Evotec to sell Just – Evotec Biologics EU, license technology to Sandoz

Evotec (EVO) announced the successful signing of the sale of the Just – Evotec Biologics Toulouse site to Sandoz (SDZNY). Under the transaction, Sandoz will acquire 100% of Just – Evotec Biologics EU plus an indefinite technology license to Evotec’s continuous manufacturing platform technology for a payment of approximately $350M in cash. The agreement includes additional license fees and development revenues including success-based milestones, adding up to more than $300M in the coming years. In the future, Evotec expects to benefit from royalties on a portfolio of up to ten biosimilars in technical and early development targeting a net originator sales market of more than $90B. With this acquisition, Sandoz will gain access to Evotec’s proprietary platform for integrated development and advanced continuous manufacturing of biologics via an indefinite license. Both parties aim to close the transaction in Q4 subject to meeting closing conditions including foreign direct investment clearance by the French authorities. The transaction will have a positive impact on Evotec’s revenue mix, profit margins, and capital efficiency immediately after closing.