Corporate Announcement: Sandoz Group AG Expands Biosimilar Capability Through Acquisition of Just‑Evotec Biologics EU SAS
Sandoz Group AG, the Swiss specialty pharmaceuticals arm of Novartis, announced the completion of its acquisition of Just‑Evotec Biologics EU SAS (JEBS), a Toulouse‑based French facility, in a transaction valued at approximately US $350 million. The agreement transfers JEBS’s continuous‑manufacturing technology platform and grants Sandoz an indefinite licence covering an unlimited number of biologic molecules, with a maximum of ten licensed products requiring royalty payments. The deal realigns the existing partnership with Evotec, concentrating on technology licences and milestone‑based development revenues rather than joint manufacturing.
Strategic Rationale and Portfolio Impact
The acquisition enhances Sandoz’s in‑house biosimilar development and manufacturing capacity, allowing the company to control a larger segment of its supply chain from molecule discovery to commercial production. By integrating JEBS’s continuous‑manufacturing platform—an advanced, single‑batch, high‑throughput process—it anticipates reductions in production costs, improved product consistency, and accelerated time‑to‑market for new biosimilars. This capability positions Sandoz to capture an estimated share of the projected global biosimilar market, which is projected to grow at a compound annual growth rate (CAGR) of 9–12 % over the next decade.
Technology Transfer and Regulatory Considerations
JEBS’s continuous‑manufacturing technology is compatible with current regulatory expectations for biologics, including adherence to Good Manufacturing Practice (GMP) guidelines and the European Medicines Agency’s (EMA) requirements for biosimilar equivalence studies. The technology facilitates rigorous process control and real‑time release testing, which can streamline regulatory submissions under the EMA’s “broadly acceptable” quality standards. Sandoz will integrate these processes into its existing quality management framework, ensuring that all biosimilar products meet or exceed the stringent safety and efficacy benchmarks set by the EMA and the U.S. Food and Drug Administration (FDA).
Intellectual Property and Licensing Framework
The indefinite licence granted to Sandoz includes an unlimited number of molecules, a broad scope that affords the company flexibility to expand its biosimilar pipeline without additional licensing negotiations. However, the licence restricts royalty payments to no more than ten molecules, providing cost predictability and limiting financial exposure. The agreement also restructures the partnership with Evotec, shifting the focus to technology licences and milestone‑based development revenues. This realignment aligns the incentives of both parties, ensuring that Evotec is compensated for technology contributions while Sandoz retains full control over downstream development and commercialization.
Implications for Patient Care and Healthcare Systems
By consolidating its manufacturing assets and accelerating the launch of new biosimilars, Sandoz can deliver cost‑effective therapeutic alternatives to patients worldwide. Biosimilars typically offer pricing advantages of 15–30 % relative to originator biologics, thereby reducing out‑of‑pocket expenditures for patients and easing budgetary pressures on national healthcare systems. Moreover, the enhanced manufacturing capabilities enable faster response to supply shortages and support global distribution, ensuring consistent access to essential biologic therapies.
Conclusion
The acquisition of Just‑Evotec Biologics EU SAS represents a decisive step in Sandoz’s strategy to expand its generics and biosimilar portfolio through targeted acquisitions and technology integration. By securing advanced continuous‑manufacturing technology and broad licensing rights, Sandoz is poised to strengthen its biosimilar pipeline, meet evolving regulatory expectations, and deliver safer, more affordable biologic options to patients and healthcare providers in the coming decade.
