Sandoz has entered into a non-binding term sheet with Evotec SE, signaling its potential acquisition of Just-Evotec Biologics EU SAS in Toulouse, France, for an estimated $300 million. Evotec SE is the owner of the J.POD biologics development and manufacturing facility located in Toulouse. Richard Saynor, Sandoz’s CEO, highlighted the strategic move to tap into the projected $300 billion biosimilar market opportunity over the next decade. The acquisition aligns with Sandoz’s strategy to strengthen its in-house biosimilar capabilities and enhance strategic flexibility.
Should the acquisition be finalized successfully, the Toulouse site will be utilized for the development and manufacturing of Sandoz’s biosimilars. Leveraging JEB’s automated and high-throughput technology platform is expected to expedite processes, improve scalability, ensure high quality, and manage costs effectively. Sandoz and Evotec SE are now set to negotiate contract details, engage in works-council consultations, and navigate the employee bid process in France. The completion of the transaction will be contingent upon contract finalization and securing all requisite approvals.
Just-Evotec Biologics has been a crucial strategic ally for Sandoz since 2023, and the potential acquisition is seen as a valuable addition to Sandoz’s biosimilar manufacturing and development initiatives. The investment in JEB is in line with Sandoz’s existing capital-expenditure commitments for its European operations. Post-acquisition, JEB employees will transition to Sandoz, integrating into the Sandoz Group. JEB’s advanced continuous manufacturing platform, equipped with automation capabilities for end-to-end manufacturing, is a notable asset that will enhance operational efficiency.
In a strategic partnership announced in May 2023, Sandoz and JEB collaborated to expand Sandoz’s portfolio and advance its early-stage biosimilar pipeline by leveraging JEB’s efficient drug substance development platform. JEB’s fully automated and high-throughput technology platform has empowered Sandoz to bolster its integrated drug substance development and manufacturing network. Furthermore, JEB is actively developing an integrated continuous manufacturing platform with automation features to optimize manufacturing processes for increased efficiency and cost-effectiveness.
In July 2024, Sandoz secured long-term commercial supply access to JEB’s biosimilars manufacturing facility in Toulouse, France, along with establishing resource capacity for drug substance development of additional molecules commencing in 2025. This collaboration will facilitate the integration of JEB’s design capability and continuous manufacturing technology at Sandoz, further enhancing the company’s operational capabilities and competitiveness.
Key Takeaways:
– Sandoz’s potential acquisition of Just-Evotec Biologics in Toulouse, France, for $300 million aims to strengthen its biosimilar capabilities and strategic flexibility.
– JEB’s advanced automation technology will enable Sandoz to expedite processes, enhance scalability, maintain high quality, and manage costs effectively in biosimilar development.
– The acquisition will see JEB employees becoming part of the Sandoz Group, integrating valuable continuous manufacturing capabilities into Sandoz’s operations.
– The collaboration between Sandoz and JEB will not only expand Sandoz’s biosimilar portfolio but also optimize manufacturing processes for increased efficiency and cost-effectiveness.
Tags: automation
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