Swiss pharmaceutical giant Novartis said on Wednesday that it expects its generics and biosimilars unit Sandoz to add $3 billion in net sales over the next five years.
The company said the growth will be driven by Sandoz's focus on developing and commercializing innovative generic and biosimilar products, as well as its expansion into new markets.
"Sandoz is well-positioned to continue to grow and deliver value to Novartis shareholders," said Joe Jimenez, CEO of Novartis. "The company has a strong portfolio of products, a talented workforce, and a clear strategy to drive growth."
Sandoz is the second-largest generics and biosimilars company in the world. In 2022, the company generated net sales of $10.5 billion.
Novartis said it expects Sandoz to grow its net sales by an average of 5% per year over the next five years. The company also expects Sandoz to generate $1 billion in free cash flow by 2027.
The announcement comes as Novartis is facing increasing competition from generic and biosimilar drugmakers. In recent years, the company has been forced to cut prices on some of its key products, which has hurt its bottom line.
However, Novartis is confident that Sandoz will be able to offset the impact of competition by growing its sales of innovative products. The company is also investing in new manufacturing facilities and distribution networks to support Sandoz's growth.
Novartis's decision to focus on Sandoz is a sign that the company is committed to its generics and biosimilars business. The company sees Sandoz as a key growth driver in the years to come.
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