Sandoz bolsters in-house biosimilar manufacturing with Evotec acquisition
In a bid to spice up its presence within the profitable biosimilar house, Sandoz has signed a non-binding settlement to purchase Evotec Biologics’ manufacturing website in Toulouse, France.
By buying contract improvement and manufacturing organisation (CDMO) Simply – Evotec’s Biologics’ J.POD facility, Sandoz will take management of the previous’s biosimilar improvement and manufacturing infrastructure, which might produce as much as two tonnes of biotherapeutics per yr.
Sandoz will use this facility to additional convey the event and manufacture of its biosimilar vary in-house, serving to the corporate to scale its European operations in a cheap method.
By buying J.POD, Sandoz will even achieve entry to Evotech Biologics’ externally licensed steady manufacturing know-how, which is designed to boost the location’s operational effectivity.
This settlement is an extension to the pair’s current collaboration, which noticed the Toulouse website’s operations grow to be fully devoted to the manufacturing of Sandoz biosimilars in July 2024.
It additionally paves the best way for Sandoz to probably purchase 100% of the issued and excellent fairness pursuits of Simply–Evotec Biologics EU SAS, which owns the J.POD biologics improvement and manufacturing facility in Toulouse, France, for round $300m.
Richard Saynor, CEO of Sandoz, stated: “The meant acquisition is absolutely consistent with our technique to strengthen in-house biosimilar capabilities, whereas creating extra strategic flexibility.”
Using the biosimilar wave
By the acquisition of the J.POD facility, Sandoz hopes to boost its standing within the biosimilar market, which is at present experiencing a big uptick in demand.
Based on a forecast by GlobalData, the father or mother firm of Pharmaceutical Know-how, biosimilars will take 18.3% of the biopharma market share by 2032 — a marked development from the 5.7% seen within the eight main markets (8MM: the US, Canada, France, Germany, Spain, Italy, the UK and Japan) in 2022.
This pattern mirrors the necessity for cost-effective, accessible therapies amidst branded drug value hikes, that are primarily being pushed by Trump’s drug manufacturing reshoring efforts and US import tariffs, in keeping with analysts at GlobalData.
Although the uptake of biosimilars into medical apply has historically been sluggish, GlobalData notes that their market prevalence will seemingly proceed to extend — pushed by altering doctor perceptions on their security, efficacy and price advantages for sufferers.
At the moment, most biosimilars are produced in India and China, however Trump’s current tariff bulletins imply that medication from these nations will face 25% and 55% import prices, respectively. This might make means for gamers in Europe to take a bigger slice of the market, because the tariff charge sits at simply 15% for nations inside the EU.
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