Good morning and welcome to the Sandoz session of the 44th JP Morgan Healthcare Conference. My name is Fearne Bon Nelson . I'm an analyst here at JPMorgan on the European Pharma and Biotech team, and today it's my pleasure to welcome CEO of Sandoz, Richard Saynor. As a reminder, at the end of the session, there will be a Q&A portion, so please raise your hand so we can pass your mic so everyone on the webcast can hear as well. And with that, I'll hand over to Richard.
Okay, well, thank you. Pleasure. Good morning, everybody. So I'll take you through a relatively brief presentation, talk about a bit of our history, our journey, how we're executing, and then, really much more importantly, thinking about the future as we see it over the next few years, and an opportunity for questions. What I have said is we'll have a money box. Any questions on GLP-1s, we'll collect some money for disadvantaged Canadians, because clearly I'm getting a lot of questions on GLPs. So, pioneering for access for patients. So, good morning. Our mission as a company is simple. Our job is to pioneer access for patients. We treat more patients around the world than pretty much any other pharmaceutical company.
In an era where patients are getting older, patients are getting sicker, and affordability is becoming an increasing issue for many societies, the role that Sandoz and companies like Sandoz play is increasingly critical, and the role that we make for patients is a huge difference. I want to talk you through today about the edge that we believe we have as a company, how we are executing on our strategy, and then focus on how we want to shape the future for what we see as an incredible opportunity for Sandoz. And then we'll have plenty of time at the end to ask any questions. First, let's turn to our competitive edge. Sorry, go back one. What makes Sandoz truly unique is in the biopharma and generics space. Really, it comes down to three key pillars: purpose-built, global in reach, and people-driven. Firstly, we are purpose-led.
Our focused model has trusted execution and allowed us to remain the only pure-play generics and biosimilars company of scale. This clarity of purpose positions us as a trusted partner across healthcare systems, patients, and investors. Secondly, our global reach is unmatched. We have an excellent supply chain with very significant commercial presence in over 100 countries, strong internal and external manufacturing and development capabilities that allows us to deliver medicines where they're needed, reliably, at scale, and at high quality. And finally, perhaps most importantly, we're a people-driven organization with empowered teams, industry-leading leadership, and is the engine behind our success. With more than 23,000 committed colleagues around the world, we combine expertise and passion to create impact every day. Together, these three pillars - purpose, reach, and people - allow us to build scale, trust, and impact patients and healthcare systems globally.
I can't believe it's over two years since we created Sandoz. Two years ago, we set out on a bold journey to become an independent company with a clear clarity of purpose, pioneering access for patients. Today, we can proudly say that we've delivered on all of the commitments that we made at the original CMD. Starting in October 2023, we completed the spinoff and immediately began investing in our future by opening a new antibiotic facility in Austria and a biodevelopment R&D center in Germany, a combined investment of about EUR 175 million. In early 2024, we then announced our first U.S. private label partnership with Cordavis, again further strengthening our commercial reach. This year, construction began on a state-of-the-art biosimilars production center in Brnik, Slovenia, another milestone in building our internal global manufacturing scale.
Along the way, we've also launched numerous biosimilars in 2025, including Pyzchiva, Tyruko, Wyost and Jubbonti in the U.S., and expanded with Afqlir, Jubbonti, Wyost and Jubbonti in Europe, and to reinforce our leadership in biosimilars, we acquired the Just - Evotec Biologics biosimilars capabilities in France. Each of these steps reflects our commitment to scale, trust, and impact, executing on our purpose as a standalone company and setting the stage for long-term leadership in biosimilars and generics. Let's take a look at why Sandoz is positioned for success in one of the most attractive markets in healthcare. Firstly, the biosimilars and generics market is worth more than $250 billion, and it's growing strongly. Driven by increasing share of biosimilars, over the next decade, we expect about $600 billion of loss of exclusivity opportunities, creating a significant opportunity for expansion.
