Replies to post #132484 on Biotech Values

[DewDiligence]

The BIIB-Samsung FoB collaboration now has a formal name: Samsung Bioepis:

http://www.financialpost.com/markets/news/Samsung+Biologics+Biogen+Idec+Announce+Formation+Biosimilars+Joint/6218672/story.html

As one would expect, there is no pubic information regradng which FoB’s the companies plan to develop.

[DewDiligence]

Samsung says its FoB’s will be priced at about half the prevailing prices of the corresponding branded drugs in developed markets:

http://www.ft.com/intl/cms/s/0/8d0f2320-86ed-11e1-ad68-00144feab49a.html

Samsung does not specify the geographies in which the purported 50% “discount” will apply, so this information is not especially useful for market-calibration purposes. Still, I thought it was worth mentioning insofar as it’s the first prediction of such a steep discount I’ve seen from one of the prospective participants in the FoB arena.

Sansung inked an FoB partnership with BIIB in Dec 2011 (#msg-69629103). The joint venture is called Samsung Bioepis (#msg-72636262).

[DewDiligence]

BIIB/Samsung* will develop anti-TNF FoB’s in Europe:

http://finance.yahoo.com/news/biogen-idec-samsung-bioepis-announce-070000638.html

Although this PR doesn’t specify which anti-TNF FoB’s are under development, clinicaltrials.gov shows trials in progress for Remicade and Enbrel biosimilars.

See #msg-74411298 for information about pricing of these products.

Curiously, MRK is not mentioned in this PR even though it joined up with Samsung Bioepis in Feb 2013 (#msg-84781042).

*d/b/a Samsung Bioepis.

[DewDiligence]

BIIB doubles down on biomiliars—buying out a portion of Samsung’s share of the JV established in 2011:

https://www.globenewswire.com/news-release/2019/11/06/1942012/0/en/Biogen-to-Expand-Biosimilars-Portfolio-and-Gain-Access-to-Additional-Markets-Through-New-Transaction-with-Samsung-Bioepis.html

Biogen…today announced a new proposed transaction with Samsung Bioepis Co., Ltd. to secure the exclusive rights to commercialize two new ophthalmology biosimilars, SB11 referencing Lucentis and SB15 referencing Eylea , in major markets worldwide, including the U.S., Canada, Europe, Japan and Australia.

In addition, Biogen will acquire exclusive commercialization rights for its anti-TNF portfolio, including BENEPALI (etanercept), FLIXABI (infliximab) and IMRALDI (adalimumab), in China. Biogen will also acquire an option to extend its existing commercial agreement with Samsung Bioepis for this anti-TNF portfolio in Europe.

…Biogen will make a $100 million upfront payment to Samsung Bioepis. Additionally, Biogen may pay Samsung Bioepis up to $210 million in additional development, regulatory and sales-based milestones. Samsung Bioepis will be responsible for development and will supply both products [i.e. Lucentis and Eylea] to Biogen at a pre-specified gross margin.

Biogen will also obtain an option to extend the term of its current European commercial agreement for its three anti-TNF biosimilars by an additional five years, subject to payment of an option exercise fee of $60 million.

That’s a lot of moving parts!

Note: This PR was issued on 11/6/19.

[DewDiligence]

BIIB sells stake in Samsung-Bioepis biosimilar JV for $2.25B:

https://www.globenewswire.com/news-release/2022/01/27/2374805/0/en/Biogen-Reaches-Agreement-with-Samsung-Biologics-to-Sell-Equity-Stake-in-Their-Biosimilar-Joint-Venture-for-up-to-2-3-billion.html

The JV was created a little more than ten years ago.