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Germany's Merck plans divestment of biosimilars business

Merck has a strategic alliance with India's Dr Reddy's Labs to co-develop multiple cancer drugs

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BS B2B Bureau Darmstadt, Germany

Last Updated : Mar 14 2017 | 12:42 PM IST

Merck KGaA, the German firm that specialises in chemical, pharmaceutical and life sciences sectors, is planning to divest its biosimilars business. “Merck is in advanced stages of negotiations to divest the biosimilars business and the transaction is expected to close in 2017,” said the company in its 2016 annual report. Biosimilar unit comes under Merck’s healthcare business vertical, which also comprises biopharma, consumer health and Allergopharma businesses.

Biosimilars are a small, but fast-growing part of the pharmaceutical market. In 2016, biosimilars sales are expected to reach $ 1.4 billion annually before growing to $ 8 billion in 2022, according to EvaluatePharma.

Merck is developing a biosimilars portfolio focused on oncology and autoimmune diseases through both in-house research and development expertise in biologics and partnerships with other biosimilar players. It has strategic alliances with India’s Dr Reddy’s Laboratories to co-develop multiple cancer drugs and with Bionovis in Brazil to supply the Brazilian market with biological products under the Productive Development Partnership (PDP) policy of the Brazilian Ministry of Health.

With Dr Reddy’s, Merck signed a partnership agreement in June 2012 to co-develop a portfolio of biosimilar compounds in oncology, primarily focused on monoclonal antibodies (MAbs). As per the pact, Dr Reddy’s was expected to lead early product development & complete phase I development, with Merck taking over manufacturing of the compounds and leading phase III development.