In 2024, we delivered $10.4 billion of net sales with double-digit growth in biosimilars. Our financial discipline is clear, maintaining a net debt to core EBITDA ratio below 2x , and supported by a strong balance sheet that supports increased strategic investments. Finally, currently, with 27 biosimilars in development, we hold the number one position globally. Recently successful launches demonstrate our ability to execute, and with GLPs as a key long-term opportunity, we're extremely well positioned to capture continued growth in biosimilars and generics worldwide. It is this combination of market potential, strong execution, and a robust pipeline that makes Sandoz a leader in an attractive and an expanding market. Now, let's look at our market position in Europe and how we continue to build on it. Europe remains a cornerstone of our business, and the data here shows why.
In the biosimilars and the generics European market, Sandoz has consistently expanded its leadership. Europe represents an $85 billion opportunity spanning over 40 individual markets and growing at a robust 8.5%. Our scale, our breadth, and our ability to execute across these markets gives us a unique edge. So that was how we've established our edge. Now, let's think about execution. Our hard work since the spin has led to the results we see to date, which positions us well to reach our midterm outlook. We have strong momentum in our business, which will be aided by several launches across key markets, and our margin expansion over the midterm will primarily reflect a favorable mix of sales and further potential in operating leverage. Generics remain a core growth engine for Sandoz, and in 2025, we doubled down on this strength.
On the left, you see some of the examples of key launches we saw last year, namely iron sucrose, rivaroxaban, and enoxaparin sodium. On the right, let's look at what underpins this momentum. We have currently more than 400 generic assets in development, targeting originator sales of around $220 billion. This scale gives us a strong foundation for sustainable growth. Moreover, we're focused on loss of exclusivity opportunities, particularly in oral solids and injectables, and lastly, our global generic footprint includes four development centers and 15 in-house manufacturing sites, ensuring agility and reliability of supply. Now, let's turn to specific generic opportunity GLP-1s. This is a multi-phase roadmap designed to capture significant value in a rapidly expanding therapeutic area. In the near term, we plan to market launches in countries like Canada and Brazil in diabetes for partnered assets.
For the larger opportunity relief starts beginning from 2031, where we plan to target major GLP-1 launches in Europe and the U.S., where the market potential is clearly significant, and beyond 2035, we're preparing the next generation of GLP-1s products to ensure that we stay ahead of the evolving patient needs and the innovative trends. What will make this journey successful? Really, three critical pillars again: delivering on the right medicine that meets the patient and the market expectations, ensuring continuous, flexible, and competitive supply because really, reliability is the key to success in this space, and executing timely launches with the right commercial model so that we can maximize uptake and value creation. This is not just about entering a market. It's about building a sustainable position in one of the more dynamic and interesting segments in healthcare.
Sandoz has built one of the most competitive and trusted biosimilar portfolios in the industry, and this slide shows why we lead. Our portfolio spans a broad therapeutic footprint, primarily across oncology and immunology. From early launches like Omnitrope in 2006 to more recent additions such as Pyzchiva and Tyruko, we've consistently delivered first-class biosimilars that expand the market. This track record demonstrates proven launch execution as we know how to navigate complex regulatory pathways and bring products to market efficiently. It also reflects the strength of our scalable commercial platform. And finally, our commitment includes strong access and patient support programs, ensuring that these medicines reach those who need them most. So in short, Sandoz is not just a biosimilars company. We're a trusted partner driving sustainable access and impact across healthcare.
In 2025 was a landmark year for our biosimilar business, with multiple successful launches that have reinforced our leadership and execution capabilities. Starting with Pyzchiva, we launched in the U.S., including private label options, and introduced the first commercially available auto-injector for ustekinumab biosimilars in Europe, a major step forward in our patient convenience. Next, Tyruko. We saw strong uptake in Europe and expanded into the U.S. in November, demonstrating the strength of our commercial and development platforms. We also achieved significant milestones with Wyost and Jubbonti, the first denosumab biosimilar in the U.S., followed by further launches in Europe in quarter four. And finally, Afqlir entered the European market at the end of the year, with a U.S. launch anticipated in quarter four this year, further broadening our therapeutic footprint.
