Sandoz to build $90m Slovenian biosimilars center

The Biopharma Development Center will complement a recently announced $400 million biomanufacturing plant says Novartis, ahead of its plans to spin-out Sandoz.

In March, Swiss pharma giant Novartis laid plans for a $400 million facility in Lendava, Slovenia to support its Sandoz division’s biosimilar growth ambition. Now the firm will add a dedicated development center nearby in Ljubljana at a cost of $90 million to further support Sandoz’ biosimilars pipeline.

Building on its Slovenian infrastructure, along with a biosimilar development facility in Holzkirchen, Germany, the latest investment will help “Sandoz to meet rapidly rising global demand for biosimilars and to make an even more meaningful contribution to the long-term viability of healthcare systems around the world,” Claire D’Abreu Hayling, Sandoz’ CSO said in a statement.

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The news comes months ahead of a planned 100% spin-off of the Sandoz division by Novartis – first announced in August last year – aimed at clearly differentiating the combined company’s novel and generic/biosimilar medicines portfolios.

Speaking this week on Novartis’ Q2 2023 financial call, CFO Harry Kirsch said the planned spin-off is “well on track.” Shareholders are expected to approve the separation at an Extraordinary General Meeting (EGM) on September 15, with the spin-off expected in early Q4.

Sandoz is planned to be listed on the SIX Swiss Exchange, with an American Depositary Receipt (ADR) program in the US.

For the second quarter, Sandoz net sales grew 8% to $2.8 billion, mainly driven by Europe and the biosimilar business. The latter contributed $531 million, up 12% year-on-year.

“On the assumption that Sandoz becomes an independent company, it will do so clearly from a position of strength,” said Kirsch. “The company has a strong pipeline with small molecule generics and biosimilars. Clearly, the sales execution has improved significantly and Novartis has increased investments to ensure Sandoz has strong future biosimilar capabilities, including a state-of-the-art new biologics manufacturing site.”