Sandoz Group AG at JPMorgan Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: James Gordon - JPMorgan - Analyst : And I've not got visibility on the app. Given how many people are in there if people want to just raise their hand if they've got any questions, that might be easiest. Does anyone have any questions they'd like to start with? I'll just get a microphone to you. Unidentified Participant Yeah. I was just wondering how you all think about with so much interest in the GLP-1 space and trying and the time it takes to build a biosimilar associated with that, the dilutional effect of so many players, of so many life cycle management, folks coming in on the oral side, on top of the injectable side. And how do you all plan for that from a forecasting and growth perspective in the future?

Question: James Gordon - JPMorgan - Analyst : Go where you know you go first, yeah.

Question: James Gordon - JPMorgan - Analyst : And you mentioned the strength of the channel in Europe that you had, that's, interesting.

Question: James Gordon - JPMorgan - Analyst : A follow-up. And so certainly, this 2026 is technically when you could launch in Brazil, Canada, and Mexico. So we heard something about Canada, but could Brazil and Mexico be even further out? Or could we think next year, you actually have a product to the market in Brazil and Mexico?

Question: James Gordon - JPMorgan - Analyst : Yeah. But you filed in Canada, but you've not filed in those?

Question: James Gordon - JPMorgan - Analyst : I'm not that familiar with how things work in Brazil and Mexico. Are they challenging markets to launch generics in normally?

Question: James Gordon - JPMorgan - Analyst : There's a hand raise over there, please, for a microphone. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 14, 2025 / 5:45PM, SDZ.S - Sandoz Group AG at JPMorgan Healthcare Conference Unidentified Participant Could I just ask for an update on litigation? I know there's been a couple of payments that have been announced or anything else that's outstanding on that front?

Question: James Gordon - JPMorgan - Analyst : Question here. Unidentified Participant Yeah. You said you're at 11 biosims now adding, say, two a year or so. Omnitrope is still growing, 20 years in the market, and scripts go up for biologics when they lose exclusivity. So if we fast forward a few years, it sounds like you need 20 separate product lines of biologic manufacturing. How do you sort of justify that on a CapEx basis and an overall maintenance basis? It's a pretty big biologic manufacturing overhead.

Question: James Gordon - JPMorgan - Analyst : I see a question over there. Unidentified Participant Richard, Sandoz is the only manufacturer of penicillin API in the Western world, which is a product category you didn't allude to, but it may very well become strategic to the US and to Europe. Do you want to allude a little bit on that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 14, 2025 / 5:45PM, SDZ.S - Sandoz Group AG at JPMorgan Healthcare Conference

Question: James Gordon - JPMorgan - Analyst : (inaudible). Otherwise, I'm going to ask a question. Question here. Unidentified Participant Yeah. Just thinking about the GLP-1 opportunity, you mentioned probably Canada and emerging markets are going to be the ones, which will probably add to our growth and the regulated markets come later. How should we think about this opportunity in terms of it contributing to your growth? Do you think it could be material? Or it's just going to help us?

Question: James Gordon - JPMorgan - Analyst : Question here. Unidentified Participant You're about to launch three biosimilar in the US this year, while, let's say, rolling out a few others in Europe. Any reason why we should, let's say, believe that you could not be able to grow at least on par as 2024 should be? What could be the other headwinds into '25?

Question: James Gordon - JPMorgan - Analyst : If we could take a question from here. Unidentified Participant Can you give us an update on the latest on the US generics pricing environment? I mean we have had a good few years. What's kind of the latest you are seeing and potentially what's the driver?

Question: James Gordon - JPMorgan - Analyst : [Still a lot missing, please wait. Yeah.] REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 14, 2025 / 5:45PM, SDZ.S - Sandoz Group AG at JPMorgan Healthcare Conference Unidentified Participant Yeah. I think people are extremely excited about GLP markets. It's because historically, when there is a first-to-market generics now become first batch to market, so a lot of people competing with one molecule. So GLP-1 is a large market, maybe that can satisfy more competitors. But going forward, do you foresee any potential opportunity that could become back to like one or two competitors at the beginning? Is there any that can -- a single product can drive the revenue growth significantly?

Question: James Gordon - JPMorgan - Analyst : We've got Remco here, the CFO as well, but I haven't had any questions your way. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 14, 2025 / 5:45PM, SDZ.S - Sandoz Group AG at JPMorgan Healthcare Conference

Question: James Gordon - JPMorgan - Analyst : Hopefully, not a difficult one, but how much reinvestment is it going to be? It sounds like there's quite a lot of pipeline reinvestment, particularly in maybe US generics. So is what you did in '24 a good guide for how much spend you're going to do in '25 from D&R or R&D? Or is it like ramp-up in some time?

Question: James Gordon - JPMorgan - Analyst : So just to confirm, the $100 million to $200 million is what the extra CapEx could be. That's not the R&D investment, which would go through the P&L?

Question: James Gordon - JPMorgan - Analyst : Any other audience questions? Maybe a final one for me, which would be say HUMIRA did went very well in the US in 2024, better than the market was expecting at least. For STELARA, could you do something similar in terms of a partnership? And when could we find out some more about that?