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Sandoz Reinforces Biosimilar Pipeline with Henlius Collaboration Deal

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Sandoz Reinforces Biosimilar Pipeline with Henlius Collaboration Deal

Sandoz Group (SDZ.SW) is strengthening its pipeline of biosimilar medicines by signing an expanded collaboration agreement with biopharmaceutical company Shanghai Henlius Biotech, covering up to 10 biosimilars.

Under the terms of the milestone-based deal, which has a total consideration of up to $322 million, the Swiss drugmaker gains global commercialization rights for agreed biosimilars outside China. Near-term payments associated with the initially agreed assets is expected to reach up to $100.5 million, the companies said in separate Monday statements.

The initial assets include a proposed cetuximab biosimilar for metastatic colorectal cancer and squamous cell carcinoma of the head and neck, and a proposed evolocumab biosimilar aimed at treating hypercholesterolemia.

A planned belimumab biosimilar, which is in early development, for treating systemic lupus erythematosus and lupus nephritis is also among the assets included, alongside an option for a recombinant human hyaluronidase.

The proposed cetuximab is currently under clinical development, while the evolocumab biosimilar and recombinant human hyaluronidase are in technical development.

Sandoz noted that the strategic partnership will bring the number of assets in its biosimilar pipeline to 39, potentially rising to up to 46. The companies also have an existing global collaboration deal for oncology therapy ipilimumab.

"We see the agreement with Henlius as a positive step to further expanding the biosimilar pipeline. The agreement includes biosimilars of Erbitux (cetuximab), Benlysta (belimumab) and Repatha (evolocumab), which cover near-term LoEs with limited visible biosimilar competition. This agreement with Henlius in combination with its agreement in March with Samsung demonstrates Sandoz's leading position as a commercialisation partner in biosimilars," RBC Capital Markets analysts said in a quick take note, highlighting that the included assets are "attractively positioned" on the market.

As of midday Monday, the stock was trading nearly 4% higher in Zurich.

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