Sandoz Group SDZ.SW
Sandoz Group is a Swiss pharmaceutical company dedicated to the manufacturing and commercialization of generic medicines and biosimilars, with a business model focused on offering lower-cost alternatives to branded drugs. Sandoz presents a mixed profile: its financial health is acceptable (ND/EBITDA 2.51) and its free cash flow conversion is excellent (87.34%), but return on capital is low (ROE 7.25%) and profit fell 71.3% in the last year, weighing on growth. Forward valuation (P/E 18.92) is reasonable, and the agreement with mAbxience for an emicizumab biosimilar strengthens its pipeline.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Sandoz Group is a Swiss pharmaceutical company dedicated to the manufacturing and commercialization of generic medicines and biosimilars, with a business model focused on offering lower-cost alternatives to branded drugs. Sandoz presents a mixed profile: its financial health is acceptable (ND/EBITDA 2.51) and its free cash flow conversion is excellent (87.34%), but return on capital is low (ROE 7.25%) and profit fell 71.3% in the last year, weighing on growth. Forward valuation (P/E 18.92) is reasonable, and the agreement with mAbxience for an emicizumab biosimilar strengthens its pipeline.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.7 |
| Quality / Moat | 5.0 |
| Valuation | 3.9 |
| Growth | 3.4 |
| Dividend | 4.9 |
| Momentum | 8.7 |
| Risk & Context | 8.0 |
OVERALL SCORE: 5.2/10
Context and risks
Sandoz operates in the pharmaceutical sector, subject to regulatory pressure on drug pricing in several key markets (US, Europe). Additionally, its generics and biosimilars business is sensitive to intellectual property legislation and approval of competing products.
News considered in the analysis
- Sandoz and mAbxience agree on emicizumab biosimilar partnership — Acuerdo para desarrollar un biosimilar de emicizumab (Hemlibra), un fármaco de gran éxito; refuerza la cartera de biosimilares de alto valor y el pipeline de crecimiento.
- Podcast: How Sandoz plans to harness its “golden decade” — La dirección reitera su estrategia de crecimiento en biosimilares y genéricos, con una ventana de oportunidad favorable por la expiración de patentes de biológicos.
- What J&J’s Spravato patent win could mean for psychedelic drugs — Noticia sectorial sobre un fármaco de J&J sin relación directa con el negocio de Sandoz.
- Why Everyone Is Watching Sandoz Group (SWX:SDZ) Today — Titular genérico de portal financiero sin información nueva relevante.
- GRFS vs. SDZNY: Which Stock Should Value Investors Buy Now? — Comparativa de valoración entre dos compañías sin información específica nueva sobre Sandoz.
Verdict: Hold; the company has a solid position in biosimilars and robust cash generation, but current profitability and growth do not justify an aggressive entry.
Main risk: The decline in profit (-71.3%) and low profitability (ROE 7.25%) indicate potential competitive or margin pressure in its generics business, which could persist and limit re-rating.
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