Sandoz will build a new biologics production plant in Slovenia to support the growing demand for biosimilar medicines globally. Credit: fernando zhiminaicela / Pixabay.

Sandoz, a division of Novartis, has signed a Memorandum of Understanding (MoU) for constructing a new biologics production plant in Lendava, Slovenia, to support the growing demand for biosimilar medicines worldwide.

The company intends to invest at least $400m in the new plant, supporting its aim to drive the future growth of its worldwide biosimilars portfolio.

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It represents one of the largest-ever global private-sector investments in the country and strengthens the company’s Europe-wide production network.

Sandoz CEO Richard Saynor said: “Biosimilar medicines increase access to cutting-edge biologic therapies for the patients who need them most.

“At Sandoz, we are determined to continue leading the way in driving access to these critical medicines.

“This investment underscores our ambition to be the sustainable global leader in biosimilars, a segment projected to grow double-digit annually over the next decade.”

Work on the new biologics production plant is expected to commence this year, and complete operations are scheduled to begin in late 2026.

Recently, the company unveiled a $52.8m (€50m) additional investment for expanding its antibiotics production network in Europe.

This brings Sandoz’s total new investment commitment made for the network to $264.1m (€250m).

Last month, Sandoz announced that the US Food and Drug Administration (FDA) accepted its biologics license application (BLA) for its proposed biosimilar denosumab.

Denosumab is indicated for treating various conditions, including osteoporosis in postmenopausal women and men with high fracture risk and treatment-induced bone loss.

The BLA covers all indications covered by the reference medicines, Prolia (denosumab) and Xgeva (denosumab).