EVOTF - Novartis' Sandoz to use Evotec's technology in pact to develop biosimilars

2023-05-10 05:11:23 ET

Novartis' ( NYSE: NVS ) unit Sandoz signed an agreement with Evotec's ( NASDAQ: EVO ) Seattle-based subsidiary Just - Evotec Biologics for developing and manufacturing multiple biosimilars.

The partnership includes an option for a non-exclusive in-licensing of Just - Evotec's proprietary technology by Sandoz for building its fully-owned S.POD facility (in analogy to Just - Evotec's J.POD facilities), the companies added.

Under the agreement, Just - Evotec will get a double-digit-million upfront and future payments based on successful development progress of $640M, plus undisclosed payments contingent on advancing in commercial manufacturing and exercising the S.POD option.

Novartis said Access to Just - Evotec's drug substance development platform and production technology complements Sandoz capabilities, helping expand the current pipeline from 15+ to 24 assets and developing its early-stage biosimilar pipeline.

"It provides us with additional capabilities to support the strategic expansion of our pipeline with new assets and to begin immediately transitioning our early biosimilar pipeline – ensuring continuity in development and manufacturing while Sandoz finalizes its planned separation from Novartis. Development of the biosimilars will ramp-up over the coming 12-18 months," said Sandoz CEO Richard Saynor.

Germany's Evotec noted that Sandoz will be able to in-license, non-exclusively Just - Evotec's J.DESIGN platform, process development and continuous manufacturing technology and build a state-of-the-art, fully owned 'S.POD' facility in the latter part of this decade.

Just - Evotec's team will help design , construction and training of the Sandoz team for the technology.

Sandoz has been boosting its U.S. presence with signing new deals. Earlier this month, Sandoz signed a distribution agreement with Adalvo to get exclusive rights to commercialize six products in the U.S. in areas of antifungal/antibiotic, cancer and pulmonary.

Novartis is on track to spin-off of the generic and biosimilars unit Sandoz in H2 2023. In August 2022, Novartis said it was going to spin off Sandoz into a separate publicly traded standalone company to focus on innovative medicines.

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