Evotec Closes Sale of Just - Evotec Biologics' Toulouse Site to Sandoz
Rhea-AI Summary
Evotec (NASDAQ:EVO) closed the sale of Just - Evotec Biologics' Toulouse site to Sandoz, effective 05 December 2025, announced 08 December 2025.
The agreement includes approx. US$350m cash, upfront technology license fees for Evotec's continuous manufacturing platform, and potential additional license fees and success-based development revenues of more than US$300m, replacing existing contractual commitments. Total potential payments may exceed US$650m, plus royalties on up to 10 biosimilars (six tied to originator net sales of US$90bn).
Evotec says the deal is immediately earnings accretive and advances an asset-light strategy to improve revenue mix, margins, and capital efficiency while continuing development and manufacturing services in the U.S. and Europe.
Positive
- Immediate earnings accretion declared by management
- Approximate US$350m cash received at closing
- Potential payments may exceed US$650m
- Success-based revenues > US$300m replacing prior commitments
- Royalties on up to 10 biosimilars retained
Negative
- Sale transfers ownership of the Toulouse manufacturing site
- Portion of future value contingent on success-based milestones
Key Figures
Market Reality Check
Peers on Argus
Peers showed mixed moves, with AMPH -1.4%, DVAX -0.55%, TLRY +1.38%, PCRX +0.17%, and HROW -2.03%, suggesting EVO’s pre-news weakness was more stock-specific than a broad sector trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 04 | Clinical trial update | Positive | +1.1% | Bayer initiating Phase 2 ASSESS study for BAY 3401016 in Alport syndrome. |
| Nov 12 | Milestone payment | Positive | +5.7% | US$5m milestone from BMS after FDA IND acceptance for CELMoD candidate. |
| Nov 05 | Earnings update | Negative | -15.7% | 9M 2025 revenue decline and adjusted EBITDA loss despite JEB growth. |
| Nov 04 | Strategic transaction | Positive | -1.2% | Signing Sandoz sale and license deal with potential >US$650m plus royalties. |
| Oct 29 | Earnings notice | Neutral | +0.5% | Scheduling announcement of 9M 2025 results and related investor webcast. |
Positive partnership and milestone updates often saw aligned positive moves, while larger strategic or financial updates produced more volatile, sometimes negative, reactions.
Over recent months, Evotec reported several partnership and strategic milestones. On Nov 4, 2025, it announced a landmark Sandoz agreement with potential payments over US$650m, followed on Nov 5, 2025 by 9M 2025 results highlighting revenue softness and an EBITDA loss. A US$5m milestone from Bristol Myers Squibb on Nov 12 and a Bayer Phase 2 start on Dec 4 underscored its partnered pipeline. Today’s closing of the Sandoz Toulouse site sale operationalizes the earlier strategic deal.
Market Pulse Summary
This announcement confirms closing of the Sandoz transaction, converting the Just - Evotec Biologics Toulouse site sale into roughly US$350m in cash plus more than US$300m in potential license and milestone payments and royalties on up to 10 biosimilars. It advances Evotec’s shift to an asset-lighter, technology-focused model. Investors may watch how the proceeds affect margins, capital efficiency, and future biologics manufacturing partnerships.
AI-generated analysis. Not financial advice.
All closing requirements satisfied following announcement of a non-binding term-sheet agreement in July and signing of contract in November
Agreement includes approximately US
$ 350 m in cash for Just - Evotec Biologics manufacturing site in Toulouse and upfront technology license fees to Evotec's continuous manufacturing platformIn addition, Evotec eligible for license fees, and development revenues including success-based milestones adding up to more than US
$ 300 m over the coming years,replacing existing contractual commitmentsTransaction covering royalties on a portfolio ofup to ten biosimilars in technical and early development targetingmore than US
$ 90 b n of originator net salesSale immediately earnings accretive, improving Evotec's short, mid and long-term revenue mix, profit margins, and capital efficiency
HAMBURG, DE / ACCESS Newswire / December 8, 2025 / Evotec SE (Frankfurt Stock Exchange:EVT, SDAX/TecDAX, Prime Standard, ISIN: DE0005664809, WKN 566480; NASDAQ:EVO) today announced the closing of its previously reported sale of the Just - Evotec Biologics Toulouse site plus an indefinite technology license to Evotec's continuous manufacturing platform technology to Sandoz AG (SIX:SDZ / OTCQX:SDZNY), effective 05 December 2025. In total, potential payments may exceed US
The transaction with Sandoz is accelerating the implementation of Evotec's strategy through better monetization of its technology and transitioning to an asset-lighter business model. Evotec is delivering on sharpening its focus on its core strengths and is well on track for sustainable and profitable growth. Sandoz's acquisition of Just - Evotec Biologics' Toulouse site is an endorsement of the pioneering J.POD platform and its potential to revolutionize biologics manufacturing.
Dr Christian Wojczewski, Chief Executive Officer of Evotec, said: "This transaction is a pivotal step in Evotec's transition to a scalable technology provider for next-generation biologics development. By selling the Just - Evotec Biologics Toulouse site and a license for using our pioneering continuous manufacturing technology to Sandoz, we are not only unlocking significant value today but also paving the way for a more efficient, sustainable, and accessible future for biologic medicines."
With the closing of the transaction, Evotec will continue to serve its customers in the U.S. and Europe with capacity for molecular design, upstream, downstream, analytical and formulation development as well as first-in-human to commercial biologics GMP manufacturing. In parallel, Evotec plans to enable its partners to lower the time and costs of biologics manufacturing with its paradigm shifting continuous manufacturing technology and assets beyond its own capacity via a technology license model.
About Evotec SE
Evotec is a life science company that is pioneering the future of drug discovery and development. By integrating breakthrough science with AI-driven innovation and advanced technologies, we accelerate the journey from concept to cure - faster, smarter, and with greater precision.
Our expertise spans small molecules, biologics, cell therapies and associated modalities, supported by proprietary platforms such as Molecular Patient Databases, PanOmics and iPSC-based disease modeling.
With flexible partnering models tailored to our customers' needs, we work with all Top 20 Pharma companies, over 800 biotechs, academic institutions, and healthcare stakeholders. Our offerings range from standalone services to fully integrated R&D programs and long-term strategic partnerships, combining scientific excellence with operational agility.
Through Just - Evotec Biologics, we redefine biologics development and manufacturing to improve accessibility and affordability.
With a strong portfolio of over 100 proprietary R&D assets, most of them being co-owned, we focus on key therapeutic areas including oncology, cardiovascular and metabolic diseases, neurology, and immunology.
Evotec's global team of more than 4,800 experts operates from sites in Europe and the U.S., offering complementary technologies and services as synergistic centers of excellence. Learn more at www.evotec.com and follow us on LinkedIn and X/Twitter @Evotec .
Forward-looking statements
This announcement contains forward-looking statements concerning future events, including the proposed offering and listing of Evotec's securities. Words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "should," "target," "would" and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding Evotec's expectations for revenues, Group EBITDA and unpartnered R&D expenses. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Evotec at the time these statements were made. No assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Evotec. Evotec expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Evotec's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
For further information, please contact:
Media
Susanne Kreuter
VP Head of Strategic Marketing
Susanne.Kreuter@evotec.com
Investor Relations
Volker Braun
EVP Head of Global Investor Relations & ESG
Volker.Braun@evotec.com
SOURCE: Evotec SE
View the original press release on ACCESS Newswire
FAQ
What did Evotec (EVO) sell to Sandoz and when did the transfer take effect?
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