Sandoz boosts in-house biosimilars capabilities by signing agreement to acquire Just-Evotec Biologics EU SAS in Toulouse

• Acquisition will enable expansion of in-house development and manufacturing capabilities and provide Sandoz with own capabilities for the development and manufacturing of biosimilars using continuous manufacturing technology
• Further secures control over pipeline to capture projected ~USD 300 billion biosimilar market opportunity over next 10 years¹
• Transaction includes ~USD 350 million in cash for Just-Evotec Biologics EU SAS (JEB SAS) and upfront license fees for Just-Evotec Biologics (JEB) continuous manufacturing technology for indefinite number of molecules, up to 10 of which are royalty-bearing
• Reconfigures existing partnership model towards technology license fees and development expenses including success-based milestones that could amount to around USD 300 million over coming years, fully replacing existing contractual commitments, thereby aligning incentives for both parties
• Transaction in line with existing Sandoz capital-expenditure commitments and does not impact 2025 full-year guidance
   

Basel, November 4, 2025 – Sandoz (SIX:SDZ/OTCQX:SDZNY), the global leader in affordable medicines, today announced a strategic agreement with Evotec SE to acquire all issued and outstanding equity interests of Just-Evotec Biologics EU SAS (JEB SAS) which includes the Toulouse manufacturing site. The proposed acquisition aligns with the Sandoz strategic objective of capitalizing on a projected ~USD 300 billion biosimilar market opportunity over the next 10 years¹ and will provide Sandoz with own capabilities for the development and manufacturing of biosimilars using continuous manufacturing technology.

Following the announcement of a non-binding term sheet on July 30, 2025, Sandoz signs an agreement to acquire 100% of JEB SAS and an indefinite technology license for JEB’s continuous manufacturing platform, for an upfront cash consideration of approximately USD 350 million. The license covers an unlimited number of molecules, with up to 10 subject to royalty payments. Furthermore, the agreement reconfigures the existing partnership model and aligns incentives between both parties through license fees and development-related expenses, including success-based milestones, which could amount to approximately USD 300 million over the coming years. These terms fully replace existing contractual commitments.

This investment is in line with existing Sandoz capital-expenditure commitments, and there is no impact on the 2025 full-year guidance.

Sandoz and Evotec SE have carried out relevant works-council consultation processes, as well as the mandatory French employee bid process. Both parties aim to close the transaction in 2025, subject to meeting customary closing conditions including foreign direct investment (FDI) clearance by the French authorities. Upon closing, JEB SAS employees will transfer with the acquired entity and become part of Sandoz.

About Sandoz agreement with JEB
In May 2023, Sandoz and JEB announced a strategic partnership that supports Sandoz portfolio expansion and continued development of its early-stage biosimilar pipeline, by providing access to JEB’s continuous manufacturing technology platform. The proprietary fully-automated and high-throughput technology platform will allow Sandoz to continue to build out its own integrated drug-substance development and manufacturing network.

In July 2024, Sandoz secured long-term commercial supply access to JEB’s biosimilar manufacturing facility in Toulouse. In addition, Sandoz secured resource capacity for drug substance development of additional molecules starting in 2025. JEB will also enable the implementation of its design capability and continuous manufacturing technology at Sandoz.

On July 30, 2025, Sandoz signed a non-binding term-sheet to potentially acquire JEB’s biosimilars manufacturing facility in Toulouse.

DISCLAIMER
This Media Release contains forward-looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management’s views and assumptions regarding future events and business performance at the time the statements are made. They are subject to risks and uncertainties including, but not confined to, future global economic conditions, exchange rates, legal provisions, market conditions, activities by competitors and other factors outside of the control of Sandoz. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Each forward-looking statement speaks only as of the date of the particular statement, and Sandoz undertakes no obligation to publicly revise any forward-looking statements, except as required by law.

REFERENCES
¹ Based on March 2025 data from IPD Analytics Evaluate Pharma, covering the period 2026–2035.

ABOUT SANDOZ
Sandoz (SIX: SDZ; OTCQX: SDZNY) is the global leader in affordable medicines, with a growth strategy driven by its Purpose: pioneering access for patients. More than 20,000 people of 100 nationalities work together to ensure 900 million patient treatments are provided by Sandoz, generating substantial global healthcare savings and an even larger social impact. Its leading portfolio of approximately 1,300 products addresses diseases from the common cold to cancer. Headquartered in Basel, Switzerland, Sandoz traces its heritage back to 1886. Its history of breakthroughs includes Calcium Sandoz in 1929, the world’s first oral penicillin in 1951, and the world’s first biosimilar in 2006. In 2024, Sandoz recorded net sales of USD 10.4 billion.