Ad hoc announcement pursuant to art. 53 SIX Swiss Exchange Listing Rules

MEDIA RELEASE
 

• When completed, settlement with 43 US states and territories would mean no remaining US federal or state governmental claims

• Separate indirect reseller settlement resolves all remaining class-action litigation related to this matter

• No impact on full-year 2026 guidance or mid-term outlook

Basel, 3 August 2026 – Sandoz (SIX:SDZ/OTCQX:SDZNY), the global leader in affordable medicines, today announces several steps to further resolve the US Generic Drug Antitrust Pricing Litigation.

Sandoz Inc (‘the Company’) has entered into a settlement agreement with the leadership of the consortium of 43 US states and territories to resolve all claims brought by the remaining litigating states and territories against the Company concerning alleged anti-competitive conduct in the US market for generic medicines. When the settlement is completed, Sandoz US will have resolved all claims brought by US federal or state governments against the Company stemming from their investigations of the US generic medicine market.

Sandoz US has also entered into a settlement agreement with the indirect reseller plaintiffs (‘IRP’) class. When the IRP class settlement is completed, the Company will have resolved all the pending class actions in the generic pricing litigation.

These settlements underscore the Company’s commitment to integrity, sound governance and resolving allegations of legacy conduct.

Neither settlement contains an admission of wrongdoing by Sandoz US. These settlements do not affect full-year 2026 guidance or the Sandoz mid-term outlook.

Settlement with US states and territories

Sandoz Inc. and its subsidiary Fougera Pharmaceuticals Inc. – both indirect subsidiaries of Sandoz Group AG – have entered into a settlement agreement to resolve all remaining claims asserted by US states and territories against Sandoz US in three cases pending in the US District Court for the District of Connecticut.¹

Under the terms of the agreement, Sandoz US will pay a total of USD 400 million over seven years, starting in 2027, in exchange for a full release of all claims the US states and territories asserted against it and its affiliates. This agreement contains no admission of wrongdoing by Sandoz US. The settlement is conditioned upon the approval of all of the litigating states and territories.

The resolution of these claims requires an additional payment of approximately USD 50 million to states that settled earlier, making a total payment of approximately USD 450 million.

Indirect reseller plaintiffs class settlement

Sandoz US has also entered into a settlement agreement with a putative class of indirect reseller plaintiffs in the multi district litigation entitled ‘In re Generic Pharmaceuticals Pricing Antitrust Litigation’ in the US District Court for the Eastern District of Pennsylvania.

This agreement contains no admission of wrongdoing by Sandoz and resolves all the damages claims of the indirect reseller class, which is comprised generally of certain retail pharmacies, clinics, hospitals and other entities that resold medicines to consumers and other end payers. Under the terms of the agreement, Sandoz US will pay USD 28.5 million in exchange for a full release of all claims asserted against it and certain affiliates in the indirect reseller class action by the settlement class members.

As is the case with class settlements, class members have the right to opt out of the settlement. The settlement is subject to Court approval, as is required for class settlements under US law.

Following the previously announced settlements with the US Department of Justice in 2020 and 2021, the direct purchaser plaintiffs’ class in February 2024, and the end purchaser plaintiffs’ class in December 2024, the announcement today by Sandoz US means that the Company will have resolved all pending class actions in the US generic antitrust litigation, as well as all claims filed by any US federal or state government against the Company.

Financials and remaining claims related to US generic antitrust litigation

The settlements announced today have no impact on full-year 2026 guidance or the mid-term outlook. Sandoz has increased its previously recognised provision to reflect the amounts required for these settlements.

The only remaining antitrust claims against the Company in the US generic antitrust litigation are those brought by individual plaintiffs who opted out of class settlements. Although the overall litigation involves different types of parties, the cases remaining are in differing stages and Sandoz US continues to defend itself vigorously. As litigation progresses, Sandoz will continue to assess the overall situation and may increase or decrease the previously taken provision as appropriate.

DISCLAIMER

This Media Release contains forward-looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management’s views and assumptions regarding future events and business performance at the time the statements are made. They are subject to risks and uncertainties including, but not confined to, future global economic conditions, exchange rates, legal provisions, market conditions, activities by competitors and other factors outside of the control of Sandoz. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Each forward-looking statement speaks only as of the date of the particular statement, and Sandoz undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law.

REFERENCES
¹ State of Connecticut, et al. v. Aurobindo Pharma USA, Inc., et al. (3:16-cv-02056-MPS); State of Connecticut, et al. v. Teva Pharmaceuticals USA, Inc. et al. (3:19-cv-00710-MPS); and State of Connecticut, et al. v. Sandoz, Inc. et al. (3:20-cv-00802-MPS).

ABOUT SANDOZ
Sandoz (SIX: SDZ; OTCQX: SDZNY) is the global leader in affordable medicines, with a growth strategy driven by its Purpose: pioneering access for patients. More than 20,000 colleagues of 100 nationalities work together to ensure over one billion patients are reached by Sandoz, generating substantial global healthcare savings and an even larger social impact. Its leading portfolio of approximately 1,300 medicines addresses diseases from the common cold to cancer. Headquartered in Basel, Switzerland, Sandoz traces its heritage back to 1886. In 2026, Sandoz celebrates 20 years of pioneering biosimilars, 80 years of antibiotics manufacturing and 140 years of heritage. In 2025, Sandoz recorded net sales of USD 11.1 billion.  

CONTACTS

US Media Relations contacts