Swiss Market Index Extends Rally; Sandoz Shares Gain
Swiss stocks extended their winning streak to a third day on Wednesday, with the Swiss Market Index closing 0.61% higher, amid renewed hopes that the US-Iran war will soon resolve.President Donald Trump told reporters that a deal could be agreed between the US and Iran by today or Thursday, saying "a lot of progress has been made" in talks to reopen the Strait of Hormuz, the Associated Press reported. Meanwhile, unnamed regional officials told the news agency that a draft deal to reopen the strait was finalized by negotiators from Iran and Oman, pending the Iranian supreme leader's final approval.Back in Switzerland, the country's private sector saw an improvement in July, with the KOF Business Situation Indicator rising to 21.5 from 17.2 in the previous month. Companies' business expectations for the next six months are also "significantly" improving amid "more buoyant" business activity, compared with the start of 2026."Business forecasts are consistently positive across all of the sectors mentioned, with expectations for the next six months more upbeat than before. Overall, the results point to a broad-based recovery in the Swiss economy," KOF Institute said.On the corporate front, Sandoz Group's (SDZ.SW) first-half net sales climbed year over year to $5.76 billion from $5.23 billion, mainly driven by "excellent" double-digit growth at its biosimilars division. Net income, on the other hand, fell over the period to $109 million from $377 million, weighed down by legal and restructuring expenses. For full-year 2026, the Swiss generic drugmaker reaffirmed its guidance, including net sales growth in the mid-to-high single-digit percentage at constant currency. The stock closed the session 6.04% higher."Sandoz delivered a solid set of results - sales and EBITDA are broadly in line, with a 3% beat on 2Q biosimilar sales offsetting 1% miss on generics. FY26 guidance is reiterated and we would expect a neutral to small positive reaction in the shares this morning," RBC Capital Markets said in a quick take note. "Pricing erosion is now expected at mid-single-digit (previously low-to-mid), reflecting short-term dynamics in Germany and the North America biosimilar mix effect. Guidance excludes any impact from potential US tariffs and assumes limited contribution from generic semaglutide."Basilea Pharmaceutica (BSLN.SW) secured a further $5.4 million in funding from the Biomedical Advanced Research and Development Authority, or BARDA, to continue the development of its new oral antibiotic ceftibuten-ledaborbactam etzadroxil. The drug candidate is being developed to treat complicated urinary tract infections, including pyelonephritis. The company's shares lost 0.40% at closing.
