Merck sells its biosimilars business Fresenius

Merck sells biosimilars business to Fresenius

10:11 AM, 25th April 2017
Stefan Oschmann, CEO of Merck.
Stefan Oschmann, CEO of Merck.

DARMSTADT, GERMANY: Merck said that it has sold its biosimilars business to Fresenius Kabi AG, a pharmaceutical company in Germany and a wholly owned subsidiary of the Fresenius SE & Co KGaA healthcare group.

The decision to divest biosimilars is aligned with Merck’s strategy for its healthcare business sector to focus on its pipeline of innovative medicines.

According to the terms agreed to the transaction, Merck 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. The closing of the deal is expected in the second half of 2017.

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

“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 Merck into a science and technology company,” said Stefan Oschmann, CEO of Merck.

“The divestment of our Biosimilars business is a major step towards strategically aligning our R&D resources to Merck's healthcare priorities. We have increasing confidence in our Biopharma pipeline and this transaction will help prioritise innovative drug development of high quality and first-to-market best-in-disease assets,” said Belen Garijo, CEO, healthcare, Merck.

“With this acquisition, Fresenius Kabi enhances its position as a leading player in the injectables pharmaceutical market and further diversifies its product portfolio. The acquisition creates a platform for further growth,” added Mats Henriksson, CEO of Fresenius Kabi.

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