Evotec Shares Jump After Sandoz Partnership Agreement
By Cecilia Butini
Shares in Evotec rose in early trading on Wednesday after the German biotechnology company said its Seattle-based subsidiary Just-Evotec Biologics would enter into a partnership with Novartis's Sandoz to develop and manufacture biosimilar medicines.
At 0747 GMT, Evotec shares were up 8.6% at EUR17.88.
The multiyear partnership agreement covers the development and manufacture of several biosimilar medicines and includes an option for expansion, Novartis said.
The partnership is an important validation of Just-Evotec Biologics, Jefferies analyst Peter Welford said in a note.
Evotec will receive a double-digit million dollar figure upfront and up to $640 million in future payments contingent on development progress, plus undisclosed milestones on commercial progress, the analyst said.
Importantly, Evotec could also receive future fee-for-service revenue plus royalties on biosimilars manufactured using its proprietary technology J.POD, Welford added.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
May 10, 2023 04:18 ET (08:18 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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