These launches represent better access, more choice, and improved affordability for patients worldwide, and they show why Sandoz delivers consistently on its promises. Our pipeline is where the next wave of growth begins, and it's designed to form the maximum impact. We're advancing target development in key biologic therapies with a clear focus on areas that matter most to patients and healthcare systems. In the nearer term, we've several assets already in the regulatory review, and looking further ahead, our clinical development portfolio includes major immunology and oncology assets such as Opdivo, Yervoy, Keytruda, and Ocrevus, biosimilars to the most widely used biologics today, and finally, we have nine additional assets in early development, which we've disclosed for the first time today. This pipeline positions Sandoz to lead in biosimilars for years to come, delivering scale, innovation, and access for patients.
To secure this long-term leadership in biosimilars, our expanding pipeline and commercial presence has been accompanied by significant investments in strategic integration and expansion of in-house capabilities. Firstly, we're creating an end-to-end European biosimilar hub in Slovenia that includes a state-of-the-art technical development center in Ljubljana, a high-tech drug substance production site in Lendava, and an aseptic production center in Brnik. These facilities will give us full control over the development manufacturing, ensuring quality, supply, and flexibility. Secondly, our acquisition of Just - Evotec Biologics in Europe last month marked a major step forward. This brought us more capacity for growth, as well as proprietary platforms for integrated development and an indefinite license to Just - Evotec's continuous manufacturing technology. And finally, our European biosimilar manufacturing network will position us as a leader in in-house development and production, strengthening supply and ensuring us to respond quickly to market needs.
Together, these investments will allow us to capitalize on the overwhelming biosimilar market opportunities that lie ahead. Now, before I turn to questions, let's move to our next chapter, shaping the future. The next decade presents a tremendous opportunity for Sandoz in biosimilars and in generics. On the biosimilars side, we're targeting more than $320 billion in loss of exclusivity, with 27 assets currently in development. These represent approximately $200 billion of originator sales, covering about 59% of upcoming LOEs. Combined with game-changing impacts in the recent regulatory streamline, this positions us extremely well to accelerate access and capture more market share. On the generic side, the potential is equally compelling, with around $340 billion of LOE opportunities supported by a pipeline of more than 400 assets. This represents around $220 billion of originator sales, or about 65% of LOEs over the next decade.
Beyond that, we see GLP-1s as a long-term growth driver. Together, these pipelines create a powerful foundation for sustainable growth. This chart highlights the critical gap in the biosimilar landscape, a gap that we would call the biosimilar void. Over the next seven years, with more than 50 biologics, we'll lose exclusivity. Yet currently, we see no biosimilars in late-stage clinical development for these products. These bubbles represent the number of biosimilars in development by therapeutic area. As you can see, between 2025 and 2031, the pipeline in the industry is relatively sparse. This is a significant missed opportunity for the sector and a clear area where Sandoz can lead. Why does this matter? Because regulatory streamlining and evolving market dynamics create a window for us to act decisively. By targeting these gaps, we can accelerate access, reduce healthcare costs, and strengthen our leadership in biosimilars.
Our advantages in commercial scale, our balance sheet strength, and vertical integration in manufacturing compare extremely favorably against many of our competitors. So in short, it's not just a challenge. It's a strategic opportunity to shape the future of affordable biologics. This chart illustrates the fundamental shift in the loss of exclusivity landscape, a shift that, again, strongly favors biosimilars. If we look at the trend between 2016 and 2020, small molecule generics dominated the mix. But as we move forward, this picture changes dramatically. Between 2021 and 2025, biosimilars already accounted for a much larger share of the LOEs, and by 2030, they represent the majority of the opportunities. This signals a structural transformation in the market. Biologics are becoming the primary drivers of value, and biosimilars are the key to unlocking access and affordability.
