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28 April 2017Biotechnology

Merck to divest biosimilars arm to Fresenius Kabi

Merck will divest its biosimilars business to Fresenius Kabi in order to focus on innovative drugs.

According to a statement released on Monday, April 24, Merck will receive an upfront payment of €170 million ($185 million) and milestone payments of up to €500 million.

Merck will also receive royalties on future product sales.

Stefan Oschmann, CEO of Merck, said: “Developing and marketing innovative products and services are at the forefront of our group strategy and all the business strategies.”

Mats Henriksson, Fresenius CEO, said: “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.”

He added that with this acquisition, Fresenius enhances its position as a player in the injectables pharmaceutical market and further diversifies its product portfolio.

The agreement is expected to close in the second half of 2017.

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