Sandoz Group AG delivered strong Q1 2026 results, with total net sales reaching $2.76 billion, an 11% year-over-year increase. The biosimilar division generated $853 million, up 18% at constant currencies, now accounting for 31% of total revenue versus 27% in Q1 2025.
CEO Richard Saynor reaffirmed full-year 2026 guidance, emphasizing the company positioning to capture the accelerating biosimilar opportunity as biologic patent expiries approach.
North America led with net sales up 12% at constant currencies, driven by biosimilar uptake. In Europe, biosimilar net sales grew double-digit, benefiting from the Afqlir (aflibercept) launch and strong Hyrimoz (adalimumab) and Binocrit (epoetin alfa) performances.
The generics division reported a 3% decline at constant currencies. This divergence between biosimilar growth and generic pressure reflects broader industry dynamics: biosimilars offer higher margins, longer product life cycles, and less price competition versus traditional generics.
The 18% biosimilar sales growth translates into increased demand for biosimilar APIs including adalimumab, etanercept, rituximab, bevacizumab, and aflibercept intermediates. The Afqlir launch represents a new demand category for ophthalmic biosimilar APIs requiring specialized manufacturing.
Biosimilars require biologic manufacturing capabilities, complex analytical characterization, and longer development timelines, creating barriers to entry and sustaining higher margins. For API suppliers, the strategic question is whether to invest in biologics or optimize small-molecule portfolios.
As Sandoz prioritizes biosimilar growth, API sourcing strategy favors suppliers with proven biologics capabilities, strong regulatory records, and reliable supply infrastructure. The $300 billion-plus biologics patent cliff ensures sustained demand for qualified biosimilar API partners.
