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Merck sells biosimilars business to Fresenius to focus on innovative drugs

Merck to receive upfront payment of € 170 mn & milestone payments of up to € 500 mn on future sales

BS B2B Bureau  |  Darmstadt, Germany 

Stefan Oschmann, chairman & CEO of Merck
Stefan Oschmann, chairman & CEO of
Merck

Germany-based science and technology company has divested its business to Kabi as part of Merck’s strategy for its business to focus on the pipeline of innovative medicines.

As per the agreement, will receive an upfront payment of € 170 million, milestone payments of up to € 500 million plus royalties on future product sales. The parties agreed to enter into supply and services agreements, which include drug development support and manufacturing services. Closing is expected in the second half of 2017, subject to regulatory approvals and other customary closing conditions.

“Developing and marketing innovative products and services are at the forefront of our group strategy and all the business strategies. Today’s step reflects our ambition to resolutely continue the transformation of into a science and technology company,” commented Stefan Oschmann, chairman of the executive board and CEO of

Belen Garijo, member of the executive board of and CEO healthcare, added, “The divestment of our business is a major step towards strategically aligning our R&D resources to Merck's priorities. We have increasing confidence in our pipeline and this transaction will help prioritise innovative drug development of high quality and first-to-market best-in-disease assets. The partnership with will allow us to exploit our portfolio to full potential while granting a substantial return on prior investments.”

are a fast-growing segment within the market. Some of the largest biological branded products will go off patent over the next years. “With this acquisition, Kabi enhances its position as a leading player in the injectables market and further diversifies its product portfolio. The acquisition creates a platform for further growth,” emphasised Mats Henriksson, CEO of Kabi.

The unit is part of the business of and is located in Aubonne and Vevey in Canton de Vaud, Switzerland. The business is developing a portfolio focused on oncology and inflammatory disorders. After completion of the transaction the unit will continue to operate in these locations.

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Merck sells biosimilars business to Fresenius to focus on innovative drugs

Merck to receive upfront payment of € 170 mn & milestone payments of up to € 500 mn on future sales

Merck to receive upfront payment of € 170 mn & milestone payments of up to € 500 mn on future sales
Germany-based science and technology company has divested its business to Kabi as part of Merck’s strategy for its business to focus on the pipeline of innovative medicines.

As per the agreement, will receive an upfront payment of € 170 million, milestone payments of up to € 500 million plus royalties on future product sales. The parties agreed to enter into supply and services agreements, which include drug development support and manufacturing services. Closing is expected in the second half of 2017, subject to regulatory approvals and other customary closing conditions.

“Developing and marketing innovative products and services are at the forefront of our group strategy and all the business strategies. Today’s step reflects our ambition to resolutely continue the transformation of into a science and technology company,” commented Stefan Oschmann, chairman of the executive board and CEO of

Belen Garijo, member of the executive board of and CEO healthcare, added, “The divestment of our business is a major step towards strategically aligning our R&D resources to Merck's priorities. We have increasing confidence in our pipeline and this transaction will help prioritise innovative drug development of high quality and first-to-market best-in-disease assets. The partnership with will allow us to exploit our portfolio to full potential while granting a substantial return on prior investments.”

are a fast-growing segment within the market. Some of the largest biological branded products will go off patent over the next years. “With this acquisition, Kabi enhances its position as a leading player in the injectables market and further diversifies its product portfolio. The acquisition creates a platform for further growth,” emphasised Mats Henriksson, CEO of Kabi.

The unit is part of the business of and is located in Aubonne and Vevey in Canton de Vaud, Switzerland. The business is developing a portfolio focused on oncology and inflammatory disorders. After completion of the transaction the unit will continue to operate in these locations.

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Business Standard
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Merck sells biosimilars business to Fresenius to focus on innovative drugs

Merck to receive upfront payment of € 170 mn & milestone payments of up to € 500 mn on future sales

Germany-based science and technology company has divested its business to Kabi as part of Merck’s strategy for its business to focus on the pipeline of innovative medicines.

As per the agreement, will receive an upfront payment of € 170 million, milestone payments of up to € 500 million plus royalties on future product sales. The parties agreed to enter into supply and services agreements, which include drug development support and manufacturing services. Closing is expected in the second half of 2017, subject to regulatory approvals and other customary closing conditions.

“Developing and marketing innovative products and services are at the forefront of our group strategy and all the business strategies. Today’s step reflects our ambition to resolutely continue the transformation of into a science and technology company,” commented Stefan Oschmann, chairman of the executive board and CEO of

Belen Garijo, member of the executive board of and CEO healthcare, added, “The divestment of our business is a major step towards strategically aligning our R&D resources to Merck's priorities. We have increasing confidence in our pipeline and this transaction will help prioritise innovative drug development of high quality and first-to-market best-in-disease assets. The partnership with will allow us to exploit our portfolio to full potential while granting a substantial return on prior investments.”

are a fast-growing segment within the market. Some of the largest biological branded products will go off patent over the next years. “With this acquisition, Kabi enhances its position as a leading player in the injectables market and further diversifies its product portfolio. The acquisition creates a platform for further growth,” emphasised Mats Henriksson, CEO of Kabi.

The unit is part of the business of and is located in Aubonne and Vevey in Canton de Vaud, Switzerland. The business is developing a portfolio focused on oncology and inflammatory disorders. After completion of the transaction the unit will continue to operate in these locations.

image
Business Standard
177 22