimilars.
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