Evotec Closes Sale of Just - Evotec Biologics' Toulouse Site to Sandoz

Core Insights - The transaction involves the sale of the Just - Evotec Biologics manufacturing site in Toulouse for approximately US$ 350 million in cash, along with upfront technology license fees for Evotec's continuous manufacturing platform [1] - Evotec is eligible for additional license fees and development revenues, including success-based milestones, which could exceed US$ 300 million in the coming years [1] - The agreement covers royalties on a portfolio of up to ten biosimilars, targeting over US$ 90 billion in originator net sales, enhancing Evotec's revenue mix and profit margins [1] Financial Impact - The sale is immediately earnings accretive, improving Evotec's short, mid, and long-term revenue mix and capital efficiency [1] - Total potential payments from the transaction may exceed US$ 650 million, in addition to royalties from up to ten biosimilar molecules, six of which have an originator net sales value of US$ 90 billion [1] Transaction Details - The agreement was finalized following a non-binding term-sheet in July and a contract signing in November, with the effective date of the transaction being December 5, 2025 [1] - The buyer of the Toulouse site is Sandoz AG, which will benefit from Evotec's continuous manufacturing platform technology [1]