Evotec and Sandoz Forge Strategic Partnership with Potential Sale of Biologics Site

Evotec SE, a prominent life science company based in Hamburg, Germany, has announced a significant evolution in its strategic partnership with Sandoz AG. On July 30, 2025, the two companies signed a non-binding term sheet regarding the potential sale of Just – Evotec Biologics EU, which manages the J.POD biologics manufacturing facility in Toulouse, France. This planned transaction is poised to enhance Sandoz's capacity to produce biosimilar medicines using advanced continuous manufacturing technology, a key innovation from Evotec’s proprietary platform.

The proposed sale, valued at approximately USD 300 million, also includes additional technology-related considerations such as future development revenues, milestones, and product royalties. This strategic move reflects Evotec's ongoing transition towards a more asset-light business model, which aims to improve profit margins and capital efficiency by leveraging high-margin offerings.

As part of the agreement, Sandoz would gain full ownership of the Just – Evotec Biologics site, which has been tailored specifically for their operations since July 2024. The closing of the transaction is contingent upon fulfilling employee consultation processes and meeting regulatory requirements, which are anticipated to conclude in the fourth quarter of 2025.

Dr. Christian Wojczewski, CEO of Evotec, stated, “We are excited about the evolution of our strategic partnership. Today’s agreement marks a significant milestone in Evotec’s new strategy to refocus on its core strengths and deliver sustainable profitable growth.” This sentiment was echoed by Dr. Linda Zuckerman, EVP and Global Head of Just – Evotec Biologics, who emphasized the validation of their technology and vision through this transaction, reinforcing their mutual goal of expanding global access to life-changing biotherapeutics.

Historically, Evotec has been at the forefront of drug discovery and development, combining scientific advancements with AI-driven innovations. The Just – Evotec Biologics platform, particularly its perfusion-based continuous manufacturing capabilities, plays a pivotal role in enhancing efficiency and scalability in biopharmaceutical production. This collaboration not only signifies a deeper integration of the two companies but also underlines Evotec's commitment to redefining biologics development and manufacturing.

The implications of this partnership extend beyond financial benefits. Analysts suggest that the strategic alignment between Evotec and Sandoz could reshape the landscape of the biopharmaceutical industry, particularly in the burgeoning market for biosimilars. As the demand for affordable biologics continues to rise, this partnership positions both companies advantageously to respond to market needs while fostering innovation.

Looking ahead, industry experts predict that successful execution of the transaction could lead to increased investment in research and development, as Evotec pursues its vision of creating a more capital-efficient business model. The collaboration is expected to not only bolster Evotec's economic standing but also enhance Sandoz's operational capabilities, thereby contributing to the overall growth of the biopharmaceutical sector.

In conclusion, the potential sale of Just – Evotec Biologics to Sandoz marks a pivotal moment in the evolution of both companies. By focusing on core competencies and leveraging advanced technologies, they aim to drive sustainable growth and broaden access to essential biotherapeutics worldwide. As the healthcare landscape continues to shift, such strategic partnerships will be crucial in meeting emerging challenges and opportunities in the industry.