Sandoz Earnings: Generics Flat, but Results Look Good on Lofty Biosimilars From Hyrimoz, Omnitrope

No-moat Sandoz reported first-quarter earnings that came largely as we expected. Total sales of $2.5 billion were up 4.5%, or 6% in constant currencies, as growth across all three regions and a strong biosimilars business made for a solid start to the year. After adjusting our model and baking in a more favorable USD/CHF exchange rate compared with last quarter, we slightly raised our fair value estimate to CHF 32 per share from CHF 31.