Sandoz has signed a non-binding term sheet with Evotec SE, paving the way for the potential acquisition of Just–Evotec Biologics EU SAS for approximately USD 300 million. The proposed deal would include the J.POD biologics development and manufacturing facility located in Toulouse, France.

Richard Saynor, CEO of Sandoz, revealed that the move is part of the company’s broader strategy to reinforce its in-house biosimilar capabilities.

“We aim to capitalize on the projected USD 300 billion biosimilar market opportunity over the next decade. The intended acquisition is fully in line with our strategy to reinforce in-house biosimilar capabilities, while creating additional strategic flexibility. Following successful completion, the Toulouse site would be used to develop and manufacture Sandoz biosimilars,” he said.   

Saynor noted that the fully automated and high-throughput technology platform of Just–Evotec Biologics (JEB) would enable Sandoz to “move faster, scale smarter, and maintain high quality while keeping costs under control.”

Sandoz and Evotec SE will now proceed to negotiate details of the contracts and initiate the relevant works-council consultation processes, along with the mandatory employee bid process in France.

The completion of the proposed transaction will be subject to the finalisation of these agreements and the receipt of all necessary regulatory approvals. Further details of the terms will be disclosed following the successful signing of the contracts.

JEB has been a key strategic partner of Sandoz since May 2023. In July 2024, Sandoz secured long-term commercial supply access to JEB’s Toulouse site and reserved development capacity for additional biosimilar molecules starting in 2025.

Following the anticipated acquisition, JEB’s employees would join the Sandoz Group.  

Headquartered in Basel, Switzerland, Sandoz is the global leader in generic and biosimilar medicines. Its leading portfolio of approximately 1,300 products addresses diseases from the common cold to cancer. In 2024, the company reported net sales of USD 10.4 billion.

Photo: J.POD biologics development and manufacturing facility in Toulouse, France.