Evotec Sells French Biosimilars Plant to Sandoz for $300M in Strategic Restructuring Move

Evotec, a leading drug discovery and development company, has announced the sale of its biologics manufacturing facility in Toulouse, France, to generics giant Sandoz for approximately $300 million. This significant transaction marks a pivotal moment in Evotec's ongoing corporate restructuring efforts and represents a shift towards a more capital-efficient business model.

Deal Details and Strategic Implications

The agreement, unveiled on July 30, 2025, grants Sandoz access to Just - Evotec Biologics EU's J.POD facility and its advanced continuous manufacturing platform. This state-of-the-art facility has been exclusively customized for Sandoz's use since July 2024, laying the groundwork for a seamless transition.

Christian Wojczewski, Evotec's Chief Executive Officer, emphasized the strategic importance of this move, stating, "Today's agreement marks a significant milestone in Evotec's new strategy to refocus on its core strengths and deliver sustainable profitable growth." He added that the company is now "well positioned to shape a new segment in the biologics manufacturing market and expand the scope of our partner base."

The deal structure includes the $300 million upfront payment, with Evotec also standing to benefit from additional revenue, milestone payments, and royalties tied to Sandoz's production activities at the Toulouse facility. This arrangement is expected to immediately bolster Evotec's revenue streams, profit margins, and capital position.

Evotec's Broader Restructuring Efforts

The sale of the Toulouse plant is part of a larger corporate restructuring initiative announced by Evotec in April 2024. This comprehensive plan aims to strengthen the company's balance sheet and drive growth in a challenging market environment.

As part of this strategy, Evotec has made several significant moves:

1. Exiting the gene therapy space by closing its facility in Orth an Der Danau, Austria, in May 2024.
2. Reducing its workforce by approximately 400 jobs to regain profitability amidst a slowdown in early-stage R&D spending.
3. Divesting its chemical API production facility in Halle/Westphalia, Germany, to Munich-based private equity firm Monacum Partners in November 2024.

These strategic decisions have resulted in a reduction of Evotec's global workforce from 5,022 to approximately 4,800 employees.

Implications for the Biosimilars Market

The acquisition of Evotec's Toulouse facility significantly enhances Sandoz's capabilities in the rapidly growing biosimilars market. The deal builds upon an existing partnership between the two companies, which was expanded in the summer of 2024.

With access to Evotec's advanced continuous manufacturing technology, Sandoz is poised to increase its production efficiency and potentially accelerate the development and commercialization of new biosimilar products. This move aligns with the broader industry trend towards more flexible and cost-effective manufacturing processes for complex biologics.

As the pharmaceutical landscape continues to evolve, this transaction underscores the importance of strategic partnerships and asset optimization in maintaining competitiveness and driving innovation in the biologics sector.