For Sandoz, this is where our expertise, our scale, allows us to lead by capturing significantly more growth in one of the most attractive segments within healthcare. The next decade brings a massive opportunity and a challenge for the industry. A major patent cliff with over $300 billion of LOE worth of branded drugs will lose exclusivity, creating one of the largest openings in healthcare. What is critical is that the majority of these LOEs fall squarely within Sandoz's development and commercial scope. With our proven expertise, our compelling pipeline, and an investment-grade financial strength, Sandoz is uniquely positioned to capitalize on this cliff and deliver affordable, high-quality biosimilars to patients around the world. To summarize, we're entering a period of unparalleled opportunity driven by structural shifts in healthcare and a growing demand for affordable medicines.
Our strong brand equity, our reputation, and credibility for high quality give us a solid foundation on which to build. We continue to drive operational excellence, further unlocking margin potential through efficiency and disciplined cost management. Our financial strength provides strategic flexibility, enabling us to invest in innovation and seize opportunities as they arise. We're one of the few investment-grade biosimilar and generic companies by a strong balance sheet and a proven commercial capability, and beyond that, we're a trusted collaborator across the healthcare ecosystem, working with partners, helping them to expand access.
With vertically integrated biosimilar production, we'll truly set us apart, ensuring reliability, scalability, combined with our position as the only pure-play biosimilars and generics company of such scale, we have the commercial presence and power to succeed globally. Our leading presence in Europe, combined with global momentum, gives us scale to reach that our competitors cannot reach. We're not just partnering in the market. We're shaping it. These strengths position us to capture growth and deliver sustainable value for patients, partners, and investors. Thank you so much for listening, and now, happily take your questions.
Thanks very much for the presentation. Do we have any questions in the room, GLP-1 or otherwise? I think we have one at the front here.
Hi, this is Peter Testa, One Investments. You showed a slide up there with the pipeline, and you have the 2026, 2027 sort of gap in the pipeline and a big lift in 2028. I was wondering if you could just help with two questions, please. They're related. One, if you look at the opportunity from your existing portfolio of products that you've launched late, especially late 2025, the growth and some of the others, if you could just give some sort of sense as to how annual cohort growth can continue to grow the biosimilar sales to that, then have a follow-up on how you feel that.
Sure. I mean, look, I think part of the gap is just naturally a drier period for LOEs anyway. And some of those LOEs were Novartis assets, which I would have got fired if I'd developed copies of those when we couldn't do that. You're right. If you look at, because obviously we've launched denosumab relatively recently in the US, we're about to launch aflibercept later in the year in the U.S. We've reintroduced Cimerli in Europe, denosumab, aflibercept. So again, there's a number of drivers that will continue to grow quite strongly as we go through 2026 and into 2027. What's not entirely clear is things like the GLPs, which will launch at some point at the end of 2026, early 2027, as we see growth. So there's a number of additional growth drivers we don't disclose, but it's predominantly those of the biologics gap.
And then associated with that, are there opportunities through partnering deals? You've been very good at doing certain partnering deals and also maybe some sort of corporate purchase of IP, which you've also been doing to try to bring products that would launch into, say, the 2027 timeframe?
If it's the right, I mean, if it makes sense, then they're the right assets. Sorry, Rebecca's here, but we're looking at potential products that we could partner or bring in. But we've been quite transparent in terms of this was naturally a bit of a quieter period as we then get into 2029, and then there's a very acceleration in terms of the biologics. So...
And then lastly, you disclosed the new assets on the right-hand side of that slide. We've also had some discussion about the FDA making it more straight, streamlining the process. To what extent, when you look at the later slides on the launch, do you think some of those assets can fill in the 2029, 2030 period, or are they going to be beyond that?
I mean, the way we've structured this chart, the timing is where we think will be the first market entry. So we were trying to think about the way, A, we've got a lot of requests from our colleagues saying, "Well, we want more and more transparency about the pipeline." I think we've responded to that. Now we're trying to give some guidance when we think of the first market. So the timing is the first market entry.
Now, clearly, if we think we can go earlier, we will, but that's more of a patent question rather than a regulatory question. But I do think the shift with the FDA, to me, is probably the most exciting event since Hatch-Waxman. The opportunity now to develop an asset in probably two or three years quicker and probably, I don't know, $50 million-$100 million cheaper is a huge potential and clearly one that we intend to seize with both hands.
