Sandoz plans ‘vast and vertically integrated’ supply chain to support 100-biosimilar vision
The company is investing billions of dollars to construct a European biosimilar hub capable of supporting the rapid expansion of its portfolio.
News Drug Delivery Sandoz plans ‘vast and vertically integrated’ supply chain to support 100-biosimilar vision September 9, 2026 | 2 min read | Nick Paul Taylor Twitter LinkedIn Facebook Email Print The company is investing billions of dollars to construct a European biosimilar hub capable of supporting the rapid expansion of its portfolio. Sandoz has committed to building a “vast and vertically integrated” manufacturing network to support its goal of bringing more than 100 biosimilars to market by 2040.CEO Richard Saynor outlined the strategy at an investor day Tuesday, explaining how Sandoz will invest about $1 billion to build “a leading, fully integrated European biosimilar hub.” In its latest move, Sandoz is investing $300 million to build a new biosimilar drug substance facility in Ljubljana, Slovenia.Armin Metzger, president of biosimilar development, manufacturing and supply at Sandoz, told investors how the new plant will fit into the company’s network once it comes online in 2029. The disposable fed-batch Slovenia plant will have 8,000 liters of biologic drug substance capacity to support low- to medium-volume production.Sandoz will produce its highest-volume products at a separate site in Lendava, Slovenia, where the company is scheduled to complete construction of a stainless steel drug substance center this year.
The company aims to open its $440 million sterile product manufacturing plant in Brnik, Slovenia, in 2028. The Slovenian sites are supported by operations elsewhere in Europe. Sandoz will perform continuous manufacturing in Toulouse, France, to “provide higher yields for appropriate molecules,” Metzger said.
A site in Holzkirchen, Germany, will handle analytical characterization, clinical bioanalytics and bioassay development, while Sandoz will develop drug delivery devices at a facility in Cambridge, U.K. Manufacturing Sandoz inks $322M Henlius deal for rights to as many as 10 biosimilars The initial batch of biosimilars includes copies of Amgen, Eli Lilly and GSK drugs that collectively generate billions of dollars in annual revenues. August 18, 2026 · 2 min read · Nick Paul Taylor Read more Sandoz expects capital expenditure to hit $1.1 billion this year and stay at a similar level in the midterm, CFO Remco Steenbergen said at the investor event.
Steenbergen estimated that Sandoz’s goal of bringing 100 biosimilars to market by 2040 will cost up to $2.5 billion over the next five years, with manufacturing accounting for around one-third of the additional spending. Biosimilar development accounts for the rest of the planned outlay.Metzger made the case for the investment in manufacturing, arguing that it will lower costs, increase supply flexibility and make Sandoz’s network “geopolitically resilient.” The executive framed the benefits as a way to achieve “greater competitiveness in pricing and access.”Sandoz currently largely outsources biosimilar development and manufacturing, which Metzger said is the case for “many other industry players.” Having made none of its biosimilars in-house when it split from Novartis in 2023, Sandoz aims to produce 60% of its products internally following the expansion of its manufacturing network, Metzger said.The company is investing in in-house manufacturing capacity ahead of an anticipated steep ramp in the size of its biosimilar portfolio amid the loss of exclusivity on branded blockbusters. Sandoz has launched 13 biosimilars since 2006, Chief Commercial Officer Rebecca Guntern told investors.
The company aims to launch 17 biosimilars in the next five years and have a portfolio of 70 products by 2035. Twitter LinkedIn Facebook Email Print Manufacturing Europe Nick Paul Taylor Nick is a freelance writer who has been reporting on the global life sciences industry since 2008.
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