Merck Announce the Divestment Of Its Biosimilars Business to Fresenius

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Divestment major step towards strategic alignment of R&D resources to Healthcare priorities
Wednesday, April 26th, 2017
merck

Belen Garijo (CEO Healthcare of Merck)

merck2

Stefan Oschmann (CEO of Merck)

Merck, announced on April 24 that the divestment of its Biosimilars business to Fresenius.
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 for 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.
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 Merck into a science and
technology company,” said Stefan Oschmann, Chairman of the Executive Board and
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 prioritize
innovative drug development of high quality and first-to-market best-in-disease
assets,” commented Belén Garijo, member of the Executive Board of Merck and CEO
Healthcare: “The partnership with Fresenius will allow us to exploit our Biosimilars
portfolio to full potential while granting Merck a substantial return on prior
investments.”

“Biosimilars are a fast-growing segment within the pharmaceutical market. Some of
the largest biological branded products will go off patent over the next years. 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,” emphasized Mats Henriksson,
CEO of Fresenius Kabi.

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.

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