Any other questions?
Hello, this is Mohammed. You spoke a lot about Europe and U.S. Is there any specific strategy on the Middle East and Africa region?
Less so. I mean, we're primarily a European company, and we're very proud of that. So when we select our assets, we start with looking at it from a European point of view, and then the U.S. becomes an opportunity. So perhaps the first point I'd like to make is we generally don't develop biologic assets specifically for the U.S. We see that as an opportunity because you have the ridiculous patent dance frequently.
I mean, if you look at what's happening with Enbrel, we have a solid presence in Africa, sub-Saharan Africa, Middle Africa, and Egypt, less of a presence in the Middle East. I think the question is, with an unparalleled pipeline, are there opportunities for us to unlock value with local partners, which I think is clearly an opportunity? It's something that we need to think about how we would best do that. I mean, we have infrastructure in many of those markets, but I think there may be other ways that we could extract value with the pipeline.
Maybe just a question on your midterm outlook. So you've reiterated your commitment to it yesterday, well on track to achieving that. But as you commented, you've actually surpassed on some of the metrics that were integrated into those, including the proportion of sales that would come from biosimilars. Could we expect a refresh of some of these metrics or also on the building blocks then of how we get to your midterm, given it looks like your trend beyond this?
Look, I mean, we'll stick with our guidance. I'm not going to say anything differently. And really, the point around that metric was more about explaining our strategy rather than necessarily being a target. Clearly, biologics are accretive in terms of growth, but also accretive in terms of margin because generally, they're more profitable. And so it was a way of explaining how we see our focus as a business, how we drive part of our margin expansion. And then as we go forward, clearly, as it becomes an ever larger proportion, it's going to actually raise the growth of the whole business. So really pleased with the momentum that we've delivered, but certainly at this point, we wouldn't change our guidance.
To that point, in terms of shifting more towards biosimilars, which have this higher growth profile, also in light of this golden decade of unprecedented opportunity, how should we think about Sandoz's growth beyond the scope of your midterm? Is it reasonable for us to assume an acceleration?
I mean, we've only guided to 2028, and clearly, a lot of what I've just shown you happens after 2028. So I would say, let's get there, and then we'll think about how we characterize and explain the future. I mean, that growth is coming because, as I said, increasingly, more and more of the products coming off patent are biologic. And I think we're in this rarely privileged position that there are way more assets than there are resources for us to bring.
I mean, so it's like a kid in a candy shop. How do we then bring that over the next few years? And then beyond that, you get into ADCs, bispecifics, trispecifics, radioligand. All of those things are open to us as a company. So I think we're really privileged. There are very few companies that, over the next 10 years, we know exactly where our growth is coming from. It's now down to us to execute and make that happen.
Given, as you mentioned, you're more constrained in terms of the resources rather than the opportunities you have to capitalize on and in the context of the streamlining of biosimilar development, how are you balancing maybe looking back to assets that have been post-LOE for a while versus this biosimilar void you're pointing to of biologics that go LOE and don't have any biosimilars currently in development? What are your screening criteria when thinking about what to target?
It's a good question. I mean, first of all, what's interesting, I mean, we launched the first biosimilar 21 years ago, which was human growth hormone. And actually, I launched that in Japan, which is scary. I'm showing my age. That's still growing. So we're now the world's largest supplier of human growth hormone. And so it shows some of the longevity. If you look at adalimumab now, we treat twice as many patients today in Europe than we did at market formation. So we've expanded the market. We're giving better therapies to patients. And I think there's a number of our products, denosumab is a good example, which will continue to do that. When we look at the market, first of all, as I said, we'll start from a European lens, not just a U.S. lens. Most of our products are in immunology and oncology.
