SLOVENIA —In an impressive move to bolster its biosimilar pipeline, Sandoz is set to build a cutting-edge Biosimilar Technical Development Center in Slovenia.
This strategic decision comes on the heels of Novartis’ financial report, which highlighted a remarkable US$2.4 billion in net sales for Sandoz biosimilars in Q2 2023, coupled with the proposed complete separation of Sandoz from Novartis to establish an independent company by year-end.
The company plans to invest approximately US$90 million in its Ljubljana site, Slovenia, to establish a dedicated Sandoz Biopharma Development Center by 2026.
With this significant financial boost, the Ljubljana facility is poised to become a pivotal location for biosimilar product development within Sandoz’s operations.
Claire D’Abreu Hayling, Chief Scientific Officer at Sandoz, expressed excitement over the new Biosimilar Development Center, emphasizing that it will play a vital role in meeting the rapidly increasing global demand for biosimilars.
As a result of this expansion, the Ljubljana site will create around 200 new full-time job opportunities, contributing to regional economic growth and development.
This planned financing builds upon Sandoz’s previously announced investment in March 2023 of US$400 million to establish a new biologics manufacturing plant in Lendava, Slovenia.
This investment marked the largest-ever international private-sector commitment to the country.
Furthermore, Sandoz’s commitment to biosimilar development was further demonstrated in May 2023, with the announcement of a €25 million (US$ 27.7 million) investment to enhance the firm’s biosimilar development capabilities at its facility in Holzkirchen, Germany.
This move aims to consolidate highly advanced laboratories and analytical expertise under one roof.
Underscoring the importance of biosimilars in modern healthcare, these therapeutic alternatives play a pivotal role in treating a range of serious medical conditions.
By driving competition and offering cost savings, biosimilars provide much-needed relief to global healthcare systems grappling with financial pressures.
Moreover, they significantly increase patient access to crucial medications, being typically 20%-40% more affordable than their original counterparts and requiring less expensive development due to their similarity to existing biologics.
The surge in biosimilar production and development aligns with Sandoz’s 2022 Act4Biosimilars initiative, aimed at achieving a 30% increase in biosimilar adoption across more than 30 countries by 2030.
In March 2023, Sandoz’s CEO, Richard Saynor, acknowledged that biosimilars are poised to experience double-digit growth annually over the next decade.
Presently, Sandoz boasts an impressive portfolio of eight marketed biosimilars, with an additional 24 molecules undergoing various stages of drug development.
This extensive dedication to biosimilars reinforces Sandoz’s commitment to advancing patient care and transforming the pharmaceutical landscape.
Meanwhile, in a unanimous decision, Novartis has officially endorsed the potential separation of Sandoz, with the ultimate goal of creating an independent organization through a 100 percent spin-off.
This momentous move, expected to materialize towards the end of this year, is subject to certain conditions, including obtaining necessary approvals for the listing of Sandoz shares and avoiding any material adverse changes.
As Sandoz emerges as a fully independent entity, it will be headquartered in Basel, Switzerland, and listed on the SIX Swiss Exchange and American Depositary Receipt (ADR) program in the US, marking a significant step towards reshaping the future of biosimilars on a global scale.
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