SLOVENIA — Sandoz, a generics manufacturer, has recently committed approximately US$400 million to the construction of a new biologics plant in Lendava, Slovenia, which will manufacture biosimilars.
Although the company has not yet decided which biosimilars it will produce, the spokesperson confirmed that the new plant will be used for this purpose.
Under the proposed spinoff from Novartis, Sandoz will remain with the current biosimilar production and development, while Novartis will offer contract development and manufacturing organization (CDMO) services to Sandoz as it expands its network.
The spinoff is scheduled for the second half of this year, according to Novartis’ latest quarterly report.
Sandoz is investing in establishing its biosimilar manufacturing and development capabilities for the long term, anticipating the rapid growth of biosimilar demand.
The spokesperson stated that this investment is a crucial step in that direction.
Although details such as the plant’s size have not been disclosed, Sandoz expects the Lendava facility to generate approximately 300 jobs, and construction will begin later this year, with the plant becoming fully operational in 2026.
Sandoz has been operating in Slovenia for 40 years, and according to the spokesperson, Lendava’s location provides good logistical connections to other Sandoz production sites and nearby academic institutions.
Additionally, the new project marks one of the largest private sector investments in Slovenia, according to the Sandoz release.
According to a statement released by Sandoz CEO Richard Saynor, the company is committed to increasing access to biosimilar medicines, which provide patients with access to advanced biologic therapies.
Saynor emphasized that the investment in the new plant in Lendava, Slovenia, highlights Sandoz’s determination to maintain its position as the global leader in biosimilars.
The biosimilar market is projected to grow rapidly over the next ten years due to various factors such as an increasing number of patent expirations for biologic drugs, the rising demand for cost-effective treatments, and the increasing incidence of chronic diseases.
According to a report by the market research firm Grand View Research, the global biosimilars market was valued at US$13.6 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 29.6% from 2021 to 2028.
Furthermore, the demand for biosimilars is expected to increase as governments worldwide are emphasizing cost-effective healthcare solutions.
The development of biosimilars requires significant investment in research and development, regulatory compliance, and production.
However, the cost of producing biosimilars is lower than that of innovator biologics. As a result, biosimilars have the potential to make a significant contribution to reducing healthcare costs while increasing access to life-saving treatments.
Sandoz currently has 5,000 employees and operates in four locations throughout Slovenia, with the new plant in Lendava set to add around 300 jobs.
The company’s investment in the facility is part of its long-term strategy to establish its biosimilar manufacturing and development capabilities.
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