# Sandoz Makes Bold $350M Bet on Biosimilars: Acquiring Evotec's EU Manufacturing Hub

Pharmaceutical giant Sandoz just locked in a game-changing deal—snapping up Just-Evotec Biologics EU SAS (JEB SAS) and its Toulouse manufacturing facility from Evotec SE for ~$350M upfront, plus up to $300M in milestone payments.

Here's why this matters: The biosimilar market is projected to hit $300 billion over the next decade. Sandoz is essentially building an in-house biosimilar powerhouse with direct manufacturing control and access to Evotec's continuous manufacturing tech—a critical edge for cost efficiency and scalability.

**The Deal Breakdown:**
- **Upfront payment**: $350M cash
- **Tech license**: Indefinite access to continuous manufacturing platform, covering unlimited molecules (up to 10 may carry royalties)
- **Upside potential**: Additional $300M tied to development milestones
- **Timeline**: Expected close in 2025 (pending French FDI approval)

This isn't just about acquiring assets—Sandoz is restructuring the partnership to align incentives through license fees and success-based payments. The move slots neatly into their existing capex roadmap without impacting 2025 guidance.

Translation: Sandoz is positioning itself to dominate the biosimilar boom while securing manufacturing independence. When the deal closes, JEB's entire team joins Sandoz, giving them instant operational expertise.