Evotec Signs Milestone Agreement with Sandoz, Eyes Substantial Revenue

In a significant industry development, Evotec has entered into an agreement with Sandoz, potentially unlocking over US$ 650 million in payments and royalties tied to a biosimilar portfolio comprising up to ten molecules. This deal underscores Evotec’s capability in producing biologics efficiently with their continuous manufacturing technology.

The agreement awards Evotec approximately US$ 350 million in cash for its Toulouse site and upfront technology license fees. Additionally, potential license fees and developmental revenues could surpass US$ 300 million over the coming years. The transaction, focusing on biosimilars with a market projection exceeding US$ 90 billion, is anticipated to favorably transform Evotec’s earnings profile immediately.

With an emphasis on cutting-edge biologic manufacturing, Evotec aims to enhance profit margins and capital efficiency, solidifying its position in the sector.