Evotec, Sandoz expand last year's biosimilar production pact

Just – Evotec Biologics and Sandoz have decided to extend their existing multiyear biosimilar manufacturing agreement. The initial collaboration, which began in May 2023, has now been broadened to include additional capacity and a long-term commercial supply of biosimilar drugs.

Under this enhanced agreement, Sandoz will continue to utilize Just – Evotec Biologics’ advanced drug substance development platform and manufacturing technology. Initially, Sandoz had aimed to use this technology to grow its biosimilar pipeline from 15 candidates to approximately 24. The expanded collaboration ensures that Sandoz has the necessary capacity to meet its long-term commercial supply needs for these biosimilar medications.

In a joint announcement on July 8, the companies disclosed that Sandoz had already provided Just – Evotec Biologics with an upfront payment in the "double-digit-million" range. The overall potential value of the deal could reach up to $640 million, contingent upon the achievement of various milestones. Just – Evotec Biologics anticipates receiving additional remuneration as early scientific milestones are validated, with further financial rewards expected as development progresses through to 2025.

Dr. Matthias Evers, Chief Executive of Evotec, expressed enthusiasm about the expanded partnership. He noted that the collaboration's successes since its inception have set a solid foundation for future growth. According to Evers, the inclusion of additional molecules in their development efforts could significantly improve access to treatment for millions of patients. He also emphasized that commercial manufacturing at their Toulouse facility would secure the long-term supply of Sandoz’s biosimilar portfolio.

Just – Evotec Biologics operates two state-of-the-art J.POD biologics manufacturing facilities, located in Toulouse, France, and Redmond, Washington. These facilities are central to the company's ability to meet the growing demands of their clients, including Sandoz.

Sandoz, originally a division of Novartis, became an independent entity in 2023. The company has been actively working to expand its presence in the biosimilars market. This has involved significant investments in their existing site in Holzkirchen, Germany, as well as plans for a new $400 million manufacturing plant in Slovenia. These efforts highlight Sandoz’s commitment to advancing its biosimilars portfolio and enhancing its manufacturing capabilities.

The expanded deal with Just – Evotec Biologics represents a strategic step for Sandoz as it seeks to leverage cutting-edge technology and secure long-term supply chains for its biosimilar drugs. This partnership stands to benefit both companies, as they work together to innovate and provide more accessible treatment options to patients worldwide.