Fresenius Kabi Expands its Generics and Biosimilars Businesses

The company is investing $5.5 Billion towards the growth.

Pharmaceutical company Fresenius Kabi, a subsidiary of Fresenius SE & Co. KGaA headquartered in Bad Homburg, Germany, agreed to spend approximately $5.5 billion to purchase specialty generic pharmaceutical company Akorn (Lake Forest, Illinois) and the biosimilars business of Merck KGaA. 

Akorn, which has a broad range of prescription and over-the-counter products, ophthalmic and respiratory drugs in many delivery formats and a pipeline with a QuintilesIMS market value of $9.3 billion, will be acquired for $4.75 billion. Fresenius Kabi will also supplement its contract sterile manufacturing services offering with this purchase. The deal is subject to regulatory review and approval by Akorn’s shareholders but is expected to close in early 2018.

Fresenius Kabi is also paying $733 million for Merck KGaA’s biosimilars business (located in Switzerland), including $186 million upfront and $547 million in milestone payments, plus a single-digit percentage royalties on future product sales. The business comes with annual sales of ~$30 billion and several products under development, largely for the treatment of oncology and inflammatory disorders. Also as part of the deal, the two companies agreed to participate in supply and service agreements, including drug development support and manufacturing. This transaction is expected to be finalized in the second half of 2017 once it receives regulatory approval.

 

Nigel Walker

Mr. Walker is the founder and managing director of That’s Nice LLC, a research-driven marketing agency with 20 years dedicated to life sciences. Nigel harnesses the strategic capabilities of Nice Insight, the research arm of That’s Nice, to help companies communicate science-based visions to grow their businesses. Mr. Walker earned a bachelor’s degree in graphic design with honors from London College.