Fresenius SE agreed to partner with Chinese contract drug developer Wu Xi Biologics on biosimilar candidates that could reach the market in the next decade, potentially more than doubling its current portfolio of 29 molecules. The deal covers up to 37 molecules under a 'pay as you go' structure, adding to Fresenius's existing biosimilar lineup. Unlike generics, biosimilars are imitations of complex biological medicines.
The partnership comes as a wave of drug patents expire, creating opportunities for biosimilar makers such as Sandoz Group AG. Under CEO Michael Sen, Fresenius sees biosimilars as a key growth driver at its Kabi unit, which also includes medical nutrition and devices. Union Investment portfolio manager Markus Manns called the deal 'strategically significant,' saying it positions Fresenius to 'become one of the leading biosimilars providers alongside Sandoz from 2030 onward.' Wu Xi Biologics, spun off from Wuxi App Tec in 2017, has stepped up its focus on biosimilars this year.
Sen addressed concerns about Wu Xi App Tec's listing on a US Pentagon list, confirming Wu Xi Biologics is separately listed. Fresenius built flexibility into the deal and could halt programs if necessary.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing