Sandoz, a global leader in generics and biosimilars, has signed a non-binding term sheet to acquire Evotec SE’s Just-Evotec Biologics EU SAS, including the state-of-the-art J.POD biologics development and manufacturing facility in Toulouse, France. The transaction is valued at approximately USD 300 million and may also include additional technology-related consideration, as well as potential future development revenues, milestones, and royalties.

The acquisition will strengthen Sandoz’s in-house biosimilar development and manufacturing capabilities, enabling greater speed, scale, quality, and cost efficiency. The Toulouse site, which has been dedicated exclusively to Sandoz since mid-2024, uses a fully automated, continuous manufacturing platform that supports large-scale biologics production.

Under the agreement, Sandoz will make an upfront cash payment of around USD 300 million and gain access to Evotec’s proprietary biosimilar development technology. Evotec will retain the potential for revenue through milestone and royalty payments, in line with its strategy to adopt a more asset-light, capital-efficient model.

Sandoz CEO Richard Saynor said the move aligns with the company’s strategy to capitalise on the projected USD 300 billion biosimilar market. The acquisition will further consolidate Sandoz’s manufacturing footprint in Europe, complementing recent investments in development and production facilities, including its upcoming biosimilar manufacturing site in Slovenia.

The transaction remains subject to final contract negotiations, regulatory approvals, and consultations with French works councils and employees. Once completed, the acquisition is expected to become a key component of Sandoz’s integrated biosimilar production network.