We're the largest oncology and immunology company in Europe, so they're generally in the frame. Then it's a mix. Some of it is then timing, science, patent landscape, and also the opportunity to expand the market. What's really cool, as far as I'm concerned, that we can now start bringing in the $2 billion-$3 billion assets, maybe with a much lower level of competitors that allows us to expand. If you look at something like Tyruko, I think globally it's a $3 billion product. It's unlikely we'll see competitors in that space. It's got great longevity, great opportunity to expand access, to offer better treatment options to patients. It's a mixture.
Makes sense, and just thinking about the strength of your European business, as you mentioned, Omnitrope, Hyrimoz continue to grow. They're very double-digit growth. How do you think about the sustainability of the growth of the base business in Europe? What's driving that?
I think Europe is getting older, sicker, and poorer. So the needs of patients are only going to continue. So yes, you've got a great base. We've launched 13. I've just shown you 27. I think we've got a huge potential to continue to expand and serve and open up new markets in Europe, in markets like Canada or Australia, where we're leading players, clearly in the U.S. and the rest of the world.
You just mentioned Tyruko as well. One of the dynamics we've seen in Europe recently is a plateauing in relative market share. How are you thinking about the growth outlook for that product?
Again, incremental, but I mean, I'll give you a good example. I was with the U.K. government just before Christmas, and there we worked with NICE to really look at patient protocols. It means, I think, another four or five thousand patients will now get access to Tyruko because of the price point, the opening up of the market, so now it's working clearly with payers, with regulators, and physicians, so it's a stepped market-by-market approach. But again, just as Keren's just launched it in the U.S., again, predominantly at this point, we're capturing naive patients, but as the confidence builds, we'll then start looking at switching and expanding the market, but the reception has been phenomenal.
Excellent. And you also mentioned that you've reintroduced similarly to the market in the U.S. post the discontinuation or temporary pause last year. What were the conditions that allowed you to do this? What is the difference in terms of approach?
I'll let Karen answer that. She's the expert.
Thank you. Can you hear me?
No.
Can you hear me now?
Yes.
Yeah? Okay. Good. So we recently, January 5th, we reintroduced Semglee. As we always said, we have commitment to patients, and we wanted to bring it back to the market once possible. We kind of make sure that we have the right price point. We brought it back in 90% of WAC, so really a low-cost opportunity to compete in the market. We think there is a room for such price point in the market, and we're very committed to patients.
Perhaps another product where we've seen quite challenging pricing conditions has been Stelara in the US, Pyzchiva. What is your expectation in terms of the potential volume uplift we could see this year from the changes in formularies?
So we always said that in Pyzchiva, our strategy was mainly private label, and we secured two private labels in the market. You need to remember that here we are partnered. This is a product that is not fully owned by Sandoz. We are partnered with Samsung. So if you look at the U.S., we don't even book it as sales. So different dynamics than we saw in adalimumab. But ESI announced that they will displace Stelara in January, and we have the private label with Qua llent, so we are anticipating to see an uptake in volumes.
Perhaps another product where we haven't quite seen the same levels of pricing competition has been in the launch of Wyost and Jubbonti. Maybe if you could give some color on how the launch is going in that market and also just a bit of context on why in the medical benefit space we tend to see less pressure in the U.S. than the pharmacy benefit space.
Oh, that could take time. I would say, summarizing really pharmacy benefit and medical benefit product, it's completely two different markets in the U.S. And if we need to think about it in the pharmacy benefit, really most of the control is owned by the PBM, where in the medical benefit, you have some payer access, but then you have also a lot of pull-through with the physicians. If you think of our launch of denosumab, we are super proud. We were the first company to get approval.
We are the first company to have a HCPCS code, and now we are the only one who's established ASP. We are doing very well in both the osteoporosis. Kind of our product is Jubbonti, biosimilar to Prolia, and in the oncology space with Wyost. We always anticipated the branded company will defend, and they do, but we strongly believe that we are uniquely positioned with our experience. We were the first company ever to launch biosimilars in the U.S. in the oncology space, and we have a lot of, as Richard said, a lot of experience in immunology, so we're really leveraging those experiences in both areas.
