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Fresenius Kabi acquires Merck KGaA’s biosimilars business Posted 15/09/2017

Fresenius Kabi, one of the independently operated business segments of global healthcare group Fresenius, announced on 1 September 2017 that it had ‘successfully closed the acquisition of Merck KGaA’s biosimilars business’.

The Germany-based company has acquired the entire development pipeline of Merck KGaA’s biosimilars, along with employees located in Aubonne and Vevey, Switzerland, for Euros 656 million. The sum of Euros 156 million was paid on closing of the deal and the remaining up to Euros 500 million is made up of milestone payments, which are linked to achievement of development targets in the coming years.

Fresenius Kabi had previously said that it would pay Euros 170 million upfront [1] but said that the reduction was related to R & D expenditures between signing and closing the acquisition.

Merck KGaA invested around Euros 100 million in biosimilars in 2014 [2], followed by an additional US$130–150 million in biosimilars in 2015 [3].  Despite its investments and a deal with India-based generics manufacturer Dr Reddy’s Laboratories to co-develop biosimilars [4] the company decided to divest its biosimilars business in 2016 [5]. Merck KGaA has a phase III trial ongoing for its adalimumab biosimilar (MSB11022), which is expected to be completed in September 2017 [6].

Fresenius Kabi has stated that ‘all clinical studies for the product pipeline are on track’ and that it expects to ‘break-even’ on the transaction in 2022, with significant net income from 2023 onwards.

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References
1. GaBI Online - Generics and Biosimilars Initiative. Fresenius Kabi to acquire Akorn and Merck KGaA’s biosimilars business [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2017 Sep 15]. Available from: www.gabionline.net/Pharma-News/Fresenius-Kabi-to-acquire-Akorn-and-Merck-KGaA-s-biosimilars-business
2. GaBI Online - Generics and Biosimilars Initiative. Merck KGaA to invest Euros 100 million in biosimilars [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2017 Sep 15]. Available from: www.gabionline.net/Biosimilars/News/Merck-KGaA-to-invest-Euros-100-million-in-biosimilars
3.    GaBI Online - Generics and Biosimilars Initiative. Merck KGaA plans further investment in biosimilars [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2017 Sep 15]. Available from: www.gabionline.net/Biosimilars/News/Merck-KGaA-plans-further-investment-in-biosimilars
4.    GaBI Online - Generics and Biosimilars Initiative. Merck KGaA and Dr Reddy’s to collaborate on biosimilar mAbs [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2017 Sep 15]. Available from: www.gabionline.net/Biosimilars/News/Merck-KGaA-and-Dr-Reddy-s-to-collaborate-on-biosimilar-mAbs
5.    GaBI Online - Generics and Biosimilars Initiative. Merck KGaA to sell off biosimilars business [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2017 Sep 15]. Available from: www.gabionline.net/Pharma-News/Merck-KGaA-to-sell-off-biosimilars-business
6.    GaBI Online - Generics and Biosimilars Initiative. Merck Group starts phase III trial for adalimumab biosimilar [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2017 Sep 15]. Available from: www.gabionline.net/Biosimilars/News/Merck-Group-starts-phase-III-trial-for-adalimumab-biosimilar

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Source: Fresenius Kabi

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