The details are still a bit fuzzy, but it’s clear that sooner or later generic biotech drugs are coming to the U.S. Big Pharma knows this, and has been angling to get into the game. U.S. generics makers know it too — as evidenced by today’s deal between Mylan, a generics shop based in Pennsylania, and Biocon, an Indian biotech company.
[ad]
Making biotech drugs — even generic ones, known in the business as follow-on biologics — is way more complicated than churning out traditional medicines. So it makes sense that Mylan, which is an expert in making generic copies of traditional drugs, would partner with an outside firm that focuses on biotech. By the same token, cracking the market for generic biotechs in the developed world might also be tricky — so it makes sense that an Indian firm might want a U.S. partner.
The companies didn’t disclose specific financial terms in their statement, but here’s the gist:
Mylan and Biocon will share development, capital and certain other costs to bring products to market. Mylan will have exclusive commercialization rights in the U.S., Canada, Japan, Australia, New Zealand and in the European Union and European Free Trade Association countries through a profit sharing arrangement with Biocon. Mylan will have co-exclusive commercialization rights with Biocon in all other markets around the world.
[ad]
They’ll have plenty of competition from big pharma. Merck is creating its own generic biotech arm, using the know-how of a biotech company it acquired a few years back. Novartis, an old hand in traditional generics, is already getting into follow-on biologics. And AstraZeneca’s CEO has mulled making the leap as well.
Source: The Wall Street Journal
Popularity: 2% [?]