Perhaps one more newest generic to you as well. We've seen some quite challenging pricing conditions in U.S. generics over the past few years. Are you seeing any signs of this changing or how conversation is going on that within the industry to improve this outlook?
We do see very low prices in the U.S. for generics. I would say you kind of see stabilization in the last few years, but at a very low price. I think, as Richard mentioned many times before, this administration is doing a lot to really look at sustainability in generics and what could be done. I think one of the elements that we are super proud of as an industry is our ability to distinguish in the tariff conversation between branded industry and off-patent industry. If the prices will go up, I hope, but I hope it's not a strategy, but we are well positioned to capture the market. For now, we're really launching generics in the U.S. where we can leverage them outside the U.S. and not counting only in the U.S. as the main market for generics.
And a product-specific one in that context, just Paclitaxel, you've seen a lot of success since you introduced it, I think, at the end of 2024. How is the outlook developing for that in 2026? Are there more competitors on the horizon? And what are you taking from your learnings to replicate the success of that particular launch?
So we had great success, 40% share of the market. Super proud of what we were able to achieve. We did see two competitors getting now to the market. So as always in generic, you will see kind of pricing pressure and overall sales will go down. I think what we're very proud of is that we were able to replenish our pipeline. So now we have more assets coming, and we will have enough launches to offset this decline. But again, we will remain a very strong player in the U.S.
Thank you. Do we have any other questions in the room? If not, maybe one on manufacturing. So you recently had your Just - Evotec acquisition. You've also had your announced expansions in Slovenia. How far does this go towards your production capacity necessary for delivering on the pipeline that you've set out?
A long way. I mean, look, we're super excited with the Just acquisition. That gives us a transformative technology, which if we want, we can expand both in Toulouse or put a JPOD in Slovenia or anywhere else we would choose. So that clearly is an opportunity. I was in Slovenia just before Christmas seeing all of the sites there. I mean, it's mind-blowing seeing that facility, the scale of that facility to do Fed-batch and then also fill and finish. So I think certainly for the plans that we have, we have more than that. We've also tried to future-proof it. So a lot of the sites, we own the peripheral land.
We've overscaled the building so we can add more lines relatively quickly. So we've really tried to think about that. And clearly, look, at the moment, we have partnerships with our ex-parent. Clearly, we could continue to negotiate and use that, but the stronger negotiating position using our own network gives us optionality as well. So I think certainly from what we see, we're extremely well positioned.
Maybe a question for Remco, but how should we think about margin development as these additional facilities come online over the next few years?
We have given our guidance for 2028, between 24% and 26%. We expect for the coming years to continue. These new sites will be only up and running as of 2029, end of 2028. But of course, you can imagine that cost prices from our own site are lower than we would pay to our ex-parent. Of course, they need to make a little bit of money as well. But of course, you have the dynamic. What will the price erosion do over that time? But certainly, we are in a very good position also after 2028.
Great. And maybe just a final one for you, Richard. Over the course of the next year, what are the growth drivers that you think are key for Sandoz and any particular catalysts that we should watch out for?
I mean, look, what we're in, it's a relatively unique position. The bulk of the growth drivers as we enter 2026 are already filed and launched. So clearly, denosumab in the U.S., aflibercept in the U.S. later in the year, and in Europe, now Tyruko in the U.S. So all of the main growth drivers. There's a number of smaller molecules. We don't list them all, both in the U.S. and Europe that we'll continue to launch. And then as we get towards at some point 2026 and 2027, then we'll start seeing the GLPs coming in. So I think everything is in place for us to deliver. My focus and the team's focus this year is execution. I think we've built over the last two and a half years a really strong reputation in the industry.
We've shifted the sentiment, I think, on this industry generally to the benefit of ourselves and our competitors. I think we've become the voice of the industry, helped shape policy. I know Karen and the team have done a phenomenal job in the U.S., and I'm keen that we continue to hold originators to account and bring products to market for patients around the world, so I'm really excited and looking forward to what we're going to do this year.
Great. Thanks very much.
Thank you.