Sandoz signs preliminary deal for Evotec’s Just-Evotec Biologics development and manufacturing in Toulouse, France

Ad-hoc disclosure in accordance with Article 53 of the SIX Swiss Exchange Listing Rules

PRESS RELEASE

• The proposed deal is set to align perfectly with Sandoz’s strategic aim to capitalize on the anticipated USD 300 billion biosimilar market opportunity over the coming decade[1]
• This acquisition is intended to strengthen in-house biosimilar development and manufacturing capabilities, while also enhancing strategic agility
• Sandoz plans to obtain Just-Evotec Biologics (JEB) operations in Toulouse, France, which includes its proprietary platform for integrated development and advanced continuous manufacturing

Basel, July 30, 2025 Sandoz (SIX:SDZ/OTCQX:SDZNY), a global leader in generic and biosimilar pharmaceuticals, today disclosed the signing of a non-binding term sheet with Evotec SE. This agreement creates a path for Sandoz to potentially acquire all issued and outstanding equity interests of Just–Evotec Biologics EU SAS, for approximately USD 300 million. This entity operates the J.POD biologics development and manufacturing site in Toulouse, France.

Richard Saynor, CEO of Sandoz, commented: “Our objective is to leverage the projected USD 300 billion biosimilar market opportunity in the coming ten years. This proposed acquisition fully supports our strategy to bolster our internal biosimilar capabilities and achieve greater strategic flexibility. Once the transaction is finalized, the Toulouse facility would be dedicated to the development and manufacturing of Sandoz biosimilars. JEB’s advanced, fully automated, high-throughput technology platform will enable us to accelerate progress, optimize scalability, and uphold high quality standards efficiently.”

Sandoz and Evotec SE will now proceed with negotiating the specific terms of the agreements, conducting the necessary works-council consultations, and undertaking the mandatory employee bid process in France. The completion of this proposed transaction remains contingent upon the finalization of these contracts and securing all required regulatory approvals. Additional details regarding the terms are not available for disclosure at this time and will only be released once the contracts have been successfully executed.

Just-Evotec Biologics has served as a crucial strategic collaborator for Sandoz since 2023. This potential acquisition would supplement previous investments made in Sandoz’s biosimilar manufacturing and development facilities. The planned financial commitment aligns with Sandoz’s current capital expenditure plans for its European operations.

Should the proposed transaction close, JEB employees are expected to transition with the acquired entity and join the Sandoz Group. JEB offers an advanced, integrated continuous manufacturing platform featuring automation, which facilitates uninterrupted, end-to-end production processes.

1. Derived from March 2025 data provided by IPD Analytics Evaluate Pharma, covering the years 2026–2035.

Regarding Sandoz’s Collaboration with JEB

In May 2023, Sandoz and JEB announced a strategic collaboration designed to bolster Sandoz’s portfolio expansion and the ongoing development of its early-stage biosimilar pipeline. This partnership granted Sandoz access to JEB’s highly efficient drug substance development platform. JEB’s proprietary, fully automated, and high-throughput technology platform further enables Sandoz to expand its integrated drug substance development and manufacturing network.

Furthermore, JEB is engaged in developing an integrated continuous manufacturing platform that utilizes automation to facilitate an uninterrupted, end-to-end manufacturing process, leading to improved efficiency and cost-effectiveness.

By July 2024, Sandoz had secured long-term commercial supply access to JEB’s biosimilars manufacturing facility in Toulouse, France. Additionally, Sandoz acquired resource capacity for the development of drug substances for new molecules, commencing in 2025. JEB will also facilitate the integration of its design capabilities and continuous manufacturing technology within Sandoz’s operations.

DISCLAIMER
This Press Release includes forward-looking statements, which do not guarantee future performance. These statements reflect management’s perspectives and assumptions concerning future events and business outcomes at the time they are made. They are subject to various risks and uncertainties, including, but not limited to, global economic conditions, currency exchange rates, legal regulations, market dynamics, competitive actions, and other factors beyond Sandoz’s control. Should any of these risks or uncertainties materialize, or if underlying assumptions prove inaccurate, actual results could differ significantly from those projected or anticipated. Each forward-looking statement is valid only as of its specific date, and Sandoz is not obligated to publicly update any forward-looking statements, except where mandated by law.

ABOUT SANDOZ
Sandoz (SIX: SDZ; OTCQX: SDZNY) stands as the global leader in generic and biosimilar medications, pursuing a growth strategy guided by its core purpose: to pioneer patient access. Over 20,000 employees from 100 different nationalities collaborate to ensure Sandoz delivers 900 million patient treatments, yielding significant global healthcare savings and a broader societal benefit. Its extensive portfolio, comprising approximately 1,300 products, targets conditions ranging from common illnesses to cancer. Headquartered in Basel, Switzerland, Sandoz’s origins date back to 1886. Its notable historical achievements include Calcium Sandoz in 1929, the introduction of the world’s first oral penicillin in 1951, and the launch of the world’s first biosimilar in 2006. In 2024, Sandoz reported net sales of USD 10.4 billion.

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