Evotec SE (EVO) has announced the signing of a non-binding term sheet with Sandoz AG (SDZ.SW,SDZNY) regarding the potential sale of Just - Evotec Biologics EU, which includes the J.POD biologics manufacturing facility in Toulouse, France.
The proposed transaction is designed to transfer biosimilar manufacturing capabilities to Sandoz, enabling it to produce biosimilar medicines using Evotec's advanced continuous manufacturing technology. The deal signals a major milestone in Evotec's strategic transition toward a capital-efficient, asset-lighter business model focused on high-margin and technology-driven solutions.
Under the current terms, Evotec would sell the site for about $300 million in cash, while also granting Sandoz access to its proprietary development and manufacturing platform through a technology license. Beyond the immediate cash consideration, the deal includes additional technology-related payments, future development revenues, performance-based milestones, and product royalties.
The Toulouse facility has been customized and fully dedicated to Sandoz since July 2024. The proposed transfer is positioned as the next logical step in the companies' multi-year partnership, building on their agreement last year to grant Sandoz long-term supply access to the site.
Strategically, the deal is expected to immediately improve Evotec's revenue mix, profit margins, and capital efficiency across short-, mid-, and long-term horizons. Just - Evotec Biologics will remain a core pillar of Evotec's business, allowing the company to continue focusing on scalable technologies and broadening its partner network.
The closing of the transaction remains subject to employee consultation procedures, final contractual agreements, and regulatory approvals, all expected to be completed by the fourth quarter of 2025. Further details of the agreement will be disclosed following contract execution.
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